Analysys Mason’s Submarine Cable Market: Worldwide Forecast 2023–2029 indicates that investments and expenditure in submarine fibre-optic telecom cables will remain high through at least 2029.
The global market for submarine fibre-optic cables, including new system investments and operating costs for existing systems, is projected to increase from USD 7.96 billion in 2023 to USD 9.80 billion by 2029.
Hyperscalers are expected to drive significant market growth by investing in new routes to support services in new regions or to manage costs. Additionally, growth will stem from rising traffic on key routes and efforts to enhance the resiliency of international communications through increased route diversity.
New submarine cables will be deployed worldwide between 2024 and 2029, with the trans-Pacific and intra-Asia-Pacific routes expected to dominate in terms of cable length.
Investment in new systems will grow slowly, but expenditure on operating and maintaining existing systems will rise rapidly as the number of cable systems and their total length increase. This ongoing expenditure is forecast to account for approximately 41 percent of the market by 2029.
The research highlights that demand for physical cables remains strong, cable capacity expansion is a market driver, and the submarine cable services segment is growing. For investors, the need for physical separation to ensure route diversity and the influence of hyperscalers on investment profiles are key takeaways, along with the impact of spare capacity on price pressure.
Baburajan Kizhakedath
