Global Fiber Optic Connectivity Market Size, Forecast, and Trend Highlights Over 2025-2037
Fiber Optic Connectivity Market size was USD 10.2 billion in 2024 and is expected to reach USD 39.7 billion by the end of 2037, registering a CAGR of 11% during the forecast period. In 2025, the industry size of fiber optic connectivity is assessed at USD 11.3 billion.
The rising demand for high-speed internet worldwide is a key factor fueling global fiber optic connectivity market growth. This demand has resulted in an increase in the manufacturing of optical fibers and cables. Several fiber optic providers are expanding their manufacturing capacities to meet the demand. For instance, in March 2024, India’s leading optic fiber cable (OFC) manufacturer, HFCL, announced its plans to expand its presence and set up a manufacturing plant in Poland. The company aims to address the rising demand for OFC in Europe markets, including the UK, Germany, France, Belgium, and Poland, and serve existing and new customers with services, while reducing the transit time by around six weeks.
Moreover, the global trade of optical fibers and cables has seen notable activity, with significant import and export, catering to the rising need for high-speed connectivity throughout the world. While major economies like China and the U.S. play key roles in trade, emerging markets are rapidly increasing their presence and participation. According to the Observatory of Economic Complexity (OEC), in 2023, optical fibers and cables were the 392nd most traded product with a total trade value of USD 9.3 billion. The following table represents the top exporters of optical fibers and cables in 2023.
Top Optical Fibers and Cable Exporters in 2023
|
Country |
Export Revenue |
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China |
USD 2.87 billion |
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Mexico |
USD 1.28 billion |
|
United States |
USD 971 million |
|
India Poland |
USD 433 million USD 329 million |
Fiber Optic Connectivity Sector: Growth Drivers and Challenges
Growth Drivers
- Expansion of data centers and cloud services: The robust expansion of data centers and cloud-based services has resulted in a growing need for robust, high-speed fiber connectivity to deal with huge data transmission. As per a survey by Research Nester in March 2025, the U.S. alone reported more than 5,623 data centers, while 543 and 530 were located in Germany and the United Kingdom, respectively. Hyperscale data centers require ultra-speed data transfer rates, making fiber optics the preferred choice over conventional copper-based connections. The advanced optical fibers and cables offer low-latency connectivity between global data centers, ensuring seamless cloud computing, storage, and analytical operations. In March 2025, Prysmian partnered with Relativity Networks to expand the production of next-generation fiber optic cables and meet the rising demand for seamless data transmissions in hyperscale data centers.
- Rising demand for secure fiber networks: The demand for advanced fiber optic connectivity is rapidly increasing due to the rising surge in digital transformation across several sectors. Enterprises in industries such as BFSI, IT, and manufacturing are shifting towards secure fiber network connections due to the requirement for low-latency, high-bandwidth fiber networks for efficient data exchange. Moreover, the traditional copper-based connections and shared broadband networks are vulnerable to cyberattacks, including data breaches, DDoS attacks, or even signal tapping. This is expected to surge the demand for fiber optic connectivity with end-to-end encryption, fueling fiber optic connectivity market growth.
Challenges
- Rising preference for wireless and satellite technologies in remote areas: The fiber connectivity market can face robust competition from wireless and satellite broadband technologies due to their deployment, especially in remote areas. In addition, many businesses are opting for fixed wireless access (FWA) instead of fiber due to lower setup costs and faster rollout.
- Lack of skilled workforce: Advanced splicing and test techniques require specialized expertise, leading to higher labor costs. Moreover, the industry faces challenges with trained fiber optic technicians for installation, maintenance, and network management. This can hamper overall market growth going ahead.
Fiber Optic Connectivity Market: Key Insights
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Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
11% |
|
Base Year Market Size (2024) |
USD 10.2 billion |
|
Forecast Year Market Size (2037) |
USD 39.7 billion |
|
Regional Scope |
|
Fiber Optic Connectivity Segmentation
Component (Hardware, Software, Services)
The hardware segment in fiber optic connectivity market is expected to account for the largest revenue share between 2025 and 2037, owing to rising demand for high-speed internet and bandwidth, rapid expansion of data centers and cloud-based applications, and growing need for secure and reliable networks across several sectors. One of the prominent advancements is the launch of 9 product families offering 100 Gbps layer 2 and 3 switches and aggregation devices by Actelis Networks in June 2023.
