- The global wave services market is expanding significantly with the addition of 39 new hyperscaler data centers by the end of 2025.
- The U.S. wave services circuits market grew nearly eight percent in 2024, with demand for 400G circuits set to soar.
- A record 161,100 kilometers of submarine cables are projected to be ready for service in 2025.
The new report released by Ciena (CIEN, Financial) sheds light on the burgeoning demand for wave services, fueled by the proliferation of interconnected data centers and advancements in AI-driven technologies. The report identifies major trends such as the necessity for high-speed connectivity and the increasing deployment of managed optical fiber networks to meet the evolving needs of the global market.
Forecasting a steady increase in the wave services circuits market through 2029, research shows that the U.S. experienced nearly an eight percent growth in 2024 alone. This growth is largely attributed to the rising integration of cloud on-ramps, as demonstrated by a metro geographical scope of 41% and a dominance of 58% in retail customer usage.
As the report suggests, the future of wave services is heavily reliant on the expansion and enhancement of 400G circuits, while 100G and 10G circuits continue to grow at varying rates. Furthermore, this infrastructure is vital to sustaining high-capacity networks, especially those connecting data centers worldwide.
Additionally, Ciena's report highlights substantial developments in submarine cable infrastructure, with 161,100 kilometers slated to become ready for service in 2025. This planning exceeds the previous milestone of 121,000 kilometers set in 2001, showcasing the rapid growth and demand within the industry.
Mark Bieberich, Vice President of Portfolio Marketing at Ciena, emphasized the importance of sophisticated route diversity and low-latency solutions for network operators in maintaining a competitive edge. By proactively addressing infrastructure challenges and opportunities, industry players can optimize their strategies and excel amid the growing demand.
