ID: MRFR/ICT/9034-HCR | March 2021 | Region: Global | 100 pages
The Global Dark fiber market size is expected to register an steady CAGR of 11.0% valued at USD 4.6 billion in 2019 and USD 9.3billion by 2026.
Dark fiber are unlit or in other words unused optical fiber cables laid underground creating a pre-existing network infrastructure to cater to the ever rising connectivity needs. Initially, the laying down of fiber undergroud by physically digging the area cost much than that of the optical fiber in actual. To overcome this cost, undersatnding to the forecast, and the expanding need for connectivity, companies invested more on laying extra fiber than the actual need. This surplus infrastructure created business opportunities by leasing the unused fiberto the end-use industry verticalsfor their networking needs. Dark fiber offers various advantages to the IT & telecom industry. These advantages include scalability & flexibility for increasing bandwidth needs, full control over the infrastructure, lower latency, enhanced security, reliable network, and minimized cost.
Additionally, the market growth is contributedby factors such as rising demand for high speed connectivity, increase in focus on outsourcing of network infrastructure, and rapidly expanding telecom industry. Additionally, the government initiatives to deploy smart city projects and other public welfare projects with the help of digital transformation are expected to boost the market evolution to next level.
However, factors such as risk associated with physical damage of fiberare expected to hamperthe market growth. Although,surging demand for internet across the globe is providing opportunities for dark fiber market in the near future. In addition, the deployments of 5G networks for commercial use across the globe are expected to take dark fiber market journeysto next level.
The Global Dark fiber market has been segmented based on fiber type, network type, application, and region.
By fiber type, the global dark fiber market has been divided into single mode and multi-mode.
By network type, the global dark fiber market has been divided into metro and long-haul.
Depending on its applications, the dark fiber market is split into BFSI, IT &telecom, oil & gas, military & aerospace, healthcare, government, and others.
The global dark fiber market has been analyzed for five regions—North America, Europe, Asia-Pacific, the Middle East & Africa, and South America.
The Global Dark fiber marketis estimated to register an steady CAGR of 11.0% over the forecast period. The geographic analysis of the Global Dark fiber markethas been conductedfor North America, Europe, Asia-Pacific, the Middle East & Africa, and South America.
North America is expected to be the dominating region in terms of the adoption of dark fiber owing to the heavy investments for the deployment of 5G networks across the region. North American market has been segmented into the US, Canada, and Mexico.The US is expected to lead the country-level market, while Canada is projected to be the fastest-growing segment during the forecast period. The US market is expected to report the highest market share, owing to the leading market position in terms of rising need for high bandwidth networks for domestic and commercial purposes. Additionally, the North American market for dark fiber is expected to grow further due to presence of key players in the region such as GTT Communications, Inc. (US), Landmark Dividend LLC. (US), Unite Private Networks (US), Consolidated Communications (US), Crown Castle (US), NexGen Networks (US), Sorrento Networks (US), FirstLight (US), and Windstream Intellectual Property Services, LLC. (US). These players are competing to deliver with advanced dark fiber services that are future ready, capable of catering to the expanding high-speed connectivity needs, connections to remote locations, low latency, end-to-end solutions, bring new revenue streams for operators, among others.
Asia-Pacificregion is projected to grow at the fastest rate over the forecast period, with the regional market being segmented into China, Japan, India, and the rest of Asia-Pacific. This growth is attributed to the rapid economic developments, expanding telecom industry, increasing cellular subscriber base, rise in use of smart phones, IT & telecom operators focusing on cost minimization, rapid development across OTT platforms, and digital innovation in major countries including China, Japan, India, Singapore, Malaysia, Australia, among others.
The Global Dark fiber marketis witnessing an steady growth due to the benefits offered such as scalability & flexibility for increasing bandwidth needs, full control over the infrastructure, lower latency, enhanced security, reliable network connectivity, and cost minimization by outsourcing infrastructure services. Additionally, the market players are laying down submarine cables for connectivity across regions forecasting over the expanding internet needs. Major players have opted for partnerships/collaborations, acquisitions, and product developments as their key organic growth strategies to enhance their positions in the market and cater to the rapidly expanding network requirements.
Impact of COVID19
The outbreak of COVID-19 has resulted into several disruptions in the industry verticals such as hardware component manufacturers in the IT & telecom industry, disrupting supply chain operations, and cash flow constraints. The unprecendented outbreak of novel coronavirus initially in the China’s Wuhan province that slowly spread across the globe disrupting the industry operations and expanding the gap between demand and supply chain.To continue business operations during the pandemic situation and imposed movement restrictions by the governing agencies increased the dependency on network infrastructure. The large workforce adopted to the new remote working environments at their homes, increasing the demand for cloud-based solutions. Also, the demand for OTT platforms during pandemic reached their peaks due to stay at home situation for large crowds.On the other hand, the telecom and network service providers quickly adopted dark fibers to expand their connectivity capabilities.
The key players in the Global Dark fiber marketare identified based on their country of origin, presence across different regions, recent key developments, product diversification, and industry expertise. These include GTT Communications, Inc. (US), UFINET (Guatemala), Vikram Group (India), DEPL (India), Landmark Dividend LLC. (US), Unite Private Networks (US), Sterlite Power (India), Colt Technology Services Group Limited (UK), Consolidated Communications (US), Crown Castle (US), NexGen Networks (US), Sorrento Networks (US), FirstLight (US), Microscan (India), and Windstream Intellectual Property Services, LLC. (US). The key strategies adopted by most of the players are partnerships,acquisitions, agreements, and collaborations.
Key Developments in Global Dark Fiber Market:
On 10th March 2021, Zayo Group, LLC. (Zayo), aleading provider of mission-critical fiber bandwidth, announced acquisition of Intelligent Fiber Network, a provider of fiber-based connectivity solutions with over 5,000 miles of fibernetwork across Indiana in United States. With completion of this deal, Zayo is expected to benefit with additional fiber network and a team of experts as well as broader market reach.
On March 2nd 2021, Bluebird Network, a communications infrastructure provider as well as data center operator announced their business expansion plans with broadening of their networks across 500 towers in 5 states of Midwest intended towards supporting for 5G network deployments. The company owns data centers and over 10,000 miles of fiber network.
On January 16th2021, EllaLink, an advanced optical platform provider for high capacity connectivity across Latin America and Europe regions, announced successful completion of next generation low-latency submarine cable system project in Sines to Latin America.It incurred over Euro 150 million as investment to open data corridor between two continents, creating opportunities to European markets.
On March 3rd, 2021, Telecom Egypt announced their plans to launch Hybrid African Ring Path (HARP) by the end of 2023. HARP is a new subsea system covering African continent that forms a shape that of a harp, to connect coastal as well as landlocked African countries to the European region with the help of its broad network.
Global Dark Fiber Market, 2018–2026 (USD Billion)
Source: MRFR Analysis