Submarine fiber cables: Key market research findings
- The market is currently dominated by the Transpacific region
- New project segment to showcase uneven growth during the forecast period
- Key vendors—Alcatel-Lucent, Fujitsu, Huawei, NEC, and TE SubCom
Technavio’s market research analysts estimate the global submarine fiber cable market to grow at a CAGR of almost 6% between 2016 and 2020. The growing demand for bandwidth is the primary driver for the market. Submarine fiber cables establish connections between business hubs or cities, with a large number of servers for smooth functioning of the Internet. Its highly cost-effective feature coupled with low traffic delay, is augmenting the demand for submarine cables with higher bandwidths. During 2015, the Transpacific region dominated the global submarine fiber cable market by accounting for a market share of around 50%. Constant upgradation of existing systems is likely to drive the growth of submarine fiber cable market in this region during the forecast period.
The new market research report from Technavio presents a breakdown and analysis of the submarine fiber cable segments by project type.
“An increase in the deployment and upgradation of 100G and 400G submarine fiber cable systems is the latest trend in the market. This demand is stimulated by an increase in the demand for dark fiber for high-speed international bandwidth. For instance, Reliance Globalcom upgraded its FLAG Europe-Asia submarine fiber cable to 100G network in 2013. Besides, several consortiums are carrying out tests to further enhance and improve submarine fiber cables,” says Anju Ajaykumar, Lead Analyst, Heavy Industry, Technavio Research.
The new projects segment dominated the global submarine fiber cable market in 2015 by occupying around 80% of the overall market share. However, this segment is likely to witness uneven growth during the forecast period due to the low demand for new submarine lines in many regions. Majority of the demand for new projects in the next four years is likely to come from Central and South America and SEA.
The key vendors in the global submarine fiber cable market include Alcatel-Lucent, Fujitsu, Huawei, NEC, and TE SubCom. The capital-intensive nature of the market has barred the entry of new players owing to the high technological requirements involved to establish. Intense competition prevails among few players to gain a number of new and upgrade projects. Africa and Central and South America. Are the key regions deploying a significant number of new projects, and have attracted quite a few players to provide special financial offers to roll out new projects in these regions.
A more detailed analysis is available in the Technavio report, Global Submarine Fiber Cable Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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