The global 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:
Submarine cables carry telephone signals, internet data, and computer network signals between countries and continents across the ocean floors by means of fiber optic cables. They help in long distance communication between lands located in different regions.
Market key trends:
One of the key trends in the submarine cables market is the increasing demand for high-capacity submarine cable systems to support higher internet traffic volumes. The growing trend of digitalization and rising internet penetration has tremendously increased global internet traffic over the past few years. According to Cisco, global IP traffic reached 4.8 zettabytes per year in 2022 and is expected to reach 10.8 zettabytes annually by 2027. This growing traffic demands more submarine cables with higher fiber counts and technical capabilities to support the surging bandwidth requirement. Development of new submarine cable systems with very high fiber counts is one of the key strategies adopted by market players to address this demand.
SWOT Analysis
Strength: The submarine cables provide reliable and high-speed internet connectivity between countries. They have low latency and can carry massive data traffic.
Weakness: Laying and repairing submarine cables require huge investment and time. They are vulnerable to natural and man-made disasters like earthquakes, volcanic eruptions, fishing trawlers, and anchors.
Opportunity: The rising demand for broadband connectivity, increased internet usage, growing offshore wind farms are driving opportunities. The adoption of 5G networks also presents growth prospects.
Threats: Cyber threats, geo-political conflicts, and competition from satellite connectivity pose challenges. Issues related to securing rights of way and cable routes can also threaten the market.
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 fiber connectivity and broadband internet across the globe.
Regional analysis
The Asia Pacific region dominates the submarine cables market and is expected to grow the fastest during the forecast period. This is attributed to rising investments towards connectivity infrastructure from countries such as China, India, and Southeast Asian nations. North America and Europe hold a significant share of the market due to high availability of international bandwidth.
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.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
