Fiber Optics Market By Product Type (Multimode Fiber Optics and Single Mode Fiber Optics), By Application (Telecom, Oil & Gas, Military & Aerospace, BFSI, Medical, Railway, and Other), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032

Report Overview

Fiber Optics Market size is expected to be worth around USD 14.2 Bn by 2032 from USD 5.5 Bn in 2022, growing at a CAGR of 10.2% during the forecast period from 2023 to 2032.

An optical fiber cable is known as a flexible and transparent fiber that transmits light and is made by drawing glass or plastic. This kind of cable is used in numerous applications in fiber-optic communications. Here, they allow transmissions over greater distances and also at higher bandwidths than wire cables. The process by which data, voice, and images are transmitted over thin, transparent fiber strands is known as fiber optics.

Optic fibers, also known as fiber strands made of glass or plastic, are fiber strands. The technology is currently used extensively in the telecommunications and healthcare sectors. It is also used for vehicle navigation, environmental sensing and monitoring, and radio signal transmission in the military and defense industry.

Driving factors

Smart cities rely heavily on connected and interlinked technologies for transferring, collecting, and processing data into actionable information that builds and strengthens urban infrastructure. Utilizing communication infrastructures, enormous quantities of data are transferred quickly from one location to the next using high-speed fiber optic connectivity. Automation can dramatically affect autonomous drones used for surveying land and surveillance systems used for community security, traffic management systems designed to prevent accidents and congestion, and smart buildings that promote sustainable lifestyles. Such major factors are the key driver for adoption of fiber optic market.

Fullerton in California may soon become the country's inaugural fiber-optic city. SiFi Networks was awarded the contract to create an open-access network within the city that will connect offices and residences; as a result, fiber optics markets worldwide should benefit from increased utilization in smart cities. Demand for higher speeds and wider bandwidth has skyrocketed in today's frantic business environment, prompting businesses to adopt fiber optic connections over traditional wire or copper internet cables in order to meet these expectations.

Businesses of all sizes are increasing communications by adding optical fiber components to their voice over internet protocol (VoIP) services, as well as fiber connectivity providing extremely fast internet service within the workplace. Businesses and CRM software can access cloud-based services quickly with little or no delay, thanks to fast internet connections provided by high-speed connectivity. Fiber cables don't get affected by weather conditions that could prove severe, as opposed to copper wires.

Additionally, it helps prevent unexpected interruptions to services which cost both time and money. Fiber optic provides companies with not only a fast broadband internet connection but also increased bandwidth that enables them to stream HD videos for training purposes, host web-based conference calls, and share files without delays or disruptions. Overall, broadband internet for business via fiber connectivity is becoming an increasingly popular technology within the business world. This has resulted in demand for fiber optic technology.

Restraining Factors

Installing fiber connectivity can be prohibitively expensive for service companies. Therefore, most prefer traditional infrastructures like coaxial cables and digital subscriber line (DSL). Yet many nations are investing in fiber optics technology due to its advantages - low maintenance costs being among them - yet due to complex laws, they face competition with private firms when building fiber. Though fiber may be considered one of the most efficient home internet solutions worldwide, its availability remains very limited.

Type Analysis

Fiber Optics market segmentations by cable type is multi-mode segment and single mode segment. Multimode fiber optics represent the largest market share of 61%, while single mode fiber optics hold only 39% in 2022. With its lower costs and a wide array of applications for illumination and surgical lighting in medical fields such as operating rooms or telemedicine diagnostics, multimode fiber optics remain dominant.

Multimode fiber Optics also increase efficiency in terms of resolution for devices used for medical diagnosis and medical imaging purposes resulting in increased resolution quality and efficiency. As well as resolution when applied in medical devices, operating rooms, and increased resolution to improve medical devices or medical imaging devices used within healthcare settings such as operating rooms, diagnostics in telemedicine, or medical imaging environments. Thus it expected to stay dominant in the forecast period.

Application Analysis

Telecom segment dominated the fiber optics market and held 42.5% of revenue in 2022. Fiber optic technology's growing use in communication and data transmission services presents it with opportunities to advance further within this sector. Fiber optics offer high-speed data transmission services for long and short-distance communications and have become increasingly popular due to cloud services like Video-on-Demand (VoD), audio/video solutions, and audio/video streaming applications such as YouTube. Fiber optic installations have enabled telecom companies to build long-distance telecommunication lines with reduced loss.

Medical services are projected to expand rapidly due to the increasing use of optical technology devices in these markets. Due to strict regulations enforced by medical associations and government regulatory authorities, fiber optics is flourishing within this sector, and this growth can only continue into the near future. Maintenance of railway tracks achieved using fiber optics allows for quick track repair times with lower expenses due to the expansion of the railway sector. Aerospace and military markets are relatively well-penetrated and projected to experience exponential growth over the forecast period. It is mostly used for mission-critical applications.

Key Market Segments

By Type

• Multi-mode Fiber Optics
• Single-Mode Fiber Optics

By Application

• Telecom
• Oil & Gas
• Military & Aerospace
• BFSI
• Medical
• Railway
• Other Applications

Growth Opportunity

The Fiber optics vendors will benefit from the fiber optics market opportunities created by 5G's widespread adoption in both developed and developing economies. 5G infrastructure is heavily dependent on the use of optical fibers. These optical fibers can transmit significant data at high rates from one location to another. As 5G services continue to be commercialized, telecom service providers are emphasizing the addition of more recent 5G base stations to stay ahead of the competition in the fiber optics market.

