Enter Since August, the fiber-optic market has once again become the industry’s focal point.

The price of standard optical fiber has surged to per-core-kilometer. More than 100 yuan , whereas in the same period last year it was only Around 18 yuan The group‑level centralized procurement projects for ordinary optical cables by China Mobile and China Telecom have both ended without awards, with the primary reason being a severe disconnect between the price caps set in the centralized procurement and prevailing market prices. On August 10, China Mobile urgently resumed its procurement process and, in an unusual move, even allowed a single company to secure the entire contract—69.222 million fiber‑kilometer‑equivalent. — Behind the failure of the “industry bellwether,” lies a profound transformation in the underlying supply-and-demand dynamics of the fiber-optic market.

From From 20 yuan to 100 yuan: a fivefold increase in one year.

At the beginning of 2025, the price of G.652.D single-mode optical fiber was still hovering around Insufficient 20 yuan per core-kilometer The low point. Entering After 2026, prices began to rise at an accelerating pace—reaching RMB 83.4 per core‑kilometer in March and stabilizing between RMB 90 and RMB 110 by July, with spot quotes in some regions exceeding RMB 120, for a cumulative increase of nearly… 5 times 。

More representative is G.657.A2 specialty optical fiber, with prices soaring from around RMB 30 per core‑kilometer to… Over 240 yuan , the overall increase exceeds 600%。

The direct consequence of the price increase is: In the first half of the year, profits in the optical fiber manufacturing industry increased year over year. 410.4% Meanwhile, large-scale centralized procurement by telecom operators has repeatedly ended in failed bids due to price inversions. Amid the sharp price surge, some rejoice while others worry.

The Three Major Drivers: Who Is Shaking the Price of This “Information Vein”?

Pushing Hand One: The “computing power hunger” of AI infrastructure

AI large‑model training clusters must handle massive volumes of parallel computing data, and optical communication, with its ultra‑high bandwidth and ultra‑low latency, has become the sole physical medium for data transfer between compute nodes. . The Four Major North American AI Cloud Company’s capital expenditures are expected to exceed in 2026. 700 billion US dollars 。

International industry giants are leading the charge—Corning has signed a strategic cooperation agreement with NVIDIA to increase the optical connectivity capacity of its U.S. facilities by a factor of ten; and… Meta achieved 6 billion US dollars , reached multi-billion-dollar long-term supply agreements with Amazon. Domestically, ByteDance, Alibaba, and others… AI cloud companies are also following suit. 。

According to According to estimates by GL-Fibercable and Rebio Group, global fiber-optic demand is expected to reach by 2026. 760 million chip-kilometers , year-on-year growth 27.6% 。 The share of AI-driven demand for data center optical cables has surged from less than 5% in 2024 to 35% in 2027 。

Push Factor Two: Supply-Demand Gap 180 million chip-kilometers

Demand is growing explosively, but supply is failing to keep pace. Fiber-optic cable research institute CRU estimates indicate that global total demand for optical fiber and cable in 2026 will… 577 million chip-kilometers , effective supply only 397 million chip-kilometers , the supply-demand gap reaches 180 million chip-kilometers 。

The root cause lies in the optical fiber preform, which accounts for roughly 70% of the cost of an optical cable, and its production expansion cycle is lengthy. 1.5 to 2 years 。 From 2026 to 2028, any newly added global production capacity will not be available until at least the end of 2027. At present, the production lines of mainstream global fiber-optic manufacturers have already… High-load operation , for some high-end optical fibers, the delivery lead time has extended to more than six months.

Although China’s overall domestic production rate of optical fiber preforms has already risen from… Increased from 65% in 2023 to More than 80% , but high-end Special optical rods for G.657.A2 and hollow-core fibers still exist. Structural gap 。

Push No. 3: Drones and Other Emerging Scenarios Are “Racing for Production Capacity”

except Besides AI, Fiber optic for drones Demand is also rising rapidly. For drones. The price of G.657.A2 optical fiber has already exceeded 200 yuan per core-kilometer , annual demand exceeds 100 million chip-kilometers 。 Applications such as AI data centers and drones continue to divert production capacity, and the crowding-out effect of high-value-added products on production lines is becoming increasingly pronounced. 。

Industry Landscape Reconfigured: From “Operators Call the Shots” to “The Market Calls the Shots”

In the past For more than two decades, demand in the fiber-optic industry has been heavily reliant on operators’ fixed-line broadband and 5G base‑station deployments, while chronic overcapacity has fueled fierce price wars.

Today, the situation has changed completely. The misalignment between the traditional telecommunications industry and the emerging computing‑power sector—both in terms of procurement scale and profit margins—is… Reshaping the competitive landscape of the global fiber-optic cable market 。 From January to April 2026, China’s fiber-optic export value increased year-on-year. 200.05% ， In March, monthly exports totaled US$245 million, surging 263.84% year over year, with the average export price rising compared to the same period last year. 204.32% 。

Some institutions predict that, In 2026, the average selling price of optical fiber will reach per core-kilometer. 146 yuan . The prices of optical fiber and optical cables are unlikely to decline in the short term, At least two years or longer 。

The Other Side of Price Hikes: A Test of Capability Under Cost Pressures

The rise in fiber-optic cable prices is being passed down to downstream engineering services, with the most direct impact being… Project costs have increased. For companies that have long been deeply engaged in power‑communication engineering, this means—

Rising raw material procurement costs are putting pressure on profit margins; meanwhile, upstream optical cable suppliers are facing capacity constraints and extended delivery lead times, placing greater demands on the coordinated scheduling of project timelines. Under these circumstances, The stability of the supply chain and the level of lean project execution , is becoming a key benchmark for distinguishing the capabilities of engineering service providers.

Guangruyuan Optoelectronics With a long-term focus on fiber-optic communication for smart grids, we have built up a relatively stable network of upstream partnerships and extensive field‑operation expertise—spanning everything from ultra‑high‑voltage flexible splice assemblies to custom‑designed optical cables, and from on‑site installation to testing and handover. In the face of industry volatility, while proactively addressing cost challenges, we have also become even more convinced of one fundamental truth: Amid price fluctuations, what truly remains irreplaceable is the reliable, high‑quality delivery of every project. 。

Looking ahead, we will continue to uphold our positioning of “small but exquisite, specialized and refined,” steadily advancing amidst the industry’s evolving landscape— Providing a more reliable connectivity solution for smart grid communications. 。

Reference:
The data and information in this article are sourced from Public reports and data from industry research institutions, including C114 Communications Network, CRU (UK-based Commodity Research Unit), Securities Star, The Paper, and Financial World.

Written by: Guangruyuan Optoelectronics
2026 8 month