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Free Space Optics Communication Market Size & Share 2021 to 2027

Market Size by Platform (Terrestrial, Satellite, Airborne), by Application (Mobile Backhaul, Enterprise Connectivity, Disaster Recovery, Defense, Satellite) & Forecast.

Report ID: GMI3794
   |
Published Date: November 2021
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Report Format: PDF

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Free Space Optics Communication Market Size

Free Space Optics (FSO) Communication Market size exceeded USD 200 million in 2020 and is estimated to grow at over 35% CAGR from 2021 to 2027. Rising penetration of smartphones is influencing the industry growth spectrum. Favorable government initiatives to enable seamless adoption of IoT in different industry verticals will also largely assist the rapid deployment of FSO communication systems throughout the global landscape. The growing demand for high-speed broadband connectivity and increasing technological advancements across the telecom & military sectors are driving the market expansion.

Free Space Optics (FSO) Communication Market

The COVID-19 restrictions globally resulted in increasing adoption of the work-from-home trend which resulted in rising demand for strong data transition. Moreover, the COVID-19 pandemic positively impacted the FSO communication market demand due to a significant rise in the BYOD trend.
 

Free Space Optics Communication Market Analysis

Canada FSO Communication Market Size By Platform

The terrestrial platform segment in Canada held around 45% of the revenue share in 2020 owing to its advantages such as high-speed optical communications links that are deployed for data transmission from satellites to terrestrial sites. The National Information and Communication Technology (NICT) is developing a terrestrial free-space optical communication network called INNOVA for future airborne and satellite-based optical communication projects. For instance, various ground stations and environmental monitoring stations across Japan are used to explore the site diversity concept.
 

UK FSO Communication Market Share By Application

In the UK, satellite application is expected to witness growth rate of about 40% through 2027 driven by the growing need for Satellite-to-Satellite communication across various applications. FSO communication systems require few onboard satellite resources due to their smaller form factor and easy to integrate into satellite platforms. This beneficial advantage is anticipated to support the free space optics communication market growth. The increasing government spending on R&D activities across FSO communication technology is also fueling the regional industry statistics.
 

 North America FSO Communication Market Share By Country

North America is predicted to generate a revenue of above USD 1 billion by 2027 on account of rising digitalization that has enabled enterprises to expand the accessibility of their resources. Enterprises are deploying FSO communication systems for an extensive amount of data transmission. The increasing smartphone penetration, BYOD trend, and multiple government initiatives to accelerate digital transformation across enterprises are likely to spur the market revenue. The FSO communication technology is used across various applications such as mobile backhaul and satellite communication.
 

Free Space Optics Communication Market Share

Industry players are emphasizing on upgrading their product portfolios. For instance, in November 2021, Mostcom introduced a new free space optics equipment model, M1-GE-SL, that has features similar to M1-GE-L and will offer improved communication characteristics of up to 15 km. It includes several key features such as last-mile access, point-to-point links, services accelerations, and others.
 

Some of the major FSO communication market players include

  • ADVA
  • AIRLINX Communications, Inc.
  • Cailabs
  • CBL Communication by Light
  • Collinear Networks, Inc.
  • EC System
  • fSONA
  • Mostcom JSC
  • Mynaric AG
  • Plaintree
  • Redline Infrastructure
  • SA PHOTONICS, INC.

The market research report on free space optics (FSO) communication includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2016 to 2027 for the following segments:

Market, By Platform

  • Terrestrial
  • Satellite
  • Airborne

Market, By Application

  • Mobile Backhaul
  • Enterprise Connectivity
  • Disaster Recovery
  • Defense
  • Satellite
  • Others

The above information has been provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • UK
    • Germany
    • France
    • Italy
    • Spain
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • ANZ
  • Latin America
    • Brazil
    • Mexico
    • Argentina
  • MEA
    • South Africa
    • GCC

 

Authors:  Preeti Wadhwani, Aishvarya Ambekar

Research methodology, data sources & validation process

This report draws on a structured research process built around direct industry conversations, proprietary modelling, and rigorous cross-validation and not just desk research.

