July 20, 2024
Submarine Cables Market

Increase In Digitalization Across Industries To Drive Growth Of Submarine Cables Market

Market Overview:

Submarine cables are telecommunication and power cables that are laid on the seabed for the purpose of data transmission between land-based stations located in different countries or even continents. Submarine cables help in carrying telephone calls, internet traffic, and cable television signals. They form the backbone of international telecommunications and have become essential for global connectivity. Demand for submarine cables has increased substantially due to rapid digitalization and growing usage of internet across industries.

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 key trends:

One of the key trends in the submarine cables market is the rising investments towards building new coastal landing stations and cable networks to meet the exponential growth in data transmission. Telecom operators and internet giants are investing heavily in enhancing global connectivity through submarine cable networks. For instance, in November 2021, Reliance Jio announced its plan to develop a global fiber optic cable network submarine system to connect India, Middle East, Africa and Europe. The project aims to develop the highest capacity and fastest submarine cable system with an initial design capacity of 200 Tbps and will help India gain significant global market share in the fast-growing data center industry.

Porter’s Analysis

Threat of new entrants: Low investment requirement for new entrants acts as a threat. However, high maintenance costs and well established key players make market entry difficult for new players.

Bargaining power of buyers: Large network operators and internet providers have significant bargaining power due to bulk purchase orders.

Bargaining power of suppliers: The presence of many raw material suppliers reduces individual supplier power. Cables can be sourced from China, Europe and local suppliers.

Threat of new substitutes: Wireless communication is emerging as a substitute but cannot replace physical connectivity for high data transmission over long distances.

Competitive rivalry: International players dominate the market. Intense competition exists between Alcatel Submarine Networks and TE SubCom for major projects.

Key Takeaways

The global Submarine Cables Market Growth size is expected to reach US$ 5,821.24 Mn by 2030 from US$ 2,751.81 Mn in 2023, exhibiting a CAGR of 6.3% during the forecast period owing to increasing demand for high bandwidth and integration of new technologies.

Regional analysis:

The Asia Pacific region holds the highest market share and is expected to grow at a high CAGR during the forecast period due to rising internet penetration, deployment of 5G technology and increasing investment in submarine cable projects by China and other APAC countries.

Key players:

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