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| Global Dark Fiber Market |
The dark fiber market has witnessed significant growth over the past few years owing to rising deployment of 5G technology and increasing demand for high-speed connectivity to support bandwidth-intensive applications such as virtual reality, online gaming, augmented reality, online streaming, and video conferencing. Dark fiber provides dedicated, high-speed connectivity and is an efficient solution for carrying large volumes of data traffic in a secure manner. It enables enterprises to light up the dark fiber themselves or use managed fiber optic network services according to their specific needs without worrying about over-subscription.
The Global dark fiber market is
estimated to be valued at US$ 7.17 BN
in 2024 and is expected to exhibit a CAGR
of 12% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the dark fiber market are AT&T Inc., Colt
Technology Services Group Limited, Comcast, Consolidated Communications, GTT
Communications, Inc., Lumen Technologies, Inc., Verizon Communications, Inc.,
Windstream Intellectual Property Services, LLC, Zayo Group, LLC, Microscan,
Sorrento Networks, NexGen Networks Corporation, UFINET, Vikram Group, DEPL,
UNITE PRIVATE NETWORKS, Sterlite Power, Crown Castle, FirstLight, and Cologix.
These players are focusing on enhancing their fiber optic network
infrastructure and expanding their presence across major business hubs to cater
to the growing demand for high-speed connectivity.
The increasing deployment of 5G networks worldwide is expected to open up new
growth avenues for Dark
Fiber Market Trends players. 5G
requires fiberization of the network right up to the cell sites for backhauling
network traffic, thereby boosting demand. Further, the growing importance of
edge computing is also expected to drive the need for high-capacity networks
based on dark fiber.
Dark fiber providers are focusing on expanding their presence globally,
especially in emerging markets, to benefit from increasing digitization and
demand for high-speed connectivity solutions. North America and Europe
currently hold the majority market share. However, Asia Pacific is expected to
offer lucrative growth opportunities with increasing investments in digital
infrastructure by countries such as China and India.
Market Drivers
Increasing demand for bandwidth-intensive applications such as online gaming,
virtual/augmented reality, IoT, and cloud services is a key driver boosting the
dark fiber market growth. Deployments of 5G network requiring fiberization of
the network for backhauling traffic is significantly driving the market.
Market Restraints
High initial investments and capital expenditure required for installing and
maintaining dark fiber network infrastructure is a major challenge, especially
for emerging economies. Further, lack of in-house expertise to light up dark
fiber network and dependency on managed fiber optic service providers limits
the market potential to some extent.
Segment Analysis
Dark fiber market comprises multiple sub segments. MSO (multiservice operators)
sub segment currently accounts for the largest share in the dark fiber market.
This is due to large number of acquisitions and consolidation activities
undertaken by multiservice operators like AT&T, Verizon and Lumen to offer
high capacity connectivity solutions to business customers. They are providing
dark fiber connectivity using their extensive fiber networks across major
business hubs. Telecom operators sub segment is another major segment in the
dark fiber market. Leading players like AT&T, Verizon are catering to
telecom operators demand by leasing out dark fiber to support 4G and 5G
backhaul requirements.
Global Analysis
The North America region currently holds the highest share in the dark fiber
market owing to heavy investments in fiber optic infrastructure by telecom
carriers in the US and Canada. However, the Asia Pacific region is emerging as
the fastest growing market. This is due to ongoing initiatives of countries
like China and India to develop national wide area networks using dark fiber.
Considerable amount of investments are witnessed from governments in these countries
to support digital transformation of industries. In Europe, leading economies
including the UK, Germany and France account for a major share of regional
revenues due to adoption of dark fiber connectivity among enterprises across
industries for mission critical applications.
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