The optical waveguide market size has grown strongly in recent years. It will grow from $7.43 billion in 2024 to $7.99 billion in 2025 at a compound annual growth rate (CAGR) of 7.6%. The growth in the historic period can be attributed to telecommunications infrastructure expansion, demand for high-speed data transmission, increasing internet penetration, growth in the it and telecommunication sector, and rising demand for energy-efficient communication systems.
The optical waveguide market size is expected to see strong growth in the next few years. It will grow to $11.33 billion in 2029 at a compound annual growth rate (CAGR) of 9.1%. The growth in the forecast period can be attributed to 5g network deployment, expansion of data centers, demand for high bandwidth applications, increasing adoption of cloud computing, surge in demand for optical communication in automotive. Major trends in the forecast period include increased use of flexible optical waveguides, rising demand for optical waveguides in healthcare applications, growing focus on environmentally friendly and sustainable optical waveguide materials, advancements in integrated photonics, and innovations in optical signal processing technologies.
The expanding data center industry is anticipated to drive the growth of the optical waveguide market in the future. A data center is a facility that employs a complex network, computing, and storage infrastructure to facilitate shared access to applications and data. Optical waveguides are utilized in data centers to support high-speed and high-bandwidth optical communication, enabling efficient data transmission over long distances and enhancing overall network performance and scalability. For example, in February 2022, the Korea Data Center Council (KDCC), an organization focused on advancing the data center industry in Korea, reported that the overall capacity of colocation data centers’ information technology (IT) load reached 430 MW, representing 11% of the total APAC IT load. According to projections by Savills Korea, the total commercial data center IT load in Korea is expected to increase by 700 MW between 2021 and 2023, accounting for 15% of the total capacity in the Asia-Pacific region. Thus, the growth of the data center industry is propelling the optical waveguide market.
The optical waveguide market is set to experience further growth due to the rising demand for high-speed internet connectivity. High-speed internet connections, surpassing traditional dial-up speeds, rely on optical waveguides to transmit data through optical fibers, ensuring faster and more efficient communication with increased bandwidth and reduced signal loss compared to copper-based systems. In March 2023, according to the UK's Office of Communications (Ofcom), the average download speed for home broadband connections in the UK increased by 10% to 65.3 Mbit/s compared to March 2022. This growth underscores the escalating demand for high-speed internet connectivity, acting as a driving force for the optical waveguide market.
A prominent trend in the optical waveguide market is product innovation, with major companies actively developing innovative products featuring advanced technologies to maintain their market positions. For instance, Lumus Ltd., an Israel-based augmented reality company, introduced the Next Generation 2D 'Z-Lens' in January 2023. Leveraging Lumus' 2D Maximus technology, the Z-Lens waveguide architecture boasts a more compact projector and prescription. The optical engine of the Z-Lens is 50% smaller than its predecessor, Maximus, offering increased flexibility for glasses manufacturers in positioning the entrance aperture. This innovative technology is expected to drive widespread consumer adoption of AR glasses.
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 December 2022, Microsoft Corporation, a US-based technology company, acquired Lumenisity Ltd. for an undisclosed amount. This acquisition equips Microsoft with Lumenisity's next-generation hollow core fiber solution, enhancing capacity optimization for its global cloud infrastructure. Lumenisity Ltd., a UK-based company, specializes in advanced hollow-core fiber optic cable solutions based on optical waveguides.
Major companies operating in the optical waveguide market include Sumitomo Electric Industries Ltd., Prysmian SpA, Corning Incorporated, Synopsys Inc., Fujikura Ltd., FibreHome Telecommunication Co. Ltd., Mouser Electronics Inc., Yangtze Optical Fiber and Cable Co. Ltd., America Fujikura 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, INGUN, Waveguide Communications Inc., Vescent Photonics LLC, MicroVacuum Ltd., Cognifiber Ltd, Waveguide Optical Technologies LLC, Anello Photonics Inc., AdvR Inc.
North America was the largest region in the optical waveguide market in 2024. 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, 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, Russia, South Korea, UK, USA, Italy, Spain, Canada.
An optical waveguide is a spatially irregular structure designed to transmit optical messages by guiding and confining light along a predetermined path. Optical waveguides play a crucial role in photonics, facilitating the integration of electronic components on a chip with optical fibers through the configuration of waveguides in three-dimensional space.
The primary types of optical waveguides include planar waveguides and channel waveguides. Planar waveguides are optical structures that obstruct the movement of optical rays in the opposite direction. These waveguides are utilized to concentrate optical radiation in the propagation direction and also serve as input devices. They are constructed from various materials such as glass, polymer, and semiconductor, catering to applications at metro and long-haul optical interconnect, board-to-board and rack-level optical interconnect, and chip-and-board-level optical interconnect levels. Optical waveguides find applications in various industries, including telecommunications, data centers, high-performance computing, medical, metrology, aerospace and defense, consumer electronics, industrial, and others.
