The submarine cables market involves the laying and
operation of underwater fiber optic cables that provide high-speed internet
connectivity between countries. Submarine cables carry 99% of international
data and voice traffic. The core of a submarine cable includes electrical
conductors surrounded by an insulated copper or aluminum tube. Optical fibers
are embedded inside to transmit data as light pulses. Submarine cables offer
reliable, secure and high-bandwidth connectivity with low latency. They connect
continents, islands and landmasses in remote locations. The submarine cables
allow sharing of information, voice and data globally and facilitate
international trade and business partnerships. The demand for submarine cables
has increased due to rising internet usage, digitization, advancement of 5G
networks and growing offshore wind sector.
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 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.). Key players are focused on expanding their overseas
presence to tap opportunities in emerging markets.
The
Submarine
Cables Market Trends network industry offers vast opportunities for network
expansion, cable laying projects and maintenance contracts. Asia Pacific region
will witness highest investment in submarine cable deployment led by China,
India and Southeast Asian countries. North America and Europe are mature
markets and major focus is on upgradation of aging networks.
Operators are increasingly laying private submarine cable networks for
enterprises and specific regions for reliable high-speed connectivity. Global
expansion of submarine cable network will be crucial for international trade
expansion in the coming decade.
Market drivers
Increasing demand for high-speed internet and advancement of 5G networks is a
major market driver. 5G network requires dense fiber deployment globally which
is fueling the growth.
Growing offshore wind sector is also boosting the submarine cable market.
Offshore wind farms require reliable communication and power cables laid
underwater for connectivity and power transmission.
Market Restrain
High capital requirements and long gestation period for executing submarine
cable projects pose challenges. Cable faults due to natural disasters or human
errors also affect network up time which is a key restrain. Regulatory hurdles
and complex international permits add to project delays and costs.
Segment
Analysis
The submarine cables market is segmented based on
installation, ownership, type and application. Based on installation, the
market is bifurcated into shallow water installation and deep water
installation. The deep water installation segment dominates the market as it
requires high technical skills and equipment to install cables in deep oceans.
Based on ownership, the market is categorized into private-ownership and
consortium-ownership. The consortium-ownership segment accounts for the largest
share as setting up of submarine cables involves high capital investments which
are jointly funded by telecom companies and technology firms. Based on type,
the market is divided into submarine communication cables and submarine power
cables. Submarine communication cables continue to be the leading segment as
there is constant growth in internet connectivity and data consumption
globally. Based on application, the market is segmented into communication,
power transmission and others. The communication segment dominates as submarine
cables are crucial for international calling and data transfer between
countries.
Global Analysis
On the basis of region, North America dominates the
submarine cables market owing to the presence of major technology players and
higher investments in connectivity infrastructure. The Asia Pacific region is
estimated to witness the fastest growth during the forecast period due to rapid
digitization and growing investments by governments to improve telecom
networks. Countries like China, India and Indonesia are expected to offer
lucrative opportunities for market players. In Europe, countries like the UK,
Germany, France and Norway have well established submarine cable network due to
higher investments over the years to meet the demands of enterprises and
consumers. The Middle East and Africa are projected to show significant growth
prospects led by the United Arab Emirates, Saudi Arabia, South Africa and
Egypt. Countries in Latin America like Brazil and Mexico are also contributing to
the expansion of the submarine cables industry.
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Insights on- Submarine
Cables Market
About
Author:
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)
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