Fiber Optic Preform Market Size, Share, and Trends 2024 to 2033

Fiber Optic Preform Market Size and Growth

The global fiber optic preform market size was USD 5.91 billion in 2023, calculated at USD 7.25 billion in 2024 and is expected to reach around USD 45.45 billion by 2033, expanding at a CAGR of 22.63% from 2024 to 2033. The fiber optic preform market is observed to grow with the expansion of telecom industry across the globe.

Fiber Optic Preform Market Key Takeaways

• Asia Pacific has held a major revenue share of 70% in 2023. 
• North America is expected to witness the fastest rate of growth in the market during the forecast period.
• By process, the VAD segment has contributed more than 41% of revenue share in 2023. 
• By process, the OVD segment is expected to grow at the fastest CAGR of 23.83% during the forecast period. 
• By product type, the multi-mode segment has held the largest revenue share of 53% in 2023.
• By end-user, the telecom segment has generated more than 42% of revenue share in 2023.
• By end-user, the automotive segment is expected to grow at a notable growth rate.

Asia Pacific Fiber Optic Preform Market Size and Growth 2024 to 2033

The Asia Pacific fiber optic preform market size was valued at USD 4.14 billion in 2023 and is expected to be worth around USD 32.04 billion by 2033, at a CAGR of 22.70% from 2024 to 2033.

Asia Pacific held the dominant share of the fiber optic preform market in 2023. The region is observed to witness notable growth during the forecast period owing to the robust presence of the manufacturing hubs of optical fiber, increasing investment in the telecommunication sector, an increasing number of various end-use industries, rising digital transformation initiatives of governments and businesses, rising need for high-speed internet access, and increasing penetration of smartphones.

Among all, China, India, and Japan are the major contributors to the market. These countries are highly investing and focusing on 5G deployment and the production of 5G devices, which substantially contribute to the growth of the fiber optic preform market in the region. In addition, the rapid expansion of the telecom industry coupled with increasing demand for broadband connectivity and continual expansion of 4G and 5G networks led to an increasing demand for fiber optic preforms in the region.

Furthermore, several market players in the region are actively participating in various strategic initiatives, including investment, partnerships or collaborations, and new product or technology development which is anticipated to propel the fiber optic preform market growth in the region during the forecast period.

• In January 2024, Sterlite Technologies Ltd. Announced its plan to invest Rs 800 crore by end of FY24 to expand its optical fibre manufacturing capacity to 42 million fibre kilometers from 33 MFKM. With the 5G rollout underway across the world, the company expects demand for fibre optic cables to rise globally.
• A 5G smart healthcare network integrating MEC and AI, built by China Unicom and Huawei, has expanded medical care reach and efficiency across the tropical province of Hainan. The partners deployed telemedicine equipment in every city and county hospital, in 340 township health centers, and in 2693 village clinics. The network supports remote and AI-assisted consultations and diagnosis. Average waiting time for patients has been reduced by two-fifths and the efficiency of medical treatment has been increased by 30%.

On the other hand, North America is expected to witness the fastest rate of growth in the fiber optic preform market during the forecast period owing to the rising internet penetration and data traffic, the presence of sophisticated telecommunication infrastructure, rising research and development in fiber optics technology, rising demand for broadband connectivity, increasing prevalence of various end-use industries, and rising development of 5G networks. Major market players in the region are focusing on developing enhanced fiber optics preform which is expected to boost the growth of the fiber optics preform market in the North American region.

• In March 2023, CommScope announced its plan to expand fiber-optic cable production to accelerate the rollout of broadband across the U.S., connecting more communities and underserved areas. Increase fiber-optic cable output, hastening the deployment of broadband to underserved communities.

