Dark Fiber Market

Updated on : July 19, 2023

The dark fiber market Size, Share, Industry Growth, Trends & Analysis was valued at USD 6.6 billion in 2023 and is estimated to reach USD 11.9 billion by 2028, registering a CAGR of 12.5% during the forecast period. The growth of the dark fiber market is governed by the rising demand for 5G network, increasing demand for internet bandwidth, and growing demand for reliable and secure network.

Dark Fiber Market Forecast to 2028

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Market Dynamics:

Driver: Rising demand for 5G network

In the telecom and networking industry, there is an increased demand for the 5G network and its needs, such as cloud-based networking, gaming, video streaming, etc. The increased demand for high internet speed with proper connectivity can be assured by dark fibers. Digital transformation is affecting almost every industry, with volumes of data are growing rapidly. Intelligent networking of machines and sensors require data to be transmitted for analysis and control purposes within a specific radius. A 5G campus network provides all the solutions for this.

According to the Ookla, LLC (US), the number of 5G deployments and 5G operators worldwide reached 18,731 and 157, respectively, in 2020. According to Telefonaktiebolaget LM Ericsson, it was forecasted that there would be 190 million 5G subscriptions by the end of 2020 and 2.8 billion by 2025. Despite the unexpected events of 2020, 5G deployment and adoption kept increasing. Also, the 5G ecosystem is broadening because the pace of 5G introduction has accelerated during 2020 with many network developments and devices. 5G adoption is growing in momentum in both the network and device domains, with over 150 5G devices launched commercially in 2020. Thus, the rising demand for the 5G network is one of the major drivers for market growth.

Restraint: High initial Investment and regular maintenance

Deploying dark fiber infrastructure requires significant upfront investment in laying and maintaining the fiber optic cables. The costs associated with installation, equipment, permits, and ongoing maintenance can be substantial, posing a barrier for some organizations. Dark fiber networks require regular maintenance and monitoring to ensure optimal performance and reliability. This includes activities such as periodic inspections, troubleshooting, repairing fiber cuts, and upgrading equipment. The cost of maintenance personnel, tools, and spare parts contributes to the overall investment. Other expenses such as project management, legal fees, insurance, and administrative costs should also be considered as part of the initial investment.

Opportunity: Augmented global demand for data centers

Data centers are playing a major role with rising technologies like IoT, AI and 5G. The global data center market is expected to register an impressive growth rate of 7.5%. The market garnered a valuation of USD 101.79 Billion in 2022 and is expected to accumulate a market value of USD 209.8 Billion by 2032. The growth in the cloud migration has accelerated growth and expansion of data centers globally, resulting in major data center operators to expand their footprints. In 2021, US users absorbed 500 megawatts (MW) of data space. Most of the absorption was governed by hyperscalers, the largest occupiers of data centers, which are mostly cloud services firms including Google Cloud, Amazon Web Services (AWS) and Microsoft. For instance, in 2019 Google Cloud plans to build new data centers in Nebraska, South Carolina, Virginia, Nevada and Texas. Similarly, Apple will also begin construction of its data center in Waukee, Iowa with an investment of USD 1.3 billion which is expected to commence from 2023. In September 2022, Meta (Facebook) announced a mega expansion to its massive Eagle Mountain data center near Kuna, Idaho, to support its future metaverse. Microsoft unveiled an aggressive plan to build 50 to 100 new data centers across the U.S. These investments will boost the demand for dark fiber services. Dark fiber enables reliable and high-bandwidth connections between data centers, supporting efficient data transfer and ensuring seamless access to cloud services. As the demand for data centers continues to rise, so does the need for dark fiber connectivity to interconnect these facilities.

Challenge: Lack of proper monitoring systems

The challenge is integration of a fiber segment to the base platform in the most efficient manner, which can be assumed that it will pass a large amount of sensitive data. There are certain technical and operational implications in this integration that could become a challenging task for computer scientists in charge. For avoiding such problems, a platform could be used for integration, on which a high level of governance is exercised, both at the physical level as well as servers and applications. Alternative to this can be to take support of a general-purpose monitoring system, such as Pandora FMS, however , that needs to be acquired and implemented. For both these solutions, companies require to invest more money and put large amounts of data at potential risk. Moreover, platform personnel training would have to be provided, or a trained person should be hired, adding to the overall costs.

Another option can be the support of a general-purpose monitoring system, such as Pandora FMS, which needs to  be acquired and implemented.

Dark Fiber Ecosystem

Single mode fiber to hold larger market share during the forecast period.

