According to a research report from CITIC Construction Investment, advancements in areas like artificial intelligence (AI) are poised to fuel sustained and rapid growth in the demand for optical fiber. It is projected that by 2026, a significant surge in global demand for optical modules will, in turn, boost the corresponding need for optical fiber, primarily driven by the "Scale out" trend (where systems are expanded horizontally by adding more nodes). Around 2027, the demand for "Scale up" optical fiber (which involves enhancing the capacity of existing systems) is expected to experience a substantial increase, with the volume anticipated to reach 2 to 3 times that of the current enterprise network business. Additionally, the "Scale Across" approach, which involves expanding across different domains or markets, will also generate considerable demand.
With this anticipated increase in demand, along with expectations of price rises, leading manufacturers in the industry are poised to be the primary beneficiaries. They have the potential to achieve a simultaneous increase in both profitability and market valuation.