Global Optical Waveguide Market Insights Forecasts to 2032

• The Global Optical Waveguide Market Size was valued at USD 6.85 Billion in 2022.
• The Market is Growing at a CAGR of 9.5% from 2022 to 2032
• The Worldwide Optical Waveguide Market Size is expected to reach USD 16.82 Billion by 2032
• Asia Pacific is expected to Grow the fastest during the forecast period

The Global Optical Waveguide Market Size is expected to reach USD 16.82 Billion by 2032, at a CAGR of 9.5% during the forecast period 2022 to 2032. The growing number of data centers around the globe, recent technological developments in photonic integrated circuits (PICs), and the increasing requirements for high-speed connectivity are driving the expansion of the optical waveguide market.

An optical waveguide is a structure that directs an electromagnetic wave of light by limiting it to follow a specific route. The most frequent types of optical waveguides utilized in applications include optical fiber waveguides, transparent dielectric waveguides constructed of plastic and glass, liquid light guides, and liquid waveguides. Nowadays, optical fibers and waveguides transmit the majority of our data, and electro-optic crystals allow us to convert electrical signals to optical signals and switch optical signals between channels. Optical waveguides are employed as parts in embedded optical circuits or as a channel in optical communication systems, both local and long-distance. As a result, a significant increase in the application of electronic devices is likely to influence the global optical waveguide market throughout the projected time frame, pushing demand for optical waveguides.

Some of the major key players in the optical waveguide market are Prysmian Group, Furukawa Electric, Corning Incorporated, Sterlite Technologies, Sumitomo Electric Industries, and LEONI Fiber Optics. These market leaders have substantial manufacturing capabilities and are active in a variety of scientific and technological initiatives.

Driving Factors

The fast development in the utilization of electronic gadgets, as well as a massive volume of data transfer and increased data traffic, are driving the optical waveguide market. The rising penetration of internet-based services, in addition to an increasing need for energy-efficient devices, is expected to drive demand for the optical waveguide market in the forecast time frame. Furthermore, the growth and increasing adoption of high-speed cloud-based computing techniques and data storage infrastructure are driving demand for the optical waveguide market.

Additionally, optical interconnect, which can convert signals from electrical to optical with a lower frequency-dependent loss and high bandwidth, is a major factor driving the demand for the optical waveguide market. Furthermore, the global optical waveguide market is expected to be driven by the growing popularity of Internet of Things (IoT) technologies. In addition, the introduction of 5G and the increased adoption of high-speed internet connectivity by data centers are likely to drive consumer interest in optical waveguides. Furthermore, technological advances in photonic integrated circuits (PICs) provide sophisticated characteristics such as small footprints, low-loss transmission, large bandwidth, resistance to electric short-circuiting, and resistance to electromagnetic interference (EMI). These PICs are widely used in new applications such as data center interconnect (DCI), communications, high-performance computing (HPC), and optical computing. A number of organizations have prioritized the development of highly sophisticated PIC solutions to address emerging market application instances. Such breakthroughs in technology are projected to drive the optical waveguide market forward.

Restraining Factors        

However, the complexity of designing and constructing optical waveguides is the main barrier to their application. Optical waveguides demand skill in the fields of engineering and physics since they are built to fulfill specific specifications and operate mostly on a particular collection of waveguide transmission procedures. The optical waveguides are fragile, costly, and susceptible to signal transmission failure. They are evaluated and made using specialized machinery and necessitate substantial capital expenditure. As a result, the high cost and time necessary for manufacturing and installing optical waveguides operate as a market obstacle.

Market Segmentation

By End-Uses Insights

The telecommunication segment accounted for the largest revenue share of more than 54.2% over the forecast period.

On the basis of end-uses, the global optical waveguide market is segmented into BFSI, telecommunication, data center, high-performance computing (HPC), medical, metrology, aerospace & defense, consumer electronics, industrial, and others. Among these, the telecommunication segment is dominating the market with the largest revenue share of 54.2% over the forecast period. This dominance has been mainly because of an increasing number of consumers across different fixed-point and mobile wireless networks, the affordability of low-cost communication devices, inexpensive services provided by telecommunications service companies, and an expanding worldwide internet-user base. Furthermore, the rising global deployment of 5G networks has resulted in the widespread implementation of optical waveguide components, which aid in the interconnection of 5G base stations and enable high speeds for transmitting data. As a result of these reasons, the demand for optical waveguide systems in the telecommunications industry is increasing.

By Type Insights

The channel segment is witnessing significant CAGR growth over the forecast period.

