Optical Waveguide Market - By Type (Planar, Channel), By Refractive Index (Step, Graded), By Mode Structure (Single, Multi), By Material (Glass, Polymer, Silicon, Semiconductor), By End-Use (BFSI, Submarine, A&D, Manufacturing, HC) - Global Forecast to 20

Optical Waveguide Market - By Type (Planar, Channel), By Refractive Index (Step, Graded), By Mode Structure (Single, Multi), By Material (Glass, Polymer, Silicon, Semiconductor), By End-Use (BFSI, Submarine, A&D, Manufacturing, HC) - Global Forecast to 2032

Optical Waveguide Market is anticipated to grow considerably through 2032, due to constant technological innovations in integrated photonic circuits. Optical waveguides are used to manufacture photonic integrated circuits (PICs). It features reduced transmission loss, a broader bandwidth, and a faster time delay than electronic integrated circuits.

The growing adoption of PIC in data center transceivers, LiDAR solutions for autonomous driving, 5G transceivers, and sensing for aerospace and aviation will drive the market need for optical waveguide solutions over the forecast period.

Overall, the optical waveguide industry is segmented in terms of type, refractive index, mode structure, material, end-use and region.

Based on type, the channel waveguide segment is anticipated to be valued at over USD 15 billion by 2032. The segmental growth will be majorly due to its two-way transverse optical confinement property that offers enhanced speed and bandwidth. The increasing adoption of access technologies such as Fiber to the Home/ Fiber to the Building (FTTH/FTTB) will also foster the development of the channel waveguide market over the estimated timeframe.

By refractive index, the step-index fiber segment is slated to grow rapidly through 2032. Easy manufacturing, low price, and less attenuation are the key product benefits slated to increase its penetration in the coming years.

In terms of mode structure, the multi-mode segment accounted for over 60% market share in 2022. The segment will see high demand during the estimated timeframe as it offers users high bandwidth at high speeds over moderate distances.

Considering the material, the semiconductor segment will grow significantly during the estimated timeframe. High light transfer efficiency, no electromagnetic emissions or noises, little signal loss, and lower bit error rates are all qualities of optical waveguides produced using semiconductors. Besides, semiconductors-based optical waveguides are simple to manufacture and have excellent design flexibility, which is expediting its adoption globally.

Based on end-use, the BFSI sectors are likely to demonstrate increased use of optical waveguides. Banks or financial institutions deal with confidential financial data, making them susceptible to information theft, third-party intrusions, and cyber intrusions. Banks rely highly on networking infrastructure secured and built via various fiber optics solutions to avoid cyber threats.

Regionally, the Asia Pacific optical waveguide industry is expected to exhibit over 15% CAGR during 2023-2032. The regional market share is estimated to be propelled owing to the positive government initiatives undertaken to support the expansion of the photonics and semiconductor industries in the area.