Dark Fiber Networks Market

Ever-rising internet traffic worldwide will bolster the demand for dark fiber networks.

The dark fiber networks market is expected to reach US$ 11.57 billion by 2026, growing at a double-digit CAGR from 2018 to 2026. The market for dark fiber networks, which is primarily governed by North America, is being driven by increased usage of existing unlit fibers in established optical networks. The market has been witnessing high growth since 2014 due to a continued increase in internet traffic worldwide and the popularisation of the concept of using dark fiber.

From 2013 to 2016, internet traffic increased at a CAGR of more than 24%. With rapidly increasing internet users as well as traffic across the world, more and more internet providers are now looking for viable ways to satisfy the ever-rising demand for network bandwidth. Amidst the high demand for network bandwidth, additional fiber optic cables, called “dark fiber,” installed for future use, have emerged as one of the most promising alternatives for providing the additional bandwidth required.

Various major companies, including Facebook, Inc., Google, Inc., and Microsoft Corporation, have already invested heavily in building their own network infrastructure. The decision was made in light of the massive amounts of data being transferred between their data centers. Currently, Facebook transfers a substantial amount of its data using the existing “dark fiber network.” Thus, dark fiber networks are set to witness immense growth in the following years.

Market Synopsis

Multi-mode dark fiber networks to continue leading the market.

Multi-mode dark fiber networks lead the overall market, accounting for more than 2/3 of the global market value. Currently, the majority of the dark fibers leased out are underground fiber networks. These are metro fiber networks with higher densities of multi-mode fibers. Due to the increasing prevalence of optical fiber networks across the world, more dark fiber networks are estimated to be laid in the years to come. This would ensure strong growth for the multi-mode dark fiber networks segment through the forecast period.

North America leads the market; Asia-Pacific will emerge as the fastest-growing regional market.

Currently, North America leads the market, accounting for more than 40% of the overall market value worldwide. The market here is primarily backed by the U.S. due to the early adoption of this concept by the nation. Due to the increasing emphasis of tech giants (such as Microsoft Corporation) on building their own networks, the demand for dark fiber is estimated to remain strong in the region. Apart from investing in network establishment, these companies are also inclined toward using dark fiber networks on lease. Since 2016, Google Fiber has been actively looking to purchase dark fiber and use it to provide internet service. Apart from business organizations and internet providers, educational institutes form an important end-user of dark fiber in North America.

Asia Pacific is set to be the fastest-growing market for dark fiber networks in the following years. Japan, China, South Korea, and Australia are among the countries with high penetration of fiber optic networks. Subsequently, the countries hold huge potential for offering dark fiber for internet service. According to China’s Ministry of Industry and Information Technology (MIIT), the country laid over 2.6 million kilometers of optical fiber in 2015. MIIT expects that over 80% of broadband users in China will be on an optical fiber network by the end of 2017. Similarly, Reliance Jio Infocomm, one of India’s fastest-growing 4G networks, announced in 2017 that it would lease dark fiber from Bharat Broadband Network Ltd. The trend of an increasing number of internet users is expected to continue in the country over the forecast period.

Mergers and acquisitions will remain the key strategy.

The overall market for dark fiber networks is quite fragmented in nature due to the presence of numerous network service providers worldwide. The market consists of a large number of regional companies serving limited countries, as the types of offerings may vary by country. In contrast to telecom service providers, regional and local companies provide the majority of the internet service, thereby limiting the scope of global players. One of the most common strategies adopted by global players is the merger and acquisition of other small-scale network providers or their fiber optic networks. This enables the companies to expand their fiber network, thereby reaching a larger number of subscribers. Popular instances include the acquisition of Level 3 Communications, Inc. by CenturyLink, Inc., the acquisition of FiberTower Corporation by AT&T, Inc., and the acquisition of XO Communications, Inc.’s dark fiber optic network by Verizon Communications, Inc. Since the size of the network plays a crucial role, mergers and acquisitions are expected to remain a key strategy for the market players. Some of the major players profiled in the report include AT&T, Inc., Verizon Communications, Inc., Zayo Group, Level 3 Communications, Inc. (CenturyLink, Inc.), Comcast Corporation, Interoute Communications Ltd., FairPoint Communications, Inc., Colt Group SA, NTT Communications, and Windstream Services, LLC.

Periods of History and Forecast

2016 is a historic year.

