Ultra-Low-Loss Fiber Global Market Report 2025

The ultra-low-loss fiber market size has grown rapidly in recent years. It will grow from $2.0 billion in 2024 to $2.37 billion in 2025 at a compound annual growth rate (CAGR) of 18.4%. The growth during the historic period can be attributed to the rising demand for high-speed internet, increased adoption of fiber-to-the-home (FTTH) solutions, growing need for long-haul data transmission, expanding use of cloud computing, and escalating investments in telecommunications infrastructure.

The ultra-low-loss fiber market size is expected to see rapid growth in the next few years. It will grow to $4.61 billion in 2029 at a compound annual growth rate (CAGR) of 18.1%. The growth in the forecast period can be attributed to the expanding rollout of 5G networks, increasing development of hyperscale data centers, rising government initiatives for rural broadband, greater diversification of subsea cable networks, and growing sustainability efforts to replace copper with fiber. Key trends during this period include advancements in fiber manufacturing technologies, integration with next-generation telecom networks, innovations in low-loss fiber materials, development of eco-friendly fiber solutions, and progress in multi-core fiber designs.

The rapid proliferation of cloud computing is expected to drive growth in the ultra-low-loss fiber market. Cloud computing enables on-demand access to shared computing resources, allowing organizations to quickly provision and release capacity with minimal management effort. Its adoption is increasing as businesses migrate IT infrastructure to the cloud to enhance scalability, cut costs, and improve efficiency. Ultra-low-loss fiber supports this trend by enabling high-speed, reliable long-distance data transmission with minimal signal loss, improving data center interconnectivity, reducing latency, boosting bandwidth efficiency, and ensuring seamless delivery of cloud services worldwide. For example, in December 2023, Eurostat reported that 45.2% of EU enterprises used cloud computing services, marking a 4.2 percentage point increase from 2021. This trend clearly underscores how cloud computing growth is driving demand for ultra-low-loss fiber.

Industry leaders are advancing optical fiber technology to meet the needs of 5G networks and rising global data traffic. Multi-core fibers, which contain multiple cores within a single cladding, significantly increase transmission capacity without enlarging cable size, improving efficiency and reducing infrastructure costs for high-capacity applications such as 5G, data centers, and submarine communications. In September 2023, Sumitomo Electric Industries Ltd., Japan, introduced the world’s first mass-produced ultra-low-loss multi-core fiber, offering a transmission loss of just 0.158 dB/km at 1550 nm and low inter-core cross-talk. This innovation doubles transmission capacity without increasing cable size, enabling next-generation optical networks capable of handling growing cloud service usage, 5G expansion, and surging global data traffic.

In July 2022, II-VI Incorporated, a US-based semiconductor manufacturer, acquired Coherent Inc., a specialist in ultra-low-loss optical fibers, to strengthen its leadership in materials, networking, and laser systems. This acquisition aims to expand II-VI’s market reach, accelerate innovation, and advance technology that addresses the evolving demands of high-capacity optical communication networks.

Major players in the ultra-low-loss fiber market are Sumitomo Electric Industries Ltd., Heraeus Covantics GmbH, Prysmian Group, Corning Incorporated, Nexans S.A., Furukawa Electric Co. Ltd., Hengtong Group Co. Ltd., Leoni AG, Fujikura Ltd., CommScope Holding Company Inc., LS Cable & System Ltd., FiberHome Telecommunication Technologies Co. Ltd., Yangtze Optical Fibre and Cable Joint Stock Limited Company (YOFC), OFS Fitel LLC, Hexatronic Group AB, Sterlite Technologies Limited, Tongding Group Co. Ltd., Optical Cable Corporation, Remee Products Corporation, and DIAMOND S.A.

North America was the largest region in the ultra-low-loss fiber market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in ultra-low-loss fiber report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the information technology sector, particularly in hardware manufacturing, data infrastructure, and software deployment. Higher duties on imported semiconductors, circuit boards, and networking equipment have raised production and operational costs for tech firms, cloud service providers, and data centers. Companies relying on globally sourced components for laptops, servers, and consumer electronics are facing longer lead times and increased pricing pressures. In parallel, tariffs on specialized software tools and retaliatory measures from key international markets have disrupted global IT supply chains and reduced overseas demand for U.S.-developed technologies. To navigate these challenges, the sector is accelerating investments in domestic chip fabrication, diversifying supplier bases, and adopting AI-driven automation to enhance operational resilience and cost efficiency.

The ultra-low-loss fiber market research report is one of a series of new reports that provides ultra-low-loss fiber market statistics, including ultra-low-loss fiber industry global market size, regional shares, competitors with the ultra-low-loss fiber market share, ultra-low-loss fiber market segments, market trends, and opportunities, and any further data you may need to thrive in the ultra-low-loss fiber industry. This ultra-low-loss fiber market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

Ultra-low-loss fiber is a specialized type of optical fiber engineered for exceptionally low signal attenuation, generally below 0.17 dB/km. It is produced using ultra-pure materials and advanced manufacturing processes that significantly reduce light scattering and absorption. This type of fiber enables long-distance optical transmission with high efficiency and excellent signal quality, supporting high-capacity networks while minimizing the need for frequent signal amplification.

The primary types of ultra-low-loss fiber include single-mode and multi-mode fibers. Single-mode fiber features a very small core that transmits light over long distances with minimal loss and high bandwidth. These fibers are manufactured from materials such as silica, plastic, and other substances. They are applied in areas including telecommunications, data centers, submarine cable systems, military and aerospace sectors, industrial uses, and more. Key end-users include telecom operators, internet service providers, enterprises, government bodies, and other organizations.

The countries covered in the ultra-low-loss fiber market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The ultra-low-loss fiber market consists of sales of pure-silica-core ultra-low-loss fibers, large-effective-area ultra-low-loss fibers, bend-insensitive ultra-low-loss fibers, fiber preforms and substrate materials, and ultra-low-loss fiber optic connectors. 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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