by The submarine cables market involves the installation and maintenance of underwater fiber optic cables that facilitate telecommunications and data transmissions across oceans and seas. Submarine cables transmit bulk data, online streaming, telephony signals, internet traffic, and more for transoceanic communications. Some key advantages of submarine cables include large bandwidth capacities to transport internet traffic, low signal latency for real-time communications, reliable connectivity between continents, and cost-effectiveness as compared to satellite networks or microwave links. With the proliferation of smart devices and exponential growth of data usage worldwide, high-speed and secure connectivity through submarine networks has become a necessity, driving investments in new installations and upgrades of existing cable infrastructure.
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 market are ANDRITZ (Austria), Thyssenkrupp (Germany), GEA Group Aktiengesellschaft (India), Metso (Finland), FLSmidth (Denmark). These players are engaged in projects for deployment of new cables as well as upgrading and repair of existing systems.
The rising deployment of 5G networks across regions presents significant opportunities for market players to invest in high-capacity submarine cable projects. Additionally, the increasing internet traffic from undersea data centers coupled with pandemic-driven demand for seamless connectivity is expected to drive more investments.
Major players are focused on expanding their global footprints and addressing the connectivity needs of emerging markets through new submarine network deployments linking countries in Asia Pacific, Latin America, and Africa.
Market Drivers
The growing reliance on telecom networks for seamless flow of data globally during the Covid-19 pandemic has underscored the need for resilient and secure connectivity infrastructure like submarine cables. With rising adoption of fiber-to-the-home networks among consumers and enterprises, demand for high-bandwidth connectivity through undersea networks is expected to surge. This will remain a key driver for investments in the Submarine Cables Market Demand over the forecast period.
PEST Analysis
Political: The submarine cable market is regulated by governments worldwide. Changes in policies regarding submarine cable network deployment and international regulations can impact market growth.
Economic: Growth in global data traffic and rising demand for broadband connectivity is driving investments in next generation submarine cable networks. Volatility in currency exchange rates can affect the project costs of international projects.
Social: Increasing mobile internet and smartphone penetration worldwide is boosting the demand for high-capacity international bandwidth. Dependency on digital technologies and social media usage is propelling the need for robust international connectivity infrastructure.
Technological: Advancements in fiber cable design and deployment technologies allow for higher transmission capacities to meet the rising bandwidth demand. Undersea repeaters and amplification technology enhance the reliability and performance of submarine cable networks.
The Asia Pacific region represents the largest market for submarine cables in terms of value, accounting for over 35% of the global market revenue in 2024. This is due to the presence of developing economies with rising internet usage like China, India and Southeast Asian countries. North America and Europe are other major revenue contributing regions driven by high smartphone and internet penetration rates coupled with extensive existing networks of submarine cables connecting these regions.
The Middle East and Africa region is expected to witness the highest CAGR in the submarine cable market during the forecast period. This is attributed to the ongoing investments in new submarine cable projects to improve network connectivity within the region and between the Middle East, Africa and other parts of the world. For example, new cables like 2Africa and SEA-ME-WE 6 are slated to enhance connectivity between countries in the Middle East, Africa, Europe and Asia Pacific. Increased demand for bandwidth to support economic development initiatives and the growing digitalization in Africa are driving considerable investments towards establishing international connectivity infrastructure in the region.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
