In 2026, the global fiber optic cable industry is undergoing a profound transformation driven by AI. AI computing power demand is fundamentally rewriting the market landscape for optical cables. A single hyperscale AI data center requires several times more optical fiber than a traditional data center. In 2025, global data center fiber optic cable demand surged 75.9% year‑on‑year, reaching 69.6 million fiber‑km; in 2026, this figure is projected to reach 91.6 million fiber‑km. CRU forecasts that over the next five years, the compound annual growth rate for AI‑ and data‑center‑related cable demand will reach 32.6%.
Cable prices have soared in tandem – G.652.D bare fiber prices have risen to RMB 83.4 per fiber‑km, an increase of over 400% year‑on‑year. The popular G.657.A2 specialty fiber has skyrocketed from RMB 32 per fiber‑km in 2025 to RMB 240 per fiber‑km – a staggering 650% increase. General Administration of Customs data shows that in March 2026, China’s fiber optic cable exports reached USD 245 million, up 263.84% year‑on‑year. Many leading manufacturers have orders booked through 2027 and 2028.
The demand structure has changed, the products have changed, and the logic behind selecting optical cable manufacturing equipment must change with them. This article starts with the new requirements AI data centers place on cable products and breaks down the new selection logic for stranding and sheathing equipment.
1. How Are AI Data Centers Changing the Demand for Cable Products?
Change 1: High‑fiber‑count cables are moving from niche to mainstream
In hyperscale data centers, a single cable needs to integrate thousands of fibers to maximize bandwidth and space efficiency. In the past, loose‑tube cables typically used 6 to 12 tubes; high‑fiber‑count cables now use 24 tubes or more. Fiber optic cable production lines need to handle more tubes with higher stranding accuracy.
AI‑related fiber optic cables have become a major source of incremental global market demand. Many domestic fiber manufacturers saw substantial production and sales growth in Q1 2026, with orders extending into Q1 2027. The polarization‑maintaining fiber market is extremely hot – “it is expected that demand will see 10‑fold or even 20‑fold growth in the next one to two years.”
Change 2: Soaring demand for G.657 series bend‑insensitive cables
The high‑density cabling environment in data centers imposes extremely high requirements on cable bending performance. Data centers are driving continued growth in demand for high‑spec, high‑value‑added products like G.657.A1/A2. G.657.A2 fiber is primarily used for high‑density cabling in data centers and is one of the biggest beneficiaries of the AI data center demand explosion – rising from RMB 32 per fiber‑km to RMB 240.
G.657 series bend‑insensitive cables have far more demanding sheath requirements than traditional G.652.D cables – smaller bending radii require more precise sheath concentricity and more uniform wall thickness. The accuracy control capability of the sheathing extrusion line directly determines whether a manufacturer can take on these high‑value‑added orders.
Change 3: Overseas demand is becoming the core growth driver
One of the key variables in the current market is that overseas demand is becoming the primary growth engine, with Chinese fiber optic cable manufacturers systematically expanding overseas. The North American fiber market is experiencing severe supply shortages. In Q1 2026, optical fiber, cable, and optical modules became “new best‑selling export products.” From January to April 2026, Jiangsu Province’s wire and cable exports reached RMB 19.93 billion, up 31.9% year‑on‑year.
The accelerated construction of overseas cable factories has directly boosted demand for cable equipment exports. Every new overseas cable plant means procurement demand for optical cable manufacturing equipment. Prysmian has announced capacity expansions extending both cable and fiber production – including facilities in the US and Europe.
2. Four New Requirements for Stranding and Sheathing Equipment Driven by Industry Trends
Requirement 1: Stranding accuracy must support high‑fiber‑count production
AI data centers are driving rapid growth in demand for high‑fiber‑count cables. The SZ stranding and cabling line must maintain extremely high accuracy under high tube counts. Pay‑off tension fluctuation should be controlled within ±0.5 N, and stranding pitch deviation should be controlled within ±0.1 mm. Tension deviation on any single tube can scrap the entire cable.
A high‑performance cable stranding machine must use high‑quality components in core areas – differential gears, bearings, electrical components – with high‑frequency hardening and precision grinding, SKF or NSK bearings, and Siemens or Mitsubishi electrical components – to maintain stable accuracy under high‑intensity continuous production.
Requirement 2: Sheathing accuracy must meet G.657 series requirements
G.657.A2 specialty fiber prices have surged from RMB 32 to RMB 240 per fiber‑km. But high prices come with high demands – the sheathing extrusion line must achieve concentricity ≥ 98% and wall thickness tolerance ≤ 0.05 mm (at 1.8 mm nominal). Otherwise, bending loss will be sharply amplified.
The laser diameter gauge is the key to achieving this. By monitoring the outer diameter in real time, the PLC automatically adjusts the extruder speed to control outer diameter fluctuation within ±0.03 mm. The accuracy of the sheathing extrusion line determines whether a cable manufacturer can take on high‑margin G.657 series orders.
Requirement 3: Equipment must support rapid changeover
Today’s cable orders are characterized by “multi‑variety, small‑batch” – loose‑tube cables, FTTH drop cable production lines, high‑fiber‑count cables – requiring multiple specification changes daily. If a fiber optic cable making machine takes 4–5 hours per changeover, it will severely reduce the line’s annual effective output.
