[Research Report] The optical fiber market is expected to grow from US$ 9.32 billion in 2022 and is expected to reach US$ 18.76 billion by 2030; it is estimated to record a CAGR of 9.1% from 2022 to 2030.

Analyst Perspective:

The increasing consumer demand for enhanced data capacity and broader coverage worldwide has paved the way for the emergence of the 5th generation wireless connection. This advanced technology is poised to revolutionize the telecommunications landscape by enabling the transmission of huge volumes of data while ensuring a more stable and reliable connection. The key factors that contribute to the impressive capabilities of 5G, including high-speed data transfer and improved throughput, are heavily reliant on robust optical fiber networks that span both wireless and wireline infrastructure. The achievement of the ambitious performance targets set for 5G networks depends on the widespread availability of extensive fiber connectivity. Currently undergoing testing in various markets, 5G was deployed on a large scale starting from 2020. This development holds significant implications for businesses operating in the telecommunications sector, as it creates opportunities for the demand for advanced connectivity solutions.

Moreover, the development of the optical fiber network is anticipated to be driven by the surge in consumer data demand and the rapid proliferation of Internet of Things (IoT) devices. Also, governments of numerous countries across the globe have made significant investments in optical fiber deployments, creating lucrative opportunities for the market growth. For instance, the US requires a substantial expansion of fiber-optic infrastructure within the next five to seven years to support the upcoming 5G wireless network, promote broadband competition, and provide rural broadband coverage. This necessitates an estimated investment of ~US$ 130–150 billion in fiber cable deployment. These developments highlight the immense potential for businesses operating in the telecommunications industry to capitalize on the growing demand for fiber-optic infrastructure and leverage the opportunities created by the 5G revolution, further fueling the optical fiber market growth.

Optical Fiber Market Overview:

An optical fiber, also known as an optic fiber, is a highly flexible glass or plastic fiber that enables the transmission of light signals from one end to another. These fibers play a crucial role in fiber-optic communications, offering the advantage of longer transmission distances and higher bandwidths compared to traditional electrical cables. The utilization of optical fibers is preferred to metal wires due to their lower signal loss and immunity to electromagnetic interference, which is a common issue faced by metal wires. In addition to telecommunications, optical fibers are extensively used for applications such as illumination, imaging, and carrying light or images into confined spaces, similar to the application of fiberscopes. Moreover, specialized fibers are employed for various purposes, including fiber optic sensors and fiber lasers.

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Optical Fiber Market: Strategic Insights

Optical Fiber Market

• 
  CAGR (2022 - 2030)

  9.1%
• Market Size 2022
  US$ 9.32 Billion
• Market Size 2030
  US$ 18.76 Billion

Market Dynamics

GROWTH DRIVERS

• Increase in Adoption of Fiber-to-the- Home (FTTH) Connectivity
• Widespread Implementation of 5G
• Rise in Investments in Optical Fiber Cable (OFC) Network Infrastructure

FUTURE TRENDS

• Emergence of Wavelength Division Multiplexing (WDM) in Optical Fiber

OPPORTUNITIES

• Adoption of Machine Learning (ML) and Artificial Intelligence (AI)
• Expansion of Telecommunication Infrastructure

Key Players

• 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

Regional Overview

• North America
• Europe
• Asia-Pacific
• South and Central America
• Middle East and Africa

Market Segmentation

Type

• Step Indexed Optical Fiber and Graded Indexed Optical Fiber

Mode

• Single Mode and Multi-Mode

Composition

• Glass and Plastic

End-User

• Telecom and Networking
• Industrial Automation
• Medical
• Defense
• Others

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Optical Fiber Market Driver:

Increase in Adoption of Fiber-to-the-Home (FTTH) Connectivity Drive Optical Fiber Market Growth

The internet has become an indispensable element of daily life. Consumers rely on technology for everything, including communication, entertainment, and work. However, as the reliance on the internet has risen, so has the demand for more dependable and quicker access. Fiber-to-the-home (FTTH) broadband is a broadband technology that employs optical fibers to offer high-speed internet to residences. Unlike typical copper or coaxial cables, which are susceptible to signal loss and interference, optical fibers are constructed of glass or plastic. They can transfer data over considerably greater distances without signal degradation.

Traditional internet technologies cannot compete with quicker speeds and more dependable connections of FTTH. According to the study conducted by the Fiber Broadband Association (FBA), the number of residences in the US served by fiber internet surpassed 60 million in 2021, an increase of 12% from roughly 54 million in 2020. Moreover, the study also revealed that fiber internet is already available to 43% of American households and 60% of Canadian households. According to the survey, large market players such as Verizon, AT&T, and Lumen, are among the top five cable Management Services Organizations (MSOs) forming around 72% of all fiber internet connectivity, while Tier 2 regional operators such as Frontier, Windstream, TDS, and Consolidated accounted for 10% of the expansion.