2017—Base Year

2018–2026: Forecast Period

This research report presents the analysis of each segment from 2016 to 2026, considering 2017 as the base year for the research. The compound annual growth rate (CAGR) for each of the respective segments is calculated for the forecast period from 2018 to 2026.

Report Scope by Segments

The dark fiber networks market report provides market size and estimates based on market dynamics and key trends observed in the industry. The report provides a holistic view of the global dark fiber networks market based on fiber type, network type, end-user, and geography. Key segments covered in the report are as follows:

A segment of Fiber Type (2016-2026; US$ Mn)

• Single-mode dark fiber networks
• Multi-mode dark fiber networks

Segmentation by Network Type (2016-2026; US$ Mn)

• Metro Dark Fiber Networks
• Long-haul dark fiber networks

End-user segment (2016-2026; in millions of dollars)

• Internet Service Providers (ISPs) and Telecommunication
• Banks, Financial Services, and Insurance (BFSI)
• IT & ITeS
• Education
• Manufacturing and Logistics
• Retail and hospitality
• Healthcare

Geography Segment (2016-2026; millions of dollars)

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • France
  • Italy
  • U.K.
  • Russia
  • Rest of Europe
• Asia-Pacific
  • India
  • China
  • Japan
  • Rest of Asia-Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East and Africa
  • GCC Countries
  • South Africa
  • Rest of Middle East and Africa

Chapter 1 Preface
1.1 Report Description
1.1.1 Purpose of the Report
1.1.2 Target Audience
1.1.3 USP and Key Offerings
1.2 Research Scope
1.3 Market Segmentation
1.4 Research Methodology
1.4.1 Phase I – Secondary Research
1.4.2 Phase II – Primary Research
1.4.3 Phase III – Expert Panel Review
1.4.4 Assumptions
1.4.5 Approach Adopted

Chapter 2 Executive Summary
2.1 Market Snapshot: Global Dark Fiber Networks Market
2.2 Global Dark Fiber Networks Market, By Fiber Type
2.3 Global Dark Fiber Networks Market, By Network Type
2.4 Global Dark Fiber Networks Market, By End-user
2.5 Global Dark Fiber Networks Market, By Geography

Chapter 3 Market Dynamics
3.1 Introduction
3.1.1 Global Dark Fiber Networks Market Value and Growth, 2016 – 2026, (US$ Mn) (Y-o-Y %)
3.2 Market Drivers
3.3 Market Growth Inhibitors
3.3.1 Impact Analysis of Drivers and Restraints
3.4 Key Market Trends and Future Outlook
3.5 See-Saw Analysis
3.6 Attractive Investment Proposition
3.7 Competitive Analysis
3.7.1 Market Positioning of Key Vendors
3.7.2 Key Strategies Adopted by the Leading Players

Chapter 4 Global Dark Fiber Networks Market Analysis, by Fiber Type
4.1 Overview
4.2 Single Mode
4.3 Multi-mode

Chapter 5 Global Dark Fiber Networks Market Analysis, by Network Type
5.1 Overview
5.2 Metro Dark Fiber Networks
5.3 Long-haul Dark Fiber Networks

Chapter 6 Global Dark Fiber Networks Market Analysis, by End-user
6.1 Overview
6.2 Internet Service Providers (ISPs) & Telecom
6.3 Banks, Financial Services & Insurance (BFSI)
6.4 IT & IT enabled Services (ITeS)
6.5 Education
6.6 Manufacturing & Logistics
6.7 Hospitality & Retail
6.8 Healthcare

Chapter 7 North America Dark Fiber Networks Market Analysis
7.1 Overview
7.2 North America Dark Fiber Networks Market Analysis, By Fiber Type, 2016 – 2026
7.2.1 Market Analysis
7.3 North America Dark Fiber Networks Market Analysis, By Network Type, 2016 – 2026
7.3.1 Market Analysis
7.4 North America Dark Fiber Networks Market Analysis, By End-user, 2016 – 2026
7.4.1 Market Analysis
7.5 North America Dark Fiber Networks Market Analysis, By Region, 2016 – 2026
7.5.1 U.S.
7.5.2 Canada

