Fiber Optic Cable for Smart Highways and Autonomous Vehicle Infrastructure (2026-2031) - Growth Driven by Expanding Connected Road and Autonomous Vehicle Networks
Dublin, Aug. 21, 2026 (GLOBE NEWSWIRE) -- "Fiber Optic Cable for Smart Highways and Autonomous Vehicle Infrastructure - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)" has been added to ResearchAndMarkets.com's offering.
Fiber Optic Cable Market for Smart Highways and Autonomous Vehicle Infrastructure to Reach USD 6.54 Billion by 2031
The global fiber optic cable market for smart highways and autonomous vehicle infrastructure is projected to expand from USD 1.2 billion in 2025 to USD 1.85 billion in 2026, reaching USD 6.54 billion by 2031. The market is forecast to register a compound annual growth rate of 28.73% from 2026 to 2031, driven by smart corridor investments, vehicle-to-everything infrastructure deployments and rising demand for high-capacity roadside communications.
Smart Corridor Programs Accelerate Fiber Deployment
Government-backed intelligent transportation initiatives are creating a strong project pipeline for highway fiber optic infrastructure. In the United States, the Federal Highway Administration awarded USD 58.8 million in vehicle-to-everything grants during 2024 for projects in Arizona, Texas, Wyoming, Michigan and Virginia. These deployments require fixed backhaul connections to support roadside units, traffic monitoring equipment and edge computing systems.
The national objective of extending vehicle-to-everything coverage across 50% of the National Highway System by 2031 is expected to make fiber connectivity an increasingly important component of transportation infrastructure. As agencies install additional cameras, gantries, sensors, cabinets and communication nodes, demand is growing for resilient fiber routes with sufficient spare capacity to support future technology upgrades.
Fiber Becomes the Preferred Intelligent Highway Communication Medium
Increasing sensor density, low-latency requirements and continuous data transmission are making wireless-only backhaul less suitable for advanced highway networks. Research published in Vehicle Communications in 2025 found that optical network solutions can provide significant performance advantages for roadside unit connectivity in intelligent transportation environments.
The adoption of the IEEE 802.3cz standard for multigigabit optical automotive communications is also supporting fiber use across vehicle systems and roadside infrastructure. LiDAR, radar, high-resolution cameras, environmental sensors and real-time analytics generate substantial data volumes, increasing demand for high-fiber-count cables, low-attenuation performance and durable corridor network designs.
Civil Works Costs Remain a Key Market Constraint
Excavation, permitting and road reinstatement continue to affect project costs and delivery schedules. The Fiber Broadband Association's January 2026 deployment cost report placed the median cost of underground fiber installation at USD 18 per foot in 2025, representing a 12% year-over-year increase. Labor accounted for approximately 60% to 80% of total construction spending.
Industry analysis also indicates that excavation and reinstatement can represent 75% to 90% of fiber installation costs. Coordinating conduit placement with road construction can substantially reduce these expenses. Microduct systems are gaining attention as highway authorities seek lower-cost, modular deployment methods, although permitting requirements and lengthy procurement cycles remain barriers.
Microduct and Single-Mode Fiber Support Market Growth
Non-armored cable accounted for 31.72% of the market in 2025, supported by its widespread use in protected highway conduit. In these installations, conduit provides mechanical protection while non-armored cable reduces weight, cost and field termination complexity.
Microduct and blown fiber cable solutions are forecast to grow at a CAGR of 28.45% through 2031. These systems allow operators to add fiber strands without reopening an entire highway route, improving lifecycle flexibility. Pennsylvania Turnpike's 500-mile microtrench conduit deployment demonstrated reported cost savings of 50% to 75% compared with conventional open-cut trenching while creating spare capacity for transportation communications and broadband services.
Single-mode fiber represented 53.34% of the market by fiber mode in 2025 and is projected to grow at a CAGR of 27.63% through 2031. Its low attenuation and long-distance transmission capabilities make it well suited to highway corridors connecting traffic management centers, tolling systems, sensing clusters and roadside communication equipment. Multimode fiber remains relevant in toll plazas, maintenance facilities and traffic management buildings where transmission distances are shorter.
Europe Leads as Asia-Pacific Records the Fastest Growth
Europe held 32.67% of the global market in 2025, supported by interoperability requirements, concession-based infrastructure models and funding under the Connecting Europe Facility Digital framework. Italy's Tangenziale di Napoli became the country's first certified Smart Road in June 2026, incorporating 217 intelligent cameras, 15 traffic detection gantries, eight weather stations and 40 vehicle-to-infrastructure and cellular vehicle-to-everything antennas.
North America remained the second-largest regional market, benefiting from U.S. corridor modernization funding and the national vehicle-to-everything deployment plan. Major projects include approximately USD 150 million in fiber optic infrastructure work along Highway 101 in Sonoma County, California, and the deployment of a Smart Road Platform on Interstate 95 in Virginia's Richmond region.
Asia-Pacific is forecast to record the fastest regional growth, with a CAGR of 28.76% through 2031. India's digital highway network program, Japan's autonomous driving trials and expanding connected transportation investments across the region are strengthening demand. The Middle East and Africa are also advancing through national smart city and digital transport programs, while Turkey's planned 20,141-kilometer highway fiber network provides a significant regional development benchmark.
Continued investment in intelligent transportation systems, route resilience and autonomous vehicle support corridors is expected to sustain long-term demand for fiber optic cable. Market growth will increasingly depend on scalable installation methods, coordinated infrastructure planning and policies that reduce civil works costs while supporting future network expansion.
Key Topics Covered:
1 INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET LANDSCAPE
4.1 Market Overview
4.2 Market Drivers
4.2.1 Accelerated Smart Corridor Buildout and V2X Backhaul Demand
4.2.2 Fiber as the Preferred Medium for Low-Latency Roadside Edge Connectivity
4.2.3 Government Mandates for Intelligent Transportation Systems and Highway Digitalization
4.2.4 Need for Route Diversity and Resilient Communications in Autonomous Vehicle Test Corridors
4.2.5 Monetization of Corridor Data Through Connected Roadside Infrastructure
4.2.6 Increasing Fiber Density Requirements for Multi-Use Highway Utility Corridors
4.3 Market Restraints
4.3.1 High Civil Works and Right-of-Way Coordination Costs
4.3.2 Long Permitting Cycles for Highway, Tunnel, and Bridge Deployments
4.3.3 Interoperability Challenges Across DSRC, C-V2X, and Legacy Highway Systems
4.3.4 Project Deferrals from Budget Competition with Other Transportation Priorities
4.4 Value Chain Analysis
4.5 Regulatory Landscape
4.6 Technological Outlook
4.7 Porter's Five Forces Analysis
4.7.1 Bargaining Power of Suppliers
4.7.2 Bargaining Power of Buyers
4.7.3 Threat of New Entrants
4.7.4 Threat of Substitutes
4.7.5 Competitive Rivalry
5 MARKET SIZE AND GROWTH FORECASTS (VALUE)
5.1 By Cable Type
5.1.1 Armored Cable
5.1.2 Non-Armored Cable
5.1.3 Ribbon Cable
5.1.4 Microduct and Blown Fiber Cable
5.1.5 Other Cable Types
5.2 By Fiber Mode
5.2.1 Single-Mode Fiber
5.2.2 Multimode Fiber
5.2.3 Plastic Optical Fiber
5.3 By Installation Type
5.3.1 Underground and Buried
5.3.2 Aerial and Overhead
5.3.3 Submarine and Under-Water
5.3.4 Tunnel and Bridge Integrated Deployments
5.4 By Application
5.4.1 Roadside Communications and V2X Backhaul
5.4.2 Traffic Monitoring and Incident Management
5.4.3 Smart Tolling and Revenue Collection
5.4.4 Autonomous Vehicle Support Corridors
5.4.5 Environmental Monitoring and Weather Sensing
5.5 By End User
5.5.1 Government and Transport Authorities
5.5.2 Private Highway Operators
5.5.3 Logistics and Fleet Operators
5.5.4 Automotive OEMs and Mobility Ecosystem Providers
5.6 By Geography
5.6.1 North America
5.6.1.1 United States
5.6.1.2 Canada
5.6.1.3 Mexico
5.6.2 South America
5.6.2.1 Brazil
5.6.2.2 Argentina
5.6.2.3 Rest of South America
5.6.3 Europe
5.6.3.1 Germany
5.6.3.2 United Kingdom
5.6.3.3 France
5.6.3.4 Italy
5.6.3.5 Spain
5.6.3.6 Russia
5.6.3.7 Rest of Europe
5.6.4 Asia-Pacific
5.6.4.1 China
5.6.4.2 Japan
5.6.4.3 India
5.6.4.4 South Korea
5.6.4.5 Australia
5.6.4.6 Singapore
5.6.4.7 Rest of Asia-Pacific
5.6.5 Middle East and Africa
5.6.5.1 Middle East
5.6.5.1.1 Saudi Arabia
5.6.5.1.2 United Arab Emirates
5.6.5.1.3 Turkey
5.6.5.1.4 Rest of Middle East
5.6.5.2 Africa
5.6.5.2.1 South Africa
5.6.5.2.2 Nigeria
5.6.5.2.3 Egypt
5.6.5.2.4 Rest of Africa
6 COMPETITIVE LANDSCAPE
6.1 Market Concentration
6.2 Strategic Moves
6.3 Market Share Analysis
6.4 Company Profiles (includes Global Level Overview, Market Level Overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share, Products and Services, Recent Developments)
6.4.1 Prysmian Group
6.4.2 Corning Incorporated
6.4.3 Sumitomo Electric Industries, Ltd.
6.4.4 Furukawa Electric Co., Ltd.
6.4.5 Yangtze Optical Fibre and Cable Joint Stock Limited Company
6.4.6 Fujikura Ltd.
6.4.7 CommScope Holding Company, Inc.
6.4.8 Nexans S.A.
6.4.9 LS Cable and System Ltd.
6.4.10 OFS Fitel, LLC
6.4.11 Sterlite Technologies Limited
6.4.12 Hengtong Optic-Electric Co., Ltd.
6.4.13 ZTT Group
6.4.14 Proterial, Ltd.
6.4.15 Belden Inc.
6.4.16 Hexatronic Group AB
6.4.17 Finolex Cables Limited
6.4.18 Taihan Fiberoptics Co., Ltd.
6.4.19 Nokia Corporation
6.4.20 Cisco Systems, Inc.
7 MARKET OPPORTUNITIES AND FUTURE OUTLOOK
7.1 White Space and Unmet Need Assessment
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