Optical Waveguide Market Report 2026

The optical waveguide market size has grown strongly in recent years. It will grow from $7.87 billion in 2025 to $8.53 billion in 2026 at a compound annual growth rate (CAGR) of 8.4%. The growth in the historic period can be attributed to growth in fiber optic communication, expansion of telecommunication networks, demand for higher data transmission speeds, adoption of optical components in electronics, advances in semiconductor fabrication.

The optical waveguide market size is expected to see strong growth in the next few years. It will grow to $12.16 billion in 2030 at a compound annual growth rate (CAGR) of 9.3%. The growth in the forecast period can be attributed to data center traffic growth, rising adoption of silicon photonics, demand for energy-efficient data transmission, expansion of 5G and beyond networks, increasing use of optical sensing technologies. Major trends in the forecast period include rising adoption of photonic integrated circuits, growing demand for high-speed optical interconnects, increased use of planar and channel waveguides, expansion of chip-level optical integration, focus on miniaturized and low-loss waveguide designs.

Growing demand for high-speed internet connectivity is expected to drive the growth of the optical waveguide market going forward. High-speed internet connectivity refers to internet connections that provide faster download and upload speeds than traditional dial-up connections. Optical waveguides play a vital role in enabling high-speed internet by supporting data transmission through optical fibers, delivering faster and more efficient communication with greater bandwidth and lower signal loss compared to traditional copper-based systems. For example, in November 2024, according to the UK Parliament's House of Commons Library, a UK-based government administration, 78% of UK premises had gigabit-capable broadband as of January 2024, up from 72% in 2023, 64% in 2022, and 36% in 2021. By May 2027, approximately 97% of UK premises are expected to have gigabit-capable broadband, including 99% of urban areas and 88% of rural areas. Therefore, the increasing demand for high-speed internet connectivity is fueling the growth of the optical waveguide market.

Major companies in the optical waveguide market are intensifying their focus on introducing advanced technologies such as SRG+ to maximize market revenues. SRG+ display technology, introduced by DigiLens, a US-based company, in April 2023, represents the next level of surface relief gratings (SRG). It enhances reflective efficiencies at a lower cost, revolutionizing the industry. SRG+ aims to facilitate the development of smaller, lighter AR glasses with high-resolution image quality, outdoor-compatible brightness, and seamless prescription eye integration.

In January 2025, Exail Technologies S.A., a France-based technology company, acquired Leukos S.A. for an undisclosed amount. Through this acquisition, Exail Technologies S.A. sought to expand its photonics capabilities, accelerate innovation in laser technologies, enhance its product portfolio across various high-tech sectors, and reinforce its presence in emerging markets. Leukos S.A. is a France-based photonics company specializing in advanced laser sources for metrology, spectroscopy, and imaging applications.

Major companies operating in the optical waveguide market are Sumitomo Electric Industries Ltd., Prysmian SpA, Corning Incorporated, Synopsys Inc., Fujikura Ltd., FibreHome Telecommunication Co. Ltd., Yangtze Optical Fiber and Cable Co. Ltd., Bizlink Technology Inc., Sterlite Technologies Ltd., Accelink Technologies Corporation, Himachal Futuristic Communications Ltd., Eoptolink Technology Inc. Ltd., ZTT International Ltd., SAB Brockskes GmbH & Co. KG, OFS Fitel LLC, Wooriro Co. Ltd., LEONI Fiber Optics Inc., DigiLens Inc., Lumus Ltd., Wave Optics Ltd., Waveguide Communications Inc., Vescent Photonics LLC, Cognifiber Ltd., Waveguide Optical Technologies LLC, Anello Photonics Inc., AdvR Inc.

North America was the largest region in the optical waveguide market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the optical waveguide market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the optical waveguide market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The optical waveguide market consists of sales of optical fiber waveguides, transparent dielectric waveguides, liquid light guides, liquid waveguides, and dielectric slab waveguides. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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