Chapter 8 Europe Dark Fiber Networks Market Analysis
8.1 Overview
8.2 Europe Dark Fiber Networks Market Analysis, By Fiber Type, 2016 – 2026
8.2.1 Market Analysis
8.3 Europe Dark Fiber Networks Market Analysis, By Network Type, 2016 – 2026
8.3.1 Market Analysis
8.4 Europe Dark Fiber Networks Market Analysis, By End-user, 2016 – 2026
8.4.1 Market Analysis
8.5 Europe Dark Fiber Networks Market Analysis, By Region, 2016 – 2026
8.5.1 U.K.
8.5.2 Germany
8.5.3 Nordic Countries
8.5.4 Rest of Europe

Chapter 9 Asia Pacific Dark Fiber Networks Market Analysis
9.1 Overview
9.2 Asia Pacific Dark Fiber Networks Market Analysis, By Fiber Type, 2016 – 2026
9.2.1 Market Analysis
9.3 Asia Pacific Dark Fiber Networks Market Analysis, By Network Type, 2016 – 2026
9.3.1 Market Analysis
9.4 Asia Pacific Dark Fiber Networks Market Analysis, By End-user, 2016 – 2026
9.4.1 Market Analysis
9.5 Asia Pacific Dark Fiber Networks Market Analysis, By Region, 2016 – 2026
9.5.1 China
9.5.2 Japan
9.5.3 South Asia
9.5.4 Rest of Asia Pacific

Chapter 10 Rest of the World (RoW) Dark Fiber Networks Market Analysis
10.1 Overview
10.2 RoW Dark Fiber Networks Market Analysis, By Fiber Type, 2016 – 2026
10.2.1 Market Analysis
10.3 RoW Dark Fiber Networks Market Analysis, By Network Type, 2016 – 2026
10.3.1 Market Analysis
10.4 RoW Dark Fiber Networks Market Analysis, By End-user, 2016 – 2026
10.4.1 Market Analysis
10.5 RoW Dark Fiber Networks Market Analysis, By Region, 2016 – 2026
10.5.1 Middle East & Africa (MEA)
10.5.2 Latin America

Chapter 11 Company Profiles
11.1 AT&T, Inc.
11.2 Colt Group SA
11.3 Comcast Corporation
11.4 FairPoint Communications, Inc.
11.5 Interoute Communications Ltd.
11.6 Level 3 Communications, Inc. (CenturyLink, Inc.)
11.7 NTT Communications
11.8 Verizon Communications, Inc.
11.9 Windstream Services, LLC.
11.10 Zayo Group

List of Figures

FIG. 1 Global Dark Fiber Networks: Market Segmentation
FIG. 2 Global Dark Fiber Networks Market: Research Methodology
FIG. 3 Top-Down and Bottom Up Approach
FIG. 4 Global Dark Fiber Networks Market, By Fiber Type, 2017 (US$ Mn)
FIG. 5 Global Dark Fiber Networks Market, By Network Type, 2017 (US$ Mn)
FIG. 6 Global Dark Fiber Networks Market, By End-user, 2017 (US$ Mn)
FIG. 7 Global Dark Fiber Networks Market, By Geography, 2017 (US$ Mn)
FIG. 8 Global Dark Fiber Networks Market Value and Growth, 2016 – 2026, (US$ Mn) (Y-o-Y %)
FIG. 9 See-Saw Analysis: Global Dark Fiber Networks Market
FIG. 10 Attractive Investment Proposition
FIG. 11 Market Positioning of Key Dark Fiber Network Providers, 2017
FIG. 12 Global Dark Fiber Networks Market Value Contribution, By Fiber Type, 2017 & 2026 (%)
FIG. 13 Global Single Mode Dark Fiber Networks Market Value, 2016 – 2026, (US$ Mn)
FIG. 14 Global Multi-mode Dark Fiber Networks Market Value, 2016 – 2026, (US$ Mn)
FIG. 15 Global Dark Fiber Networks Market Value Contribution, By Network Type, 2017 & 2026 (%)
FIG. 16 Global Metro Dark Fiber Networks Market Value, 2016 – 2026, (US$ Mn)
FIG. 17 Global Long-haul Dark Fiber Networks Market Value, 2016 – 2026, (US$ Mn)
FIG. 18 Global Dark Fiber Networks Market Value Contribution, By End-user, 2017 & 2026 (%)
FIG. 19 Global Dark Fiber Networks Market Value from ISPs & Telecom, 2016 – 2026 (US$ Mn)
FIG. 20 Global Dark Fiber Networks Market Value from BFSI, 2016 – 2026 (US$ Mn)
FIG. 21 Global Dark Fiber Networks Market Value from IT & ITeS, 2016 – 2026 (US$ Mn)
FIG. 22 Global Dark Fiber Networks Market Value from Education, 2016 – 2026 (US$ Mn)
FIG. 23 Global Dark Fiber Networks Market Value from Manufacturing & Logistics, 2016 – 2026 (US$ Mn)
FIG. 24 Global Dark Fiber Networks Market Value from Hospitality & Retail, 2016 – 2026 (US$ Mn)
FIG. 25 Global Dark Fiber Networks Market Value from Healthcare, 2016 – 2026 (US$ Mn)
FIG. 26 North America Dark Fiber Networks Market Value, 2016 – 2026, (US$ Mn)
FIG. 27 Europe Dark Fiber Networks Market Value, 2016 – 2026, (US$ Mn)
FIG. 28 Asia Pacific Dark Fiber Networks Market Value, 2016 – 2026, (US$ Mn)
FIG. 29 RoW Dark Fiber Networks Market Value, 2016 – 2026, (US$ Mn)

