Free Space Optics (FSO) is a line-of-sight (LOS) technology that uses directed laser beams, which provide optical bandwidth Transmitters and Receivers to link voice, video, and data intelligent transfer. A single FSO link product (from point A to point B) often may incorporate multiple transmitters along with receiver/s to ensure adequate performance, in case of interference.

This Company Executive White Paper provides an analysis and market consumption forecast of transmitter/receiver links used in non-military/aerospace stationary free space optical communication links. This report does not include all of the other parts that compose of the entire FSO system equipment, such as the mounting brackets, mux/demux, drivers, switches, amplifiers, wire/connectors, installation/service, etc.

The 2011-2017 forecast is presented for FSO Transmitter/Receiver link devices, segmented by distance and data-rate throughput, as detailed in Table 1. The forecast for each selected FSO link device, in turn, is segmented by geographic region:

· The Americas (North America, Central and South America)

· EMEA (Europe, Middle Eastern countries, plus Africa)

· APAC (Asia Pacific)

The market forecast data are segmented by the following functions:

· Consumption Value (US$, million)

· Quantity (number/units)

· Average Selling Prices (ASP $, each)

Free Space Optics: Market Forecast by Region According to Company, the worldwide consumption value of FSO Transmitter/Receiver Link Devices used in stationary non-military/ aerospace applications was $26.47 million in year 2011. EMEA held a slight lead in terms of relative market share in 2011; however, the American region is forecast to grab the lead next year (2013).

The increase in the consumption of FSO links in the America region will be attributed to not only continued upgrades and network facilitation in the United States and Canada, but also from the accelerating economic growth of major cities in Latin America. Other market dynamics in the American region are increases in communication links needed for growing infrastructures, such as mass transit, security systems, broadcast (TV) and telecommunications.

European inner-city urban areas typically are relatively difficult for wire-lines, including optical fiber cable installations; therefore, this fact promotes FSO or other wireless solutions.

The APAC region has advanced communication technology deployed especially in Japan; however, other countries, such as Australia, China and India, are not as advanced in campus-wide and metropolitan optical communication deployment. The APAC region has rapidly expanding market opportunities and therefore, our forecast shows the region with the fastest growth (2011-2017).

Proprietary Statement/Foreword
Introduction 1
Market Acceptance of Free Space Optics 2
Alternative Technical Redundancy 3
FSO Product Examples 3
Free Space Optics: Market Forecast by Region 11
Free Space Optics: Market Forecast by Link Length 12
Line of Sight Challenges 14
Common Use of Free Space Optic Links 14
Pros/Cons of FSO Implementation 15
Free Space Optics: Market Forecast by Data-Rate 16
FSO Competition: Analysis and Market Share Estimates 17
LAN/MAN/WAN Overview 25
Free Space optics Illustration 27
Bandwidth Demand Intensifies 29
Bandwidth Growth Driven by Transport Costs 31
Technology Life Cycle 32
Global Market Forecast 33
America Market Forecast 35
EMEA Market Forecast 36
APAC Market Forecast 37
Research Methodology Explanation 38

List of Figures

Short to Medium Range 10/100 Mbps Connectivity Free Space Optic Unit 3
Short to Medium Range Gigabit Connectivity Free Space Optic Unit 4
Long Range 10 Mbps to 1448 Mbps Connectivity Free Space Optic Unit 5
100 Mbps Fast Ethernet FSO Link 6
Carrier-Grade Gigabit Capacity/4-Beam Auto-Tracking FSO Link 8
25-156 Mbps/ 20-50 Meters FSO Link 9
Uncompressed HD-SDI Video FSO Link (1,000 Meters at 1.485 Gbps) 10
FSO System (2000–5000 meters) 21
FSO Transmitter/Receiver 2011 Competitive Market Share (%) Estimates 24
FSO Deployment Example (Full Duplex 1 Gbps Link) 27
Evolution of Research Emphasis During Technology Life Cycle 32
Company Market Research & Forecasting Methodology 40

List of Tables

Market Data Category List by Distance/Meters and by Throughput/Mbps 2
FSO Links in Non-Military/Aerospace Market Forecast, By Region ($ Million) 11
FSO Links in Non-Military/Aerospace Market Forecast, By Distance ($ Million) 13
FSO Links in Non-Military/Aerospace Market Forecast, By Distance (Quantity) 13
Free Space Optic Solutions: Pros and Cons 15
FSO 500 Meters or Less (Non-Military/Aerospace) Forecast, By Data-Rate 16
FSO More Than 500 Meters (Non-Military/Aerospace) Forecast, By Data-Rate 17
Migration or Upgrade Scenarios to Gigabit Ethernet 26
Global Market Forecast: Company Detailed Database 34
America Market Forecast: Company Detailed Database 35
EMEA Market Forecast: Company Detailed Database 36
APAC Market Forecast: Company Detailed Database