Global Optical Waveguide Market Size, Share & Industry Trends Analysis Report By Type, By Interconnect Level, By Material (Glass, Polymer and Semiconductor), By Propagation, By Industry, By Regional Outlook and Forecast, 2023 - 2029

Global Optical Waveguide Market Size, Share & Industry Trends Analysis Report By Type, By Interconnect Level, By Material (Glass, Polymer and Semiconductor), By Propagation, By Industry, By Regional Outlook and Forecast, 2023 - 2029

The Global Optical Waveguide Market size is expected to reach $9.9 billion by 2029, rising at a market growth of 7.0% CAGR during the forecast period.

Waveguides are transparent, minuscule optical parts that expand the exit pupil while transferring a projected virtual image to the eye. An optical waveguide is a physical structure that facilitates the transmission of electromagnetic radiation in the optical spectrum. Common optical waveguides include optical fiber and transparent plastic and glass dielectric waveguides.

The growing use of electronic devices is one of the key driving forces behind the optical waveguide market. In high bandwidth applications, such as the widely used smart gadgets, the rapid volume of data flow has led to increasing data traffic, which has multiplied the requirement for optical waveguides. Faster and higher bandwidth connections, such as FFTN, FTTH, and FTTC that use optical fiber lines to transfer data are now necessary.

Portable and wearable augmented reality (AR) gadgets have become one of the most innovative forms of technology in recent years. Because of its aesthetics, capacity to be produced in large quantities, and optical performance, optical waveguide technology offers the most potential to provide consumer-grade AR glasses. Hence, it is regarded as an unrivaled option for consumer-grade AR glasses.

The Photonics industry is the most important end user of optical waveguide. Setting up the waveguides in three-dimensional space enables the integration of electrical circuits and optical fibers. An optical fiber is often a waveguide with a circular cross-section made of two dielectric materials, one of which has a lower refractive index. Although silica glass is used most frequently to make optical fibers, plastic optical fiber can also be used for applications requiring short-distance transmission.

COVID-19 Impact Analysis

The optical waveguide market was impacted in both instances by the onset of the COVID-19 outbreak. As a result of the disruption of global supply chains, production & distribution of components and products involving optical waveguides were slowed down. Despite this, the expanded demand for high-speed internet and the expanding acceptance of fiber optic technology in various end-use industries have contributed to the rise in the use of optical waveguides. As a result, COVID-19 has had a favorable impact on the optical waveguide display market.

Market Growth Factors

Advancements in photonic integrated circuits

Photons go through optical elements like waveguides, polarizers, and phase shifters in PICs, analogous to resistors, capacitors, transistors, and wires in electrical circuits. High-end capabilities offered by PICs include low-loss transmission, miniature footprints, wide bandwidth, resilience to electric short circuits, and lack of electromagnetic interference (EMI). Data center interconnect (DCI), high-performance computing (HPC), telecommunication, and optical computing are a few developing application cases that are seeing significant acceptance rates for these PICs.

Rising demand for miniaturization of electronic devices

Miniaturization produces smaller mechanical, optical, and electrical products & devices. Globally, the miniaturization of electronic devices is gradually gaining momentum. Consumers are increasingly drawn to the portability and lightweight of electronic devices. Hence, the use of miniature electric components is increasing. Electronic devices are being created to maximize the available space and enhance the final product design, employing small form factor electronic components. Consumers choose handheld electronic gadgets with minimal size and maximum performance.

Market Restraining Factors

Designing & fabricating issues

Optical waveguides are difficult to integrate into microchips & integrated circuits for a number of reasons, including the fact that their footprints have shrunk significantly in recent years. Additional costs for design and fabrication are caused by criteria such as miniaturization and ruggedness for such components. These requirements must not compromise the performance attributes of the component. As a result, the high costs and length of time required for producing and deploying optical waveguides act as a barrier to the market's expansion.

Type Outlook

Based on type, the optical waveguide market is segmented into planar waveguide and channel waveguide. In 2022, the channel waveguide segment dominated the optical waveguide market with the maximum revenue share. Its two-way transverse optical confinement property, which offers superior speed & bandwidth, can be credited with the segment's expansion. To adjust the guided wave's direction or to provide a lateral shift, the channel waveguides components, like optical fibers, active optical cables, and fiber cables, can be bent or curved.

Material Outlook

On the basis of material, the optical waveguide market is fragmented into glass, polymer and semiconductor. The semiconductor segment procured a promising growth rate in the optical waveguide market in 2022. Optical waveguides made of semiconductors have considerable design freedom and are simple to manufacture. High light transfer efficiency, minimal signal loss, the absence of electromagnetic disturbances, and a lower bit error rate are all characteristics of optical waveguides made from semiconductors. These attributes are suited for high-speed mixed signals-based, dependable modern communication.

Propagation Outlook

By propagation, the optical waveguide market is classified into single mode and multi-mode. The multimode segment projected a prominent revenue share in the optical waveguide market in 2022. Multimode propagation's high attenuation & dispersal rate contribute to the segment's expansion. As the transmission distance increases due to the presence of OM5 fiber, the quality of optical signals will diminish. As it offers customers high bandwidth at rapid speeds across moderate distances, the segment will be in great demand during the anticipated period.

Interconnect level Outlook

Based on interconnect level, the optical waveguide market is bifurcated into metro & long haul optical interconnect, board-to-board & rack-level optical interconnect, and chip- & board-level optical interconnect. The chip- & board-level optical interconnect segment acquired a substantial revenue share in the optical waveguide market in 2022. The demand for co-packaged optics, computers, and optical transceivers with fast data transfer speeds and low power consumption is rising. An increased need for chip-and-board-level optical interconnects is driven by the rise of parallel computing, multicore computers, and 3D devices. As a result, they are becoming increasingly important to meet numerous end-use sectors' high computation speed requirements.

