Fiber Optic Preform Market - By Process, By Product Type (Single-mode, Multi-mode), By End User (Telecom, Oil & Gas, Military & Aerospace, BFSI, Medical, Railway) & Forecast 2024 - 2032

Fiber Optic Preform Market Size

Fiber Optic Preform Market was valued at over USD 5.6 billion in 2023, growing at a CAGR of over 20% between 2024 and 2032. One major factor propelling the market's expansion is the rising need for high-speed internet, especially in developed areas. The requirement for strong and dependable internet connectivity has increased as digital transformation accelerates across several industries.
 

In September 2023, Corning Incorporated opened an optical fiber manufacturing facility in Mszczonow, Poland, to meet the growing demand for high-speed connectivity in the EU and surrounding regions. Many applications, such as online gaming, remote business, and virtual meetings, as well as streaming high-definition video, require high-speed internet access. These expectations can be met by fiber optic technology, which offers the infrastructure required to manage the growing volume of data traffic owing to its better bandwidth and low latency.
 

The market for fiber optic preform is mostly driven by the rise of telecommunication networks, which is caused by several important causes. To accommodate higher data rates, reduced latency, and the connectivity of multiple devices, the introduction of 5G technology will require major enhancements and extensions of current fiber optic networks. In addition, large fiber optic infrastructure is needed to support the growing demand for fiber-to-the-home (FTTH) services in order to meet customer demands for dependable, fast internet connections. The need for fiber optic preforms is further increased by initiatives to close the digital divide by expanding network coverage to isolated and rural locations. In order to handle massive data volumes effectively, the growth of data centers which is necessary to enable cloud computing and big data analytics necessitates strong fiber optic connections.
 

The production of fiber optic preforms involves intricate manufacturing processes such as vapor deposition, chemical vapor deposition (CVD), and modified chemical vapor deposition (MCVD). These processes require sophisticated equipment, precise control parameters, and skilled labor, leading to high production costs. Fiber optic preforms are made from high-purity silica glass or other specialty materials with specific optical properties. The procurement and processing of these materials involve high costs, especially for maintaining purity levels and ensuring consistent quality throughout the production process. Manufacturers of fiber optic preforms require specialized equipment such as deposition chambers, lathe systems, and optical monitoring systems. The initial investment in equipment and ongoing maintenance costs add to the overall production expenses.
 

Fiber Optic Preform Market Trends

In the fiber optic preform industry the development of high-capacity networks is one of the biggest developments in the market. There is a significant push to upgrade current network infrastructures to manage larger data loads due to the exponential rise in data consumption due to streaming services, cloud computing, and the Internet of Things (IoT). As they offer the high bandwidth and low latency needed for these cutting-edge applications, fiber optic preforms—which are crucial for producing fiber optic cables—are in high demand.
 

Another noteworthy development is the quick adoption of 5G technology. Wide deployment of 5G networks by telecom providers is making massive fiber optic infrastructure increasingly necessary. To provide the speeds and connectivity that 5G promises, a dense network of tiny cells connected by fiber optics is required, boosting the preform market. Thus, the market will benefit from investments in 5G technology. Also, the market for fiber optic preforms is expanding owing to the emergence of smart cities that depend on strong and dependable networked systems for efficient utilities, public safety, and traffic control.
 

In addition to these patterns, the industry is expanding due to developments in fiber optic technology. Innovations in materials & production techniques are increasing the cost-effectiveness and efficiency of fiber optic cables. For instance, improvements in preform production methods have produced fibers of superior quality that are more durable and involve less signal loss. Owing to these developments, fiber optic technology is becoming more accessible to a wider range of businesses & applications and lowering entry barriers.
 

Fiber Optic Preform Market Analysis

Based on product type, the market is divided into single-mode, multi-mode, and others. The single-mode segment is expected to register a CAGR of 25% during the forecast period.
 

