Submarine Cables Market is Anticipated to Witness High Growth

The submarine cable network carries 99% of all global communications, transporting digital information such as internet, telephone, data, television signals, etc. across oceans and seas to connect various continents and countries. Submarine cables carry significant advantages over satellite communication as they have very high capacity, very low latency and are relatively immune to weather conditions. With the exponential growth in internet usage, digital connectivity, and number of internet users globally, there has been increasing demand for submarine cable network infrastructure worldwide.

Key Takeaways

Key players: Key players operating in the submarine cables market include ANDRITZ, Thyssenkrupp, GEA Group Aktiengesellschaft, Metso, FLSmidth, Buhler Holding AG, Anivi, Carrier Vibrating Equipment, Inc., Mitchell Dryers Ltd, Yamato Sanko Co.,Ltd, Kerone Engineering Solutions, Ventilex., FEECO International, Inc, GEM MACHINERY & ALLIED INDUSTRIES, Glatt GmbH, Binzen, and Cadworks India Pvt.Ltd.

Key opportunities: Growth opportunities in the market exist in the form of rising investments in the transpacific region for connectivity between Asia and USA, increasing cross-border connectivity within Europe and Africa, and upcoming projects in remote areas for bridging the global digital divide.

Global expansion: Major players in the submarine cables market are focusing on global expansion plans to leverage opportunities through contracts for new cable deployment projects. Key companies are partnering with telecom operators and governments to install cables interconnecting new country pairs and networks across oceans.

Market drivers: The key driver for the Submarine Cables Market Size is the increasing demand for seamless global digital connectivity driven by the massive growth in internet usage worldwide and adoption of technologies like IoT and 5G. Higher investments from telecom players in laying new cables to support bandwidth requirements is also fueling market growth.

Market restraints: Key restraints include significantly high initial investment costs associated with submarine cable deployment projects due to complexities involved. Political disruptions and natural disasters also pose risks that can hamper market potential. Stringent regulatory procedures for route surveys and permissions further increases timelines for projects.

Segment Analysis
The Submarine cables market is segmented based on application into communication cables and power cables. Communication cables dominate the market as they facilitate cost effective and high speed data transmission undersea. They form the backbone of the global internet and telecommunication infrastructure by connecting various countries, continents and islands. About 95% of international data traffic is through such submarine communications cables laid on the ocean beds. Power cables have a comparatively minor market share as they are used for transmission of electricity from offshore wind farms and interconnect various grid networks between neighbouring regions/countries.

Global Analysis
North America dominates the submarine cables market currently due to heavy investments made in upgrading its existing submarine cable infrastructure. However, the Asia Pacific region is poised to be the fastest growing market during the forecast period due to the ongoing and planned projects in countries such as China, India and Japan for enhancing their submarine network connectivity. These networks are rapidly expanding to keep up with the exponentially increasing data consumption. The European market also has sizable presence on account of initiatives taken to interconnect offshore renewable energy farms to mainland grids through long submarine power cables crossing territorial waters of multiple countries.

Segment Analysis
The Submarine cables market is segmented based on application into communication cables and power cables. Communication cables dominate the market as they facilitate cost effective and high speed data transmission undersea. They form the backbone of the global internet and telecommunication infrastructure by connecting various countries, continents and islands. About 95% of international data traffic is through such submarine communications cables laid on the ocean beds. Power cables have a comparatively minor market share as they are used for transmission of electricity from offshore wind farms and interconnect various grid networks between neighbouring regions/countries.

Global Analysis
The Asia Pacific region is poised to be the fastest growing market during the forecast period due to the ongoing and planned projects in countries such as China, India and Japan for enhancing their submarine network connectivity. These networks are rapidly expanding to keep up with the exponentially increasing data consumption. The European market also has sizable presence on account of initiatives taken to interconnect offshore renewable energy farms to mainland grids through long submarine power cables crossing territorial waters of multiple countries. North America dominates the submarine cables market currently due to heavy investments made in upgrading its existing submarine cable infrastructure.

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