Fiber Optics Market by Type (Single, Multi-mode), Material (Glass, Plastic), Deployment, Application (Internet & Computer Networking, Cable Television), End-user (IT & Telecommunications, Healthcare & Pharmaceuticals), and Geography - Global Forecast to 2030

The Fiber Optics Market is projected to reach $7.9 billion by 2030, at a CAGR of 8.1% during the forecast period 2024–2030.

The growth of this market is driven by the increasing demand for high-speed internet & data-intensive applications and the need to interconnect servers & data storage systems within data center facilities. Additionally, technological advancements in telecommunications & networking, including FTTX, growing initiatives towards smart cities, and increasing need for high transmission rates & low-latency connectivity are expected to create market growth opportunities.

However, the extrinsic and intrinsic attenuation may restrain the growth of this market. The high cost of installation and associated complexities is a major challenge for the players operating in this market. Deployment of fiber optic cables in rural areas, growth of 5G communication networks & data centers, and advancements in wavelength division multiplexing (WDM) technology are prominent trends in the fiber optics market.

Increasing Demand for High-speed Internet and Data-intensive Applications is Expected to Drive Market Growth

Due to the technological advancements in various fields such as video streaming services, video conferencing, online gaming, IoT devices, cloud computing, and more, there is a growing need for high-speed internet & data-intensive applications. The Internet service providers are upgrading their infrastructure to provide higher-speed options, including fiber-optic connections and 5G wireless technology. Furthermore, the surging number of smartphone users and data centers across the world is also propelling the demand for high-speed internet & data-intensive applications. Thus, the increasing demand for high-speed data connectivity due to the rising data traffic is giving potential growth to global 5G networks.

Several companies are focusing on new strategic developments to enhance the 5G network with faster performance and capacity. For instance, in August 2024, Nokia Corporation (Finland) partnered with Eastlink (Canada) to enhance the 5G network and mobile experience with faster speeds, increased performance, and greater network capacity across Canada. The convergence of 5G networks and AI-based applications will significantly increase the demand for fiber optics. 5G networks offer up to 1 Gbps of increased internet speed and serve as the foundation for cloud and AI-based applications. Various data-intensive applications for personal and business use are emerging, such as augmented reality (AR), virtual reality (VR), and video applications, requiring 5G's high-speed data connectivity. Fiber optics provide the necessary infrastructure to handle these high data speeds efficiently. Also, they are less susceptible to environmental interference and offer higher reliability compared to traditional copper cables, making them crucial for maintaining stable connections in critical applications. Hence, the need for fast, reliable connections and fiber optics for high-speed internet & data-intensive applications will support the overall market growth.

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Key Findings in the Fiber Optics Market Study:

In 2024, the Single-mode Segment is Expected to Dominate the Fiber Optics Market

Based on type, the global fiber optics market is broadly segmented into single-mode and multi-mode. The multi-mode type segment is further divided into step-index multimode cables and graded index multimode cables. In 2024, the single-mode segment is expected to account for the largest share of the global fiber optics market. The large market share of this segment is attributed to the growing demand for low attenuation & dispersion, great data-transmitting capabilities, rising investments in the telecommunications sector, increasing deployment of long-haul & metro city networks, and growing implementation of 5G networks. This segment is also projected to register the highest CAGR during the forecast period.

In 2024, the Glass Fiber Optics Segment is Expected to Dominate the Fiber Optics Market

Based on material type, the global fiber optics market is broadly segmented into glass fiber optics and plastic fiber optics. In 2024, the glass fiber optics segment is expected to account for the largest share of the global fiber optics market. The large market share of this segment is attributed to the increasing demand for high-performance fiber optics in challenging environments such as extreme temperatures & corrosive environments, growing demand for higher information transmission with lower loss, and increasing interconnected servers & data storage systems within data center facilities. This segment is also projected to register the highest CAGR during the forecast period.

In 2024, the Aerial Segment is Expected to Dominate the Fiber Optics Market

Based on deployment mode, the global fiber optics market is broadly segmented into underground, underwater, and aerial. In 2024, the aerial segment is expected to account for the largest share of the global fiber optics market. This segment's large market share is attributed to the increasing demand for high-speed internet services, growing demand for high-speed internet and data transmission, growing preference for faster & cheaper installation methods, rising penetration of over-the-top (OTT) media services, and increasing technological advancements in telecommunications & networking including Fiber to the X (FTTX). This segment is also projected to register the highest CAGR during the forecast period.

