The optical fiber market is experiencing a significant boost due to rising investments in optical fiber cable (OFC) network infrastructure. As businesses and industries increasingly rely on high-speed and reliable connectivity, the demand for optical fiber solutions has skyrocketed. Optical fiber cable is a crucial component of modern network infrastructure that enables the transmission of data at high speeds using light signals. It offers numerous advantages over traditional copper cables, including higher bandwidth, longer transmission distances, and immunity to electromagnetic interference.
The increasing need for high-speed internet connectivity, driven by the growth of data-intensive applications and services, has led to substantial investments in optical fiber network infrastructure. Businesses are realizing the importance of a robust and scalable infrastructure to support their operations and cater to the demands of their customers. For instance, the United States is projected to require a substantial increase in fiber-optic infrastructure within the next five to seven years. This surge is driven by the need to support the upcoming 5G wireless technology, intensify broadband competition, and expand rural broadband coverage. The estimated investment for deploying fiber cable in this endeavor is anticipated to range from US$ 130 billion to US$ 150 billion. This significant financial commitment underscores the strategic importance of optical fiber in enabling advanced wireless connectivity, fostering competition in the broadband market, and bridging the digital divide in rural areas. Thus, all the factors mentioned above drive the optical fiber market growth.
US Dominates Optical Fiber Market in North America
The optical fiber market in the US is experiencing significant growth, driven by several key factors. The ever-increasing demand for high-speed data transmission, driven by the proliferation of smart devices and the rise of the Internet of Things (IoT), is a major driver for the optical fiber market. Technological advancements, such as the development of advanced fiber optic cables and improved transmission systems, are enabling faster and more reliable data transfer. The explosive growth in data consumption, fueled by video streaming, cloud computing, and online gaming, is creating a surge in the demand for bandwidth. Optical fiber offers unparalleled data transmission capabilities, making it the preferred choice for businesses and consumers alike. This surge in demand is a significant factor driving the optical fiber market.
Furthermore, significant investments from key players are driving the optical fiber market in the country. For instance, in September 2023, Sterlite Technologies Ltd spent US$ 56 million on its optic fiber and cable production plant in South Carolina, which will also serve as the company’s North American headquarters. With the establishment of the new facility, covering an expansive area of 168,000 square feet, the overall fiber manufacturing capacity will witness a significant boost, surging from the existing 33 million kilometers (km) to an impressive 42 million km. Moreover, the cable manufacturing capacity will experience a substantial increase, reaching a remarkable milestone of 50 million km.
Segmental Overview
Based on type, the optical fiber market is divided into step indexed optical fiber and graded indexed optical fiber. The graded indexed optical fiber segment recorded a larger optical fiber market share in 2022 and is anticipated to register a higher CAGR during the forecast period. Based on mode, the optical fiber market is bifurcated into single mode and multi-mode. The single mode segment recorded a larger optical fiber market share in 2022 and is anticipated to register a higher CAGR during the forecast period. Based on composition, the market is bifurcated into glass and plastic. The glass segment recorded a larger share of the market in 2022 and is anticipated to register a higher CAGR during the forecast period. Based on end-user, the market is segmented into telecom and networking, industrial automation, medical, defense, and others. The telecom and networking segment registered the largest share of the optical fiber market in 2022, whereas the medical segment is anticipated to record the highest CAGR during the forecast period.
Market Analysis: Competitive Landscape and Key Developments
Corning Inc, Prysmian SpA, Jiangsu Zhongtian Technology Co Ltd, Yangtze Optical Fibre and Cable Joint Stock Ltd, Fiberhome Telecommunication Technologies Co Ltd, Furukawa Electric Co Ltd, CommScope Holding Co Inc, Nexans SA, Sumitomo Electric Industries Ltd, and Coherent Corp are among the key optical fiber market players that are profiled in the report. Several other essential optical fiber market players were also analyzed for a holistic view of the market and its ecosystem. The market report provides detailed market insights to help major players strategize their growth.
- In October 2023, AFL, a global leader in fiber optic solutions, announced its groundbreaking initiative to establish a cutting-edge sustainable optical fiber plant in Poland. This ambitious project aims to revolutionize the industry by combining advanced technology with a strong commitment to environmental sustainability.
- In September 2023, NTT Corporation (NTT) and Kitami Institute of Technology, a division of the National University Corporation Hokkaido Higher Education and Research System (KIT), made a significant breakthrough in the field of power delivery for high-speed communications. Through their collaborative efforts, they have successfully transmitted electric power of over 1 W to a remote location spanning more than 10 km using a single optical fiber. This groundbreaking achievement represents the world’s first instance of maintaining both high-speed, high-quality communication and power transmission simultaneously through an optical fiber.
- In September 2023, Coherent Corp introduced the first-ever optical subassembly with a speed of 140 gigabaud, which enables the use of 800G in compact plug-and-play formats for optical communication networks. This advancement allows for faster and more efficient data transmission in a smaller form factor.