Optical Fiber Market Size & Share, by Type (Single-Mode Fiber, Multi-Mode Fiber); Application; End user - Global Supply & Demand Analysis, Growth Forecasts, Statistical Report 2025-2037

  • Report ID: 7831
  • Published Date: Jun 27, 2025
  • Report Format: PDF, PPT

Optical Fiber Market Outlook:

Optical Fiber Market size was USD 7.1 billion in 2024 and is estimated to reach USD 52.9 billion by the end of 2037, expanding at a CAGR of 6.8% during the forecast period, i.e., 2025-2037. In 2025, the industry size of optical fiber is assessed at USD 8.5 billion.

The stable supply chain of raw materials, including high-purity silica, dopants, and polymer coatings, drives the production and commercialization of optical fibers. The U.S. Geological Survey (USGS) reveals that the primary raw material, silica sand, is sourced predominantly from domestic U.S. reserves. In 2023, more than 110.4 million metric tons of silica sand were produced in the country. Additionally, the Bureau of Economic Analysis (BEA) states that the producer price index for ferrous wire drawing and fiber optic cable manufacturing grew by 2.9% in 2024. During the same period, the consumer price index for wired communication equipment increased modestly by 1.4%. The above statistics explain that rising energy prices and skilled labor shortages are fueling production costs.

However, on the other hand, controlled downstream pricing pressures owing to the global supply chain normalization post-2022 disruptions are set to fuel the production of optical fibers in the years ahead. The rising mining activities of rare earth elements are expected to drive the overall market growth in the years ahead. Also, the public-private investment partnerships are projected to accelerate the trade of optical fibers during the foreseeable period. the National Telecommunications and Information Administration (NTIA) invested around USD 42.5 billion in 2023 to improve broadband infrastructure under the U.S. Broadband Equity, Access, and Deployment (BEAD) Program.

Optical Fiber Market Size
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Growth Drivers

  • Rising applications in data centers: Cloud expansion and edge computing are expected to fuel the demand for optical fibers in the years ahead. The National Institute of Standards and Technology's (NIST) Cloud Computing Strategy 2023 estimates that the growth in hyperscale data centers is anticipated to increase at a CAGR of 11.9% through 2030. These data centers are heavily dependent on high-speed optical interconnects, which directly fuel the sales of optical fiber systems. Furthermore, Equinix and Yotta Infrastructure both expanded their data center footprint in 2024 by investing heavily in fiber deployment. This underlines that the increasing demand from end users is creating high-earning opportunities for optical fiber manufacturers.
     
  • Industrial automation and smart manufacturing: The smart manufacturing trend is expected to fuel the deployment of optical fiber in industrial settings. Industry 4.0 deployment across manufacturing and logistics is increasing the demand for optical fiber systems. The rising adoption of robotics and AI is also fueling the application of optical fibers that support ultra-low latency communication needs. Smart factories registered a 39.4% rise in fiber-linked systems between 2022 and 2024 in Germany, under the Digital Jetzt program. The digital transformation is significantly boosting the revenues of optical fiber manufacturers.

Technological Innovations in the Market

The technological advancements are set to double the revenues of optical fiber manufacturers during the study period. The swift integration of digital technologies is estimated to fuel the demand for optical fiber technologies in large-scale enterprises. The advanced technologies are expected to enhance the operational efficiency of optical fiber, contributing to high sales. The table below reveals the current technological trends and their outcomes.

Trend

Industry

Company/Project

Tech Adoption (%) / Impact

AI-Driven Network Monitoring

Telecom

Telefónica (Spain)

33.5% OPEX fall via AI in fiber fault detection (2024)

Wavelength-Division Multiplexing

Data Centers

Equinix (Global)

4.4x bandwidth increase via WDM in hyperscale deployments

Photonic Integrated Circuits

Cloud/IT

Microsoft Azure Quantum

28.5% latency fall in optical compute interconnects

Sustainability Trends in the Optical Fiber Market

The strict regulatory mandates are set to boost the adoption of optical fiber technologies. The sustainable initiatives, including renewable energy and circular economy, are also anticipated to push the demand for optical fiber technologies. The climate commitments and carbon-neutral strategies are further accelerating the sales of optical fiber technologies. The table below reveals the current sustainability strategies and their business impacts.

