by The Submarine Cables Market is estimated to be valued at US$ 2751.81 Mn in 2023 and is expected to exhibit a CAGR of 6.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The submarine cables market consists of fiber optic cables laid on the seabed for the purpose of connectivity and data transmission across borders. Submarine cables play a vital role in connecting countries and continents by carrying 99% of international communications and powering internet traffic worldwide. They are used majorly in telecommunications and carry telephone calls, internet, and cable television communications. With the exponential growth of internet traffic and rising demand for broadband, the demand for high-capacity submarine cables is increasing rapidly.
Market Dynamics:
The submarine cables market is primarily driven by the rising demand for internet and broadband connectivity. According to DataReportal, as of January 2022, over 4.95 billion people actively used the internet, accounting for over 62% of the global population. This has exponentially increased the data usage and traffic worldwide. Consequently, the need for high-bandwidth connectivity through submarine telecom cables has surged. Another major driver is the increasing marine mining and offshore activities. As oil and gas exploration moves to deeper waters, the need for connectivity of remote assets creates opportunities for submarine power cables. Furthermore, many countries are investing in marine research which involves the deployment of networks of cabled ocean observatories requiring submarine connectivity solutions.
Segment Analysis
The global submarine cables market is segmented into communication cables and power cables. The communication cables segment dominates the market and accounts for over 80% of the global market share. This is because majority of internet traffic moves through submarine communication cables laid on the ocean floors. These communication cables allow high-speed data transmission between continents and play a crucial role in supporting today’s digital economy and global communication needs.
PEST Analysis
Political: Submarine cable projects require approval from multiple governments and regulatory bodies along the cable route which can impact timely deployment. However, most countries recognize the economic and social benefits of digital connectivity and provide necessary approvals.
Economic: The growing demand for broadband and data services is driving massive investments in submarine cable networks to support increased internet traffic. Emerging economies are also investing heavily in digital infrastructure development.
Social: Increasing smartphone and internet penetration globally is increasing the usage of digital services and content. This is generating demand for high-capacity international bandwidth provided by submarine cables.
Technological: Advancements in fiber-optic technology allow submarine cables to carry exponentially higher data volumes. New projects are deploying technology like space division multiplexing to multiply available capacity.
Key Takeaways
The Global Submarine Cables Market Size is expected to witness high growth, exhibiting CAGR of 6.3% over the forecast period, due to increasing demand for high-speed internet and telecommunication services globally. The market size for submarine cables is projected to reach US$ 4756.32 Mn by 2030.
The Asia Pacific region currently dominates the market, accounting for over 40% share due to the presence of major internet hub countries like Singapore and the rapidly growing telecom industries in China and India. China has emerged as a leader in both international submarine cable deployments and domestic inland cables.
Key players operating in the submarine cables market are Alcatel Submarine Networks, SubCom, LLC, ABB, Huawei Marine Networks Co., Ltd., NEC Corporation, NEXANS NORWAY AS, FUJITSU, Prysmian Group, Saudi Ericsson, HENGTONG GROUP CO., LTD., ZTT, Corning Incorporated, NKT A/S, Hellenic Cables Group. The Okonite Company, Apar Industries Ltd., JDR Cable Systems Ltd., AFL, Hexatronic Cables & Interconnect Systems, and LEONI Special Cables GmbH. Major players are focused on upgrading their cable technologies and continuously expanding cable network capacities to meet the ballooning global data demand.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
