Optical Fiber Raw Material Market Expected to Reach $2.9 Billion by 2031

Optical fiber raw material market was valued at $0.9 billion in 2021, and is estimated to reach $2.9 billion by 2031, growing at a CAGR of 11.9%

WILMINGTON, DE, UNITED STATES, November 5, 2025 /EINPresswire.com/ -- The global optical fiber raw material market is expected to possess high growth potential in the coming years, due to the increasing demand for optical fiber for faster Internet connectivity and also the rise in demand for silicon tetrachloride is driving the optical fiber raw material market. However, the growth in wireless communication systems is hampering the market. In addition, increasing investments in optical fiber cable (OFC) network infrastructure is providing the market with lucrative opportunities in the future.

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An optical fiber is a transparent and flexible fiber made by drawing glass or plastic, which is used to transmit light. It is widely applicable in fiber-optic communications, where they allow transmission over longer distances and at higher bandwidths than wire cables. The adoption of fiber optic cables has increased over metal wires to send signals with lesser signal loss. Increase in internet penetration is the primary growth factor of the global optical fiber market.

Higher use of deployed fiber, increased network capacity, and improved spectral efficiency all contributed to the expansion of the optical fiber raw material market as a result of the rising use of submarine optical fiber cable. In addition, the most significant advantage of optical fiber under the water is that it enables the rapid transmission of massive amounts of data and the evolution of new technologies.

For example, in August 2020, the Indian government opened an undersea optical fiber cable connecting the Andaman and Nicobar Islands to the mainland to give cheaper and better telecom access to the Union Territory. This program will assist the Andaman and Nicobar Islands in enhancing their online education, telemedicine, banking, internet commerce, and tourism.

Wireless communication systems are alternatives to fiber optics; hence their growth may slow the optical fiber market. Wireless communication technology has transformed communication, data sharing, and transactions, creating a digital economy. Technology, digital devices, real-time online surfing and application interfaces have increased wireless network data demand. Thus, the growing wireless communications system will reduce optical fiber utilization and hamper the optical fiber raw materials industry.

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Fiber optic cable connections are also helpful for homes and offices that require a network connection. Fiber optics provides high-speed Internet connectivity and quick transfer of enormous data and information quantities. The cables are lightweight, simple to deploy, and less cumbersome than previous network cables and wires. Increasing adoption of smart homes and buildings, the number of linked cars, and the use of smart home appliances, and entertainment systems are expected to generate market opportunities.

The optical fiber raw material market is segmented into raw material, end-user industry, and region. Depending on the raw material, the market is divided into silicon tetrachloride, germanium tetrachloride, and phosphorus oxychloride. On the basis of the end-user industry, it is categorized into IT and telecom, aerospace, healthcare, defenses, energy and utilities, manufacturing, and others. Region-wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA.

On the basis of raw material, the optical fiber raw material market is categorized into silicon tetrachloride, germanium tetrachloride, and phosphorus oxychloride. Silicon tetrachloride is projected to be the fastest-growing segment and has garnered the highest share in the optical fiber raw material market.

On the basis of the end-user industry, the optical fiber raw material market is categorized into IT and telecom, aerospace, healthcare, defenses, energy and utilities, manufacturing, and others. Healthcare is projected to be the fastest-growing segment and IT and Telecom have garnered the highest share in the optical fiber raw material market.

The major players operating in the global optical fiber raw material market are Fujikura Ltd, Corning Inc, Sterlite Technologies Ltd, Furukawa Electric Co. Ltd, The Prysmian Group, Finisar Corporation, Sumitomo Electric Industries Ltd, Nexans S.A., Reflex Photonics, TATA Communications.

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Key findings of the study

On the basis of raw material, the silicon tetrachloride segment is expected to grow at a CAGR of 12.0%, in terms of revenue, during the forecast period.
Depending on end-user industry, the healthcare segment is expected to grow at a CAGR of 13.3%, in terms of revenue, during the forecast period.
Region-wise, Asia-Pacific garnered the highest share in 2021 in terms of revenue.

COVID-19 analysis

In the first half of 2020, the COVID-19 pandemic significantly affected the global supply chain for raw materials and components.
The pandemic has also led to the forced closing of manufacturing facilities for optical fiber raw materials, which has slowed the market's growth. Certain market participants were able to operate their manufacturing plants at a reduced capacity during COVID-19. For instance, in April 2020, Sterlite Technologies Limited (India) began manufacturing at 65% capacity of its global operations following the pandemic. The corporation resumed operations at its factories in China, India, and Italy.
COVID-19 has increased the popularity of remote work and online education systems. This exponential growth has propelled the global deployment and expansion of broadband connectivity infrastructure.
To address the growing need for high bandwidth and reliability, telecom operators throughout the world are investing heavily in the construction of 5G communication infrastructure as of 2022.
The backbone of 5G communication infrastructure is fiber optics. Post-pandemic, the construction of large-scale 5G infrastructure on a global scale will create significant growth opportunities for manufacturers of fiber optic raw materials.

David Correa
Allied Market Research
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