Company

Sustainability Initiatives

Goals & Vision (2030)

Impact on Business

Corning Inc.

Decreased CO₂ emissions by 19.4% in 2023; introduced energy-efficient fusion processes

Net-zero emissions

Operational cost savings of ~$8.6M/year (2023)

Prysmian Group

55.5% of global electricity from renewables by 2022; solar integration in 12 plants

100% renewable electricity

Fueled ESG investor interest; €1.4B green bond oversubscribed (2023)

Fujikura Ltd.

Industrial waste decreased by 34.6% through recycling systems in 2023

Zero landfill waste and a 50.7% emission cut

Enhanced compliance; secured Japan’s METI eco-factory recognition

Challenges

  • Import tariffs and trade barriers: The tariff-related challenges are expected to hamper the sales of optical fiber solutions across the world. The World Trade Organization (WTO) states that India imposed import duties of up to 10.4% on optical fiber cables to protect local manufacturers in 2023. This majorly inflates pricing for foreign entrants and hinders global trade to some extent. Also, under China’s 2022 retaliatory tariffs, the U.S.-based OFS faced a 15.4% additional import duty, which delayed their supply chain expansion. Such challenging barriers are likely to limit the technology’s diffusion in both the developing and developed markets.
     
  • Infrastructure readiness in emerging economies: The unavailability of last-mile infrastructure in some developing countries is expected to hamper the sales of optical fiber systems. The low-budget markets don’t invest in advanced connectivity projects, which hinders the demand for optical fibers. The International Telecommunication Union (ITU) states that more than 43.4% of Sub-Saharan African countries lack basic underground duct systems required for fiber rollout. This limits the earning opportunities of key players in these markets.

Optical Fiber Market Size and Forecast:

Report Attribute Details

Base Year

2024

Forecast Year

2025-2037

CAGR

6.8%

Base Year Market Size (2024)

USD 7.1 billion

Forecast Year Market Size (2037)

USD 52.9 billion

Regional Scope

  • North America (U.S. and Canada)
  • Asia Pacific (Japan, China, India, Indonesia, Malaysia, Australia, South Korea, Rest of Asia Pacific)
  • Europe (UK, Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Latin America (Mexico, Argentina, Brazil, Rest of Latin America)
  • Middle East and Africa (Israel, GCC, North Africa, South Africa, Rest of the Middle East and Africa)

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Optical Fiber Market Segmentation:

Application Segment Analysis

The telecommunication segment is projected to capture 50.1% of the global market share by 2037. The swift investments for the expansion of 5G infrastructure across the world are expected to propel the sales of optical fiber solutions. The International Telecommunication Union (ITU) study reveals that the global 5G coverage is expected to cross 72.4% by 2035. These developments augment the demand for high-bandwidth optical fibers that support backhaul infrastructure. The Fiber to the Home (FTTH) shift in emerging economies is expected to further propel the sales of optical fibers. Also, India's BharatNet Phase-II, which aims to connect 250,000 village clusters with fiber infrastructure, is likely to boost the adoption of optical fibers.

Type Segment Analysis

The single-mode fiber segment is expected to account for 62.5% of the global market share throughout the forecast period. The high data transmission capacity and long-distance capabilities are enhancing the applications for single-mode fiber for intercontinental and high-speed data traffic. The U.S. Department of Energy estimates that the utilization of single-mode fiber in high-energy physics and national labs is gaining traction. This reflects that the industrial sector is expected to boost the demand for single-mode fiber. Also, the single-mode fiber is projected to exhibit high application in the smart grid systems and submarine cable networks in the years ahead.

Our in-depth analysis of the global market includes the following segments:

Segment

    Subsegment

Type

  • Single-Mode Fiber
  • Multi-Mode Fiber

Application

  • Telecommunication
  • Data Centers
  • Industrial
  • Military & Aerospace
  • Healthcare
  • Power Utilities

End user

  • IT & Telecom
  • Government
  • BFSI
  • Defense
  • Healthcare
  • Oil & Gas
Vishnu Nair
Vishnu Nair
Head - Global Business Development

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Optical Fiber Market - Regional Analysis

APAC Market Insights

The Asia Pacific optical fiber market is estimated to hold 37.2% of the global revenue share through 2037. The extensive government digitalization efforts are propelling the sales of optical fiber systems, and the shift of public offices to cloud solutions is likely to increase investments in optical fiber technologies. The FTTH rollouts across China, India, and Japan are also accelerating the demand for optical fiber systems. The smart city initiatives are further set to double the revenues of optical fiber companies in the years ahead.

