by Submarine cables are those cables that are laid on the seabed for telecommunication or power transmission between two land destinations. They play a crucial role in carrying 95% of all intercontinental data and voice traffic and help in connecting remote areas globally. Their significance is increasing as more data centers are being established across the world to handle large data volumes. They provide high bandwidth connectivity between countries at relatively low latency compared to satellite communication. Global data usage is rising exponentially primarily because of the rapid adoption of smart devices, internet of things, cloud computing, and OTT platforms which require large data carriage. This rising demand is expected to propel the growth of the submarine cable network.
The 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: Key players operating in the submarine cables market are ANDRITZ (Austria), Thyssenkrupp (Germany), GEA Group Aktiengesellschaft (India), Metso (Finland), FLSmidth (Denmark), Buhler Holding AG (Switzerland), Anivi (Spain), Carrier Vibrating Equipment, Inc. (U.S.), Mitchell Dryers Ltd (U.K.), Yamato Sanko Co., Ltd. (Japan), Kerone Engineering Solutions (India), Ventilex.(Netherlands), FEECO International, Inc (U.S.), GEM MACHINERY & ALLIED INDUSTRIES (India), Glatt GmbH, Binzen (Germany), Cadworks India Pvt. Ltd.(India) ,FEECO International, Inc. (U.S.).
Growing demand: The growing demand for fast and reliable internet connectivity globally is driving the Submarine Cables Market Trends for high bandwidth submarine cables. Establishment of more number of offshore and onshore data centers to support cloud services is another factor augmenting the growth.
Global expansion: Major players are expanding their submarine cable network by entering into partnerships for installation of new cables interconnecting new countries/regions. For instance, India has initiated projects like Digital India, BharatNet to improve rural connectivity which will require extensive underwater network.
Market key trends
Branching units: Submarine branching units are being increasingly used that help network operators harness the capabilities of reconfigurable optical add-drop multiplexers (ROADMs) to flexibly add or remove wavelength signals without disrupting operations. This enhances the network capacity and resilience.
Hybrid architectures: Network operators are developing next-gen hybrid Submarine Cables Market architectures by integrating optical and packet networks for scalability and reduced total cost of ownership of networks over long duration.
Porter’s Analysis
Threat of new entrants: The high capital requirements and high costs associated with the laying of submarine cables act as a significant barrier for new entrants.
Bargaining power of buyers: Buyers have moderate bargaining power due to the presence of several established players providing submarine cable systems.
Bargaining power of suppliers: Suppliers have low to moderate bargaining power as raw materials required are commodity materials and are available with multiple suppliers globally.
Threat of new substitutes: There exists no close substitute for submarine cables currently as the technology is well established and its benefits over long distances cannot be matched.
Competitive rivalry: The submarine cables market is highly competitive due to the presence of major global players.
Geographical Regions with Highest Market Concentration
The North America and Asia Pacific regions currently account for the largest share of the global submarine cables market in terms of value. This is due to high demand for broadband connectivity and the need to expand and upgrade existing network infrastructure in countries such as the U.S., China, and Japan.
Fastest Growing Geographical Region
The Asia Pacific region is expected to record the highest CAGR in the submarine cables market during the forecast period. This is attributed to the ongoing construction of new undersea cables aimed at connecting countries within Southeast Asia and South Asia to meet rising demand for data connectivity from increased internet and smartphone penetration. Countries such as India and Indonesia are among the major markets driving regional growth.
*Note:
1. Source: Coherent Market Insights, Public Source, Desk Research
2. We have leveraged AI tools to mine information and compile it.