Market Overview

A fiber optic preform refers to a cylindrical glass tube or rod that aids in the manufacturing of optical fibers in the fiber drawing tower. The making process of optical fibers involves the heating preform till it softens and then pulling it to form a thin fiber, capable of transmitting data over long distances at the speed of light. In an era of modern communication systems, fiber optics plays a crucial role in transmitting data at the speed of light across oceans and continents. Fibre optics are flexible transparent fibre cables made of high-quality glass, plastic, and silica used as a medium to transmit information using total internal reflection of light. The preforms are pieces of glass used to draw an optical fiber and are used as the starting material in the manufacturing of optical fibers.

Fiber Optic Preform Market Trends

• There are more than 5.3 billion active Internet users around the globe, accounting for 65.4 percent of the global population in 2023. 58.33% of total traffic came from mobile devices globally.
• China is leading with the highest number of internet users, with 1.05 billion, followed by India, with 729 million, and the United States, with 311 million.
• As of 2023, the internet penetration rate in China was near about 74.36%. Whereas in Japan the rate was 81.54%.
• In May 2022, Prysmian Group, a pioneer in the energy and telecom cable systems industry, announced a $30 million investment in its Jackson, TN plant to meet the increasing demand for optical fiber broadband connectivity driven by Federal and State stimulus packages.

Fiber Optic Preform Market Growth Factors

• Fiber optics are more energy-efficient compared to traditional copper cables, which supports the shift towards greener, more sustainable technologies.
• Rapid urbanization, industrialization, and digitalization in emerging economies such as India, China, and Southeast Asian countries are driving the demand for fiber optic networks.
• Significant investments by private and public entities in upgrading and expanding fiber optic networks contribute to market growth.
• Investment in R&D activities aimed at improving fiber optic technologies and reducing costs drives innovation and market expansion.

Fiber Optic Preform Market Size Scope

Fiber Optic Preform Market Dynamics

Driver

Increasing demand for high-bandwidth communication

The rising demand for high bandwidth communication is expected to boost the expansion of the fiber optic preform market in the coming years. The rapid innovations in the telecommunication sector have opened the way for bandwidth-intensive communication based on fiber optic networks. The rapid adoption of Internet of Things (IoT) devices, laptops, smartphones, and numerous other technological innovations have significantly increased need for the high-speed internet, which results in spurring the demand for fiber optic cables.

• For instance, in 2022 alone, the International Telecommunications Union (ITU) recorded 25% growth in international bandwidth usage, adding to a 33% compounded average growth rate that’s been steadily rising since 2017. Additionally, optical fibers find applications across various industries such as automotive, aerospace, defense, railway, healthcare, and others which is anticipated to accelerate the growth of the market in the coming years.

Restraint

High cost

The high production and installation cost of fiber cable in comparison to copper wires is anticipated to projected to hamper the growth of the fiber optic preform market. This financial barrier may limit the potential players to adopt fiber-optical solutions. In addition, the lack of adequate telecommunication infrastructure in lower and middle-income countries is likely to limit the expansion of the market during the forecast period.

Opportunity

Rising investment in telecom infrastructure

The increasing investment in telecom infrastructure is projected to offer lucrative opportunities to the fiber optic preform market during the forecast period. Due to the increasing demand for high-speed and reliable communication services growing along with the rapid expansion of network capabilities, the need for fiber optic preforms becomes important to meet the evolving requirements of the market. The development of fiber-rich network infrastructure increases the need for fibre optic cables has increased, which in turn fuels the growth of the fibre optic preform market. Moreover, the rise in data traffic increases the demand for optical fibre networks, which accelerates the fibre optic preform market’s revenue. Therefore, the rising investment in telecommunication infrastructure led to a surge in demand for fiber optic preforms during the forecast period.

• In February 2024, Finolex Cables signed an agreement with the Maharashtra Industries department to invest Rs 580 crore to more than double its optic fibre cables capacity to 10 million fibre km per year as 5G rollout is leading to higher demand for last-mile connectivity. 