The optical waveguide market research report is one of a series of new reports that provides optical waveguide market statistics, including optical waveguide industry global market size, regional shares, competitors with an optical waveguide market share, detailed optical waveguide market segments, market trends and opportunities, and any further data you may need to thrive in the optical waveguide industry. This optical waveguide 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.
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.
This product will be delivered within 3-5 business days.
The optical waveguide market size is expected to see strong growth in the next few years. It will grow to $11.33 billion in 2029 at a compound annual growth rate (CAGR) of 9.1%. The growth in the forecast period can be attributed to 5g network deployment, expansion of data centers, demand for high bandwidth applications, increasing adoption of cloud computing, surge in demand for optical communication in automotive. Major trends in the forecast period include increased use of flexible optical waveguides, rising demand for optical waveguides in healthcare applications, growing focus on environmentally friendly and sustainable optical waveguide materials, advancements in integrated photonics, and innovations in optical signal processing technologies.
The expanding data center industry is anticipated to drive the growth of the optical waveguide market in the future. A data center is a facility that employs a complex network, computing, and storage infrastructure to facilitate shared access to applications and data. Optical waveguides are utilized in data centers to support high-speed and high-bandwidth optical communication, enabling efficient data transmission over long distances and enhancing overall network performance and scalability. For example, in February 2022, the Korea Data Center Council (KDCC), an organization focused on advancing the data center industry in Korea, reported that the overall capacity of colocation data centers’ information technology (IT) load reached 430 MW, representing 11% of the total APAC IT load. According to projections by Savills Korea, the total commercial data center IT load in Korea is expected to increase by 700 MW between 2021 and 2023, accounting for 15% of the total capacity in the Asia-Pacific region. Thus, the growth of the data center industry is propelling the optical waveguide market.
The optical waveguide market is set to experience further growth due to the rising demand for high-speed internet connectivity. High-speed internet connections, surpassing traditional dial-up speeds, rely on optical waveguides to transmit data through optical fibers, ensuring faster and more efficient communication with increased bandwidth and reduced signal loss compared to copper-based systems. In March 2023, according to the UK's Office of Communications (Ofcom), the average download speed for home broadband connections in the UK increased by 10% to 65.3 Mbit/s compared to March 2022. This growth underscores the escalating demand for high-speed internet connectivity, acting as a driving force for the optical waveguide market.
A prominent trend in the optical waveguide market is product innovation, with major companies actively developing innovative products featuring advanced technologies to maintain their market positions. For instance, Lumus Ltd., an Israel-based augmented reality company, introduced the Next Generation 2D 'Z-Lens' in January 2023. Leveraging Lumus' 2D Maximus technology, the Z-Lens waveguide architecture boasts a more compact projector and prescription. The optical engine of the Z-Lens is 50% smaller than its predecessor, Maximus, offering increased flexibility for glasses manufacturers in positioning the entrance aperture. This innovative technology is expected to drive widespread consumer adoption of AR glasses.
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 December 2022, Microsoft Corporation, a US-based technology company, acquired Lumenisity Ltd. for an undisclosed amount. This acquisition equips Microsoft with Lumenisity's next-generation hollow core fiber solution, enhancing capacity optimization for its global cloud infrastructure. Lumenisity Ltd., a UK-based company, specializes in advanced hollow-core fiber optic cable solutions based on optical waveguides.
Major companies operating in the optical waveguide market include Sumitomo Electric Industries Ltd., Prysmian SpA, Corning Incorporated, Synopsys Inc., Fujikura Ltd., FibreHome Telecommunication Co. Ltd., Mouser Electronics Inc., Yangtze Optical Fiber and Cable Co. Ltd., America Fujikura 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, INGUN, Waveguide Communications Inc., Vescent Photonics LLC, MicroVacuum Ltd., Cognifiber Ltd, Waveguide Optical Technologies LLC, Anello Photonics Inc., AdvR Inc.
North America was the largest region in the optical waveguide market in 2024. 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, 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, Russia, South Korea, UK, USA, Italy, Spain, Canada.
An optical waveguide is a spatially irregular structure designed to transmit optical messages by guiding and confining light along a predetermined path. Optical waveguides play a crucial role in photonics, facilitating the integration of electronic components on a chip with optical fibers through the configuration of waveguides in three-dimensional space.
The primary types of optical waveguides include planar waveguides and channel waveguides. Planar waveguides are optical structures that obstruct the movement of optical rays in the opposite direction. These waveguides are utilized to concentrate optical radiation in the propagation direction and also serve as input devices. They are constructed from various materials such as glass, polymer, and semiconductor, catering to applications at metro and long-haul optical interconnect, board-to-board and rack-level optical interconnect, and chip-and-board-level optical interconnect levels. Optical waveguides find applications in various industries, including telecommunications, data centers, high-performance computing, medical, metrology, aerospace and defense, consumer electronics, industrial, and others.
