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.
Submarine cables are the backbone of global communications infrastructure. They transport close to 99% of international data traffic and voice calls across the world. Submarine cables consist of fibre optic cables that are laid on the seabed to connect countries, continents and inter continental data centers. They enable high speed broadband connectivity by transmitting broadband, telephone and television services. Their ability to carry huge bandwidth capacity over long distances makes them ideal for undersea communications.
Submarine Cables provide a reliable communication solutions compared to satellite communication as they have higher bandwidth, lower latency and are immune to weather interference. This makes them the preferred mode of connectivity for mission critical data transmission applications.
Market key trends:
Sustainable undersea connectivity is a major trend in the submarine cables market. With exponential growth in data usage and internet traffic every year across the world, there is an ever increasing demand for faster, higher bandwidth connectivity solutions. This is driving investments into newer and advanced submarine cable systems that can support multi terabit capacity per fiber pair. For example, 2Africa, Marea and Dunant are some of the major new submarine cables projects announced recently that will significantly boost undersea connectivity around the world. Sustainable and eco friendly deployment practices are also gaining focus to minimize environmental impact of submarine cable laying.
Threat of new entrants: The threat of new entrants is moderate due to high cost involved in the installation and maintenance of submarine cables. However, opportunities for new players are increasing with growing global demand for bandwidth.
Bargaining power of buyers: The bargaining power of buyers is high due to presence of many established players and differentiated offerings. Buyers can negotiate on the price and delivery timeline.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as key components such as fiber optic cables, repeaters, and other equipment have limited manufacturers globally.
Threat of new substitutes: The threat of new substitutes is low as no effective alternatives exist currently for long distance communication needs. However, advanced satellite communication is emerging as a potential threat.
Competitive rivalry: The submarine cable market features strong competition among major players due to their global presence and significant investments in new technologies.
The Global Submarine Cables Market Size is expected to witness high growth, exhibiting CAGR of 6.3% over the forecast period 2023 to 2030, due to increasing consumer demand for high speed internet and emergence of 5G technology. The market size for 2023 is US$ 2751.81 Mn.
Regional analysis: The Asia Pacific region dominates the submarine cables market owing to rapid digitalization and heavy investments in connectivity infrastructure by China, India and other developing nations. North America and Europe are also major markets driven by high demand for bandwidth from tech companies.
Key players operating in the Submarine Cables 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.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it