Global Fiber-Optic Cable Market Size was worth USD 11.50 Billion in 2023 and it is expected to grow to USD 30 Billion in 2030 with a CAGR of 15 % in the 2023-2030 period.
Global Fiber-Optic Cable Market: Overview
The Fiber Optic Cable Market is highly competitive, with key players such as Corning Inc., Leoni AG, Fujikura Ltd, and Hitachi Cable America Inc. (Hitachi Cable) alongside numerous regional firms. The barriers to entry for new players are moderate, which has led to an influx of regional companies seeking to enter the fiber optic cable industry. In July 2023, CommScope announced to invest USD 60.3 million over the next four years to expand its manufacturing facilities based in North Carolina. These plans bolster CommScope’s ability to meet U.S. supply demands driven by federal initiatives to bring ‘Internet For All,’ including in underserved and rural broadband markets, along with enhancing production capacity over the next four years. In January 2023, Prysmian Group introduced its Sirocco HD micro duct cables with an 864-fiber version. The new cable boasts a fiber density of 9.1 fibers per square millimeter and can be installed in a 13-mm duct. The cable’s diameter is 11.0 mm, making it possible to squeeze 864 fibers into it. The evolution of fifth-generation networks and fiber optic infrastructure has driven digital transformation across industries. Fiber optic cable offers better security, reliability, bandwidth, and security than copper cables. The difference between a fiber optic cable and a copper wire is that the fiber optic cable uses light pulses to transmit information down the fiber lines instead of using electronic pulses to transmit information through the copper lines. With growing online transactions and virtual meetings, companies need 5G and optic fiber cable to stay competitive. These cables are cost-effective, convenient, and easy solutions for many industrial applications, such as lighting and decorations, data transmission, surgeries, and mechanical inspections.
Covid 19 Impact:
The COVID-19 pandemic severely disrupted the global supply chain and cable production. The pandemic resulted in the shutdown of factories and manufacturing units of fiber optic cables and suspended import-export activities among countries. The increased focus on medical infrastructure led to a short-term decline in the market. However, the pandemic increased the digital transformation, 5G deployment, and demand for high-speed network connectivity due to the remote work culture.
- The Global Fiber-Optic Cable Market Size was worth around US$ 11.50 Billion in 2023 and is predicted to grow with a CAGR of Roughly 15% between 2023 and 2030.
- The demand for single-mode fiber cables is expected to grow at a faster rate than the demand for multi-mode fiber cables. This is because single-mode fiber cables can transmit data over longer distances at higher speeds. The increasing adoption of 5G and cloud computing is also expected to drive the demand for fiber-optic cables. 5G networks require high-speed bandwidth, and cloud computing requires a reliable and high-capacity network infrastructure.
- The key players in the global fiber-optic cable market include Corning, Prysmian Group, LS Cable & System, Fujikura, and Sumitomo Electric. These companies are investing heavily in research and development to develop new and innovative fiber-optic cable products.
- The deployment of fiber-optic cables is being driven by government initiatives to promote broadband connectivity. Governments around the world are investing in fiber-optic infrastructure projects to improve internet access and speed.
- The global fiber-optic cable market is a dynamic and growing market. The increasing demand for high-speed bandwidth and the expansion of broadband networks are expected to drive the growth of the market in the coming years.
Global Fiber-Optic Cable Market: Growth Drivers
Rising demand for bandwidth-intensive applications:
Cloud computing, video streaming, and the IoT are all driving the demand for high-bandwidth connectivity. Fiber-optic cables are the only type of cable that can provide the bandwidth needed for these applications.
Growing adoption of fiber-optic cables in data centers and telecommunications networks:
Data centers are becoming increasingly reliant on fiber-optic cables to connect their servers and storage devices. Telecommunications networks are also upgrading to fiber-optic cables to provide their customers with high-speed internet access.
Government initiatives to promote the deployment of fiber-optic infrastructure:
Governments around the world are investing in the deployment of fiber-optic infrastructure to improve internet access and connectivity. This is especially true in developing countries where internet penetration is still low.
Global Fiber-Optic Cable Market: Restraints
High cost of installation and maintenance:
Fiber-optic cables are more expensive to install and maintain than traditional copper cables. This can be a major barrier for entry for new players in the market.
Limited availability of skilled labor:
The installation and maintenance of fiber-optic cables requires specialized skills and training. There is a shortage of skilled labor in this area, which can slow down the rollout of fiber-optic networks.
