APAC Optical Fibre Market Outlook to 2028

APAC Optical Fibre Market Overview

The APAC Optical Fibre Market reached a valuation of USD 2.7 billion in 2023, driven by increased demand for high-speed internet, rapid deployment of 5G infrastructure, and growing investments in digital infrastructure across the region. The rise of fiber-to-the-home (FTTH) services has also boosted demand, as countries in the region seek to improve connectivity in both urban and rural areas.

Major players in the APAC Optical Fibre Market include Corning Inc., Fujikura Ltd., Sumitomo Electric Industries, Yangtze Optical Fibre and Cable Joint Stock Limited Company (YOFC), and Sterlite Technologies Limited. These companies dominate the market through their strong manufacturing capabilities, extensive R&D investments, and strategic partnerships with telecommunication operators.

Key cities driving the market include Shanghai, Tokyo, and Seoul. Shanghai has become a major hub for optical fiber manufacturing due to its advanced infrastructure, while Tokyo and Seoul lead in fiber network deployments, particularly for 5G services. These cities benefit from strong government support and investments in smart city projects.

In 2023, the Japanese government launched an initiative aimed at increasing the deployment of fiber-optic networks, supported by a USD 1.2 billion government fund. The initiative primarily focuses on expanding high-speed internet access to rural areas, with a target of connecting over 2 million homes by the end of 2024.

APAC Optical Fibre Market Segmentation

By Product: The APAC Optical Fibre Market is segmented by product into Single-Mode Optical Fibre, Multi-Mode Optical Fibre, and Plastic Optical Fibre. In 2023, Single-Mode Optical Fibre dominated the market due to its ability to transmit data over long distances with minimal signal loss, making it ideal for large-scale telecommunication projects. Companies like Corning Inc. and Sumitomo Electric Industries are key players in this segment.

By End-User: The APAC Optical Fibre Market is segmented by end-users into Telecommunications, IT and Networking, Defense, Healthcare, and Others. In 2023, the telecommunications sector led the market due to the extensive use of fiber in 5G deployments and broadband services. Leading telecom operators across China, Japan, and South Korea have significantly ramped up fiber investments to meet increasing consumer demand for high-speed connectivity.

By Region: The APAC Optical Fibre Market is segmented by region into China, South Korea, Japan, India, and Australia. China led the market in 2023, driven by massive investments in 5G infrastructure and fiber-optic network expansions, with over 2 million 5G base stations installed across the country. China's dominance is further supported by its leadership in the production and export of optical fiber cables.

APAC Optical Fibre Market Competitive Landscape

Company

Established Year

Headquarters

Corning Inc.

1851

New York, USA

Fujikura Ltd.

1885

Tokyo, Japan

Sumitomo Electric Industries

1897

Osaka, Japan

Yangtze Optical Fibre and Cable (YOFC)

1988

Wuhan, China

Sterlite Technologies Limited

2000

Pune, India

Sterlite Technologies Limited (2023): Sterlite Technologies announced a partnership with the Indian government in 2023 to supply optical fiber cables for the Bharat Net project, aimed at connecting over 600,000 rural villages with high-speed internet. This USD 500 million partnership is expected to complete by 2025.

Corning Inc.: In September 2023, Corning opened a new optical fiber manufacturing facility in Mszczonow, Poland, aimed at addressing the growing demand for high-speed connectivity within the European Union. This facility is part of Corning's broader strategy, which includes over $500 million in global investments in fiber and cable manufacturing since 2020. These investments are crucial as they support the rising demand for fiber optics driven by advancements in telecommunications and cloud services

APAC Optical Fibre Industry Analysis

APAC Optical Fibre Market Growth Drivers

5G Rollout and Fiber Infrastructure Expansion: The rapid deployment of 5G networks in major economies like China, Japan, and South Korea has significantly boosted demand for optical fiber cables. In 2024, China installed over 2 million 5G base stations, all requiring extensive fiber infrastructure to function effectively. The need for low-latency, high-speed connections in smart cities further propels fiber demand.

Growth of Smart Cities and Io T: The increasing focus on smart city developments and the Internet of Things (Io T) is driving the demand for optical fiber networks. These technologies require robust, high-speed connectivity to support various applications, including smart transportation, energy management, and public safety, further stimulating the fiber optic market.

Rising Data Traffic: The exponential growth in data traffic due to cloud computing, video streaming, and online services is a critical growth driver for the optical fiber market. As bandwidth demands escalate, fiber optics provide the necessary infrastructure to handle high-capacity data transmission, ensuring reliable and efficient communication networks.

APAC Optical Fibre Market Challenges

Supply Chain Disruptions: In recent years, supply chain disruptions caused by material shortages and rising costs of raw materials like glass and polymers have posed challenges for fiber-optic manufacturers. These disruptions have impacted production timelines and project costs across the region, particularly as the demand for fiber-optic networks continues to rise with the expansion of 5G and broadband services.

Shortage of Skilled Labor: The APAC market faces a shortage of skilled technicians for fiber-optic installation, particularly in rural and underdeveloped regions. This shortage slows down fiber deployment projects and increases the operational burden on companies, making it difficult to meet the growing demand for fiber-based connectivity across the region.

Government Initiatives in the APAC Optical Fibre Market

China's Broadband China Initiative (2023): The Chinese government continued expanding its Broadband China initiative in 2023 with an additional USD 4 billion investment. The program aims to bring high-speed internet to 98% of rural areas by 2025, significantly increasing demand for optical fiber cables.

Southeast Asia Fiber Expansion Initiatives: Governments in Southeast Asia, including Indonesia and the Philippines, are actively promoting fiber broadband expansion through various initiatives. These programs focus on increasing fiber access and improving internet connectivity in underserved regions, driving the growth of the optical fiber market in the region.

APAC Optical Fibre Market Outlook to 2028

The APAC Optical Fibre Market is expected to see significant growth over the next five years, driven by the continued expansion of 5G networks, increasing demand for fiber-to-the-home (FTTH) services, and government-backed digital infrastructure initiatives.

Future Trends

Widespread 5G Adoption and Industrial Io T Integration: By 2028, fiber-optic infrastructure will play a pivotal role in supporting the widespread adoption of 5G and industrial Io T solutions. With an increasing number of connected devices and smart factories, fiber will be essential in providing high-speed, reliable data transmission for industrial applications across the APAC region.

Growth in Smart City Development: The ongoing development of smart cities across major APAC economies will drive significant demand for fiber-optic networks over the next five years. By 2028, cities like Shanghai, Tokyo, and Seoul are expected to be fully equipped with fiber-based infrastructures, enabling advanced services like intelligent transportation, energy management, and public safety systems.
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