WELLESLEY, Mass., Aug. 12, 2014 — The global market for fiber optic sensors is expected to reach $2.2 billion by 2018, representing a compound annual growth rate (CAGR) of 4.5 percent since 2013, according to a BCC Research analysis.

The firm said the defense industry is the largest consumer in the market but is set to shrink, representing negative growth, due to spending cuts in the U.S. However, other fiber optic sensor applications should see a CAGR of 10.4 percent.

Medical applications show the greatest potential, but growth depends on regulatory approval for new devices, BCC said.

Fiber optic sensors “found a lucrative niche in the oil and gas market, as they opened an entire new revenue stream for service providers,” said BCC Research analyst Lori Weisenbach Cornett. “However, improvements in sensor robustness will be required for (fiber optic sensors) to realize their potential in this market.”

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