• The market is dominated by the single-mode sector owing to its superior high-bandwidth and long-distance communication. With only one mode of light propagating via a smaller core diameter, single-mode fibers significantly lessen signal attenuation and dispersion over extended distances. Thus, they are suited for applications requiring high-speed and high-capacity networks, such as data transfer and telecommunications.
   
• The growth of single-mode fibers is also fueled by the growing need for faster internet services globally, the development of 5G networks, and the requirement for dependable and effective data transmission in a variety of industries including IT, healthcare, and finance.
   
• Additionally, advancements in fiber optic technology and the growing investment in infrastructure development, particularly in emerging economies, contribute to the dominance of the single-mode segment in the market.
   

Based on process, the market is divided into vapor phase axial deposition (VAD), modified chemical vapor deposition (MCVD), outside vapor deposition (OVD), and plasma activated chemical vapor deposition (PCVD). The vapor phase axial deposition (VAD) segment dominated the global market with a share of over 30% in 2023.
 

• The VAD segment holds a significant share in the fiber optic preform market owing to its efficiency and scalability in producing high-quality preforms. VAD is a commonly used technique as it enables the continuous manufacturing of large diameter preforms with purity and homogeneity. It helps meet the increasing demand for optical fibers brought on by the rollout of 5G networks, the development of high-speed internet services, and the growing use of fiber optics in a variety of technological applications.
   
• VAD's capacity to generate preforms with low degrees of attenuation and dispersion is crucial to telecommunications and data transmission for preserving signal integrity over extended distances. Large-scale manufacturing can benefit from the method's cost-effectiveness and high production yields. Additionally, expenditures in fiber optic infrastructure and technical breakthroughs, particularly in developing nations, strengthen the segment share. VAD technology is leading the market owing to its ability to meet the exact quality standards of contemporary optical fibers and its ongoing developments.
   

Asia Pacific dominated the global fiber optic preform market in 2023, accounting for a share of over 35%. There is a growing need for improved telecommunication networks and high-speed internet due to the region's fast industrialization and urbanization. Fiber optic preforms are in high demand as countries, such as China, Japan, South Korea, and India, are substantially investing in building their fiber optic infrastructure to support 5G networks and broadband connections. Furthermore, Asia Pacific serves as a center for some of the biggest and most sophisticated manufacturing facilities for fiber optics and related technologies worldwide. The area is a key player in the global market owing to this concentration of manufacturing capacity and experience, which enables effective production and innovation in fiber optic preforms.
 

The region’s dominance is further reinforced by the existence of significant market players and continuous technical improvements. Governments in the Asia Pacific region is encouraging the growth of the fiber optic business and supporting the development of digital infrastructure through investments and favorable legislation. Additionally, the region's growing use of data centers, smart technologies, and IoT increases demand for dependable, high-capacity data transmission solutions, in turn, fueling the demand for fiber optic preforms. Asia Pacific continues to be a substantial and continuously expanding market for fiber optic preforms owing to a mix of strong economic growth, technological breakthroughs, and encouraging government efforts.
 

The fiber optic preform market is growing significantly in the U.S. owing to large investments in expanding broadband access and modernizing telecommunications infrastructure. The demand for fiber optic cables is expected to increase owing to federal efforts, such as the Broadband Infrastructure Program, which seeks to improve internet connectivity in underserved and rural areas. Furthermore, the demand for superior fiber optic networks is being driven by the emergence of cloud computing, data centers, and 5G technologies. According to the GSMA Report 2023, 5G connections in North America are expected to grow to over 91% by 2030 as compared to over 39% in 2022. To better serve both domestic and foreign markets, top American businesses are concentrating on advancements in preform production methods.
 

Japan is known for its excellent production standards and cutting-edge technology in the fiber optic preform industry. The country’s fiber optic network is well-established, and continuous improvements to accommodate next-generation technologies, such as 5G and IoT, are propelling market expansion. Using state-of-the-art methods, such as VAD and MCVD, Japanese businesses are recognized for their accuracy and excellence in preform manufacturing. The need for fiber optic solutions is being further stimulated by government programs that support smart cities and digital transformation, thereby positioning Japan as a major player in the global market.
 

