Fiber Optic Sensors

SUMMARY

INTRODUCTION

STUDY GOALS AND OBJECTIVES

This BCC study analyzes the status of global markets for fiber optic sensors. Fiber optic sensors (FOSs) began as a by-product of optical fiber research and development. The first sensors were designed to measure the performance and status of an optical network. Optical networks transmit voice and data across the U.S. and around the world. The networks require constant monitoring to ensure signal transmission along the fibers in the network.

Faults or flaws along the length of the fiber affected the characteristic of the transmitted signal in measurable ways. Differences in temperature, strain, and pressure can be measured over long distances. The ability to multiplex a large number of wavelengths along a single fiber offers a means to gather a large amount of data from a single fiber.

With the ability to operate in harsh environments and imperviousness to electromagnetic interference, FOSs can be applied in conditions in which electronic sensors fail. The cost of FOS technology remains higher than electronic sensors, thus FOSs have penetrated only where the unique advantages of FOSs justify the higher expense, or in which they are the only option for the conditions.

This report considers market conditions and opportunities in regional areas around the globe. The report also considers the potential new applications that will emerge in the next 5 years. The slowing of the telecom sector has led to attempts to leverage the optical fiber sensor technology developed for one application into new applications.

Optical fiber sensors measure temperature; pressure, humidity, acceleration, and strain, and can operate in harsh conditions. This report considers the different types of sensor, what they can measure, and where they are used.

In addition to telecom applications, optical fiber sensors are used in oil and gas services, medicine, defense, and aerospace applications. Fiber optic sensors represent a disruptive technology within the oil and gas market, as they opened an entire new revenue stream for service providers.

Although familiarity with fiber sensor technology has increased and sensor prices have decreased, fiber sensors still find most application in areas where electronic sensors cannot compete. In cases in which fiber optic sensors attempt to replace existing electronic technology that meets the defined need adequately and for lower cost, the electronic option still dominates. Cost and unfamiliarity remain the primary barriers to fiber optic sensor growth into new applications.

This report provides a standard 5-year planning cycle and revenue estimates through 2014. It defines product segments for optical coating technology categories, analyzes technology options, and determines current application markets as well as likely future opportunities.

Additionally, this report defines and graphically analyzes these fiber optic sensor markets from many perspectives, categorizes and profiles the companies involved, defines unique nomenclature, and details policy organizations, conferences, authors, and consortiums.

REASONS FOR DOING THE STUDY

The world has benefited immensely from the development of electronic technology and sensors. But electronics have several inherent limitations in terms of ultimate speed of function and environmental limitations on performance. Optical technologies offer the promise of faster speeds and the ability to operate under harsher conditions. However, before an optical revolution can occur, supporting technologies such as sensors must be developed.

Fiber optic sensor technology represents a critical feedback technology that will be applied in optical devices and systems, existing and yet to be developed. As sensing options increase, engineers and developers will be able to make all optical systems a future reality. Sensors may not be the most buzz-worthy market, but they are essential.

INTENDED AUDIENCE

This report is a complete market information source for serious players in the fiber optical sensors marketplace. Network system integrators will use this report to assess the status of the fiber optic sensor market in order to identify suppliers and systems integrators, and forecast the future markets.

Market managers will be able to assess the competition and identify customers and new suppliers for components. Management consultants will determine whether companies divest or invest in fiber optic technology based in part on the market projections, competitive strengths, and development issues revealed in this report.

Equipment managers will develop or modify existing products to address the fiber optic technology manufacturing concerns discussed in this report. Material suppliers will identify market opportunities and new customers based on the study's projected growth in applications.

Venture capital managers will identify targets for investments, mergers, or acquisition based on companies identified and described in this report. Strategic planners will identify other companies with critical strains to strategically partner with so they can share in the overall fiber optic technology growth as projected in this report.

SCOPE OF REPORT

This BCC business opportunity report covers, with a critical eye, the global fiber optic sensors marketplace. It focuses particularly on the markets and opportunities for fiber optic sensors in telecommunications, oil and gas exploration and drilling, medical, and industrial markets. The study considers future opportunities for new application markets.