On the basis of type, the global optical waveguide market is segmented into planar and channel. Among these, the channel segment is expected to grow at a significant CAGR over the forecast period due to its reciprocal transverse optical confinement property, which provides improved speed as well as higher bandwidth. The rising acceptance of access technologies such as Fiber to the Home/Fiber to the Building is expected to accelerate the widespread installation of fiber-rich networks, resulting in driving channel waveguide market expansion throughout the projection period.

By Propagation Insights

The single-mode segment is dominating the market with the largest revenue share over the forecast period.

On the basis of propagation, the global optical waveguide market is segmented into the single-mode and multi-mode. As a result of the rapid deployment of single-mode optical waveguides for long-distance telecommunication infrastructure applications, the single-mode category is leading the market with the biggest revenue share of 47.6% over the projection period. The growing popularity of optical networks worldwide, as well as the increasing prevalence of 5G internet connectivity globally, are likely to drive the expansion of the single-mode optical waveguide market throughout the period of forecasting.

By Material Type Insights

The glass segment accounted for the largest revenue share of more than 37.8% over the forecast period.

On the basis of material type, the global optical waveguide market is segmented into glass, polymer, semiconductor, and others. Among these, the glass segment is dominating the market with the largest revenue share of 37.8% over the forecast period. This segment's expansion can be ascribed to their capacity utilization for transmitting both visible and infrared lights, as well as their growing interest in technologies such as augmented reality and virtual reality solutions. Also, glass optical waveguides offer a greater numerical range than polymer optical waveguides. The glass-based waveguides for optical transmission can also operate in extreme conditions and are resistive to corrosive chemicals and high-temperature variations.

Regional Insights

North America dominates the market with the largest market share over the forecast period.

North America will dominate the optical waveguide market with a market share of more than 38.7% during the forecast period, owing to increasing consumer demand for optical waveguides in the U.S., Canada, and Mexico for higher bandwidth and devices with Internet of Things (IoT) capabilities. Furthermore, due to the widespread availability of the internet in the region and the presence of major digital world players such as Google and Facebook, the growth of this region is expected to boost the optical waveguide market during the forecast period. Additionally, favorable governmental initiatives for the development of high-speed broadband infrastructure are propelling the regional market forward.

Asia Pacific, on the other hand, is predicted to grow the fastest throughout the projection period, owing to the increased usage of electronic devices, the rise of cutting-edge technologies, increased awareness among consumers, and the expansion of the telecommunications industry. Furthermore, supportive government efforts to encourage the development of the region's optical technology and semiconductor sectors are driving market growth.  For example, the Chinese government stated in December 2022 that it will roll out a USD 143 billion financial incentive package over the next five years. This financial incentive will include tax credits and subsidies to strengthen the region's semiconductors and photonics research and manufacturing. As a result, these drivers are driving the expansion of the optical waveguide market in the Asia Pacific region and are expected to drive demand for optical waveguides even further over the forecast period.

List of Key Market Players

• Sterlite Technologies Limited
• Prysmian Group
• Coherent Corp.
• Sumitomo Electric Industries, Ltd.
• Mouser Electronics Inc.
• Furukawa Electric Co., Ltd.
• DigiLens Inc.
• Corning Incorporated
• Futong Group Company Ltd.
• LEONI Fiber Optics, Inc.
• CommScope
• Fujikura Ltd.
• Yangtze Optical Fiber and Cable Co. Ltd.

Key Market Developments

• On February 2022, Corning Incorporated announced the launch of a new glass composition to advance the development of augmented and mixed reality (AR/MR) diffractive waveguides for wearable devices. The new 2.0 high-index glass joins the company’s AR/MR portfolio, which also includes high-index compositions of 1.8 and 1.9. Optical advancements inherent in the glass take the augmented reality experience to the next level through larger, clearer digital content that creates more engaging and immersive user experiences.

Market Segment

This study forecasts revenue at global, regional, and country levels from 2020 to 2032. Spherical Insights has segmented the Global Optical Waveguide Market based on the below-mentioned segments:

Optical Waveguide Market, Type Analysis

• Planar
• Channel

Optical Waveguide Market, Propagation Analysis

• Single-mode
• Multi-mode

Optical Waveguide Market, Material Analysis

• Glass
• Polymer
• Semiconductor
• Others

Optical Waveguide Market, Regional Analysis

• BFSI (Banking, Financial Services and Insurance)
• Telecommunication
• Data Center
• High-Performance Computing (HPC)
• Medical
• Metrology
• Aerospace & Defense
• Consumer Electronics
• Industrial
• Others

Optical Waveguide Market, Regional Analysis

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • Uk
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of Middle East & Africa