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REPORT OUTLOOK
| Market Size | CAGR | Dominating Region |
|---|---|---|
| USD 32.48 billion by 2029 | CAGR of 8.63% | Asia Pacific |
| by Offering | by Cable Type | by Application | by End User | by Region |
|---|---|---|---|---|
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SCOPE OF THE REPORT
Submarine Cable System Market Overview
The global submarine cable system market size was valued at USD 15.42 billion in 2020, and projected to reach USD 32.48 billion by 2029, with a CAGR of 8.63% from 2022 to 2029.
For integrating communication and electricity transmission across vast areas of sea and ocean, submarine cable networks are installed underwater. These cables are laid with the aid of specialized ships. The global market for undersea cable systems is being rapidly modernized. Globally increasing telecom and internet subscriptions provide up new business opportunities for undersea cable systems. submarine cable systems trying to install cables in places where it has never been done before. Similar to sea freight and the GPS, submarine cables are crucial in the modern world. During the anticipated period, the global market for submarine cable systems is expected to see spectacular growth.
The industry is being driven by a number of important reasons, including the increased use of the internet, collaboration among tier-1 vendors, the capacity of offshore wind farms, the rise of 5G, and the expansion of the network of submarine power cable systems. In addition, content distribution and streaming partners are boosting their investments to open up a wealth of prospects in the Pacific area. Nearly 90% of global data traffic travels over undersea communication cables. Their entire carrying capacity is also measured in terabits per second. For OTT and communication providers like Google, Amazon, Facebook, and Microsoft, they are thus the most valuable cable. Most nations have laws protecting underwater cables from dangers as they view them as an essential part of their economies.
| ATTRIBUTE | DETAILS |
| Study period | 2020-2029 |
| Base year | 2021 |
| Estimated year | 2022 |
| Forecasted year | 2022-2029 |
| Historical period | 2018-2020 |
| Unit | Value (USD Billion) |
| Segmentation | By Offering, By Cable type, By Application, By End User, By Region. |
| By Offering |
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| By Cable Type |
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| By Application |
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| By End User |
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| By Region |
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The surge in internet users and the continually increasing internet traffic are two major factors driving the global market for submarine cable systems towards development. Due to initiatives to spur global economic growth and improved interconnection between nations, the global submarine market is anticipated to grow throughout the projected period. High reliability and capacity of submarine cable systems are another crucial factor in the industry. The global submarine market is expanding as a result of how inexpensive underwater cables are. Submarine cables are being encouraged by governments all around the world. This increases the demand for underwater cable infrastructure globally.
High repair and maintenance expenses, together with fishing and shipping operations, are anticipated to be the market’s bottlenecks. Natural calamities and entrance limitations for new and small firms may also hinder the expansion. Despite these challenges, a remarkable pace of growth in the global market for submarine cable systems is anticipated due to the world’s rapid modernization and digitalization.
Due to the rising need for high-speed internet and data transport, there are considerable potential prospects in the submarine cable system market in the upcoming years. Greater connection is required to support the growth of 5G networks and cloud computing, and undersea cable systems are a crucial piece of that infrastructure. Additionally, new business prospects are being produced by technological developments including enhanced cable designs and larger capacity cables.
The global telecommunications sector is investing heavily in the construction of a robust networking infrastructure that uses subsea cable to link countries and continents and fibre optic, microwave, and radio stations for terrestrial communications. Currently, underwater cables are the mainstay of international internet connections. Submarine cables are used to transport almost 98% of global data traffic. However, despite the extensive network of subsea cables, a sizable portion of the global population is still without access to the internet or is experiencing intermittent connectivity, which limits the use of these cables as the major means of data transfer on a global scale.
Submarine Cable System Market Segment Analysis
In 2022, the installation & commissioning sector had a commanding 38.7% share of the market. This is brought on by the expensive price, necessary technological processes, and installation equipment. The upgrading category is anticipated to expand at a respectable CAGR of 7.1% during the forecast years. Installed cables are a valuable asset that may often be used long beyond the capacity and design limitations of their initial design thanks to new technology.
Due to the increased need for international connections as well as the growing need for electricity generation from offshore oil and gas facilities, the submarine power cable market is anticipated to grow at a faster rate than other markets during the forecast period. During the forecast period, Europe is anticipated to dominate the global market for submarine power cables. The primary customers for undersea power cables in Europe include nations like the UK and Germany.
In 2022, the submarine power cable market had the greatest revenue share, at around 62.43%. The market is being driven by new capacity additions in the offshore wind sector as well as increased demand for connectivity between nations and islands. Due to its sizeable market share, the undersea communication cables sector is anticipated to expand at the quickest compound annual growth rate (CAGR) of 6.78% from 2020 to 2029.