This study is presented in easy-to-follow sections that overview this subject, define the technology, segment the market by product type and application, profile companies, and identify suppliers. All dollar amounts are expressed in current 2008 U.S. dollars.

INFORMATION SOURCES

Materials and data presented in this report were obtained from telephone interviews with marketing and engineering personnel at the major companies profiled, as well as from catalogs, the Internet, patterns, and the literature search of current articles related to optical fiber sensors technology.

The analysis and conclusions presented in this study are the result of significant research into both producers and users of fiber optic sensor technology, based on both primary and secondary research sources.

TABLE OF CONTENTS

Chapter-1: SUMMARY 2

• SUMMARY TABLE U.S. MARKET FOR FIBER OPTIC SENSORS, BY SEGMENT, THROUGH 2014 ($ MILLIONS) 5
• SUMMARY FIGURE U.S. MARKET FOR FIBER OPTIC SENSORS, BY TYPE, 2007 - 2014 ($ MILLIONS) 6

Chapter-2: OVERVIEW 10

• INDUSTRY DEFINITION 7
• IMPORTANCE OF THE INDUSTRY 7
• CONCEPTS IN THE INDUSTRY 8
• Consolidation 8
• Vertical Integration 8
• Long Development Lifetime 9
• HISTORY 9
• TABLE 1 BRIEF HISTORY OF FIBER OPTIC SENSORS 10
• FIBER OPTIC GYROSCOPES 10
• TELECOMMUNICATIONS DRIVES DEVELOPMENT 10
• DEFENSE APPLICATIONS SPUR RESEARCH 11
• EXTENDING DRILLERS REACH 11
• SURGICAL MINIATURIZATION 12
• GOVERNMENT REGULATIONS 12
• BIOMEDICAL 12
• PETROCHEMICAL 12
• FUTURE DEVELOPMENTS 13
• EXISTING MARKETS 13
• TABLE 2 EXISTING MARKETS FOR FIBER OPTIC SENSORS 13
• Petrochemical 13
• Medical 14
• Security 14
• Military/Aerospace 14
• Structural 14
• Industrial 15
• NEW MARKETS 15
• Infrastructural Monitoring 15
• Lighting 15
• Lighting (Continued) 16

Chapter-3: TECHNOLOGY 13

• TYPES OF SENSORS 17
• TABLE 3 TYPES OF SENSORS COVERED IN THIS REPORT 17
• FABRY-PEROT INTERFEROMETERS 17
• FIBER OPTIC GYRO 18
• FIBER BRAGG GRATING 18
• Fiber Bragg Grating (Continued) 19
• Long Period Grating 20
• BROUILLON/RAMAN 20
• COATED FIBER SENSORS 21
• ADVANTAGE OF FIBER OPTIC SENSORS 21
• TABLE 4 CHARACTERISTICS OF FOS 21
• NO ELECTROMAGNETIC INTERFERENCE 21
• SMALL SENSING ELEMENTS 22
• ENVIRONMENTAL RUGGEDNESS 22
• MULTIPLEXING OF SIGNALS 22
• SECURITY 22
• DISADVANTAGES OF FIBER OPTIC SENSORS 22
• TABLE 5 DISADVANTAGES OF FOS 23
• WEIGHT CONSIDERATIONS 23
• COST 23
• ENVIRONMENTAL SENSITIVITY 24
• PATENT ANALYSIS 24
• PATENT PORTFOLIOS OF MAJOR COMPANIES 24
• TABLE 6 PATENTS GRANTED TO MAJOR COMPANIES (PATENTS ISSUED BETWEEN 1976 AND JUNE 2008) 25
• Oil and Gas 25
• Military 26
• Medical 26
• Other 27
• PATENTS BY COUNTRY 27
• TABLE 7 PATENTS BY COUNTRY (PATENTS ISSUED BETWEEN 1976 TO JUNE 2008) 27
• PATENTS BY YEAR OF ISSUANCE 28
• TABLE 8 FOS RELATED PATENTS ISSUED BY YEAR (NUMBER THROUGH JUNE 2008) 28
• FIGURE 1 FOS RELATED PATENTS ISSUED BY YEAR (THROUGH JUNE 2008) 29
• PATENTS BY TECHNOLOGY TYPE 29
• TABLE 9 PATENTS BY PRODUCT TYPE (THROUGH JUNE 2008) 29

