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Market Overview

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The next-generation optical fiber, consisting of multicore and hollow core fiber, enables ultra-high-capacity data transmission systems with high speed and minimal latency. Multicore fiber is made of specialty glass with multiple fiber cores arranged in an array, while hollow core fiber guides light within an air-filled or vacuum hollow region, offering lower attenuation compared to conventional solid silica core fiber. These advanced optical fibers have diverse applications in telecommunications, banking and financial services, insurance (BFSI), medical, aerospace and defense, and information technology industries.

The global next-generation optical fiber market (multicore and hollow core fiber) is projected to reach $1,053 million by 2031 with a CAGR of 25.4% during the forecast period of 2022-2031. The demand for next-generation optical fiber is expected to grow due to increasing adoption in industries such as telecommunications, information technology, medical devices, and aerospace and defense. The telecommunications industry, especially in emerging economies like China and India, is driving this growth. However, challenges such as design complexities, power attenuation, and shortage of skilled workforce in the optics industry may hamper the market’s expansion.

Next-generation optical fiber (multicore and hollow core fiber) enables high-speed and large-capacity data transmission with reduced attenuation, dispersion, and distortion. Its benefits make it highly desirable across various industries, particularly in telecommunications, medical, aerospace and defense, and information technology. The impact of these advanced fibers on end-user industries is currently moderate to high, but as their adoption increases, the impact is expected to grow significantly.

The COVID-19 pandemic had a significant immediate impact on the global next-generation optical fiber market (multicore and hollow core fiber) due to manufacturing site shutdowns, labor shortages, and disruptions in supply chains. The restrictions imposed by governments resulted in reduced productivity and slowdown in the telecommunication, medical, aerospace and defense, and information technology sectors. This, in turn, affected the demand for next-generation optical fibers. However, the market is projected to recover gradually during the forecast period.

The key drivers for the global next-generation optical fiber market (multicore and hollow core fiber) include the growing demand for cloud computing and data centers, increasing demand in biomedical applications, and the demand for microelectronics.

The market is expected to face limitations such as high installation costs and a shortage of skilled workforce. These factors may hinder the market’s growth to some extent.

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Market Segmentation

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The market is segmented based on various factors, including product type, material type, end user, and region.

Segmentation by Product Type
Multicore Fiber
Hollow Core Fiber

Segmentation by Material Type
Glass
Plastic

Segmentation by End User
Telecommunication
Medical
Aerospace and Defense
Information Technology
Others

Segmentation by Region
North America – U.S., Canada, and Mexico
Europe – Germany, France, Italy, Spain, and Rest-of-Europe
China
U.K.
Asia-Pacific and Japan – Japan, India, South Korea, and Rest-of-Asia-Pacific and Japan
Rest-of-the World

In 2021, the global next-generation optical fiber market (including multicore and hollow core fiber) was dominated by the hollow core fiber segment based on product type. This segment experienced significant growth and became the largest segment due to increasing demand from various industries such as telecommunications, medical devices, aerospace and defense, and information technology. The hollow core fiber offers higher efficiency in light transmission compared to traditional solid core fibers, leading to lower losses and greater transmission distances. It also has the advantage of transmitting light in a broader range of wavelengths, making it suitable for applications that require the simultaneous transmission of multiple wavelengths, like high-power laser delivery. Additionally, hollow core fiber provides lower latency, making it ideal for applications that require fast and accurate data transmission, including data center interconnects and high-frequency trading. Its ability to transmit light through gases rather than solids makes it attractive for use in environments where traditional fibers would be impractical, such as high-temperature environments or outer space.

The glass segment dominated the next-generation optical fiber market based on material type. Glass is preferred for manufacturing multicore optical fiber because it offers high transparency, low attenuation, and excellent mechanical stability. Precise control over the geometry and refractive index of cores and cladding is essential for multicore fiber, and glass can be engineered to meet these requirements. Glass fibers enable high levels of light transmission over long distances, which is crucial for telecommunications and data center interconnects. Glass’s mechanical stability ensures the long-term reliability of multicore optical fiber, allowing it to withstand various environmental conditions and physical stresses.

The telecommunications segment was the largest segment in the global next-generation optical fiber market based on end users. This dominance was driven by the increasing demand for high-speed telecommunication technologies such as 5G, fueled by the growing adoption of smart electronic devices. Next-generation optical fibers, including multicore and hollow core fiber, are extensively used for high-speed and large-capacity data transmission, sensing, and detection. Multicore optical fibers offer a more efficient and cost-effective way to increase network capacity compared to traditional single-core fibers. They enable parallel transmission of multiple signals within a single fiber, resulting in increased data transfer rates, reduced latency, and signal interference. Multicore fibers also facilitate the development of new network architectures, such as space-division multiplexing networks, and hold potential applications in 5G networks, optical interconnects for data centers, and quantum communication networks.

