Submarine cables are projects aimed at laying underwater cables worldwide that enable telecommunication signals to be transmitted across seas and oceans. Advantages offered by submarine cables such as large network capacity, low latency, and cost-effectiveness have increased their adoption for broadband internet connectivity and cloud-based services globally. With increasing internet penetration and growing adoption of cloud computing, the demand for high-speed internet connectivity has surged significantly.
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 key trends:
Increasing internet penetration and adoption of cloud-based services such as Software as a Service (SaaS) and Infrastructure as a Service (IaaS) are major factors driving the growth of the submarine cables market. The installation of new submarine cable systems by technology giants to support growing data traffic across regions is further fueling the market growth. For instance, in 2021, Amazon Web Services (AWS) announced plans to build two new submarine cable systems – the Hawaiki Extension and Oceania Express – to boost connectivity between Australia, New Zealand, and the United States. Increased investments in submarine cable projects to develop reliable ultra-high-speed intercontinental networks will continue to propel the submarine cables market over the forecast period.
Strength: Submarine cables offer high bandwidth and low latency for data transfer between continents. They are more reliable and secure compared to wireless networks.
Weakness: Installation of submarine cables requires high capital investments. Any damages caused due to natural disasters can disrupt global communications for extended periods.
Opportunity: Growing demand for internet and data services from undersea economies in Asia Pacific and Africa is driving investments in new submarine cable projects. Advances in fibre cable design and deployment technologies allow for higher bandwidth capacities.
Threats: Congested shallow waters make certain regions unsuitable for new cables. Acts of sabotage on critical cable infrastructure by nations can severely impact global internet connectivity and markets.
The Global Submarine Cables Market Size is expected to witness high growth over the forecast period supported by increasing investments to bridge the digital divide globally. Led by higher consumption of bandwidth intensive content and adoption of 5G networks, submarine cable capacity demands are rising sharply. 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.
Regional analysis: The Asia Pacific region currently dominates the global market for submarine cables accounting for over 35% share in 2023. This is driven by new projects to improve connectivity within Southeast Asian nations as well as between countries. China has emerged as a major investor and user of international submarine cable bandwidth.
Key players: Key players operating in the submarine cables market are ANDRITZ (Austria), and Thyssenkrupp (Germany). Rising investments from tech giants like Google and Microsoft have also spurred competition and innovations in faster cable systems. Standards are being developed to facilitate AI/ML applications directly on the seabed cables.
1.Source: Coherent Market Insights, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it