List of Tables

TABLE 1 Market Snapshot: Global Dark Fiber Networks Market
TABLE 2 Impact Indicators
TABLE 3 Impact Analysis of Drivers and Restraints
TABLE 4 North America Dark Fiber Networks Market Value, By Fiber Type, 2016 – 2026 (US$ Mn)
TABLE 5 North America Dark Fiber Networks Market Value, By Network Type, 2016 – 2026 (US$ Mn)
TABLE 6 North America Dark Fiber Networks Market Value, By End-user, 2016 – 2026 (US$ Mn)
TABLE 7 Europe Dark Fiber Networks Market Value, By Fiber Type, 2016 – 2026 (US$ Mn)
TABLE 8 Europe Dark Fiber Networks Market Value, By Network Type, 2016 – 2026 (US$ Mn)
TABLE 9 Europe Dark Fiber Networks Market Value, By End-user, 2016 – 2026 (US$ Mn)
TABLE 10 Asia Pacific Dark Fiber Networks Market Value, By Fiber Type, 2016 – 2026 (US$ Mn)
TABLE 11 Asia Pacific Dark Fiber Networks Market Value, By Network Type, 2016 – 2026 (US$ Mn)
TABLE 12 Asia Pacific Dark Fiber Networks Market Value, By End-user, 2016 – 2026 (US$ Mn)
TABLE 13 RoW Dark Fiber Networks Market Value, By Fiber Type, 2016 – 2026 (US$ Mn)
TABLE 14 RoW Dark Fiber Networks Market Value, By Network Type, 2016 – 2026 (US$ Mn)
TABLE 15 RoW Dark Fiber Networks Market Value, By End-user, 2016 – 2026 (US$ Mn)
TABLE 16 AT&T, Inc.: Company Snapshot (Company Details, Geographical Presence, Product Portfolio, Recent Developments)
TABLE 17 Colt Group SA: Company Snapshot (Company Details, Geographical Presence, Product Portfolio, Recent Developments)
TABLE 18 Comcast Corporation: Company Snapshot (Company Details, Geographical Presence, Product Portfolio, Recent Developments)
TABLE 19 FairPoint Communications, Inc.: Company Snapshot (Company Details, Geographical Presence, Product Portfolio, Recent Developments)
TABLE 20 Interoute Communications Ltd.: Company Snapshot (Company Details, Geographical Presence, Product Portfolio, Recent Developments)
TABLE 21 Level 3 Communications, Inc. (CenturyLink, Inc.): Company Snapshot (Company Details, Geographical Presence, Product Portfolio, Recent Developments)
TABLE 22 NTT Communications: Company Snapshot (Company Details, Geographical Presence, Product Portfolio, Recent Developments)
TABLE 23 Verizon Communications, Inc.: Company Snapshot (Company Details, Geographical Presence, Product Portfolio, Recent Developments)
TABLE 24 Windstream Services, LLC.: Company Snapshot (Company Details, Geographical Presence, Product Portfolio, Recent Developments)
TABLE 25 Zayo Group: Company Snapshot (Company Details, Geographical Presence, Product Portfolio, Recent Developments)