Optical Fiber Switch Industry - Regional Scope
APAC Market Forecasts
Asia Pacific optical fiber switch market is expected to comprise 35.7% of the total market share by 2037, owing to the increasing government investments and rapid 5G adoption. The industry highlights a strong growth in China and Japan, largely due to their infrastructure development activities that are creating a rising demand. The governments in the region are also significantly investing in the digital infrastructure. In China, the investment grew by nearly 21% in ICT infrastructure from 2018 through 2023, for 5G technology and smart city development. In addition, in the same year, the government in Japan allocated 7.1% of the ICT funding to optical fiber technological development. Therefore, such investments are fueling the optical fiber switch market expansion.
The China optical fiber switch industry is expected to experience a rapid expansion, with surging investments by the local government in smart cities. From 2021 to 2024, there was an allocation of around USD 1.1 billion for 5G infrastructure development, with an increased emphasis on optical communication technologies for 5G network support. In addition, in 2023, the Ministry of Industry and Information Technology (MIIT) also helped nearly 11 million businesses to utilize optical fiber technologies. The AI-based smart city and projects are creating lucrative avenues for market growth.
North America Market Statistics
The North America optical fiber switch market is expected to hold a share of 28% by 2037, owing to continually rising requirements in telecommunications, defense, and healthcare industries. The Federal Communications Commission (FCC) and the National Telecommunications and Information Administration (NTIA) are making significant efforts to expand 5G infrastructure and broadband access through various initiatives. In 2023, the 5G Fund for Rural America by the FCC was aimed at improving 5G access in remote areas, accelerating the demand for optical switches. The Infrastructure Investment and Jobs Act (IIJA) in 2023 also highlighted an increasing need for broadband expansion with its allocation of around USD 65.1 billion, thus creating more demand for reliable fiber optic networks.
The optical fiber switch market in the U.S. is experiencing exponential growth, with a focus on advancing broadband and network connectivity. The local government is allocating investments in the internet infrastructure. In 2023, the National Telecommunications and Information Administration’s Broadband Equity, Access, and Deployment program provided around USD 43.1 billion to expand the internet landscape across the country. In addition, FCC's Enhanced Alternative Connect America Cost Model (Enhanced A-CAM) seeks to offer gigabit broadband to nearly 11 million rural residences and businesses by 2030. This trend is further boosting the optical fiber switch market growth.