Process Insights

The vapor axial deposition (VAD) segment held the largest share of the fiber optic preform market in 2023 owing to its capability to manufacture high-quality preforms that exhibit low attenuation and tremendous transmission characteristics. The vapor axial deposition method is increasingly becoming popular for manufacturing large glass in huge quantities, it has also opened the remarkable way for the mass production of optical fiber. On the other hand, the Outside Vapor Deposition (OVD) segment is expected to sustain its position throughout the forecast period. The OVD segment’s growth is driven by high flexibility, uniform deposition, lower signal loss during data transmission, and high scalability.

Product Type Insights

The multi-mode segment accounted for the largest share in the global fiber optic preform market in 2023. Multi-mode optical fiber is commonly used for high-speed data transmission over short distances like within a campus or an organization. The equipment used for communications for single-mode optical fiber is more expensive than multi-mode optical.

On the other hand, the single-mode segment is projected to grow at a notable rate during the forecast period owing to the rising need for internet services, increasing investment in 5G networks, growing usage of cloud computing, and rising need for reliable and effective data transmission in several industries. Such factors drive the growth of the segment during the forecast period.

End-user Insights

The telecom segment accounted for the larger market share in 2023. The growth of the segment is driven by the increasing consumer and commercial demand for Internet services. Fiber optic technology is capable of providing the required information capacity which is larger than copper cable. Factors such as growing demand for high-speed internet and data transmission, increasing adoption of smartphones, increasing usage of cloud services, and increasing investment in 5G technology are anticipated to bolster the segment's growth during the forecast period. Both telecommunications companies and government institutions are aggressively investing in upgrading and expanding telecommunication infrastructure to provide better internet connectivity across untapped and rural areas.

The automotive segment is expected to grow at a notable growth rate. Fiber optic preforms are increasingly being used to establish vehicle connectivity and interconnectivity and autonomous driving as well as the integration of several sensors to enhance the safety of vehicles. Thereby driving the segment’s growth.

Fiber Optic Preform Market Companies

• Corning Incorporated
• Optical Cable Corporation
• Jiangsu Zhongtian Technology Co., Ltd.
• Sterlite Technologies Limited
• OFS Fitel, LLC
• Prysmian Group
• AFL
• Furukawa Electric Co., Ltd.
• Sumitomo Electric Industries, Ltd
• Yangtze Optical Fibre and Cable Joint Stock Limited Company 
• HENGTONG GROUP CO., LTD
• Fujikura Ltd.
• Shin-Etsu Chemical Co., Ltd
• Jiangsu Zhongtian Technology Co., Ltd.

Recent Developments

• In July 2022, Light Brigade opened a new fiber-optic skills training facility in Dallas, Texas. The first of several new facilities the company plans to open across the U.S. focused on advanced fiber-optic skills training. With the support of parent company Hexatronic, Light Brigade and Data Center Systems (DCS) have announced the opening of a new Light Brigade Training Academy in Dallas, Texas. The courses at the new Dallas site will focus on advanced fiber-optic skills training and fiber-optics skills training for data centers and enterprise networks.
• On September 08, 2022, Corning Incorporated formally opened a new optical fiber manufacturing facility in Mszczonów, Poland, to meet growing demand for high-speed connectivity in the European Union and surrounding regions. The facility, one of the largest optical fiber plants in the European Union, is Corning’s latest in a series of global investments in fiber and cable manufacturing totaling more than $500 million since 2020, supported by growing demand and strong customer commitments.
• In August 2022, Furukawa Electric LatAm entered into a partnership with Nokia, a Finnish telecommunication, information technology, and consumer electronics corporation. Through this collaboration, the company aimed to bring innovative solutions to the clients and provide a reliable and secure technological platform.

Segments Covered in the Report:

By Process

• OVD
• VAD
• PCVD
• MCVD

By Product Type

• Single-Mode
• Multi-Mode
• Plastic Optical Fiber

By End-user

• Telecom
• Oil & Gas
• Automotive
• Military & Aerospace
• BFSI
• Medical
• Railway
• Others

By Geography

• North America 
• Europe
• Asia Pacific
• Latin America 
• Middle East & Africa