China leads the sales of optical fiber systems owing to the massive infrastructure investments and the presence of the largest internet user base. The Ministry of Industry and Information Technology (MIIT) and China Academy of Information and Communications Technology (CAICT) have coordinated nationwide FTTH expansion through the New Infrastructure policy. This initiative is boosting the sales of 5G, AI, cloud, and fiber optic technologies. In 2024, more than 640.5 million households had access to gigabit optical fiber, and government-backed programs extended fiber to over 96.5% of rural towns. The favorable public schemes and policies are creating a profitable environment for optical fiber manufacturers.

The India optical fiber market is expected to register a CAGR of 11.8% from 2025 to 2037. This is expected to be driven by the increasing government spending on ICT and digital infrastructure, and 5G backhaul demand. Also, the government spending on optical fiber grew by 61.5%, reaching USD 2.2 billion annually between 2015 and 2023. The country’s increasing focus on broadband expansion is pushing the demand for advanced optical fiber systems.

Country-Specific Insights

Country

2024 Govt Spending on Optical Fiber

% of ICT Budget

Key Stat

Japan

¥310.5 billion (~$2.2B)

24.5% (METI)

MHLW allocated ¥52.3B to health fiber networks (2024)

Malaysia

RM 1.39 billion (~$292.1M)

22.9% (KKD)

MDEC: Fiber adoption doubled 2013-2023

S. Korea

₩2.9 trillion (~$1.7B)

27.7% (MSIT)

NIPA: 4.4M premises connected to FTTH in 2023

North America Market Insights

The North America optical fiber market is anticipated to increase at a CAGR of 8.3% from 2025 to 2037, owing to the large-scale government-backed broadband rollouts and 5G fiber backhaul expansion strategies. The rural fiber connectivity mandates are also pushing the demand for optical fiber technologies. The Federal Communications Commission (FCC) states that more than USD 42.5 billion under the BEAD program is allocated for fiber infrastructure in underserved U.S. areas. Government funding is likely to drive the overall market growth in the region.

The U.S. optical fiber market is expected to experience rapid growth owing to the strategic federal investments and a shift to fiber-enabled 5G infrastructure. According to the National Telecommunications and Information Administration (NTIA), the Infrastructure Investment and Jobs Act (IIJA) allocated USD 65.5 billion for broadband infrastructure, with a strong emphasis on fiber. Additionally, the Connect America Fund and Rural Digital Opportunity Fund (RDOF) continue to support fiber buildouts. Thus, the massive funding strategies are poised to fuel the trade of optical fiber systems in the coming years.

Sales of optical fibers in Canada are set to increase at a high pace owing to the increasing demand for advanced wireless connectivity networks. Innovation, Science and Economic Development (ISED) reveals that the Universal Broadband Fund (UBF), totaling CAD 3.4 billion, is the largest investment in the country’s fiber infrastructure to date. This funding is expected to connect 98.9% of individuals to high-speed fiber internet by 2026. The expanding rural fiber rollouts under government incentives are also set to promote the sales of optical fiber in the years ahead.

Europe Market Insights

The Europe optical fiber market is forecast to account for 22.5% of global revenue share by 2037, driven by the EU’s digital connectivity strategies and private sector modernization. The cross-border fiber investments are also pushing the adoption of optical fiber solutions. The EU is set to connect all households to gigabit fiber by 2030 under the Digital Decade policy. The supportive government policies and funding schemes are expected to attract international investors. The public and private investments, including the €42.4 billion Connecting Europe Facility (CEF Digital), support the deployment of fiber backbones across the EU-27. Overall, Europe is the most lucrative marketplace for optical fiber manufacturers to double their revenue shares.

