The submarine cables market involves the manufacturing and laying of submarine communication cables on the ocean floors to enable telecommunication across borders. Submarine cables carry telephone calls, broadband internet, and television services globally. Key advantages of submarine cables include high bandwidth connectivity, low latency, and reliable communications. With increasing internet penetration and growing adoption of cloud services worldwide, the demand for high-speed telecom connectivity has been rising rapidly. This has propelled investments in upgrading and expanding existing submarine cable networks.
The Global Submarine Cables Market is estimated to be valued at US$ 3170.09 Mn in 2024 and is expected to exhibit a CAGR of 5.1% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the Submarine Cables are ANDRITZ (Austria), Thyssenkrupp (Germany), GEA Group Aktiengesellschaft (India), Metso (Finland), FLSmidth (Denmark). These players are focusing on expanding their submarine cable network infrastructure through strategic partnerships and collaborations to cater to the growing demand.
The demand for submarine cables is growing tremendously due to the rising internet usage, increasing smartphone and internet-of-things adoption worldwide. Developing nations in Asia Pacific and Middle East & Africa are witnessing high investments in telecom infrastructure which is propelling the submarine cables market.
The submarine cable network is expanding globally with new and advanced networks being built to connect new markets. Major players are involved in projects to lay new submarine cables linking countries in Asia, Africa, Europe, and Americas to fulfill the surging need for high-bandwidth connectivity.
Market Key Trends
One of the key trends in the Submarine Cables Market Size is the increasing investments in high-speed telecom connectivity infrastructure between Asian countries and globally. With rising digitization across industries, there is a massive need for reliable high-speed telecom links between Asian markets and the rest of the world. This is promoting investments in new submarine cable projects to interconnect Asian telecom networks with others.
Porter’s Analysis
Threat of new entrants: Low as significant capital investment is required for manufacturing submarine cables. Legal permits and agreements are also required to lay cables on sea beds between nations.
Bargaining power of buyers: Moderate as there are few alternatives to submarine cables for inter-country data transmission. However, the size of individual projects impacts bargaining power.
Bargaining power of suppliers: Moderate as suppliers of materials like copper, lead, and fiber optics require dedicated manufacturing capabilities. Suppliers have some control over raw material prices.
Threat of new substitutes: Low as currently no viable alternatives exists for carrying large volumes of data across oceans other than submarine cables. Satellite communication is an alternative but has higher costs.
Competitive rivalry: High as major players compete on the basis of product quality, pricing, reliability and network coverage. Players also engage in long-term agreements for maintaining and upgrading existing cable infrastructure.
Geographical Regions
In terms of value, the submarine cables market is concentrated in North America and Europe. Majority of the existing international submarine cable systems connect these regions carrying a bulk of internet traffic globally.
The Asia Pacific region is witnessing the fastest growth for the submarine cables market. Growing internet penetration and increasing cross-border data exchange between countries like China, India, Japan, and South Korea is generating demand for new submarine cable projects. Sea routes within Southeast Asia and connecting to countries like Australia are also being enabled with new cable systems.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