Our 6-step research process

  1. 1. Research design & analyst oversight

    At GMI, our research methodology is built on a foundation of human expertise, rigorous validation, and complete transparency. Every insight, trend analysis, and forecast in our reports is developed by experienced analysts who understand the nuances of your market.

    Our approach integrates extensive primary research through direct engagement with industry participants and experts, complemented by comprehensive secondary research from verified global sources. We apply quantified impact analysis to deliver dependable forecasts, while maintaining complete traceability from original data sources to final insights.

  2. 2. Primary research

    Primary research forms the backbone of our methodology, contributing nearly 80% to overall insights. It involves direct engagement with industry participants to ensure accuracy and depth in analysis. Our structured interview program covers regional and global markets, with inputs from C-suite executives, directors, and subject matter experts. These interactions provide strategic, operational, and technical perspectives, enabling well-rounded insights and reliable market forecasts.

  3. 3. Data mining & market analysis

    Data mining is a key part of our research process, contributing nearly 20% to the overall methodology. It involves analysing market structure, identifying industry trends, and assessing macroeconomic factors through revenue share analysis of major players. Relevant data is collected from both paid and unpaid sources to build a reliable database. This information is then integrated to support primary research and market sizing, with validation from key stakeholders such as distributors, manufacturers, and associations.

  4. 4. Market sizing

    Our market sizing is built on a bottom-up approach, starting with company revenue data gathered directly through primary interviews, alongside production volume figures from manufacturers and installation or deployment statistics. These inputs are then pieced together across regional markets to arrive at a global estimate that stays grounded in actual industry activity.

  5. 5. Forecast model & key assumptions

    Every forecast includes explicit documentation of:

    • ✓ Key growth drivers and their assumed impact

    • ✓ Restraining factors and mitigation scenarios

    • ✓ Regulatory assumptions and policy change risk

    • ✓ Technology adoption curve parameter

    • ✓ Macroeconomic assumptions (GDP growth, inflation, currency)

    • ✓ Competitive dynamics and market entry/exit expectations

  6. 6. Validation & quality assurance

    The final stages involve human validation, where domain experts manually review filtered data to identify nuances and contextual errors that automated systems might miss. This expert review adds a critical layer of quality assurance, ensuring data aligns with research objectives and domain-specific standards.

    Our triple-layer validation process ensures maximum data reliability:

    • ✓ Statistical Validation

    • ✓ Expert Validation

    • ✓ Market Reality Check

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Verified data sources

  • Trade publications

    Security & defense sector journals and trade press

  • Industry databases

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  • Regulatory filings

    Government procurement records and policy documents

  • Academic research

    University studies and specialist institution reports

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  • Trade data

    Import/export volumes, HS codes, and customs records

Parameters studied & evaluated

Every data point in this report is validated through primary interviews, true bottom-up modelling, and rigorous cross-checks. Read about our research process →

Frequently Asked Question(FAQ) :
What is the estimated valuation of FSO communication market?
The market size of free space optics communication surpassed USD 200 million in 2020 and will grow at around 35% CAGR between 2021 and 2027 on account of growing adoption of smartphones and high-speed broadband connectivity.
How big is North America free space optics (FSO) communication sector?
North America market is poised to garner USD 1 billion by 2027 owing to BYOD trend and robust government policies.
What is the prospect of satellite communication in U.K. FSO communication industry?
U.K. free space optics (FSO) communication industry from satellite application will observe more than 40% CAGR up to 2027 due to the investments in R&D activities.
Which are the key players in free space optics communication landscape?
CBL Communication by Light, AIRLINX Communications, Inc., Collinear Networks, Inc., Mostcom JSC, Redline Infrastructure, Mynaric AG and fSONA are some of the major companies in the market.
Free Space Optics Communication Market Scope
  • Free Space Optics Communication Market Size

  • Free Space Optics Communication Market Trends

  • Free Space Optics Communication Market Analysis

  • Free Space Optics Communication Market Share

Authors:  Preeti Wadhwani, Aishvarya Ambekar
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Premium Report Details:

Base Year: 2020

Companies Profiled: 14

Tables & Figures: 193

Countries Covered: 17

Pages: 196

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