Global OTDR Market Projected to Experience Significant Growth by 2027, With Estimated Value of USD 76.43 Million

Posted  by GoPhotonics


Technavio recently published a report on, “Optical Time Domain Reflectometer (OTDR) Market by End-user, Type, and Geography - Forecast and Analysis 2023-2027". According to the report, the Optical Time Domain Reflectometer (OTDR) Market size is estimated to grow at a CAGR of 5.51% between 2022 and 2027. The market size is forecast to increase by USD 76.43 million.

Increasing demand for tier-2 certification standards is a key factor driving market growth. For networks of communication within organizations, optical fibers are becoming a core network. Several companies choose to switch from copper cabling to fiber cables for a variety of reasons including the fact that there is lower attenuation, higher return on investment, and support for large bandwidth applications. The installation must be tested and certified to ensure the reliability and worth of the network when it has been set up with a fiber optic cable. The Tier-2 testing is performed by the OTDR, which measures the total optical loss due to reflections in the link, such as reflections from the fiber itself (Rayleigh backscatter) and link components, such as the head and splice (Fresnel reflector) to calculate the overall link loss. Hence, these factors are expected to drive market growth during the forecast period.

Market Challenge

The growing market for rental test equipment is a significant challenge restricting market growth. A substantial capital investment is required in a high-performance OTDR. The high average selling price (ASP) of high-end, application-specific OTDRs has driven demand for used and rental OTDRs for testing purposes. OTDRs, mainly used in fiber optic network deployments, have significant initial purchase costs. Therefore, to get a better total cost of ownership (TCO), companies are turning to the OTDR rental market, where they have access to these devices for a specific period will help them reduce costs. In addition, several companies in the market have cooperated with various companies to rent or lease measuring and testing equipment. Hence, these factors are expected to restrict market growth during the forecast period.

The optical time domain reflectometer (OTDR) market has been segmented by End-user (Telecommunication, Cable TV, Private enterprise network, Military, and Aerospace), Type (Full-feature OTDR, Hand-held OTDR, and Fiber break locator), and Geography (North America, Europe, APAC, South America, and Middle East and Africa).

  • The market share growth by the telecommunication segment will be significant during the forecast period. Telecommunications, also known as telecommunications, is the exchange of information over long distances. It is a general term that relates to different fields, but each is related to the sender and the receiver. This growth is driven by the increasing deployment of fiber optic cables to connect mobile stations and data centers. In addition, the growing use of FTTx applications has become an important driving force in the telecommunications sector, as they enable last-mile connectivity with fiber optic cables. Hence, these factors are expected to drive segment growth during the forecast period.
  • North America is estimated to contribute 30% to the growth of the global market during the forecast period.

Key Companies in the Optical Time Domain Reflectometer (OTDR) market:

Click here to read the research report titled, “Optical Time Domain Reflectometer (OTDR) Market by End-user, Type, and Geography - Forecast and Analysis 2023-2027 ".