SUBMARINE CABLES MARKET ANALYSIS

Market Challenges And Opportunities

Advancement in Technologies is expected to drive growth of submarine cables market during the forecast period

The global submarine cables market growth continues to be driven by upgrades in technology and capacity, especially in the transatlantic route. Today’s submarine cables industry is well-informed and innovative, implementing versatile and practical solutions in markets that are increasingly demanding with regards to cost-efficiency, connectivity, and reliability. Ongoing advancements in technologies, with capacity and affordability as the major aspects, are anticipated to play crucial roles in the future growth of the market. The submarine cables industry is now in the process of putting 100G wavelengths into operation across almost the entire transoceanic route, ensuring that the future would be one of the connectivity-based developments.

Moreover, the emergence of new applications such as machine learning, the Internet of Things, self-driving cars, and 5G are further enhancing the need for greater bandwidth, which can be enabled by submarine optical fiber cables. Thus, such advancements are anticipated to drive submarine optical fiber cables market development in the future.

Increasing demand for internet & growing smartphone penetration is expected to propel the submarine cables market growth over the forecast period

Restraint:

Disruptions in Service Due to Lack of Redundancy

Due to a lack of redundancy, the submarine optical fiber cables market faces one of its largest issues as many regions in the world are susceptible to service disruptions. In order to prevent loss of functionality in the event that a link or station's signal is lost, network architectures use redundant bidirectional linkages between stations, similar to roads and water distribution systems. When the shortest link is disrupted, self-healing rings will loop traffic through functional parts of the ring. Although problems in  submarine optical fiber cables occur less frequently than in terrestrial networks but take considerably longer to locate and fix, the cable industry is accustomed to doing so, which is impeding the market expansion.

Global Submarine Cables Market - Impact of Coronavirus (Covid-19) Pandemic:

The COVID-19 pandemic has impacted the global submarine cable market. Several countries have been affected by COVID-19 and governments have announced nationwide lockdowns. Shutdown of cable manufacturing factories due to social distancing are not likely to have immediate negative repercussions on global connectivity, but can push back the deployment of new systems. It is very challenging to get staffs on and off ships that are conducting surveys and studies for upcoming cables or laying new ones. One of the factors hampering global connectivity is the delay in carrying out cable repairs amid the pandemic.