The Germany optical fiber market is estimated to surpass €6.9 billion by the end of 2037. The expanding ICT sectors and industrial automation are likely to accelerate the sales of optical fibers in the country. The government’s Gigabitstrategie 2030 aims to deliver nationwide fiber coverage by 2030. This is set to boost the deployment of optical fiber systems in every household, SME, and public institution. Furthermore, the Bundesnetzagentur states that more than 20.4 million households were connected to FTTH in 2024.

The Poland optical fiber market is foreseen to increase at a CAGR of 10.9% from 2025 to 2037 as rapid infrastructure modernization and EU co-financed digital expansion are fueling the sales of optical fiber solutions. According to the Ministry of Digital Affairs, the National Broadband Plan is set to offer 1 Gbps+ fiber coverage to 100% of households by 2030. The favorable government programs are poised to fuel the trade of optical fiber solutions during the foreseeable period. The Digital Poland Operational Programme, backed by more than €2.9 billion in EU funding, has facilitated fiber installation across 10,000+ underserved municipalities. The country is emerging as the most profitable marketplace for optical fiber investors.

Country-Specific Insights

Country

Optical Fiber Demand (2024)

% of National ICT Budget (2023)

YoY Growth (2021-2024)

UK

€1.9 billion

26.7%

+17.5%

Germany

€2.4 billion

31.6%

+22.4%

France

€2.1 billion

29.4%

+18.6%

Optical Fiber Market Share
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Key Optical Fiber Market Players:

    The market is characterized by the presence of gigantic companies and the increasing emergence of start-ups. The key players are entering into strategic partnerships with government entities for optical fiber R&D. They are also collaborating with other players to introduce innovative optical fiber solutions. By employing merger and acquisition strategies, the companies are expected to increase their customer base. Furthermore, the leading companies are entering emerging markets to earn higher gains from untapped opportunities. The organic sales are projected to double the revenues of optical fiber manufacturers in the years ahead.

    Here is a list of key players operating in the global market:

    Company Name

    Country of Origin

    Revenue Share 2024

    Corning Inc.

    USA

    14.9%

    Prysmian Group

    Italy

    10.5%

    Yangtze Optical Fibre & Cable (YOFC)

    China

    8.8%

    Sterlite Technologies Ltd.

    India

    6.2%

    LS Cable & System Ltd.

    South Korea

    4.9%

    Nexans S.A.

    France

    xx%

    Hengtong Optic-Electric Co., Ltd.

    China

    xx%

    OFS Fitel, LLC (Furukawa Group)

    USA

    xx%

    Optical Cable Corporation

    USA

    xx%

    CommScope Inc.

    USA

    xx%

    Hexatronic Group AB

    Sweden

    xx%

    TPG Telecom Limited

    Australia

    xx%

    Finolex Cables Ltd.

    India

    xx%

    Leoni AG

    Germany

    xx%

    Voksel Electric Tbk

    Indonesia

    xx%

    Below are the areas covered for each company in the market:

    • Company Overview
    • Business Strategy
    • Key Product Offerings
    • Financial Performance
    • Key Performance Indicators
    • Risk Analysis
    • Recent Development
    • Regional Presence
    • SWOT Analysis

Recent Developments

  • In May 2024, Prysmian Group announced the launch of Prysmian Sirocco Extreme, a high-density microduct cable that offers up to 288 fibers in a 6.5mm diameter. This innovation contributed to a 9.4% YoY revenue rise in 2024.
  • In March 2024, Corning Incorporated unveiled its Evolv Terminal with Pushlok Technology, a compact fiber solution for faster rural broadband deployment under the U.S. BEAD program. The product reduces installation time by up to 30.4%, accelerating delivery for service providers.

Author Credits:  Abhishek Verma


  • Report ID: 7831
  • Published Date: Jun 27, 2025
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

The global optical fiber market is expected to be valued at USD 8.5 billion by the end of 2025.

The global market is expected to increase from USD 7.1 billion in 2024 to USD 52.9 billion by 2037.

Some leading companies are Corning Inc., Prysmian Group, and Yangtze Optical Fibre & Cable.

The single-mode fiber segment is estimated to capture a high 62.5% of the market share through 2037.

Asia Pacific is expected to hold 37.2% of the global market share through 2037.
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