XKL Industry News Blog: Q1 2019 In Review

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  • XKL Industry News Blog: Q1 2019 In Review
  • Posted by PR on April 16, 2019

The first quarter of 2019 revealed some exciting growth trends regarding IoT, subsea cables and fiber connectivity, as well as an announcement about the world’s fastest supercomputer. Read more below about the thrilling recent news and developments that continue to shape our evolving industry.


The world’s fastest supercomputer worth $500 million is coming to the U.S. in 2021! Intel Corporation and the U.S. Department of Energy announced they are building the first supercomputer along with Cray that will break the “exascale” barrier.

The first exascale computer is reportedly dozens of times faster than any other computer on the planet and is capable of a quintillion calculations per second.The exascale computer, named “Aurora”, will be built in Chicago using architecture and technology from Intel.

The next-generation of exascale is designed to provide researchers unprecedented research involving both High Performance Computing (HPC) and Artificial Intelligence (AI) that could dramatically advance scientific innovation in cancer research, climate modeling and healthcare.


Fiber optic cable assemblies are expected to continue to rise in North America through 2023 due to the initiatives by the electronics industry to cut operational costs, achieve faster time to market, streamline services and future-proof their networks. A recent study by industry experts is pointing to the durability of fiber optic cable assemblies as a strong driver of the hearty market growth forecast.

Rapid growth is also predicted for the global fiber optic cable assemblies market with approximately a 7% Compound Annual Growth Rate (CAGR).

Subsea Cables:

A major investment boom in subsea cables is underway from big tech companies like Google, Amazon, Facebook and Microsoft. The surge in data traffic from Google and Facebook are driving the intercontinental communications initiatives. Bloomberg Businessweek reports more undersea cable was laid in 2018 than in any year in almost two decades. In addition, the transatlantic cable investment planned for 2018-2019 from internet companies jumped from 20% to 80% in the three years through 2017, according to TeleGeography. Google is leading the investment boom and even owns two of them.

There is also a swell of investment dollars pouring into the Asia Pacific (APAC) submarine cable systems market, which is expected to grow at a CAGR of 9.8% through 2027. Internet companies and content providers aren’t the only digital giants in the APAC market, energy and power companies are leveraging the region for growth opportunities as well.

However, there have been a few hiccups in the APAC market with outages and repairs to the Asia Pacific Getaway (APG) network. The APG submarine cable system went live off of Malaysia in late 2016 with a capacity of more than 54 Tbps and up to 100 Gbps. It’s subsea cable branch from Vietnam to Singapore has crashed twice since and is undergoing repairs for internet capacity.

Edge and Rural:

A recent study by Grand View Research, Inc. estimates the global edge computing market size is expected to hit $3.24 billion by 2025. The healthcare and life sciences segment is predicted to have the most sizable CAGR growth through 2025 because of storage capabilities and real-time computing by edge computing solutions. Even though there is substantial edge computing growth, many organizations are only at the cusp of tapping into this technology.

According to an International Data Company (IDC) research survey, there are a few factors that could deter widespread edge computing adoption, including lack of internal skills, managing cloud costs, insufficient maintenance support and cyber and physical security.

As companies move closer to the edge with an accelerated increase in devices and data traffic, cybersecurity concerns are escalating in tandem. Edge computing is now becoming the new frontier of cybersecurity. There is a growing shift in network operators to focus not only edge-computing deployments but also fortifying infrastructure security strategies.

Interconnecting existing services and capabilities:

Cloud migration is forecasted to generate $411 billion in cloud computing technology by 2020. The most prominent reasons why businesses migrate to the cloud, include scalability, efficiency, faster implementation, mobility and disaster recovery.

The process of migrating to the cloud is becoming more popular among enterprises for the accessibility to the on-premise data as well as the low cost to store and access data. The average enterprise used a staggering 1,427 distinct cloud services, a threefold increase from that in 2013.


Worldwide spending on the Internet of Things (IoT) is expected to top $745 billion this year, which is a 15.4% increase over the $646 billion spent in 2018, according to IDC. Double-digit yearly growth will continue through 2022 and surpass the $1 trillion mark. The United States and China will be the global leaders for IoT spending in 2019 at $194 billion and $182 billion respectively.

The remarkable growth is from the adoption of IoT in industries, governments and consumers. The industries that are spending the most money on IoT development include manufacturing, transportation and utilities. Healthcare, insurance, and federal/central government segments are slated to have the fastest growth over the next five years.

Notably, Consumer IoT spending will reach $108 billion this year, which ranks as the second largest industry segment.

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