The report also highlights the critical role of managed fiber network (MOFN) business models in extending high-speed connectivity to new geographies and markets.
“As cloud service providers expand data center networks to meet AI performance requirements, wave services must also evolve in terms of capacity, coverage, latency, and path diversity,” says Mark Bieberich, vice president of portfolio marketing at Ciena. “Demand for wave services is steadily growing globally as expanding data center networks require ever-increasing interconnection between different types of network operators and end users.”
Wave Services Circuit Growth:
The total U.S. wave services circuit market grew nearly 8% in 2024 and is projected to continue growing steadily through 2029, according to a study by Vertical Systems Group. The study noted an increasing use of wave services for cloud on-ramps, as evidenced by the metropolitan geographic reach (41%) and the predominance of retail customers (58%).
Source: Vertical Systems Group, “Wavelength Circuits by Geographic Scope” and “Retail vs. Wholesale Wavelength Circuits,” May 2025
The report states that between 2024 and 2029, the growth of 400G circuits will skyrocket, while 100G circuits will experience steady growth and 10G circuits will see moderate growth.
Wave services are the foundation of most high-capacity networks, especially when it comes to connectivity to or between data centers. High bandwidth, protocol transparency, and low latency are some of their key characteristics. Wave services can act as end-user services or support higher-layer services. Based on DWDM (Dense Wavelength Division Multiplexing) technology, they enable massive data transmission bandwidth over a single fiber pair. Currently, Wave services are dominated by 100G and 400G connections. A significant volume of 10G services is still deployed, but they are being upgraded to 100G at a steady pace.
Submarine Cable Growth
: The Ciena report also analyzes the growth of submarine cables. It highlights that 161,100 kilometers of submarine cables are projected to be in service (RFS) by 2025, far exceeding the previous record of 121,000 kilometers that came into service in 2001.
“With rapidly expanding infrastructure and resource constraints increasingly limiting growth, anticipating demand has never been more important,” adds Bieberich. “Network operators offering waveform services can seize this moment to proactively lay new submarine cables to emerging data centers and innovate to meet these challenges. Differentiation through greater route diversity, low-latency connectivity, and attractive managed services is key to staying ahead.”
The report provides a comprehensive analysis of the current industry landscape, assessing key trends and identifying the factors that will influence the market in the coming years. The report's forecasts illuminate the way forward, enabling stakeholders to develop effective strategies and maintain a competitive edge in their fields.
