Fiber Optics Market Size Share & Trends

Fiber Optics Market Size Share Industry growth and Trends

[233 Pages Report] The fiber optics market is expected to grow from USD 3.2 billion in 2024 to reach USD 6.8 billion by 2029; it is expected to grow at a CAGR of 16.4% from 2024 to 2029. The growing penetration of 5G across developed and developing economies is expected to bring opportunities for fiber optics vendors. 5G infrastructure is dependent on optical fiber communication. These optical fibers can transfer data at high transmission rates from one location to another. Government initiatives in developing countries are working to prioritize fiber optic connectivity. For example, out of ~1.5 billion people in Africa, only 350 million have internet coverage. Less than 10% of these connections are with fiber networks. The government in the region is now focusing on deploying fiber networks to improve healthcare and education, among other services.

Fiber Optics Market Forecast to 2029

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Impact of AI on the Fiber Optics Market

Fiber Optics Market Trends & Dynamics

Driver: Rising number of data center facilities worldwide

The rising deployment of data center facilities worldwide is expected to drive the growth of the fiber optics market. Data centers require high bandwidth, wide-area coverage, low power consumption, and end-to-end connectivity between two facilities. Fiber optics plays a significant role in connecting two or more data centers located thousands of kilometers apart; they help transmit large volumes of data over long distances with low latency and higher transmission rates. The data is directly transmitted using light pulses across a fiber optics network, which further helps reduce the power consumption in data centers.

Restraint: Probe to physical damage and transmission loss

Fiber optics are prone to transmission losses and are expensive are fragile. They are so small that they can be easily damaged during renovation or relink. Fiber optic networks are also prone to fiber fuse, as too much light can damage the fiber cable quickly. Any material wrapped around the cable can also cut off the transmission. The fiber optic cables are delicate, they need robust and protective sheathing to suit the environment where they are installed.

Opportunity: Rising demand for fiber optics as replacement of copper cables

Fiber optics technology was invented mainly to replace the copper cables. As copper cables are heavy and bulky, they are difficult to manage physically. Furthermore, electromagnetic interference (EMI) limits copper’s performance and reliability because of the nature of electrical signals. In optical communications, fiber optics and shielded end casings are used, which help provide immunity to electromagnetic and radio-frequency interference. Moreover, the weight of fiber optics solutions is very low compared with copper cables. Therefore, there are fewer chances of switch ports being damaged. In addition, they require less maintenance and have better server utilization. With the increasing network traffic, customers are adding transmission bandwidth to existing optical networks or purchasing and deploying additional systems to address bandwidth demands. This is further expected to support the fiber optics market growth in the near future.

Challenge: Installing fiber optics networks in difficult terrains and high cost of installation

Underground fiber optic cables are placed mainly on highways and city streets. Planning a fiber route becomes difficult in an area where a new building or commercial site comes without authorization. Several Mobile Network Operators (MNOs) have noted more complex requests for information reduction use, allowance for discovery, unreasonable charges for using return order wire (ROW), unsolicited requests for redress, and the installation of resources across expensive and time-consuming municipal boundaries.

Fiber Optics Market Map:

Glass segment to have the highest share of fiber optics market by 2029

The glass segment is expected to have the highest market share of the fiber optics market by 2029. The segment is expected to grow at the second-highest rate during the forecast period.  Glass optical fiber has a huge numerical aperture compared to plastic, allowing more light rays into the system. The transfer range of single-mode fiber is in the range of 200–2,200 nm. The efficient performance of glass fiber optics in adverse environments with high temperatures and corrosive chemicals, and their ability to transmit both visible and infrared light are significant factors for the growth of this segment.

Single-mode segment is expected to account for the high market share from 2024 to 2029.

Single-mode segment is expected to account for a high market share during the forecast period. A single-mode fiber optic cable is 9 µm in diameter. This mode of fiber optic cables can carry signals at a much greater speed and over longer distances than multi-mode fibers. Single-mode fiber optics cable dominance is mainly due to their increased demand from long-distance transmission applications. Telecom companies typically use single-mode fibers for long-distance and high-bandwidth requirements. They are also used by Cable Antenna Television (CATV) companies, as well as colleges and universities.

The underground segment is projected to hold significant share in the fiber optics market during the forecast period.

Underwater deployment is a process where fiber optics are installed in subsea or submarine optical cable networks. Underwater or submarine fiber optic cables are laid on ocean beds to connect various regions and continents for communication applications. The surge in the global demand for increased bandwidth and the rise in telecom subscriptions and internet connections worldwide are the major factors driving the underwater deployment of optical fibers.

Market for non-communication application segment to grow significantly throughout the forecast period

Non-communication applications include the use of fiber optics in sensors and fiber optic lighting. Sensors is the largest application of fiber optics in the non-communication segment. The demand from various industries such as oil & gas, aerospace, military, and automotive mainly drives the demand for fiber optics in this segment. Fiber optics possess unique characteristics of illumination and glowing when a ray of light is passed through them. These optics are witnessing high adoption in lighting applications across museums, art galleries, and pools.

Fiber optics market in China is expected to dominate in 2029

China is expected to have a dominating market share in the Asia Pacific region in 2029. It has built about 500 AI-powered smart cities in the country. The rise in the number of smart cities is further expected to increase the demand for applications like smart utilities, smart transportation, smart buildings, and communication infrastructure—that invariably require fiber optic solutions. Also, rapid commercialization of 5G services across China, South Korea, and Japan is expected to create significant opportunities for the fiber optics market in the region.

Fiber Optics Market by Region

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Top Companies Fiber Optics - Key Market Players

Key players in the fiber optics companies are Corning Incorporated (US), Prysmian Group (Italy), Sumitomo Electric Industries, Ltd. (Japan), Yangtze Optical Fibre and Cable Joint Stock Limited Company (China), Fujikura Ltd. (Japan), Hengtong Group Co., Ltd. (China), Furukawa Electric Co. Ltd. (Japan), LEONI Fiber Optics GmbH (Germany), LS Cable & System Ltd. (South Korea), and Proterial Cable America Inc. (US).

Scope of the Fiber Optics Market Report

Fiber Optics Market Highlights

This research report categorizes the fiber optics market based on fiber type, cable type, deployment, application, and region.

Recent Developments

• In April 2024, Prysmian Group will acquire Warren & Brown Technologies. The acquisition will help Prysmian Group to strengthen its enterprise solutions for the telecommunication market.
• In June 2023,  Corning Incorporated announced a joint venture with SGD Pharma to open a new glass tube facility in India. This joint venture is expected to boost pharmaceutical manufacturing in India and allow SGD Pharma to use Corning's innovative Velocity Vial technology.
• In June 2023, Corning Incorporated announced a joint venture with SGD Pharma to open a new glass tube facility in India. This joint venture boosts pharmaceutical manufacturing in India and allows SGD Pharma to use Corning's innovative Velocity Vial technology.
• In September 2023, Sumitomo Electric Industries, Ltd. realized the world’s first mass production of ultra-low loss, multi-core fiber “2C Z-PLUS Fiber ULL”.

Key Questions Addressed in Report:

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