Dark Fiber Market is Anticipated to reach USD 20,011 Mn in 2027, Analysis on Dark Fiber Network Growth Says Brandessence Market Research
08 Oct, 2021, 18:13 IST
PUNE, India, Oct. 8, 2021 /PRNewswire/ -- The Global Dark Fiber Market in terms of revenue was worth of USD 9,779.6 Million in 2020 and is expected to reach USD 20,011 Million in 2027, according to a new report by Brandessence Market Research Pvt Ltd. growing at a CAGR of 9.49% from 2021 to 2027. Increasing inclination towards enhanced communication and mobile data, network management and growing penetration of internet services and rising demand for the 5G network are some of the major factors driving the growth of the Global Dark Fiber Market.
Rising demand for enhanced communication and mobile data is one of the major factors expected to drive the growth the global the dark fiber.
- Dark fibers help telecom organizations enlarge their existing networks by reaching additional users and transferring more data to offer superior speed and capacity. For instance; in 2017, Verizon Communications Inc. acquired XO Communications, LLC, and acquisition helped Verizon to strengthen its dark fiber backhaul and allowed it to lease XO Communications, LLC's Local Multipoint Distribution Service (LMDS) wireless spectrum with a choice to procure them in the future.
- In addition, demand for internet bandwidth is increased with growing penetration of internet services. Dark fiber network has emerged as a sustainable solution for them offering network management. Furthermore, amplified demand for the 5G network and cloud-based offerings is also supplementing the demand for dark fibers. As per the Telefonaktiebolaget LM Ericsson Company, there would be 190 million 5G subscriptions by the end of 2020 and 2.8 billion by 2025.
- Despite the unpredicted events of 2020, 5G deployment and adoption kept rising. Also, the 5G ecosystem is broadening due to the pace of 5G introduction has accelerated for the duration of 2020 with numerous network developments and devices. 5G adoption is increasing in momentum in both the network and device domains, with more than 150 5G devices launched commercially in 2020.
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Dark fiber is an unused optical fiber which is also known as unlit fiber accessible for consumption in fiber-optic communication. It is termed dark due to any light pulses are not being transmitted through it. Dark fiber initially mentioned the potential network capacity of telecommunication infrastructure. Dark fiber may be hired from a network service provider. There are several approaches to build a dark fiber network. The point-to-multipoint or point-to-point configurations are the most popular methods to set up whereas dense wavelength division multiplexing (DWDM), is an essential factor in the advancement and improvement of dark fiber. The dark fiber network offers scalability, enhanced security, reduced network latency, and reliability.
Dark fibers are predominately applied in ITES, telecommunication, IT, and BFSI. Moreover, dark fiber networks also have massive applications in the healthcare, automotive, and aerospace sector. Dark fiber makes it viable to establish a precise connection between two locations. The dark fiber is applied in fiber-optic communication for internet access, exclusive networking, or internet infrastructure networking. Narinder Singh Kapany was the first who invented the term fiber optics and is deemed the 'Father of Fiber Optics' and labeled him one of seven 'Unsung Heroes' in the 'Businessmen of the Century' issue in 1999.
The study provides a crucial view of the global dark fiber market by segmenting the market based on type, network type, material, end-user, and region & country level. Based upon the type, global dark fiber market is segmented into single mode fiber and multimode fiber. Based upon network type, the global dark fiber market is classified into metro and long haul. Based upon material, the global dark fiber market is segmented into glass and plastic. Based upon end-user, the global dark fiber market is categorized into BFSI, healthcare and life sciences, telecommunications and ITES, Government and public sector, manufacturing, consumer goods and retail, media and entertainment, and others.
Global Dark Fiber Market Player Analysis
- Crown Castle
- Verizon Communications, Inc.
- Centurylink, Inc. (Lumen Technologies)
- GTT communications, Inc, Plc.
- Colt Technology Services Group Limited
- Windstream Communications
- Zayo Group, Llc
- Globalconnect Group
- Dark Fibre Africa (Pty) Ltd.
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Several factors are contributing to the enhancement of the growth of the global dark fiber market including technological advancements, large-scale adoption of the technology in the IT, rising growth of telecommunication & administrative sector, growing investments, and developments in this sector. The rising demand for 5G networks is one of the leading factors estimated to drive the growth of dark fiber market across the world. 5G networks have sizable features such as greater capacity, lower latency, and improved bandwidth associated with 4G. For instance; according to Ookla, LLC, the number of 5G operators and 5G deployments globally achieved about 18,731 and 157, correspondingly, in 2020. Also, according to Telefonaktiebolaget LM Ericsson, it was projected that there would be 5G subscriptions by the end of 2.8 billion by 2025. 5G adoption is mounting in momentum in equally the device and network fields, with all-around 150 5G devices introduced commercially in 2020. The demand for a 5G network is growing across the globe due to greater speed in the transmissions, greater capacity of remote execution, and many other aspects.
In addition, large investment in FTTX deployment is another factor fueling the growth of the dark fiber market worldwide. FTTX is nothing but fiber to the "x" which is used to define a broad range of broadband networks. FTTX refers to all types of fiber infrastructure containing FTTH, FTTP, FTTC, and FTTN. For instance; according to Telecom Lead, on September 21st, 2020, in Germany, Deutsche Glasfaser and inexio, declared plans to install fiber to roughly eight million supplementary homes by 2030, shifting the coverage from a recent 11 percent up to nearly 28 percent. Thus, the escalating investment in FTTX distribution is propelling the growth dark fiber market all over the world during the forecast period. However, the risky installations of dark fiber can hamper the overall growth of the dark fiber market in the future. In spite of that, dark fibers permit less significant telecom companies to submit services to customers and this factor is likely to create ample opportunity for to dark fiber market globally during upcoming years.
The network type segment of the global dark fiber market is dominated by Metro drive with the largest market share of 70.75% in 2020. The end-user segment of global dark fiber is dominated by CSP & ISP drive with the largest share of 35.65% in the year 2020.
In the geographical segment, North America is expected to dominate the global dark fiber market owing to many aspects such as established fiber network in the region, growing investments and technical advancement, rising adoption of 5G network, and cumulative digital infrastructure in this region. Strategic acquisition and collaboration in order to strengthen the production of dark fibers among various key players is also supporting the market growth in this region. In September 2020, CenturyLink signed a contract with the Defense Information Systems Agency to operate and maintain the dark fiber. The company acquired American multinational telecommunications, Level 3 Communications, and Internet service provider company for providing a safer reliable fiber-rich network. Also, Zayo Group partnered with Denver Public Schools (DPS) in January 2020 and finished the implementation of a dark fiber private network around its district. These strategic acquisitions and collaborations help to increase the flexibility of the organization and higher production of products. This ultimately results in intensifying the demand for dark fiber products all over the North American region.
Europe is expected to witness a significant growth in the global dark fiber market due to intensifying expansion of cloud service, smart cities, remote applications, e-commerce, and banking sectors in this region. Increasing demand for dark fiber infrastructure is the prominent factor fueling the growth of the dark fiber market. Dark fiber is an essential investment theme in Europe that is especially needed for data centers, mobile infrastructure, and eventually, edge computing. For instance; the FLAP data center market is mounting at year-end 2020 from 1,843 megawatts of power capacity to achieve around 2,200 megawatts of power capacity by 2021. Likewise, 5G network densification requires wireless carriers and the broader fiber connectivity that it needs. For example; European companies which are prominent in the continent's collective infrastructure build-out consist of Fresh wave Group, Ontix, and Wireless Infrastructure Group. Stonepeak Infrastructure holds 20.1k fiber route miles (32.4k fiber route kilometers) all through Western Europe.
Market Trends of Dark Fiber Industry
A dark fiber network is basically unused fibre optic cables with no service or traffic running on it. One of the immense advantages of dark fiber is it enables businesses to gain control of their IT estate and importantly, allows them to manage capacity and to scale as needed as a fibre is limitless. It also enables the potential for DWDM i.e. Dense Wavelength Division Multiplexing, which effectively differences the fibre into individual wavelengths across the spectrum enabling greater capacity to be achieved and it can be good for businesses with large data requirements like manufacturing, media and banks. Dark fiber offers a better level security and resilience as businesses will not share the connection with anyone else it means it is good for those that deal with sensitive information & those who require real-time information such as retail, financial services or healthcare. The trends like edge, cloud computing, 5G networks, satellite Internet and Internet of Things (IoT) are exponentially increasing enterprise connectivity requirements like dark fiber. Also the interconnection between data centers, headquarters, office campuses and even cell towers have become extremely important. Thus, because of these trends, enterprise customers are now considering dark fiber service when comparing commercial Internet service offerings.
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Some of the Major Trends of Global Dark Fiber Market are such as:
- Single Mode Dark Fiber:-
The term for a data communication cable to which no activating equipment has been connected as yet is nothing but the dark fiber, i.e. a lightless fibre optic cable. In which the single-mode fiber allows for higher capacity to transmit information. It can maintain the fidelity of each light pulse over longer distances and it exhibits no dispersion caused by multiple modes. Single-mode dark fiber also enjoys lower fiber attenuation than multi-mode fiber.
- Multimode Dark Fiber:-
The first to be manufactured and commercialized is the multimode fiber which refers to fiber in which numerous modes or light rays are carried simultaneously through the waveguide. This mode result from the fact that light will only propagate in the fiber core at discrete angles within the cone of acceptance.
- Metro Dark Fiber:-
Metro Fiber is dark fiber that can be lit directly from the user switch or router equipment. It can be used for all types of traffic including fibrechannel, standard Ethernet (dot1.q VLAN ethernet trunks, MPLS) and SDH. It can also be split into multiple wavelengths (colors) using CWDM or DWDM technology, to combine multiple connections over one link.
- Long Haul Dark Fiber:-
Long haul dark fiber network provides customers with dedicated, secure and virtually unlimited bandwidth, which they can 'light up' as they grow and scale.
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