The free space optics (FSO) communication market is anticipated to register exponential growth by 2027 owing to burgeoning need for high-speed and secure optical wireless communication.

Free space optics (FSO) communication systems transmit optical signals between transceivers that are in line-of-sight (LOS) using free space as a communication channel. The channel can be atmosphere, space, or vacuum, and its properties determine the transmission and reception of optical signals in order to create reliable and efficient communication systems. FSO systems can transmit data across long distances of many kilometers as long as there is a clear line of sight between the source and the destination.

FSO finds extensive applications across computer networking, telecommunication, military, defense, last mile access, communications between satellites/spacecraft, and point-to-point LOS links, among other sectors. Notably, mounting demand for last mile access has augmented market expansion in recent years.

Moreover, industry players have been implementing strategic initiatives to tap into emerging trends in the free space optics (FSO) communication market, which has positively impacted the global business dynamics. For instance, in June 2021, ADVA Optical Networking SE, a major telecommunications equipment company, launched its novel high capacity platform, dubbed the ADVA TeraFlex??? CoreChannel???. The TeraFlex??? CoreChannel??? has been designed to deliver 800G capacity, thereby enabling network operators to transport the highest data rates over thousands of kilometers across applications ranging from metro to core to ultra-long-haul submarine links.

The free space optics (FSO) communication market has been segmented on the basis of platform, application, and region. In terms of application, the market has further been divided into satellite, mobile backhaul, defense, enterprise connectivity, disaster recovery, and others.

The disaster recovery sub-segment is projected to witness substantial growth by 2027, progressing at a CAGR of more than 40% through the analysis period. This growth is attributed to escalating demand for improving communication services across disaster-prone areas.

In 2020, the defense sub-segment held a market share of about 15% and is slated to amass significant gains over the forecast timeline. Growing investment in the defense sector is set to propel segmental expansion over 2021-2027.

From the regional point of view, the Latin America free space optics (FSO) communication market is poised to reach a notable valuation by 2027, expanding at around 40% CAGR over the study timeframe. Mounting penetration of IoT devices in LATAM is estimated to augment regional market growth.

Meanwhile, the Middles East & Africa free space optics (FSO) communication market is expected to gain considerable traction by 2027, registering a CAGR of approximately 35% through the review period. Increasing investments in satellite communication activities are likely to boost product adoption in MEA over the following years.