Obtaining the necessary permits and approvals to install fiber-optic cables can be a lengthy and costly process. This can be a major obstacle for telecommunications companies that are trying to expand their networks.
Vulnerability to damage:
Fiber-optic cables are more vulnerable to damage than copper cables. This can be caused by rodents, construction work, and natural disasters. Damage to fiber-optic cables can cause network outages and disruptions.
Global Fiber-Optic Cable Market: Opportunities
Increasing demand for high-speed internet connections:
As consumers and businesses demand more bandwidth for streaming video, online gaming, and other data-intensive applications, fiber-optic cables are becoming the preferred choice for delivering high-speed internet access.
Growing adoption of cloud computing and data centers:
The increasing adoption of cloud computing and data centers is driving the need for high-capacity, long-distance fiber-optic cables to connect data centers and other network infrastructure.
Expansion of 5G networks:
The rollout of 5G networks is also driving the demand for fiber-optic cables, as these cables are essential for providing the high-speed connectivity required for 5G applications.
Government initiatives to promote fiber-optic infrastructure:
Governments around the world are investing in fiber-optic infrastructure to improve broadband access and connectivity, particularly in rural and underserved areas.
Global Fiber-Optic Cable Market: Challenges
High upfront investment costs:
The initial investment in laying down fiber-optic cables is significantly higher than for traditional copper cables. This can be a major barrier for telecommunications companies, especially in developing countries.
Complex installation and maintenance:
Fiber-optic cables are delicate and require specialized skills to install and maintain. This can lead to higher operational costs and potential downtime.
Right-of-way (ROW) acquisition:
Obtaining permits and securing ROW access can be a lengthy and bureaucratic process, especially in urban areas. This can delay infrastructure deployment and increase costs.
Fiber cuts and damage:
Fiber-optic cables are susceptible to damage from physical disturbances, such as construction activities or vandalism. This can lead to network outages and costly repairs.
Global Fiber-Optic Cable Market: Segmentation
By Type, it is categorized into Single Mode, Multi-Mode.
By Application, it is divided into IT and Telecommunication, Energy and Power, Healthcare, Aerospace and Defense, Sensor, Others.
By Material, it is divided into Plastic, Glass.
By Region, it is segmented into North America, Europe, Asia-Pacific, Latin America, Middle East, and Africa.
The Global Fiber-Optic Cable Market is segmented into North America, Europe, Asia-Pacific, and the Middle East and Africa (LAMEA). The Asia Pacific region is expected to hold the largest share of the global fiber-optic cable market throughout the forecast period. This is due to several factors, including the rapid growth of the telecommunications and data center industries in the region, as well as government initiatives to expand broadband infrastructure. China, India, and Japan are the key markets in the region. North America is expected to be the second-largest market for fiber-optic cables. The market in the region is driven by the increasing demand for high-speed broadband connectivity, as well as the deployment of 5G networks. The United States and Canada are the key markets in the region. Europe is expected to be the third-largest market for fiber-optic cables. The market in the region is driven by the European Union’s goal of connecting all Europeans to high-speed broadband by 2025. Germany, France, and the United Kingdom are the key markets in the region. The rest of the world is expected to be the fastest-growing market for fiber-optic cables. This is due to the increasing demand for broadband connectivity in developing countries. Latin America, Africa, and the Middle East are the key markets in the region.
The Global Fiber-Optic Cable Market is driven by players Yangtze Optical Fiber & Cable., AFC Cable Systems, Optical Cable Corporation, Furukawa Electric Co. Ltd, Sumitomo Electric Industries Ltd, Fujikura Ltd, Corning Inc, Prysmian Group, Hitachi Cable Ltd, Sterlite technologies Ltd and other participants in the value chain are among those not featured in the research.
- In October 2023, Prysmian Group announced that it had completed the acquisition of General Cable. The acquisition is expected to strengthen Prysmian’s position in the North American fiber-optic cable market.
- In September 2023, Sterlite Technologies announced that it had developed a new type of fiber-optic cable that is 50% lighter and 20% more flexible than existing cables. The new cable is expected to be used in a variety of applications, including data centers, 5G networks, and submarine cables.
- In August 2023, Fujikura announced that it had developed a new type of fiber-optic connector that is 30% smaller than existing connectors. The new connector is expected to be used in a variety of applications, including smartphones, tablets, and laptops.