Equipment with recipe storage and one‑touch recall capability can store process parameters for more than 20 different products in the touchscreen, compressing changeover time to under 1.5 hours. In the multi‑variety order era, changeover efficiency equals production capacity.
Requirement 4: Equipment must have digital capability
After the implementation of 5G fully connected digital factories in cable manufacturing, production efficiency increased by 43.8%, production costs decreased by 20.3%, product delivery efficiency improved by 27%, and per‑unit energy consumption fell by 15%–20%. 5G+OTDR inspection technology can complete multi‑wavelength testing on a single fiber in under 500 milliseconds, covering over 30 data validations including sheath defects and outer diameter deviations.
Workshops are moving from “people watching machines” to “data managing machines.” If equipment on the fiber optic cable production line is still “mute” – lacking data interfaces and unable to connect to MES systems – it will gradually be phased out of mainstream supply chains.
3. Five Key Selection Criteria for Cable Equipment
Based on the above industry trends, cable manufacturers should focus on the following five criteria when procuring cable equipment:
Criterion 1: Stranding accuracy
What is the pay‑off tension fluctuation of the SZ stranding and cabling line? Can stranding pitch deviation be stably maintained within ±0.1 mm? Can it support simultaneous stranding of 12 tubes or more? These data directly determine whether the equipment can produce high‑fiber‑count cables.
Criterion 2: Sheathing accuracy
Can the sheathing extrusion line stably achieve concentricity of ≥ 98%? Can wall thickness tolerance be controlled within 0.05 mm? Is a laser diameter gauge equipped for online closed‑loop control? These determine whether the equipment can take on high‑value‑added cable orders like G.657 series.
Criterion 3: Changeover efficiency
Does the equipment have built‑in recipe storage? Can all process parameters be loaded with a single touch during changeover? Can changeover time be compressed to under 2 hours? These determine the line’s actual annual output under multi‑variety order conditions.
Criterion 4: Digital capability
Does the equipment have data interfaces? Can it automatically record process parameters for each batch? Can it connect to MES systems? In the 5G fully connected factory era, equipment without digital capability will lose competitiveness.
Criterion 5: Export compliance capability
Does the equipment have CE technical documentation? Are major electrical components from international brands? Are bilingual operation manuals (Chinese/English) provided? Does the equipment supplier have international delivery experience? These determine whether the equipment can be successfully exported to overseas markets.
4. Opportunities and Challenges in Cable Equipment Exports
With overseas demand becoming the core driver, cable equipment exports are facing a structural opportunity. The accelerated construction of overseas cable factories has directly boosted procurement demand for cable manufacturing equipment. For fiber optic cable production line suppliers, export capability is becoming a core competitive advantage.
But equipment exports face three practical challenges: How soon after arrival can the equipment go into production? How quickly can it be repaired if it breaks down? Can it pass the destination country’s certification? Whether the optical cable making machine manufacturer has overseas installation and commissioning capability, provides bilingual technical documentation, and supports remote diagnostics and fast spare parts shipping – these capabilities determine whether equipment can successfully enter overseas markets.
Trade barriers are also affecting the global supply chain landscape. South Korea has imposed a 43.35% anti‑dumping duty on Chinese single‑mode optical fiber for five years. The EU, US, and other markets are also continuously adjusting trade policies. This is prompting cable manufacturers to accelerate overseas localized production, further driving demand for cable equipment exports.
5. Final Thoughts
In 2026, the global fiber optic cable industry is in the midst of a structural transformation driven by AI computing power. CRU data shows that the CRUofpi Global Index rose to 263.0 in March 2026 – the largest single increase since monitoring began in 2017. G.657.A2 specialty fiber has gone from RMB 32 per fiber‑km to RMB 240. The demand logic for fiber optic cable production lines has fundamentally changed.
Demand has changed. Products have changed. The equipment that makes cables must change too. Stranding accuracy, sheathing accuracy, changeover efficiency, digital capability, and export compliance capability – these five criteria are becoming the new standard for cable equipment selection.
Guangdong Hongkai Optical Cable Equipment Technology Co., Ltd. began manufacturing wire and cable equipment in 2005 and was formally incorporated in 2015. Our main products include SZ stranding and cabling lines, fiber optic cable sheathing extrusion lines, and FTTH drop cable production lines. We focus on the stranding and sheathing processes – the two critical steps that determine cable mechanical properties and temperature performance.
Hongkai equipment measured data:
| Parameter | Measured Value |
|---|---|
| Stranding pay‑off tension fluctuation | ≤ ±0.4 N |
| Stranding pitch deviation | ≤ ±0.08 mm |
| Sheathing concentricity (8‑hour continuous production) | ≥ 98.6% |
| Wall thickness tolerance | ≤ 0.04 mm |
| Changeover time | ≤ 1.5 hours (one‑touch recipe loading) |
Our equipment has been exported to more than 15 countries and regions, with over 160 sets currently running on production lines worldwide. Every machine comes with a factory test report, a PLC program backup on USB, bilingual operation manuals (Chinese/English), and a wear‑parts kit.
If you’re setting up a fiber optic cable production line, or need a custom optical cable production line, feel free to contact the Hongkai technical team.