North America dominated the next-generation optical fiber market due to the widespread adoption of advanced telecommunication technologies, smart consumer electronic devices, and strong presence of industry players. The region’s developed and growing economies, including the U.S., Canada, and Mexico, contribute to the rapid growth of end-use industries such as telecommunications, information technology, healthcare, and aerospace and defense. North America is at the forefront of adopting and utilizing next-generation optical fibers, including hollow core fibers that find application in various fields like laser and data transmission. With the continued growth of end-use industries, the next-generation optical fiber market is expected to further expand in the North America region.

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Competitive Landscape

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The selection of companies for profiling was determined through input from primary experts, analysis of company coverage, assessment of product portfolio, and evaluation of market penetration.

Within the global next-generation optical fiber market, which includes multicore and hollow core fibers, different material types have been segmented. As of 2021, glass accounted for approximately 84.5% of the total demand in terms of value, while plastic held around 15.5% of the total demand.

Key companies profiled in this report include Newport Corporation, NEC Corporation, OFS Fitel, LLC, IRFlex Corporation, IXBlue, Thorlabs, Inc., NKT Photonics A/S, IDIL Fibres Optiques, Sintec Optronics Pte Ltd, Guiding Photonics, Sterlite Technologies Limited, Sumitomo Electric Industries, Ltd., Corning Incorporated, RISE AB, Asahi Kasei Corporation, IPT Fiber, Lumenisity, Few-cycle, Humanetics, Zhongshan Meisu Technology Co., Ltd.

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Recent Industry Developments

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In October 2022, Sterlite Technologies Limited announced the introduction of India’s inaugural multicore optical fiber. This pioneering innovation is anticipated to bring significant changes to India’s optoelectronic interconnection landscape. The fiber was developed in-house by STL’s proficient team of integrated research and development professionals at the Maharashtra Center of Excellence. STL’s Multiverse leverages space division parallelism to enhance network bandwidth by 4 times per fiber, while maintaining the same diameter.

In September 2022, Lumenisity, a subsidiary of Microsoft Corporation, unveiled its CoreSmart solution for euNetworks Fiber UK Limited, a provider of telecommunication services. The aim is to deploy hollow core fiber cable for a distance of 14 kilometers (km).

In October 2021, OCC Corporation, a wholly-owned subsidiary of NEC Corporation, entered into a partnership with Sumitomo Electric Industries, Ltd. to develop multicore optical fiber cable. Additionally, the company successfully completed the first trial of an uncoupled four-core submarine fiber cable, verifying its transmission performance to meet the stringent requirements of global telecommunications networks.

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Key Questions Answered

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Q: What is the definition of next-generation optical fiber (multicore and hollow core fiber)?
Next-generation optical fiber refers to a type of fiber that supports ultra-high-capacity data transmission systems with high speed and minimal time. Multicore fiber consists of specialty glass with multiple fiber cores arranged in a specific pattern, while hollow core fiber guides light within an air-filled hollow region and offers lower signal loss compared to traditional solid silica core fibers. These advanced optical fibers find applications across various industries such as telecommunications, banking, financial services, insurance (BFSI), medical, aerospace and defense, and information technology.

Q: What are the major trends in the global market for next-generation optical fiber (multicore and hollow core fiber)?
The increasing demand for 5G mobile networks is driving the adoption of next-generation optical fibers for high-speed and large-capacity data transmission requirements. Additionally, there is a growing demand for these advanced optical fibers in laser and sensing applications, which expands the market opportunities for next-generation optical fiber (multicore and hollow core fiber) on a global scale.

Q: How are existing market players adopting new strategies to strengthen their position in the industry?
Key market players in the next-generation optical fiber market (multicore and hollow core fiber) have implemented various strategies to enhance their market position. These strategies include business expansions, partnerships, collaborations, and joint ventures. According to analysis by BIS Research, companies predominantly utilize strategies such as new product developments, collaborations, mergers and acquisitions, and joint ventures to drive growth in the global market. For instance, companies like OFS Fitel, LLC have focused on product advancements, market developments, partnerships, collaborations, and joint ventures.

Q: To gain a competitive edge in the global next-generation optical fiber market (multicore and hollow core fiber), what areas can a new company prioritize?
A new entrant can concentrate on manufacturing and providing next-generation optical fibers to sectors such as telecommunications, medical, aerospace and defense, and information technology. These industries exhibit high demand and adoption rates for next-generation optical fibers, offering favorable opportunities for market penetration and growth.

Q: What are the unique selling points (USPs) of this report?
This report offers several key USPs, including:
Comprehensive competitive benchmarking of 20 major players in the global next-generation optical fiber market (multicore and hollow core fiber), providing a holistic overview of the industry landscape.
Market segmentation based on product type, material type, and end-users.
Analysis of technological advancements in the global market for next-generation optical fiber (multicore and hollow core fiber).
Comparison between next-generation optical fiber (multicore and hollow core fiber) and conventional single-core optical fiber.
Examination of the investment landscape, including product adoption scenarios, funding, and patent analysis.

Q: Who should consider purchasing this report?
Companies involved in the production and commercialization of next-generation optical fibers, end-users in various sectors, research institutions, and regulatory bodies operating within the global next-generation optical fiber market (multicore and hollow core fiber) should consider purchasing this report.