Chapter-4: MARKETS BY SENSOR TYPE 12

• FORECAST ASSUMPTIONS 30
• Prices 30
• Pricing Trends 31
• TABLE 10 GLOBAL VALUE OF FOS MARKET BY PRODUCT, THROUGH 2014 ($MILLIONS) 32
• FIGURE 2 TOTAL GLOBAL VALUE OF FOS MARKET BY PRODUCTS, 2007-2014 ($ MILLIONS) 32
• FIBER BRAGG GRATING (FBG) SENSORS 32
• FIGURE 3 GLOBAL VALUE OF FBG SENSORS, 2007-2014 ($ MILLIONS) 33
• Growth Drivers and Inhibitors 34
• TABLE 11 MARKET FOR FBG SENSORS, 34
• Oil and Gas Services 34
• Defense 34
• Industrial 35
• Structural 35
• FABRY-PEROT SENSORS 35
• TABLE 12 APPLICATION MARKETS FOR FABRY-PEROT FIBER SENSORS 36
• Medical 36
• Structural 36
• Industrial 36
• FIGURE 4 TOTAL GLOBAL VALUE OF FABRY-PEROT SENSORS, 2007-2014 ($ MILLIONS) 37
• FIBER OPTIC GYROSCOPE (FOG) 37
• FIGURE 5 TOTAL GLOBAL VALUE OF FOG SENSORS, THROUGH 2014 ($ MILLIONS) 38
• OTHER TYPES OF SENSORS 39
• FIGURE 6 TOTAL GLOBAL VALUE OF OTHER FIBER OPTIC SENSORS, THROUGH 2014 ($ MILLIONS) 40
• Other types of sensors (continued) 41

Chapter-5: MARKETS BY APPLICATION 29

• TABLE 13 GLOBAL VALUE OF FOS MARKET BY APPLICATION, THROUGH 2014 ($ MILLIONS) 42
• TABLE 13 (CONTINUED) 43
• OIL AND GAS 43
• DISTRIBUTED SENSING 43
• Passive Seismic 43
• Horizontal Drilling 43
• Smart Reservoirs 44
• Pipelines 45
• Population Shift 45
• Risk of Terrorism 45
• Fears of Leakage 46
• FIGURE 7 GLOBAL MARKET FORECAST FOR FOS USED IN OIL AND GAS SERVICES; THROUGH 2014 ($MILLIONS) 46
• GROWTH DRIVERS 47
• Continued Consumption in Developed Nations 47
• Economic Growth in Developing Nations 47
• Hydrocarbons Still Dominate 48
• GROWTH INHIBITORS 48
• Slow Down in Drillings 48
• SENSOR TYPES 48
• TABLE 14 GLOBAL MARKET FORECAST FOR FBG IN OIL AND GAS SERVICES THROUGH 2014 ($MILLIONS) 49
• MEDICAL 49
• IN VIVO SENSING 50
• A Number of FOS Designed for In Vivo 50
• GROWTH DRIVERS 51
• Less Invasive Treatment 51
• Precision Treatment 51
• GROWTH INHIBITORS 51
• Need for Selectivity 52
• Slow Adoption Curve 52
• Regulatory Delays 52
• Alternative Technologies 53
• Cost of Technology 53
• FIGURE 8 GLOBAL MARKET FORECAST FOR MEDICAL, 2007-2014 ($MILLIONS) 54
• SENSOR TYPES 54
• TABLE 15 GLOBAL MARKET FORECAST FOR MEDICAL BY SENSOR TYPE THROUGH 2014 ($MILLIONS) 55
• SECURITY 56
• FIGURE 9 GLOBAL MARKET FORECAST FOR SECURITY APPLICATIONS, 2007-2014 ($MILLIONS) 57
• GROWTH DRIVERS 57
• GROWTH INHIBITORS 57
• SENSOR TYPES 58
• TABLE 16 GLOBAL MARKET FORECAST FOR SECURITY BY SENSOR TYPE THROUGH 2014 ($MILLIONS) 58
• DEFENSE/AEROSPACE 59
• FIGURE 10 GLOBAL MARKET FORECAST FOR DEFENSE/AEROSPACE, 2007-2014 ($MILLIONS) 59
• GROWTH DRIVERS 59
• Potential New Deployments 60
• GROWTH INHIBITORS 61
• SENSOR TYPES 61
• TABLE 17 GLOBAL MARKET FORECAST FOR DEFENSE/AEROSPACE BY SENSOR TYPE, THROUGH 2014 ($MILLIONS) 62
• STRUCTURAL 62
• GROWTH DRIVERS 63
• Bridges 63
• Tunnels 64
• Power Grid 64
• Pipelines 64
• Wind Turbines 65
• Market Forecast 65
• FIGURE 11 GLOBAL MARKET FORECAST FOR STRUCTURAL, 2007-2014 ($MILLIONS) 66
• GROWTH INHIBITORS 66
• Worldwide Economy 66
• Competing Technologies 67
• Institutional Barriers 67
• SENSOR TYPES 67
• TABLE 18 GLOBAL MARKET FORECAST FOR STRUCTURAL, THROUGH 2014 ($MILLIONS) 67
• INDUSTRIAL 68
• FIGURE 12 GLOBAL MARKET FORECAST FOR INDUSTRIAL, THROUGH 2014 ($MILLIONS) 69
• GROWTH DRIVERS 69
• GROWTH INHIBITORS 69
• SENSOR TYPES 70
• TABLE 19 GLOBAL MARKET FORECAST FOR INDUSTRIAL, THROUGH 2014 ($MILLIONS) 70

