The optical fibre and cable market is shifting in several directions at once. In 2025, AI-driven data centre investment rapidly emerged as the strongest driver of growth, while traditional telecom demand softened in several markets. Supply dynamics are also changing as Chinese exports dominance grows, while other markets such as the US face impending shortages. These shifts are redefining growth, competition and technology focus. Drawing on CRU’s November Optical Fibre & Cable Market Outlook, this article highlights ten key industry shifts that shaped 2025 and will set the tone for 2026.
1. AI and hyperscale data centres became the strongest global growth engine
Data centre construction transformed demand dynamics this year. The rapid expansion of training clusters required dense fibre links within server rooms, while increasingly interconnected hyperscale campuses drove a renewed wave of data centre interconnect (DCI) builds. These applications rely on low-loss designs, higher-spec fibre such as G.657.A1 and G.657.A2, and extremely high fibre-count cable arrangements, which pushed data centre-related consumption to the centre of market growth. With data centre operators optimising for speed, low latency, throughput and energy efficiency, optical cable requirements rose sharply across internal links, DCI and backbone upgrades, far outpacing the demand growth from traditional telecom segments.
2. High fibre-count ribbon cable demand accelerated rapidly
Growth in AI infrastructure translated directly into exceptional demand for high fibre-count ribbon cables. These cables bundle 1,000s of fibres to maximise bandwidth and spatial efficiency which are essential as hyperscalers continue to expand their data centre capacity through new builds, campus upgrades and interconnect densification. Manufacturers are increasingly catering for these types of ribbon cables and prioritising high-density designs, to meet and future-proof the evolving requirements of the data centre sector.
3. Amphenol’s acquisition of CommScope’s CCS business signalled competitive positioning
The $10.5 bn purchase of CommScope’s Connectivity & Cable Solutions business by Amphenol was the only major acquisition among global fibre and cable suppliers in 2025. The deal reflects Amphenol’s confidence in long-term growth from data centres and cloud connectivity.
The size of the deal stands out in a year where many manufacturers remained cautious and prioritised cost control and operational efficiency over expansion. This lack of broader M&A activity suggests an industry still navigating uneven demand and pricing pressure, while larger players are investing selectively to position themselves for the next phase of growth.
4. Europe experienced tightening margins and structural shake-out
The European cable landscape continued to contract as subdued FTTH activity, aggressive Asian imports and sustained margin pressure weighed on suppliers. Several producers downsized operations, sought buyers or exited selected markets, reflecting the increasing difficulty of maintaining viable profits in a region where demand has slowed, and pricing remains highly competitive. Unlike Amphenol’s acquisition of CommScope’s CCS, Europe’s consolidation reflects structural strain rather than strategic ambition, signalling a smaller and more vulnerable manufacturing base entering 2026.
5. Trade restrictions and localisation efforts reshaped global supply strategies
Trade policy developments played a major role in redrawing global supply chains. The US’s erratic tariffs in addition to Build America Buy America (BABA) compliance requirements have created uncertainty and prompted many manufacturers to reconsider sourcing practices.
Earlier in the year, the European Union tightened its anti-dumping and anti-subsidy duties on Indian optical cable imports. The EU already imposes high anti-dumping and anti-subsidy duties on Chinese optical cable imports. These shifts encouraged major suppliers to localise production, leading to new or expanded facilities in the US, Mexico, the Middle East, Southeast Asia and Eastern Europe. This combination of policy pressure and strategic relocation is now a defining feature of the market supply chain.
6. Chinese suppliers deepened their global presence
Despite rising trade barriers in some markets, Chinese fibre and cable manufacturers strengthened their international position. Rising exports expanded capacity, and highly competitive pricing allowed Chinese suppliers to win tenders across the Middle East, Latin America, Europe and even the US, in addition to their traditional strongholds in Asia. Their broad product portfolios and a growing presence in preform and fibre supply enabled them to capture demand that other regions struggled to serve.
7. A2 fibre demand rose sharply across multiple applications
One of the clearest changes in fibre mix this year was the shift toward A2 (G.657.A2). Server-room environments increasingly rely on bend insensitive performance to manage dense cabling paths around racks and trays, while fibre-optic drone applications generated additional pull for A2 specifications. In China, many suppliers adjusted draw towers to meet this demand, creating domestic tightness for traditional wide-use G.652.D, which supported an upward trajectory in fibre prices.
8. Fibre prices experienced a slight uptick
After a prolonged period of downward pressure, fibre pricing began to rise in 2025 across regions. In the US, strong DCI and server room demand for data centres, alongside supply constraints, resulted in higher transaction prices and long order pipelines. Other regions saw stabilisation rather than further erosion. This pricing movement, though modest, reflects the rebalancing of supply toward higher value applications.
9. Hollow-core fibre development gained momentum
Hollow-core fibre remained in early-stage development, but progress accelerated significantly this year. Partnerships started to emerge across the ecosystem. Prysmian is working with Relativity, while Microsoft announced its production partnerships with Corning and Heraeus.
Main Chinese suppliers including YOFC, FiberHome, Hengtong and ZTT continued to advance their technology and run trials with Chinese telcos. Although commercial deployment is limited, the increased pace of R&D, collaboration and early field activity makes 2025 the most active year yet for hollow-core development.
10. BEAD progress finally gained traction
The Broadband Equity, Access and Deployment (BEAD) program is finally advancing after years of delays, revisions and changing requirements. Fibre option secured most funding despite competition from satellite and fixed wireless. NTIA approvals mean states are beginning to receive allocation. The first demand impact should emerge in 2026, but challenges remain, including lengthy permitting, BABA compliance, tight supply and expected labour shortages, which may slow execution well into 2027.
What these shifts mean for 2026
Together, these developments illustrate a market being reshaped by AI infrastructure, shifting supplier strategies and evolving global trade conditions. Demand is increasingly concentrated in high-growth segments, while traditional telecom markets remain subdued in several regions. Supplier positioning, cost structure and ability to serve data centre requirements are becoming critical factors for competitiveness.
We welcome further discussion with industry stakeholders who are navigating these evolving market dynamics. Please get in touch, please get in touch.