In a very short period, FTTH broadband has come a long way. It was first utilized exclusively in a few industries, particularly for high-end corporate and government applications. However, as the need for faster and more dependable internet connections has increased, so has the use of FTTH broadband. Today, it is becoming more common in residential areas, and many internet service providers now provide FTTH broadband as a basic offering. Therefore, the increase in the adoption of FTTH connectivity drives the optical fiber market growth.

Report Segmentation and Scope:

The optical fiber market is segmented based on type, mode, composition, and end user. Based on type, the market is bifurcated into step indexed optical fiber and graded indexed optical fiber. In terms of mode, the market is divided into single mode and multi-mode. Based on composition, the market is bifurcated into glass and plastic. Based on end user, the market is segmented into broadcast, IT and telecommunications, industrial, medical, defense, and others. By geography, the optical fiber market is segmented into North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America (SAM).

Optical Fiber Market Segmental Analysis:

Based on type, the optical fiber market is segmented into step indexed optical fiber and graded indexed optical fiber. The graded indexed optical fiber segment held a larger optical fiber market share in 2022 and is anticipated to record a higher CAGR in the market during the forecast period. Graded indexed optical fibers have a differentiating refractive index in the core that decreases while moving outward from the center of the core. The light, when passed through the medium, travels faster at the edge than at the center in curved paths. Graded indexed optical fiber can be multi-mode as well as single mode. The multi-mode graded indexed optical fiber has larger core diameters than step indexed ones and, hence, larger bandwidths. As a result of larger bandwidths, multi-mode graded indexed fibers are used for high-speed data transfer.

Optical Fiber Market Regional Analysis:

APAC held the largest optical fiber market share in 2022. Various countries in Asia Pacific are experiencing a dynamic shift toward the technologically advanced landscape with a key emphasis on projects in smart cities, such as the integration of the Internet of Things (IoT) and advancements of healthcare systems. Optical fiber supports these projects by offering a high speed and minimal latency for data transmission and communication in real-time. Furthermore, the increasing use of optical fiber connectors in the region is vital in facilitating reliable and high-speed communications interfaces, which, in turn, is driving the market.

One of the main factors propelling the market's expansion in Asia is the increasing use of fiber optic cables underwater. In addition to increasing network capacity and spectral efficiency, it has enhanced connectivity between nations. As the need for dependable connectivity and quick data transmission grows, underwater fiber optic cables will probably be utilized more frequently, which will help the regional market expand. For instance, the Asia-Africa-Europe 1 submarine (AAE-1) cable system connects several nations in Asia, the Middle East, Africa, and Europe over a distance of more than 25,000 kilometers. The deployment of the AAE-1 submarine cable system has greatly improved the area's use of deployed fiber. Furthermore, total fiber broadband in APAC accounted for more than 85.1% of the share of the residential fixed-line broadband subscriber base.

Optical Fiber Market Key Player Analysis:

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 the key optical fiber market players profiled in the report.

Optical Fiber Market Report Scope

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Optical Fiber Market Recent Developments:   

The optical fiber market players highly adopt inorganic and organic strategies. A few recent key market developments are listed below: 

• In September 2023, Corning Incorporated opened a new optical fiber manufacturing facility in Mszczonów, Poland, to meet the growing demand for high-speed connectivity in the European Union and surrounding regions. The facility, one of the largest optical fiber plants in the European Union, is Corning's latest in a series of global investments in fiber and cable manufacturing totaling more than US$ 500 million since 2020, supported by growing demand and strong customer commitments.
• In April 2023, Prysmian Group introduced the first optical cables that are certified as environmentally friendly. The ECO CABLE products aim to meet the increasing demand for sustainability from the telecom market and all its stakeholders.
• In March 2023, CommScope took strategic measures to enhance its production of fiber optic cables to support the rollout of telecommunications infrastructure in rural areas. In anticipation of increasing demands for Broadband Expansion and Deployment (BEAD), the company has significantly increased its manufacturing capacity for fiber optic cables within the US. Additionally, CommScope has introduced a new, lightweight fiber variant known as “HeliARC,” specifically designed to optimize performance in rural deployment scenarios. These initiatives demonstrate CommScope's commitment to meeting the unique requirements of rural connectivity and enabling the expansion of broadband services.