Chapter-6: INDUSTRY STRUCTURE AND COMPETITIVE ANALYSIS 4

• DRIVING FORCES 71
• STRATEGIES FOR STAYING COMPETITIVE 71
• Form Joint Ventures 71
• Lower Processing Costs 72
• IMPORTANT SHIFTS 72
• LARGER COMPANIES DOMINATE 72
• VENTURE CAPITAL UNINTERESTED 72
• ATTRIBUTES LIMITS PENETRATION 73
• COMPETING TECHNOLOGIES 73
• MARKET SEGMENTATION 74

Chapter-7: INTERNATIONAL MARKET CONSIDERATIONS 5

• TABLE 20 FORECAST MARKET VALUE BY REGION, THROUGH 2014 ($ MILLIONS) 75
• AMERICAS 75
• DEFENSE 75
• OIL AND GAS 76
• SECURITY 76
• EUROPE 77
• OIL AND GAS 77
• ASIA 77
• CHINA 78
• Infrastructure Investment 78
• REST OF WORLD 79
• FOREIGN INVESTMENT 79
• LEADING FOREIGN SUPPLIERS 79
• EUROPE 79
• ASIA 79

Chapter-8: COMPANY PROFILES 27

• REGIONAL SURVEY 80
• TABLE 21 SUPPLIERS BY REGION 80
• TABLE 21 (CONTINUED) 81
• TABLE 22 MARKET SHARE OF COMPANIES INVOLVED IN FOS, 2008 ($ MILLION, %) 81
• AITHER 81
• AVANTES BV 82
• Avantes U.S.A 82
• Avantes China 82
• AVENSYS 83
• BAKER HUGHES 83
• BAUMER ELECTRIC AG 84
• COMPUDYNE 84
• CONTRINEX SA 85
• DAVIDSON INSTRUMENTS 85
• DATASCOPE 85
• DICON FIBEROPTICS 86
• Global Fiberoptics Inc. 86
• ENDOSENSE SA 86
• FIBERPRO 87
• FIBERSENSING 87
• FORTEBIO 87
• FIBER OPTIC SYSTEMS TECHNOLOGY, INC. (FOX-TEK) 88
• HALLIBURTON 88
• WELL DYNAMICS 89
• HALMA GROUP 89
• Labsphere 89
• Ocean Optics 90
• HITACHI CABLE, LTD 90
• HONEYWELL SENSING AND CONTROL 90
• INTELLIGENT FIBER OPTICS SYSTEMS (IFOS) 91
• INTELLIGENT OPTICAL SYSTEMS 91
• KEYENCE 91
• KVH TECHNOLOGIES 92
• LASERSCOPE, INC. 92
• LIOS TECHNOLOGY 93
• LUMASENSE 93
• LUNA INNOVATIONS 93
• LXSIX 94
• MICRON OPTICS 94
• NELLCOR 95
• NEOPTIX 95
• NONIN MEDICAL 95
• NORTHROP GRUMMAN NAVIGATION SYSTEMS DIVISION 96
• NXTPHASE R&D 96
• O/E LAND 97
• OMRON 97
• OPSENS 98
• OPTELLIOS 98
• OZ OPTICS 99
• PHOTONICS LABORATORIES 99
• PRIME PHOTONICS 99
• ROCTEST GROUP 100
• FISO Technologies Subsidiary 100
• Smartec SA Subsidiary 100
• SABEUS SENSOR SYSTEMS 101
• SAMBA SENSOR SYSTEMS 101
• SCHLUMBERGER 101
• SENSORET LTD 102
• SENSORTRAN 102
• SENSOTEC GMBH 102
• SENTEC CORPORATION 103
• SHANGHAI LANBAO SENSOR CO, LTD 103
• SILICANN TECHNOLOGIES 103