Latest Trends

As it provides an extremely secure and reliable connection between IoT devices, fiber optics is widely considered one of the best choices. Internet of Things (IoT) devices can typically be found in factories, warehouses, assembly lines, workplaces, and other points throughout a distribution chain. Fiber connectivity has greatly simplified data transmission between devices and also helps increase processing efficiency. Optic fiber components could also provide the most cost-effective means of managing and transmitting data in areas where wireless networks are difficult to navigate.

Fiber Optic Cables are used widely in the petroleum and natural gas industries to detect and track large volumes of information such as asset location, temperature, and reserves. As data is transmitted through light beams via cables, this technology can serve to replace larger equipment with minimal space requirements and weight reduction while saving costs on logistics costs. Furthermore, automating production processes, improving security measures, and streamlining information transmission are the results.

Fiber connectivity is an ideal solution for cloud computing as it enables businesses to accomplish their tasks more easily. Cloud computing has become an increasingly popular method for companies to store data and manage customer relationships (CRM).

One reason behind the increased usage of optical fibers by businesses is their speed increase and capacity increase compared to bandwidth, along with their exceptional performance, unlimitable speed, and security features. Many firms that require cloud services opt for optical connectivity as it ensures greater capacity and improved connectivity requirements that IoT requires as well as cloud services. This is resulting the growth of fiber optics.

Regional Analysis

Asia-Pacific held 29.2% of the global fiber optics market in 2022. This market's expansion can be attributed to technological advancements and widespread adoption within telecom and IT sectors, administration, and fiber-integrated infrastructure. Such key factors are increasing the growth rate in the region.

Fiber optics' rapid expansion in this region is also due to increased use of broadband networks like Fiber to Premises, Building Fiber Optic Connections, and Home Network connections, as well as Internet of Things (IoT) connected devices like wearables as well as smartphones and tablets.

China is experiencing unprecedented fiber optic cable demand. Fiber is being utilized across every telecom service in China, including intracity, intercity, and mobile cell systems; electric pipelines, power grids, airports, railways, and highways, as well as data centers all benefit from fiber networks used by Chinese companies and government bodies alike. Furthermore, China, along with other Asian nations, is expected to experience an upsurge in demand over time due to the rise of 5G services.

North American companies' demand for networks with greater capacity has driven them towards fiber optic networks to offer both fixed and mobile services, especially as demand for high-speed communications and data services has increased across North America. The growth of fiber optics has spurred companies to use such networks more frequently.

Key Regions and Countries

North America

• US
• Canada
• Mexico

Western Europe

• Germany
• France
• The UK
• Spain
• Italy
• Portugal
• Ireland
• Austria
• Switzerland
• Benelux
• Nordic
• Rest of Western Europe

Eastern Europe

• Russia
• Poland
• The Czech Republic
• Greece
• Rest of Eastern Europe

APAC

• China
• Japan
• South Korea
• India
• Australia & New Zealand
• Indonesia
• Malaysia
• Philippines
• Singapore
• Thailand
• Vietnam
• Rest of APAC

Latin America

• Brazil
• Colombia
• Chile
• Argentina
• Costa Rica
• Rest of Latin America

Middle East & Africa

• Algeria
• Egypt
• Israel
• Kuwait
• Nigeria
• Saudi Arabia
• South Africa
• Turkey
• United Arab Emirates
• Rest of MEA

Key Players Analysis

Major players in the fiber optics market are working to expand their clients through innovative, unique solutions and collaboration or partnership arrangements with others. Their primary objective is to provide customized and cost-effective solutions that meet strict requirements as businesses' requirements vary widely. Many businesses have seen better returns on their fiber investments. Companies favor fiber investments due to their speed and reliability of data transmission.

Top Key Players in Fiber Optics Market

• Fujitsu Optical Components Ltd.
• Ciena Corporation
• Broadcom, Inc.
• Optical Cable Corporation
• Prysmian Group
• Sumitomo Electric Industries, Ltd.
• Amphenol Corporation
• Corning Inc.
• Huawei Technologies Co., Ltd.
• Lumentum Operations LLC
• Adtell Integration
• Finisar Corporation
• Optiwave Systems, Inc.
• Furukawa Electric
• Other Key Players

Recent Development

• OFS unveiled in January 2023 their Yb-doped optic fiber, designed for directed energy fiber-laser systems, as their most recent innovation.
• FOCIS Lightning 2, an AFL inspection system designed for multi-fiber optical connectors, will be released for public use on September 20, 2022. It aims to facilitate connection and bulkhead evaluation and allow data center administrators, businesses, and service providers to quickly verify and evaluate existing fiber connectivity with this revolutionary tool. Furthermore, FOCIS Lightning2's unique capabilities enable data center administrators, businesses as well as service providers to quickly examine fiber connectivity within existing networks thanks to FOCIS Lightning2, significantly simplifying and speeding up the analysis of fiber connectors.
• As of August 20, 2022, Corning Incorporated expanded its optical cable production capacities in response to AT&T, the nation's leading fiber broadband provider, expanding its fiber services offerings and strengthening collaborations between both parties.

Report Scope