In 2022, the offshore wind power generating category had a revenue share of about 45.41% of the market as a whole. The main driver of the market development is the rise in offshore wind energy investments and the use of submarine power cables for long-distance power transmissions from these plants. From 2020 to 2029, the offshore oil and gas market is projected to expand at a noteworthy compound yearly growth rate of 4.69%. Over the projected period, the market is anticipated to be driven by rising deepwater drilling activities and subsea operations.
Submarine Cable System Market Players
The global market is fragmented in nature with the presence of various key players such as Huawei Marine Networks Co. Limited, Subcom, LLC, NEC Corporation, Fujitsu Limited, Sumitomo Electric Industries, Ltd., Nexans SA, Prysmian Group, Mitsubishi Electric Corporation, JDR Cable Systems Ltd., Jiangsu Hengtong Au Optronics Co, Saudi Ericsson along with medium and small-scale regional players operating in different parts of the world. Major companies in the market compete in terms of application development capability, product launches, and development of new technologies for product formulation.
Recent Development:
March 9, 2023 – A formal licence agreement was signed between Sumitomo Electric Industries, Ltd. and US Conec, Ltd., allowing Sumitomo Electric Lightwave, Corp. to produce MMC connector and TMT ferrule components for the use in the deployment of next-generation, high-density, multi-fiber cable systems.
March 1, 2023 – GK Software was acquired by Fujitsu through a voluntary public buyout offer.
Who Should Buy? Or Key stakeholders
- Service Providers/ Buyers
- Industry Investors/Investment Bankers
- Education & Research Institutes
- Research Professionals
- Emerging Companies
- Manufacturers
Submarine Cable System Market Regional Analysis
Geographically, the submarine cable system market is segmented into North America, South America, Europe, APAC and MEA.
- North America: includes the US, Canada, Mexico
- Europe: includes UK, Germany, France, Italy, Spain, Russia, and Rest of Europe
- Asia Pacific: includes China, Japan, South Korea, India, Australia, ASEAN and Rest of APAC
- South America: includes Brazil, Argentina and Rest of South America
- Middle East & Africa: includes Turkey, UAE, Saudi Arabia, South Africa, and Rest of MEA
The greatest portion of the market in 2022—roughly 41%—belonged to the Asia Pacific region. The acceptance and implementation of wind farms are at their greatest levels in this area, with China leading the pack. Along with looking into new oil and gas resources, a number of operators in the area are also using technology to increase oil and gas output from their current fields and planning capital projects to bring in new energy sources. During the projection period, the region is anticipated to experience an unheard-of increase in offshore wind energy installations.
Key Market Segments: Submarine Cable System Market
Submarine Cable System Market by Offering, 2020-2029, (USD Billion)
- Installation & Commissioning
- Maintenance
- Upgrades
Submarine Cable System Market by Cable Type, 2020-2029, (USD Billion)
- Single Core
- Multicore
Submarine Cable System Market by Application, 2020-2029, (USD Billion)
- Submarine Power Cables
- Submarine Communication Cables
Submarine Cable System Market by End User, 2020-2029, (USD Billion)
- Offshore Wind Power Generation
- Inter Country & Island Connection
- Offshore Oil & Gas
Submarine Cable System Market by Region, 2020-2029, (USD Billion)
- North America
- Europe
- Asia Pacific
- South America
- Middle East and Africa
Important Countries in All Regions Are Covered
Exactitude Consultancy Services Key Objectives:
- Increasing sales and market share
- Developing new technology
- Improving profitability
- Entering new markets
- Enhancing brand reputation
Key Question Answered
- What is the expected growth rate of the submarine cable system market over the next 7 years?
- Who are the major players in the submarine cable system market and what is their market share?
- What are the end-user industries driving demand for market and what is their outlook?
- What are the opportunities for growth in emerging markets such as Asia-Pacific, Middle East, and Africa?
- How is the economic environment affecting the submarine cable system market, including factors such as interest rates, inflation, and exchange rates?
- What is the expected impact of government policies and regulations on submarine cable system market?
- What is the current and forecasted size and growth rate of the global submarine cable system market?
- What are the key drivers of growth in the submarine cable system market?
- Who are the major players in the market and what is their market share?
- What are the distribution channels and supply chain dynamics in the submarine cable system market?
- What are the technological advancements and innovations in the submarine cable system market and their impact on product development and growth?
- What are the regulatory considerations and their impact on the market?
- What are the challenges faced by players in the submarine cable system market and how are they addressing these challenges?
- What are the opportunities for growth and expansion in the submarine cable system market?
- What are the service offerings and specifications of leading players in the market?
FAQ
The submarine cable system market is expected to reach USD 19.77 billion by the end of 2023.
Expansion of 5G networks is the ongoing trend observed.
The global submarine cable system market size was valued at USD 15.42 billion in 2020, and projected to reach USD 32.48 billion by 2029, with a CAGR of 8.63% from 2022 to 2029.
The Asia Pacific dominated the global industry in 2021 and accounted for the maximum share of more than 42% of the overall revenue.
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