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 involves laying of cables on the ocean floor for telecommunication or electric power transmission between land-based stations located in different countries. These cables are primarily used for internet connectivity across borders and underwater data transmission. They offer high bandwidth connectivity and enable high-speed internet access.
Market Dynamics:
The submarine cables market is driven by increasing demand for fiber optic communication due to rising internet penetration across the globe. Optical fibers allow vast amount of data to be transmitted over long distances through a glass core not much thicker than a human hair. This makes them a preferred medium for submarine telecommunication cables. Additionally, growing need for data centers is also supporting the growth of this market. Majority of content and internet infrastructure relied upon for the global digital economy today resides in large data centers that are connected through submarine cables. As the quantity of data grows exponentially each year, the demand for more submarine cables and greater data capacity rises substantially.
SWOT Analysis
Strength: The submarine cables provide a robust and reliable means of connectivity between countries and continents. They offer very high bandwidth connectivity compared to satellite communications. Advancements in cable design and fiber optic technology allow for higher data carrying capacity.
Weakness: The laying and maintenance of submarine cables is an expensive and complex operation requiring specialized equipment. Any disruption or damage causes severe economic losses until repairs are made. Submarine cables are susceptible to damage from underwater earthquakes, underwater landslides, and human activities like trawling and ship anchors.
Opportunity: Growing demand for high-speed internet globally is driving investments in new submarine cable projects. Advent of 5G networks and increasing usage of cloud services will intensify the need for higher international bandwidth. Emerging economies in Asia and Africa present new markets for submarine cable deployment.
Threats: Geopolitical tensions can disrupt cable connectivity in sensitive ocean territories. Cables passing through war zones or disputed territories are vulnerable. Environmental factors like climate change induced hurricanes and sea level rise pose a long term threat.
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 investments in new projects aimed at augmenting international bandwidth. The market size is estimated to reach US$ 4841.53 Mn by 2030 from US$ 2751.81 Mn in 2023.
Regional analysis
The Asia Pacific region currently dominates the submarine cables market, accounting for around 35% share in 2023. This is attributed to the massive ongoing projects aiming to connect the fast growing economies within the region as well as with other parts of the world. China plays a key role in many international cable deployments. North America and Europe are other major regional markets, however their shares are projected to decline marginally owing to saturation. Africa and Middle East regions are identified as high growth opportunities for new cables, essential for enabling their digital economies.
Key players
Key players operating in the submarine cable 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. These companies are focusing on new projects as well as upgrade of existing cables to expand their presence.
Popular Posts