The optical waveguide market research report is one of a series of new reports that provides optical waveguide market statistics, including optical waveguide industry global market size, regional shares, competitors with an optical waveguide market share, detailed optical waveguide market segments, market trends and opportunities, and any further data you may need to thrive in the optical waveguide industry. This optical waveguide 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.
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.
This product will be delivered within 3-5 business days.
Table of Contents
1. Executive Summary2. Optical Waveguide Market Characteristics3. Optical Waveguide Market Trends and Strategies4. Optical Waveguide Market - Macro Economic Scenario including the impact of Interest Rates, Inflation, Geopolitics and Covid and Recovery on the Market32. Global Optical Waveguide Market Competitive Benchmarking and Dashboard33. Key Mergers and Acquisitions in the Optical Waveguide Market34. Recent Developments in the Optical Waveguide Market
5. Global Optical Waveguide Growth Analysis and Strategic Analysis Framework
6. Optical Waveguide Market Segmentation
7. Optical Waveguide Market Regional and Country Analysis
8. Asia-Pacific Optical Waveguide Market
9. China Optical Waveguide Market
10. India Optical Waveguide Market
11. Japan Optical Waveguide Market
12. Australia Optical Waveguide Market
13. Indonesia Optical Waveguide Market
14. South Korea Optical Waveguide Market
15. Western Europe Optical Waveguide Market
16. UK Optical Waveguide Market
17. Germany Optical Waveguide Market
18. France Optical Waveguide Market
19. Italy Optical Waveguide Market
20. Spain Optical Waveguide Market
21. Eastern Europe Optical Waveguide Market
22. Russia Optical Waveguide Market
23. North America Optical Waveguide Market
24. USA Optical Waveguide Market
25. Canada Optical Waveguide Market
26. South America Optical Waveguide Market
27. Brazil Optical Waveguide Market
28. Middle East Optical Waveguide Market
29. Africa Optical Waveguide Market
30. Optical Waveguide Market Competitive Landscape and Company Profiles
31. Optical Waveguide Market Other Major and Innovative Companies
35. Optical Waveguide Market High Potential Countries, Segments and Strategies
36. Appendix
Executive Summary
Optical Waveguide Global Market Report 2025 provides strategists, marketers and senior management with the critical information they need to assess the market.This report focuses on optical waveguide market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
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- All data from the report will also be delivered in an excel dashboard format.
Description
Where is the largest and fastest growing market for optical waveguide? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The optical waveguide market global report answers all these questions and many more.The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.
- The market characteristics section of the report defines and explains the market.
- The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
- The forecasts are made after considering the major factors currently impacting the market. These include:
- The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.
- Market segmentations break down the market into sub markets.
- The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth. It covers the growth trajectory of COVID-19 for all regions, key developed countries and major emerging markets.
- The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
- The trends and strategies section analyses the shape of the market as it emerges from the crisis and suggests how companies can grow as the market recovers.
Scope
Markets Covered:
1) By Type: Planar Waveguide; Channel Waveguide2) By Material: Glass; Polymer; Semiconductor
3) By Interconnect Level: Metro and Long-Haul Optical Interconnect; Board-To-Board and Rack-Level Optical Interconnect; Chip-and Board-Level Optical Interconnect
4) By End-User: Telecommunication; Data Center and High Performance Computing; Medical; Metrology; Aerospace and Defense; Consumer Electronics; Industrial; Other End-Users
Subsegments:
1) By Planar Waveguide: Glass Planar Waveguides; Polymer Planar Waveguides2) By Channel Waveguide: Optical Channel Waveguides; Integrated Waveguides
Key Companies Mentioned: Sumitomo Electric Industries Ltd.; Prysmian SpA; Corning Incorporated; Synopsys Inc.; Fujikura Ltd.
Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Russia; South Korea; UK; USA; Canada; Italy; Spain
Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
Time Series: Five years historic and ten years forecast.
Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita.
Data Segmentation: Country and regional historic and forecast data, market share of competitors, market segments.
Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
Delivery Format: PDF, Word and Excel Data Dashboard.
Companies Mentioned
- Sumitomo Electric Industries Ltd.
- Prysmian SpA
- Corning Incorporated
- Synopsys Inc.
- Fujikura Ltd.
- FibreHome Telecommunication Co. Ltd.
- Mouser Electronics Inc.
- Yangtze Optical Fiber and Cable Co. Ltd.
- America Fujikura 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
- INGUN
- Waveguide Communications Inc.
- Vescent Photonics LLC
- MicroVacuum Ltd.
- Cognifiber Ltd
- Waveguide Optical Technologies LLC
- Anello Photonics Inc.
- AdvR Inc.
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 200 |
| Published | February 2025 |
| Forecast Period | 2025 - 2029 |
| Estimated Market Value ( USD | $ 7.99 Billion |
| Forecasted Market Value ( USD | $ 11.33 Billion |
| Compound Annual Growth Rate | 9.1% |
| Regions Covered | Global |
| No. of Companies Mentioned | 30 |