South Korea is leading the fiber optic preform industry driven by its leadership in 5G technology and smart infrastructure. There is a huge need for preforms owing to the nation's aggressive implementation of 5G networks, which requires a strong fiber optic infrastructure. High-performance fiber optic technologies supporting ultra-fast internet speeds and minimal latency are being developed by South Korean corporations through heavy R&D investments. Furthermore, the government's focus on smart city initiatives and digital innovation is stimulating the industry. The strategic emphasis of South Korea on an export-oriented economy has led to the wide use of it preform goods in global markets.
 

China is the market leader in fiber optic preform manufacturing and consumption. The country’s extensive adoption of 5G networks, significant expenditures in internet infrastructure, and quick urbanization are contributing to the market's expansion. Due to its superior manufacturing position, China can produce high-quality preforms at a reasonable cost, satisfying both domestic & international demand. The market is being further stimulated by ambitious government schemes such as the Smart Cities and Digital Silk Road. Chinese enterprises are firmly establishing themselves as the world leader in the market by consistently developing their production technologies to increase productivity and efficiency.
 

Fiber Optic Preform Market Share

Corning Incorporated and Fujikura Ltd. hold a significant market share of over 5% in the fiber optic preform industry. Corning Incorporated has broad experience, technological innovation, and strong production capabilities in the fiber optic performance business. It is one of the major companies in the telecom sector and is a supplier of superior optical fiber solutions. It has developed innovative fiber optic preforms manufacturing procedures through its extensive R&D activities. This has enabled the company to produce fibers with improved optical performance and dependability. Corning's global manufacturing network and vertically integrated supply chain further bolster its dominant position in the market. To keep up with the increasing demand for optical fiber goods around the globe, the company has made significant investments in increasing its production capacity. Furthermore, Corning's solid connections with important clients in the telecom industry, such as network operators and equipment manufacturers, have solidified its position as a preferred supplier of fiber optic preforms.
 

Fujikura Ltd. is renowned for its sophisticated production skills, wide range of products, and robust presence in strategic areas. Its fiber optic preforms serve applications such as data centers, the industrial sector, and telecommunications. Due to its vast experience and proficiency in the production of optical fibers, the company can address the changing needs of its clients by producing precise and high-quality preforms. Owing to Fujikura's deliberate investments in R&D, novel manufacturing techniques & materials have been developed, improving the optical performance and dependability of the company's fiber optic products. The organization's dedication to novelty and product advancement ensures its competitiveness in the swiftly changing fiber optic industry.
 

Fiber Optic Preform Market Companies

Major players operating in the fiber optic preform industry are:

• Corning Incorporated                    
• Fujikura Ltd.                      
• Furukawa Electric Co., Ltd.                      
• HENGTONG GROUP CO., LTD                             
• Prysmian Group                           
• Sterlite Technologies Limited                              
• Sumitomo Electric Industries, Ltd   
            

Fiber Optic Preform Industry News

• In October 2023, Yangtze Optical Fiber and Cable established a production base for communication optical cable in Minas Gerais, Brazil. In addition to providing access to better and more dependable communication experiences through its superior product solutions, the move benefitted the local population by stimulating technical development in Brazil and fostering technological cooperation between the two nations.
   
• In May 2022, the Prysmian Group invested USD 30 million to USD 85 million in expanding the capacity and capability of optical fiber cable in its North American plants. Prysmian's telecom U.S. sites' optical cable production footprint in North America was expanded with these investments.
   

The fiber optic preform market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD Million) from 2021 to 2032, for the following segments:

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Market, By Product Type

• Single mode
• Multi-mode
• Others

Market, By Process

• Vapor phase axial deposition (VAD)
• Modified chemical vapor deposition (MCVD)
• Outside vapor deposition (OVD)
• Plasma activated chemical vapor deposition (PCVD)

Market, By End User

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

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• MEA
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA