USD 105.46 Million Growth in Dark Fiber Market in Malaysia from 2020 to 2025 | Forecast and Analysis | Technavio

The dark fiber market share growth in Malaysia by the multi-mode segment will be significant during the forecast period.  The market for multi-mode dark fiber cables is growing due to the increasing adoption of fiber to the premises (FTTP) and fiber to the cabin (FTTC), and others. The rising adoption of fiber to the home (FTTH) is creating a demand for multi-mode optical fiber cables. The growing investments in optical fiber networks for short-distance services, such as providing Internet connections to enterprises and deployment of optical fiber connections within a city, will lead to growth in the demand for multi-mode dark fiber services.

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One of the key factors driving growth in the dark fiber market in Malaysia is the increasing data traffic. Rapid digitalization, growing implementation of automation technologies across end-user industries, increasing use of social networking platforms, and rapid growth in IoT devices are factors responsible for an exponential rise in data traffic. This, in turn, is increasing investments in communication network infrastructure, such as optical fiber networks, to support the demand for high bandwidth from enterprises and individual customers. In January 2019, the Government of Malaysia announced its plan to increase Internet penetration in rural areas across the country. The government is exploring the use of satellites, running fiber cables along sewerage pipes, and possibly opening access to existing poles that carry wires to homes. The increasing investments in optical fibers to deliver high-speed services will enable service providers to focus on utilizing unused optical fiber. This will fuel the growth of the dark fiber market in Malaysia during the forecast period.

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The high initial and leasing investments will be a major challenge for the dark fiber market in Malaysia during the forecast period. To establish a dark fiber connection, dark fiber service providers need to install equipment such as amplifiers, filters, receivers, and transmitters, which are used to power dark fiber. In most cases, the cost of establishing a dark fiber connection and its maintenance is passed on to customers. In addition, the cost of leasing dark fiber varies from one location to another based on the needs of end-users. Leasing costs also vary, depending on bandwidth requirements for the particular optical fiber connection. The expansion of the dark fiber network capacity requires the existing equipment to be replaced and upgraded, which leads to additional costs. In case of faults in optical fiber cables, it would become extremely difficult to identify the point and source of faults since long-haul networks are huge. This leads to not only a loss of time but also an increase in cost. Thus, the need for high upfront investments and leasing costs is expected to be the major challenge for the adoption of dark fiber.

Dark Fiber Market in Malaysia: Segmentation Analysis

This market research report segments the dark fiber market in Malaysia by Type (multi-mode and single-mode) and Service (long-haul services, short-haul services, and colocation facilities services).

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Related Reports on Communication Services Include:

Dark Fiber Market by Type, Service, and Geography - Forecast and Analysis 2021-2025

Visible Light Communication Market by End User, Application, and Geography - Forecast and Analysis 2020-2024

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Market Challenges

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