• SMARTER SECURITY SYSTEM 104
• TECHNO-SCIENCES 104
• WEATHERFORD INTERNATIONAL LTD 104
• WENZHOU STORD ELECTRIC CO., LTD. 105
• YOKOGAWA ELECTRIC 105
• ZIEBEL AS 105
• Ziebel AS (Continued) 106

Chapter-9: APPENDIX 12

• KEY PATENTS 107
• SUN OIL COMPANY OF PENNSYLVANIA 107
• Fiber Optic Liquid Level Sensor 107
• Abstract 107
• XEROX CORPORATION 107
• Differential Fiber Optic Sensing Method And Apparatus for Ink Jet Recorders 107
• Abstract 107
• ANDREW CORPORATION 108
• Optical-Fiber Directional Coupler Using Boron Oxide as Interstitial Material 108
• Abstract 108
• UNITED TECHNOLOGIES CORPORATION 109
• Phase Modulator for Fiber-Optic Sensors 109
• Abstract 109
• Distributed, Spatially Resolving Optical Fiber Strain Gauge 109
• Abstract 109
• Distributed Multiplexed Optical Fiber Bragg Grating Sensor Arrangement 110
• Abstract 110
• Composite Structure Resin Cure Monitoring Apparatus Using an Optical Fiber Grating Sensor 110
• Abstract 110
• HITACHI CABLE, LTD.; HITACHI, LIMITED 111
• Fiber-Optic Gyroscope Having Angular Velocity Correction 111
• Abstract 111
• SENTEC CORPORATION 111
• Fiber Optic Temperature Sensor 112
• Abstract 112
• Fiber Optic Pressure Catheter 112
• Abstract 112
• LUNA INNOVATIONS, INC. 113
• Optical Sensor Arrangement 113
• Abstract 113
• Fiber-Optic Apparatus and Method for Making Simultaneous Multiple Parameter Measurements 113
• Abstract 113
• KVH, INC. 114
• Apparatus And Method for Electronic RIN Reduction in Fiber-Optic Sensors 114
• Abstract 114
• Current Sensor 114
• Abstract 114
• THE JOHNS HOPKINS UNIVERSITY 115
• Molecularly Imprinted Polymer Solution Anion Sensor 115
• Abstract 115
• LITTON CORPORATION 115
• Passive Sampling Interferometric Sensor Arrays 115
• Abstract 116
• Dual Fiber Optic Gyroscope 116
• Abstract 116
• Long Distance, All-Optical Telemetry for Fiber Optic Sensor Using Remote Optically Pumped Edfas 116
• Abstract 116
• Multichannel Interferometer with Phase Generated Carrier Demodulation and Quadrature Error Correction 117
• Abstract 117
• SCHLUMBERGER 117
• Vortex Flowmeter Transducer 117
• Abstract 117
• Multiple Mode Pre-Loadable Fiber Optic Pressure and Temperature Sensor 118