In 2024, the Internet & Computer Networking Segment is Expected to Dominate the Fiber Optics Market

Based on application, the global fiber optics market is broadly segmented into internet & computer networking, cable television, telephone, lighting & decorations, and other applications. In 2024, the internet & computer networking segment is expected to account for the largest share of the global fiber optics market. This segment's large market share is attributed to the rising penetration of the Internet user base, the growing importance of networking and, the growing need for more agile & efficient networking infrastructure, and the increasing use of network-connected devices across organizations to improve business communication. This segment is also projected to register the highest CAGR during the forecast period.

In 2024, the IT & Telecommunications Segment is Expected to Dominate the Fiber Optics Market

Based on end-user, the global fiber optics market is broadly segmented into IT & telecommunications, energy & power, aerospace & defense, healthcare & pharmaceuticals, manufacturing & industrial automation, building & construction, oil & gas industry, public sector, and other end-users. In 2024, the IT & telecommunications segment is expected to account for the largest share of the global fiber optics market. The large market share of this segment is attributed to the increasing demand for voice broadcasting, video streaming, & data sharing, the growing need for greater bandwidth & faster speed connections, the rising penetration of mobile phone & internet services, and the increasing integration of emerging communication technologies such as 5G, IoT, NB-IoT, and more.

However, the healthcare & pharmaceuticals segment is projected to register the highest CAGR during the forecast period due to the growing adoption of digital technology in healthcare, increasing need for faster data speed transmission and larger bandwidth than copper cables for advanced healthcare solutions, rising demand for access to quality & reliable healthcare services, increasing investment in medical equipment manufacturers & robots, and growing implementation of telemedicine to improve patient care.

Asia-Pacific to be the Fastest Growing Market

Based on geography, the global fiber optics market is segmented into Asia-Pacific, Europe, North America, Middle East & Africa, and Latin America. In 2024, Asia-Pacific is expected to account for the largest share of the global fiber optics market, followed by Europe, North America, Latin America, and the Middle East & Africa. Asia-Pacific is projected to register the highest CAGR during the forecast period due to the rising development of fiber-integrated infrastructure, increasing number of data center facilities, extensive deployment of 5G base stations in the region, increasing government investment in rural infrastructure and affordable high-speed internet, growing use of Internet of Things (IoT) & connected devices across China, India, & Japan, and increasing deployment of broadband network platforms in IT & telecommunications, administrative sectors.

Key Players

The report includes a competitive landscape based on an extensive assessment of the key growth strategies adopted by the leading market participants in the fiber optics market in the last three to four years. The key players profiled in the fiber optics market report are Prysmian S.p.A. (Italy), Corning Incorporated (U.S.), Sumitomo Electric Industries, Ltd. (Japan), Fujikura Ltd. (Japan), LEONI Kabel GmbH (Germany), LS Cable & System Ltd. (South Korea), Hengtong Group (China), Furukawa Electric Co., Ltd. (Japan), CommScope Holding Company, Inc. (U.S.), Finolex Cables Ltd. (India), Proterial Cable America, Inc. (U.S.), Sterlite Technologies (India), Yangtze Optical Fibre and Cable Joint Stock Limited Company (China), Optical Cable Corporation (U.S.), OFS Fitel, LLC (U.S.), Aksh Optifibre Limited (India), FiberHome Telecommunication Technologies Co., Ltd. (China), Belden Inc. (U.S.), TE Connectivity Ltd. (Switzerland), Fibertronics, Inc. (U.S.), Infinera Corporation (U.S.), Nexans S.A. (France), Molex, LLC (U.S.), Extron (U.S.), Pepperl+Fuchs (India) Pvt. Ltd. (India), America Fujikura Ltd. (U.S.), Geokon, Inc.  (U.S.), and Avantes B.V.(Netherlands).

Scope of the report:

Fiber Optics Market Assessment, by Type

• Single-mode Type
• Multi-mode Type 
  • Step index multimode cables
  • Graded index multimode cables

Fiber Optics Market Assessment, by Material Type

• Glass Fiber Optics
• Plastic Fiber Optics

Fiber Optics Market Assessment, by Deployment Mode

• Underground
• Underwater
• Aerial

Fiber Optics Market Assessment, by Application

• Internet & Computer Networking
• Cable Television
• Telephone
• Lighting and Decorations
• Other Application

Fiber Optics Market Assessment, by End-user

• IT & Telecommunications
• Energy & Power
• Aerospace & Defense
• Healthcare & Pharmaceuticals
• Manufacturing & Industrial Automation
• Building & Construction
• Oil & Gas Industry
• Public Sector
• Other End-users

Fiber Optics Market Assessment, by Geography

• North America 
  • U.S.
  • Canada
• Europe 
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia-Pacific 
  • China
  • Japan
  • India
  • South Korea 
  • Rest of Asia-Pacific
• Middle East & Africa
• Latin America

Key questions answered in the report: