As holiday decorations go up, so does the annual ritual of evaluating the past 12 months and prognosticating what the new year will bring. In other words, it’s list season! Since fiber is at the heart of everything in the digital world, we at Clearfield wanted to provide insights into how the constantly evolving world of data will expand and thrive in 2026.
1. Fiber deployment will accelerate exponentially worldwide.
Fiber to the home (FTTH) and fiber to the premises (FTTP) are projected to grow substantially on an international scale. Industry analysts estimate the market will grow from roughly $19.1 billion in 2022 to $29.7 billion by 2026. That’s a CAGR of 13.1%.
Despite the delays in public funding, governments, regulators, and operators are doubling down on expansive fiber buildouts to “close the digital divide.” Fiber deployment remains strong in rural, exurban, multitenant, and other underserved areas.
Partnerships, public-private models, and subsidies will remain important. Yes, that includes the long-awaited BEAD funds in the U.S., along with state and municipal incentives. It will take an all-hands approach to hit these deployment goals.
2. Intuitive approaches to design and training will emerge.
Deployment methods are evolving. The industry will see increased use of pre-term or plug-and-play fiber terminals, micro-trenching, and infrastructure sharing to reduce cost and time requirements. This will not only support your strategic goals around advancing nationwide fiber deployment but also help to address a difficult labor market.
Last year, the Fiber Broadband Association estimated over 200,000 new technicians will be needed to enter the workforce over the next five years. More than 60% of the current workforce is nearing retirement. Twenty- and thirty-somethings account for only 12% of fiber optic technicians.
Telecoms will need to put extra emphasis on recruiting, training, and retaining skilled workers. Reducing the learning curve for new technicians will require a focus on modular, connectorized solutions. And training tools — like the BILT app with 3D intuitive instructions — will become more mainstream.
3. Speed and density will be key to any product innovation.
From the central office to the outside plant, networks need to do more with less space. These technology upgrades will extend beyond higher-density components to also accommodate multi-gigabit speeds, next-gen PON, and other fiber innovations.
Cabinets, panels, cassettes, connectors, inside and outside plant equipment will provide the same, or more, functionality in smaller form factors. Reduced diameter fiber is gaining popularity in homes and data centers, especially in hyperscale AI clusters where every micrometer counts to optimize compute density.
Similarly, demand for gigabit and multi-gigabit speeds continues to rise in residential and business environments. Standards like 10G-PON (10G symmetrical) and XGS-PON are becoming increasingly relevant. Innovation in fiber, such as ultra-low-loss fibers, hollow-core fiber, and multicore fiber, will open new, higher-capacity application areas.
Clearfield continues to develop field-engineered products to help future-proof networks, rather than take the shortsighted approach of meeting today’s speed and density needs. This will help fight the commoditization agenda. As a result, we can help our customers develop fiber networks that support tomorrow’s 10 Gbps+ requirements for AR/VR/IoT/6G.
4. AI and IoT infrastructure will grow beyond the data center.
While tech titans have discussed putting data centers in space, we’re more interested in how AI and IoT infrastructure will expand closer to home. Edge applications will require robust network solutions to power emerging technologies, especially where low-latency and/or massive data sets require on-site processing for speed, safety, and efficiency.
We’re not just talking about autonomous vehicles in dense urban areas. For example, one cherry farm in New Zealand installed 25G PON to analyze crops during harvest season. The operation takes more than 400,000 photos per hour for processing. They expect to nearly triple their harvest by combining fiber broadband and AI.
Local telecoms are looking for ways to best leverage AI while making the most of their existing assets, including fiber, power, and real estate. As fiber pipes get faster, legacy and traditional telecom equipment shrinks, freeing space and power for edge computing.
Telecoms will increasingly deploy compute resources at the edge, provide colocation for third parties, and deliver fiber access for larger players. Clearfield's unique expertise in data centers, community broadband, and beyond ensures that we can support you in this expansion of compute at the edge of the network.
5. Data protection and privacy will become more important
Data security, privacy, and sovereignty are priorities for local, state, and national governments worldwide. Europe led the way with laws requiring cloud data to stay within the national borders. In the U.S., many Tribal Nations are developing their own networks and data centers to safeguard their communities’ information.
The rapid growth of AI and edge applications are only adding to concerns and complexity, highlighting the need for strong data protections. Fiber is the most secure and reliable media available (and the most sustainable). Fiber’s unique capabilities can even detect eavesdropping and physical tampering. It will play a key role in the evolution of mesh networks, too, so that we can create the most secure communication solutions possible even in the age of AI.
From all of us at Clearfield, we wish you the best this holiday season and stand ready to support your next projects in the coming year to keep customers happy.
Are you ready to build the future of fiber connectivity? Tell Clearfield how we can help.
Clearfield’s Chief Commercial Officer, Anis Khemakhem, is deeply passionate about technology, particularly in advancing fiber optics and telecommunications solutions. Throughout his career, he has consistently focused on leveraging cutting-edge technology to improve connectivity and enhance digital access across various sectors. His executive experience - including leadership positions at Clearfield, Amphenol and Carlisle Interconnect Technologies - demonstrates his executive engagement capabilities and capacity to handle complex, multi-stakeholder projects.