Single mode fiber held a larger share of the dark fiber market in 2022, and this segment will continue to hold a dominant position in the market during the forecast period. Single-mode fiber is most suitable for longer transmission distances, such as multi-channel television broadcast systems and long-distance telephony. In the current scenario, majority of dark fibers leased out are underground fiber networks. Single-mode fiber has lower fiber attenuation and transmits more information per unit of time compared to the multimode fiber. Single-mode optical fiber is designed to carry a single mode of light as a carrier that is used for long-distance signal transmission. There is an increasing deployment of single-mode fiber for 5G/LTE networks across various regions.  Single-mode fiber is commonly used in long-haul telecommunications networks, such as undersea cables, intercity connections, and backbone infrastructure. It is also used in applications that require high-speed data transmission, such as data centers, metropolitan networks, and high-speed internet connections. The growth of this segment is also accelerated due to the increasing prevalence of optical fiber networks across the world, which is expected to increase demand for more dark fiber networks in the near future.

Long-haul fiber to account for the larger share of the dark fiber market for durin the forecast period

The long haul segment held the largest share of the dark fiber market in 2022 and is estimated to grow at the highest CAGR during the forecast period. The deployment of long haul networks has been increasing to meet the growing demand for high-speed and reliable connectivity across different regions. The proliferation of digital services, cloud computing, streaming media, and Internet of Things (IoT) devices has led to an exponential increase in data traffic. Long haul networks are essential for transporting this massive volume of data over long distances efficiently. The growth of IXPs has led to an increased demand for long haul networks. To keep up with the increasing demand, telecommunication companies, infrastructure providers, and governments are continuing to invest in expanding and upgrading long haul networks, deploying new submarine cables, expanding fiber-optic networks, and exploring innovative technologies to enhance long-distance connectivity.

BFSI end-user segment to exhibit significant growth in terms of dark fiber market during the forecast period

Dark fiber can play a crucial role in a BFSI organization's disaster recovery and business continuity strategy. Institutions can create geographically diverse and independent network paths by establishing redundant connections through dark fiber. In the event of a network failure or a disaster in one location, traffic can be seamlessly rerouted to alternative paths, ensuring uninterrupted services and minimizing downtime. Banks and financial services companies are increasingly turning to dark fiber for their bandwidth-intensive core transport, including file sharing, large file transfers, business intelligence applications, and data analysis. .

Dark fiber market in Asia Pacific estimated to grow at the fastest rate during the forecast period

The dark fiber market,in Asia Pacific is expected to grow at the highest CAGR during the forecast period. Major countries in Asia Pacific, such as China, India, Japan, and South Korea, are having a  huge capacity for dark fiber network services. Some of the major drivers that are responsible for increasing the demand for dark fiber in Asia Pacific include the rise in the income levels, lifestyle changes, and need for faster internet technologies. With emergence of advanced technologies such as AI, IoT, and Big Data, there is an increased momentum for the implementation of large-scale data centers across the region. Major technology gaiants like Alibaba (China), Facebook (US), Amazon (US), Microsoft (US), Google (US), and Baidu (China) have not only established their datacenters in the region but are also planning to expand their dominance in other regions. In Asia Pacific, the market is currently governed by Chinese and Indian consumers due of their increasing adoption rate of high-speed broadband services and mobile devices.

Dark Fiber Market by Region

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Top Dark Fiber Market Companies - Key Market Players:

Major vendors in the dark fiber market include AT&T (US), Verizon Communications, Inc. (US), CenturyLink  (Lumen Technologies) (US) Colt Technology Services Group Limited (UK), Comcast Corporation (US), Consolidated Communications (US), Exa Infrastructure (GTT Communications, Inc.) (US), CenturyLink, Inc. (US), NTT Communications Corporation (Japan), Verizon Communications, Inc. (US), Windstream Communications (US), and Zayo Group, LLC (US),  are some of the key players in the dark fiber market.

Dark Fiber Market Report Scope :

Dark Fiber Market Highlights

This research report categorizes the dark fiber market based on type, network type, material, end user ,  and Region.

Recent Developments

• In May 2023, Zayo Group Holdings, Inc., (US) announced its strategic partnership with Fermaca Networks, a leading provider of long-haul dark fiber infrastructure in Mexico. The partnership will provide the most modern and diverse connectivity between the United States and Mexico. Fermaca is set to launch a new long-haul dark fiber route in Mexico in 2025, which will be the newest and longest long-haul dark fiber route in Mexico in 20 years. The partnership will leverage this route from Fermaca and Zayo’s redundant route north of the border to provide customers with reliable, secure, and diverse cross-border connectivity.
• In December 2022, AT&T (US) expanded its Hyper-Gig Fiber services by partnering with BlackRock Alternatives to extend its footprint beyond its 21-state nationwide. This joint venture, Gigapower, aimed to provide a commercial fiber platform to internet service providers (ISPs) and other businesses across the United States

Frequently Asked Questions (FAQ):

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