Everbright Securities has released a research report stating that polarization-maintaining (PM) fiber has rigid demand in the aerospace sector, with the market steadily expanding. Coupled with the two major trends of commercial aerospace and AI computing power construction, the PM fiber industry is experiencing strong new growth drivers. Domestically produced products have overcome technical challenges like space radiation and are accelerating import substitution in the commercial aerospace field. Companies with technological accumulation, production capacity reserves, and customer resources are poised to fully benefit from the industry's development.

The main points of the report are as follows:

With the rapid development of AI large language models, high-performance computing, and hyperscale data centers, switch chip bandwidth is continuously increasing alongside rising power consumption. Co-Packaged Optics (CPO) is seen as an important evolutionary direction for next-generation AI switches. In current mainstream CPO switch architectures, PM fiber is generally used for interconnection between the Optical Engine (OE) and External Laser Source (ELS). The report believes that the fiber optic industry will undergo industrial structure reconstruction and foster new investment opportunities under the waves of commercial aerospace and AI computing power.

PM fiber currently finds its mainstream application in aerospace, with significant potential for future application in AI Data Centers (AIDC). 1) Definition: PM fiber is a type of fiber that can maintain the polarization state of transmitted light. Since ordinary single-mode fiber produces birefringence in practical applications, the polarization state of transmitted light changes unpredictably. PM fiber enables polarization state control by generating higher birefringence to eliminate environmental effects on the polarization state of transmitted light. In 2025, PM fiber sales accounted for approximately 2.4% of the global fiber market. Panda-type PM fiber is the largest sub-product, representing about 56% of the PM fiber market. 2) Application: PM fiber is typically used in scenarios sensitive to polarization state requirements, such as fiber optic gyroscopes, fiber optic hydrophones, fiber lasers, and CPO switches, serving fields like aerospace and AI data centers. Currently, about 51% of PM fiber is used in fiber optic gyroscopes, where its performance directly affects the angular velocity detection accuracy of the gyroscope, thereby impacting the navigation, positioning, and attitude control accuracy of the carrier. Over 60% of fiber optic gyroscopes are used in the aerospace sector.

The PM fiber industry currently exhibits an oligopolistic structure, and rapidly growing demand is expected to reshape the landscape. 1) Regional Distribution: Global PM fiber is primarily produced in the United States, Europe, and South Korea, collectively accounting for over 62% of the market share. North America is the largest market, representing about 33%, followed by Europe and China at approximately 28% and 20%, respectively. 2) Manufacturer Landscape: The top three global PM fiber manufacturers are Corning, Fujikura, and Yangtze Optical Fibre and Cable (YOFC), collectively holding about 42% market share. Other key manufacturers include Changyingtong, FiberHome Technologies Group, and Fasten Group. 3) Market Size: According to QYResearch statistics, global fiber market sales reached 90.7 billion yuan in 2025 and are expected to reach 133.8 billion yuan by 2032, with a CAGR of 5.8% from 2026 to 2032. The CAGR for PM fiber from 2026 to 2032 is 10.8%, higher than the overall fiber growth rate.

The commercial aerospace field is breaking through radiation resistance bottlenecks, while AI data center optical interconnects are rapidly expanding. 1) Commercial Aerospace: Fiber optic gyroscopes are core sensors for satellite attitude control. PM fiber, as a core material, directly determines the accuracy and reliability of the gyroscope system. High-energy particle radiation in space can easily degrade gyroscope performance. Therefore, enhancing radiation resistance is a key technical challenge the industry needs to overcome. On April 10, Changyingtong disclosed that its 60/100 ultra-fine diameter PM fiber performed excellently in irradiation absorption loss tests, with indicators surpassing domestic counterparts and reaching international advanced levels. It has already been successfully applied in satellite projects for several organizations. This technological breakthrough provides key support for independent innovation and reliable operation of China's commercial aerospace satellites. 2) AI Data Centers: Modern AI workloads require the coordinated operation of thousands of GPUs, creating massive demand for high-performance optical fibers, connectivity components, and photonic components to achieve ultra-high-speed, large-scale data transmission. On May 6, NVIDIA announced a long-term commercial and technical cooperation agreement with Corning to build three new advanced manufacturing facilities in North Carolina and Texas, dedicated to producing optical components required by NVIDIA for AI. The new facilities plan to increase Corning's optical manufacturing capacity in the US tenfold and boost fiber production by over 50%. Industry demand is entering a phase of rapid expansion.

Risk warnings include intensifying industry competition and product price volatility.