Submarine cables are laid on the seabed for telecommunication purpose and carry almost all international phone and internet traffic between countries. They function as the backbone of the global digital economy connecting numerous nations and continents worldwide. Submarine cables are widely used for telephone calls, mobile connectivity, internet connections, media links etc. They provide affordable and reliable digital connections for businesses and consumers.

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 5.1% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:
Increasing demand for high-speed internet connectivity across the globe is a key driver propelling growth of the submarine cables market. As per estimates, over 95% of intercontinental data traffic is carried by submarine cables laid on the ocean floors. However, steady rise in international commerce, mobile adoption, video streaming services and cloud computing has amplified the bandwidth requirements significantly. This has boosted the need to lay new generation cables with higher fibre counts and capacity. Furthermore, various nations are investing heavily in deploying submarine networks to expand digital infrastructure and foster socio-economic development. For instance, China's Digital Silk Road initiative aims to connect Asia with Europe and Africa through undersea cables. Such large scale investments are creating lucrative opportunities for market players.

SWOT Analysis

Strength: Submarine cables have high data transmission capacity and enable high-speed internet connectivity between countries. They offer reliable, secure and cost-effective connectivity compared to wireless networks. Long-term investments in developing transoceanic submarine cable networks provide telecom operators with opportunities to expand bandwidth capacity easily.

Weakness: Submarine cable networks are prone to disruptions and damages caused by natural disasters such as earthquakes, underwater landslides and cable faults. Any disruption can severely impact internet services and call/data routing until the faulty cable segment is repaired. Furthermore, initial investments in long cables spanning thousands of kilometers are very high.

Opportunity: Growing global internet traffic and increasing demand for data centers is driving the need to develop new transoceanic cable systems to augment international bandwidth. The rising adoption of 5G networks and cloud services will further boost the requirement for high-speed submarine cables in the coming years. Governments are investing heavily in projects to improve connectivity.

Threats: Wireless communication technologies like satellites pose a threat by providing alternatives for connectivity. Furthermore, geopolitical issues can potentially impact cable development and maintenance in certain regions. Cyber threats also remain a challenge due to the critical nature of data carried through submarine networks.


Key Takeaways

The Global Submarine Cables Market Size is expected to witness high growth over the forecast period led by increasing investments in transoceanic cable systems. Data consumption trends indicate that international bandwidth needs will rise significantly driven by widespread digitization and development of digital economies worldwide. 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 5.1% over the forecast period 2023 to 2030.

Regional analysis: North America currently dominates the submarine cables market owing to extensive investments in domestic and transoceanic networks by large operators. The Asia Pacific region is expected to exhibit the fastest growth led by countries like China, India and Japan. These nations are aggressively enhancing international and regional connectivity to support their digital ambitions.

Key players:

Key players operating in the submarine cables market are ANDRITZ (Austria) and Thyssenkrupp (Germany). ANDRITZ is a leading supplier of manufacturing equipment and engineering services for the industry with a focus on the production and processing of synthetic fibers and nonwovens. Thyssenkrupp is a diversified industrial engineering and steel company that provides turnkey underwater cable systems, special cabling solutions and repair services.

For More Insights, Read: https://www.newsstatix.com/submarine-cables-market-demand-growth-and-regional-outlook-by-2030/