Submarine Cables Market

The Submarine Cables Market is Expected to be Flourished by Rising Demand for High-Speed Internet Connectivity

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Submarine cables are laid on the seabed for telecommunication purpose, majorly to provide internet connectivity across borders. These cables carry close to 99% of international communication and data exchange between countries. With rising demand for high-speed internet globally especially for streaming media and video calling, the adoption of 5G networks is surging. Longer and upgraded submarine cables are offering larger bandwidth to support 5G networks and cater to increasing internet traffic. Traditional copper cables are increasingly being replaced by fiber optic cables for higher speeds and capacity.

 

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:

The market is driven by rising demand for high-speed internet connectivity worldwide. 5G network rollouts need ultra-high-speed connectivity at peak speeds to support applications such as IoT, industrial automation, self-driving cars etc. which is increasing the need to lay new submarine cables as well as upgrade the existing network infrastructure. Additionally, growing internet traffic stemming from video streaming, social media, file sharing etc. is making internet service providers invest in advanced submarine cables to address bandwidth issues and ensure seamless connectivity globally. However, high capital investment required to lay cables across long sea routes and complex permits associated with international waters continue to hinder the growth of submarine cables market.

Segment Analysis

The submarine cables market is dominated by the communication segment which accounted for over 70% share in 2022. This large share is attributed to the extensive use of submarine cables for telecommunication purposes such as broadband internet, telephone calls and cable television services. The second largest segment is the power cable segment which finds application in infrastructure projects involving offshore wind farms and transmission of hydroelectric power from one landmass to another. This segment is witnessing high growth due to increasing investments in renewable energy sector globally.

PEST Analysis

Political: Submarine cable market is positively influenced by supportive government policies and initiatives focusing on development of telecommunication and energy infrastructure. Several nations are promoting rural connectivity projects.
Economic: Growth of the market is driven by rising tele-density, increasing investments in offshore oil & gas and renewable energy sectors. Advent of 5G technology and rising internet traffic are bolstering demand.
Social: Changing lifestyle and work habits are raising data consumptionwhich is boosting the need for high speed broadband connectivity. Higher mobile and internet penetration globally is favoring market expansion.
Technological: Adoption of new technologies like HD voice and 4K video streaming are raising data traffic. Development of multipurpose cables for combined power transmission and telecom is gaining traction.

Key Takeaways

The Global Submarine Cables Market Size is expected to witness high growth over the forecast period between 2023 to 2030 supported by increasing investments in telecom and energy infrastructure development projects globally.  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.

The Asia Pacific region dominates the global market with over 40% share due to high investments in connectivity projects by countries like China and India. Growing mobile and internet usage, rising number of offshore wind projects and favourable government policies are augmenting the regional market.

Key players operating in the submarine cables market are ANDRITZ (Austria) and Thyssenkrupp (Germany). ANDRITZ is a prominent supplier of cable laying and repair vessels whereas Thyssenkrupp has wide experience in manufacturing power cables. Other leading vendors include Nexans (France), Prysmian (Italy) and NKT Cables (Denmark).

Most of the key players are focusing on investments in R&D to develop more efficient and reliable cables. Companies are involved in projects for laying long distance submarine interconnectors to establish global undersea cable networks. Partnerships and mergers & acquisitions are among popular strategies adopted by market players to strengthen their geographic footprint.

*Note:
1.Source: Coherent Market Insights, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it

Ravina
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Ravina Pandya,  Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. With an MBA in E-commerce, she has an expertise in SEO-optimized content that resonates with industry professionals.