Fiber optic market to reach $18.4B by 2034 amid AI demand

The streaming industry faces a dual challenge of rising 4K/8K bitrates and the shift toward interactive, low-latency applications. This massive capital expansion in fiber backhaul is the physical prerequisite for sustaining B2B and B2C video quality across fragmented networks. For streaming strategists, this indicates that while 5G provides the last-mile promise, the real capacity constraints are being addressed at the glass-fiber backbone layer by companies like Corning and Prysmian. Watch for shifts in content delivery network (CDN) pricing as these hyperscale fiber deployments begin to lower the cost-per-bit for long-haul transport.

The fiber optic market is currently being reshaped by a massive surge in artificial intelligence infrastructure spending. Per Corning’s Q1 2026 earnings report, its optical communications division saw a 36% year-over-year revenue increase to $1.85 billion, specifically driven by data center buildouts. In June 2026, Amazon announced a multi-billion dollar agreement with Corning to secure optical fiber supply for its expanding U.S. data center grid, reflecting a broader trend where hyperscalers are bypassing traditional procurement to lock in domestic manufacturing capacity.

In the public sector, the U.S. $42.45 billion Broadband Equity, Access, and Deployment (BEAD) program is entering a critical execution phase. Per Broadband Breakfast in June 2026, the program has faced delays due to a shift in federal rules toward 'tech neutrality,' which removed the initial strong preference for fiber over satellite and fixed wireless. While roughly 65% of BEAD locations are still expected to be connected via fiber, some providers in states like Maine and Vermont have withdrawn from preliminary awards citing increased costs and supply chain uncertainty.

Simultaneously, the industry is moving toward higher-density solutions to manage physical space in congested facilities. Corning recently launched Multicore Fiber (MCF) which provides a fourfold increase in density, potentially allowing data center operators to reduce internal cabling by 75% while maintaining performance. These technological advances are critical as global fiber demand is forecast to grow from 570 million kilometers in 2025 to 710 million by 2030, according to recent analysis from Prysmian Group.