End User Outlook

By end user, the optical waveguide market is categorized into telecommunication, data center & high-performance computing (HPC), medical, metrology, aerospace & defense, consumer electronics, industrial and others. In 2022, the telecommunication segment held the highest revenue share in the optical waveguide market. The segment's growth is driven by a rising number of wireless and fixed-point communications system users, the accessibility of low-cost communication equipment, the low-cost services provided by telecom service providers, and an expanding global Internet user base.

Regional Outlook

Region wise, the optical waveguide market is analyzed across North America, Europe, Asia Pacific and LAMEA. In 2022, the Asia Pacific region led the optical waveguide market by generating the largest revenue share. Government policies that foster the development of the photonics or semiconductor sectors in the region are what drive the market growth. The expansion of the optical waveguide market is being aided by the presence of various photonics start-up companies in the region. The market-scale development & production of photonics solutions is a constant focus for these firms.

The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Corning Incorporated, Sumitomo Electric Industries, Ltd., Yangtze Optical Fibre and Cable Joint Stock Limited Company, Fujikura Ltd., Prysmian Group, Furukawa Electric Co., Ltd., CommScope Holding Company, Inc., Sterlite Technologies Limited, Coherent Corp. and DigiLens Inc.

Strategies Deployed in Optical Waveguide Market

Mar-2023: Sumitomo Electric Industries, Ltd. formed a partnership with US Conec, Ltd., designs and manufactures a full suite of industry leading connector embodiment packages. Through this partnership, the company aimed to deliver connectivity solutions using their MMC connector to help clients reduce installation time.

Jan-2023: Prysmian launched 864-fiber version of its Sirocco HD microduct cables. The new Sirocco HD microduct cables features Prysmian’s BendBright-A2 200-µm single-mode bend-insensitive fiber that reduce the diameter of the cable. The product is designed to install into microducts.

Oct-2022: STL revealed multicore fibre and cable. The new product features Quad-core fibre connectivity and Quantum communication feasibility and reduces Carbon footprint. Additionally, the Multicore fibre and cable transform 5G and data center connectivity.

Sep-2022: Corning Inc expanded its business to Mszczonow, Poland. The new optical fiber manufacturing facility would aim to fulfill the increasing demand for high-speed connectivity in the European Union and neighboring regions. Through this geographic expansion, the company would increase its local supply and manufacturing to fulfill the demand in international markets.

Aug-2022: STL introduced a range of compatible optical connectivity products including Stellar fibre, Pre-connectorized drop cabling solutions, Closure (CORC) and Celesta Intelligently Bonded Ribbon Cable combined with Compact Optical Ribbon Closure (CORC). The launch is aimed at enabling accelerated network rollouts to empower digital transformation and smooth user experience.

Aug-2022: Furukawa Electric LatAm entered into partnership with Nokia, a Finnish telecommunication, information technology, and consumer electronics corporation. Through this partnership, the company aimed to bring innovative solution to the clients and provide a reliable and secure technological platform.

Dec-2021: Prysmian Group took over Omnisens S.A., a leader in high performance fiber-optic based monitoring solutions. The acquisition would solidify the company's value-added businesses.

Jul-2021: Furukawa Electric Co., Ltd. joined hands with Fujitsu Optical Components Limited, an optical component business of Fujitsu Limited. The company aims to develop communications networks by integrating the technologies together. Additionally, the company would offer transceiver solutions to its customers across Asia region.

Jul-2021: DigiLens Inc. formed a partnership with Mitsubishi Chemical Corporation, global leader in the chemical industry. The company aims to bring plastic waveguide for XR glasses for consumer and business use.

Jan-2021: Sterlite Technologies acquired Optotec, an Italy-based manufacturer of optical interconnect products. The addition of Optotec enables the acquiring company to offer a comprehensive set of solutions to its clients across Middle East, India and Europe.

Oct-2020: Corning Optical Communications LLC, a subsidiary of Corning Incorporated joined hands with CommScope Technologies LLC, a subsidiary of CommScope Holding Company, Inc., to offer a broad range of optical connectivity solutions. The collaboration is aimed at making wide range of solutions optical connectivity solutions.

Feb-2019: Sumitomo Electric Industries teamed up with Optoscribe, supplier of 3D glass-based integrated photonics components. The collaboration is aimed at addressing the performance challenge faced by datacom and telecom applications and for further deployment of multicore fiber and related technologies.

Scope of the Study

Market Segments covered in the Report:

By Type

Channel Waveguide
Planar Waveguide
By Interconnect Level

Board-to-board & Rack-level Optical Interconnect
Chip- & Board-level Optical Interconnect
Metro & Long-haul Optical Interconnect
By Material

Glass
Polymer
Semiconductor
By Propagation

Single-mode
Multi-mode
By Industry

Telecommunication
Data Center & High-Performance Computing (HPC)
Industrial & Metrology
Medical
Aerospace & Defense
Consumer Electronics
Others
By Geography

North America
US
Canada
Mexico
Rest of North America
Europe
Germany
UK
France
Russia
Spain
Italy
Rest of Europe
Asia Pacific
China
Japan
India
South Korea
Singapore
Malaysia
Rest of Asia Pacific
LAMEA
Brazil
Argentina
UAE
Saudi Arabia
South Africa
Nigeria
Rest of LAMEA
Companies Profiled

Corning Incorporated
Sumitomo Electric Industries, Ltd.
Yangtze Optical Fibre and Cable Joint Stock Limited Company
Fujikura Ltd.
Prysmian Group
Furukawa Electric Co., Ltd.
CommScope Holding Company, Inc.
Sterlite Technologies Limited
Coherent Corp.
DigiLens Inc.
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