Submarine Cables Market Will Grow at Highest Pace Owing to Growing Demand for High-Speed Internet Connectivity
Submarine cables are high capacity digital telecommunication cables laid on the seabed between land-based stations to transmit telecommunication signals across oceans and seas. They help in interconnecting countries and continents with high-speed internet and various communication networks. The advantages of submarine cables over satellites are that they provide high data capacity, low latency, and reliable connectivity. Growing demand for high-speed internet among consumers and enterprises and increasing data usage is propelling the growth of the submarine cables market.
The submarine cables market is estimated to be valued at US$ 3,170.09 million 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), 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 internet penetration and increasing usage of digital services is driving the demand for high-speed internet around the world. This in turn is fueling the demand for advanced submarine cables globally. Ongoing technological advancements like the adoption of optical fibers and DWDM technology are enabling submarine cables to carry data at significantly high speeds meeting the current and future connectivity needs.
Market Trends
The Submarine Cables Market Trends is witnessing growing investments in building new networks or upgrading existing ones. For instance, Meta is investing $3 billion for 2 new transatlantic cables which will enhance connectivity between North America and Europe. The market is also trending towards building resilient networks to reduce redundancy risks. Loop technologies that allow data to bypass broken segments are gaining popularity.
Market Opportunities
Increasing connectivity needs in emerging markets offer significant opportunities for submarine cable manufacturers. Regions like Asia Pacific, Middle East, and Africa still have room for infrastructure development. Growing undersea connectivity between Southeast Asia and India also presents opportunities. Integration of latest technologies like AI and machine learning in automated surveys and cable laying also opens up new growth avenues.
Impact of COVID-19 on Submarine Cables Market Growth
The COVID-19 pandemic negatively impacted the submarine cables market in the initial months. Supply chain disruptions and cable manufacturing delays occurred due to lockdown restrictions imposed by governments globally. Major submarine cable projects were postponed to later dates as resources were diverted to handle the crisis. However, the increasing demand for high-speed internet during widespread remote working and online education contributed to growth in some regions. With economic activities resuming gradually, the market is recovering backed by rising internet traffic and 5G deployments. Project expansions are underway to address capacity needs. The pandemic highlighted the importance of robust undersea connectivity infrastructure for digital transformation and global communication. Strategies to accelerate projects and invest in new routes will be crucial for tapping opportunities in the post-COVID period.
Geographical Regions with Highest Submarine Cables Market Value
The Asia Pacific region accounted for the largest submarine cables market value, estimated at around US$ 1.2 billion in 2024. This is due to the presence of major data centers and internet hubs in countries like China, India, Singapore and Japan which are majorly dependent on undersea cables for connectivity. North America stood second in value terms supported by heavy investments and network upgrades to enable 5G and broadband access across the U.S. and Canada. Europe was another major regional market led by heavy inter and intra-regional internet traffic and a well-developed submarine network infrastructure connecting countries.
Fastest Growing Region in the Submarine Cables Market
The Middle East & Africa region is projected to record the highest CAGR in the submarine cables market during the forecast period. This is attributed to ongoing and upcoming projects to enhance connectivity between countries and link them to global networks. Initiatives like 2Africa consortium and Simba project are expanding the intra-regional cable infrastructure, while new routes are improving access to bandwidth. Increased adoption of digital services and the need for high-quality international bandwidth will drive further investments, supporting the fastest revenue growth of the submarine cables market in Middle East and Africa.
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Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. (https://www.linkedin.com/in/money-singh-590844163)