Industry (Oil & Gas, Mining, Electric Substation, Wind Power)
The wind power segment in fiber optic connectivity market is likely to register substantial growth during the forecast period. This growth can be attributed to the rapid expansion of wind energy, high demand for advanced fiber optic connectivity for real-time communication, monitoring, and control of wind turbines and farms, and rising investments in onshore and offshore wind farms. In December 2024, Deutsche Windtechnik announced the launch of the BBG+ system, utilizing fiber optic cables to monitor the 360° circumference of wind turbine blade bearings. This system aims to detect potential damage early, preventing blade failures and enhancing turbine safety.
Our in-depth analysis of the global fiber optic connectivity market includes the following segments:
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Component |
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Industry |
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Customize this ReportFiber Optic Connectivity Industry - Regional Synopsis
North America Market Forecast
North America fiber optic connectivity market is expected to account for the largest revenue share during the assessment period due to rising demand for high-speed internet and cloud computing, increasing number of data centers and adoption of cloud-based applications by tech firms, including AWS, Google, Microsoft Azure, and a high focus on expanding existing fiber optic connections. Moreover, innovations such as fiber-to-the-home (FTTH), passive optical networks (PON), and wavelength division multiplexing (WDM) help in enhancing network capacity and efficiency, leading to more adoption in industries like healthcare, manufacturing, and BFSI.
In the U.S., the market is projected to grow at a robust pace owing to investments by key players and government funding, and enhance internet access across the country. In March 2024, AFL announced the investment of USD 50 million to expand its fiber manufacturing operations in South Carolina. The expansion highlights the company’s commitment to providing an end-to-end Build America, Buy America (BABA) compliant cable and connectivity portfolio for its customers.
APAC Market Statistics
The fiber optic connectivity market in Asia Pacific is likely to register significant growth during the forecast period due to the extensive rollout of 5G across China, India, Japan, and South Korea, high penetration of internet, and rapid expansion of data centers and cloud-based services. Moreover, key players in the region are constantly focused on developing novel products and improving the performance of existing optic fibers. This is expected to fuel market growth in the coming years.
In India, the fiber optic connectivity market is expected to witness fast growth by the end of 2037, attributed to government initiatives to enhance digital connectivity, increasing deployment of 5G technology, and rapid urbanization. Moreover, local companies are focused on expanding their manufacturing capacities to cater to the demand. For instance, HFCL Ltd in June 2023 announced its plans to triple its optical fiber manufacturing capacity in Hyderabad after the rollout of 5G in India.
Companies Dominating the Fiber Optic Connectivity Landscape
- Adtell Integration
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
- Ciena Corporation
- Huawei Technologies Co., Ltd.
- ADVA Optical Networking
- ADTRAN, Inc.
- Corning Incorporated
- Broadcom, Inc.
- Cisco Systems, Inc
- Finisar Corporation
- Fiber Optic Services
- HUBER+SUHNER AG
- Fujitsu Optical Components Ltd.
- Hamamatsu Photonics K.K.
- Optiwave Systems, Inc.
- Lumentum Operations LLC
The global fiber optic connectivity market is highly competitive, comprising key players operating at global and regional levels focused on continuous innovations, strategic collaborations, and product portfolio expansion to meet various industries' evolving demands. These key players actively invest in R&D to enhance technological capabilities and access new markets, driving the global market. Here is a list of key players in the fiber optic connectivity market:
In the News
- In January 2025, Sterlite Technologies Inc. (STI) announced the self-certification of its optical fiber cable products that meet the U.S government’s BABA requirements. Through this move, the company plans to strengthen its
- In May 2023, HFCL announced the launch of novel fiber optic microcables that are well-suited for most applications where conventional optical fibers cannot function. These can fit into the tightest ducts, allowing users to pack more optical fiber in small spaces.
Author Credits: Abhishek Verma
- Report ID: 1305
- Published Date: Apr 21, 2025
- Report Format: PDF, PPT
