Submarine Cable Market Size, Trends, Share, Growth, and Opportunity Forecast, 2023 - 2030 Global Industry Analysis By Product (Wet Plant Products and Dry Plant Products), By Voltage (Medium Voltage and High Voltage, Extra High Voltage), By Offering (Installation and Commissioning, Repair and Maintenance and Upgrades), By Fiber Class (Unrepeatered and Repeatered), By Cables Type (Loose Tube Cables, Ribbon Cables and Others), By Armor Type (Light Weight Armor, Single Armor, Double Armor and Rock Armor), By Depth (0 to 500M, 500M to 1000M, 1000M to 5000M and Others), By Application (Power Cables and Communication Cables) and By Geography (North America, Europe, Asia Pacific, South America, and Middle East & Africa)

The Global Submarine Cable Market was valued at USD 7,134.1 Million in 2022 and is anticipated to reach a value of USD 12,625.7 Million by 2030 expanding at a CAGR of 7.5% between 2023 and 2030.

Communications between countries or regions are conducted by submarine communication cables. Undersea cables are completely responsible for around 97% of all internet traffic worldwide, and as internet usage rises, so does the need for undersea cables. Global market expansion has been fueled by growing attention to offshore renewable energy generation and enhanced energy security. These communication cables facilitate quicker communication and transport massive volumes of data worldwide. Approximately 90% of the data transmitted globally is carried by underwater communication cables. Furthermore, their overall throughput is measured in terabits per second. They are therefore the most valuable cable for over-the-top (OTT) and communication companies including Google, Amazon, Facebook, and Microsoft. The primary drivers propelling the market expansion are rising offshore wind farm investments, rising data traffic, and rising OTT provider spending to meet demand. Applications involving power and communication make extensive use of submarine cables. Submarine power cables are utilized for inter-country, island, and offshore wind farm to power station power transmission, as well as oil rigs. One major issue affecting the need for low-power connections is the growing need to connect the electrical grids of different nations.

Submarine Cable Market Major Driving Forces

Demand from Offshore Wind Farms: The submarine cable sector is being driven by the offshore wind industry's new capacity expansions as well as the growing need for inter-country and island connectivity. Submarine power cables are becoming more and more necessary due to the growing number of offshore wind farms and the electrification of offshore oil and gas networks, as well as a rise in research and development.

Growing Economic Activity and Urbanization: Both in developing and industrialized nations, the surge in economic activity and urbanization will fuel the expansion of the infrastructure and building industries. Demand from a variety of industries, including telecom, electricity, energy, and commerce, is pushing infrastructure to be upgraded and expanded, which is expected to fuel the submarine cable market.

Adoption of Cloud-Based Services: The adoption of cloud-based services is on the rise due to advancements in satellite technology and the preference for portable organizations over remote wireless transmissions. These remote transmissions are connected through data center infrastructures, which are interconnected through submarine cables. This interconnectivity improves cloud-based connectivity for various organizations, leading to the growth of the submarine cable system market. The adoption of cloud-based services is expected to be a major driver of this growth.

Growing Internet Usage: As people use the internet more frequently, their need for fast bandwidth speeds is growing, which is driving up demand for underwater optical fiber connections. Furthermore, the growing number of internet users is contributing to the rise in smartphone penetration. During the projected period, demand for submarine optical fiber cable is anticipated to increase due to the increasing penetration of the internet.

Submarine Cable Market Key Opportunities

Demand for Renewable Energy: In order to satisfy renewable energy targets and improve energy security, there is an increasing emphasis on offshore renewable energy generation, which opens up new prospects. Moreover, the global market boom has been fueled by supplying energy to isolated landmasses and connecting national networks to maximize energy consumption.’

Usage of Power Feeding Equipment: Power feeding to submarine cable systems is a long-established practice, involving power feeding equipment (PFE) installed in terminal stations. This practice stabilizes repeater characteristics and transmission performance by feeding a constant current through earth and sea, ensuring efficient operation of submarine systems, including coaxial submarine systems and optical amplifier systems.

Growth of OTT Firms: As OTT firms engage more in building high-capacity communications networks and as the demand for HVDC underwater power lines rises, a plethora of new opportunities will arise. The growing internet and data traffic in areas such as Asia-Pacific will be the main factors driving the market over the forecast period.

Submarine Cable Market Key Trends

·         The increasing demand for high-bandwidth connectivity to accommodate cloud services, 5G and other future technologies, as well as data-intensive applications.

·         A rise in the installation of underwater cables to fulfill the growing need for reliable, fast data transfer.

·         With an emphasis on using renewable energy sources to power cable systems, sustainability is fast emerging as a major trend in the submarine cable industry.

·         Submarine cables are becoming more efficient and capable thanks to advancements in fiber optic technology and cable architecture.

·         In order to protect against natural disasters, there is a tendency toward diversifying undersea cable routes and building redundant channels and alternate connections.

·         In order to safeguard data integrity and security and fend off possible threats, cybersecurity measures are receiving more attention.

Region-wise Market Insights

Asia-Pacific accounted for the largest market share at 38.4% in 2022 whereas, Europe is expected to register the fastest growth, expanding at a CAGR of 8.1% between 2023 and 2030.

The market for submarine cable systems is dominated by Asia-Pacific with market share of 38.4%, accounting USD 2,739.5 million. The Asia-Pacific area will see a rise in the demand for submarine cable system products due to the growing number of manufacturing enterprises in the region and the growing need for automation. The Asia-Pacific region's submarine cable market is driven by government efforts, growing internet penetration, growing digitization, and rapid economic expansion. Demand is also fueled by urbanization, population growth, and the development of 5G networks. The industry is growing due to factors like geopolitical concerns, usage of cloud services, and international trade. Furthermore, the region's dedication to renewable energy is consistent with the incorporation of sustainable practices into the architecture of submarine cables, demonstrating a complete strategy to promote economic development and advance connectivity. Europe has 2^nd largest market share, i.e. 25.5%, in the global submarine cable market. The demand for dependable and effective connection, as well as sophisticated economies and technological maturity, are the main drivers of the European submarine cable market. One important element is the region's dedication to sustainability and the incorporation of renewable energy sources into the architecture of underwater cables. The digital agenda and member state-wide connectivity ambitions of the European Union also fuel the market expansion for underwater cables. Europe's competitiveness in the global digital landscape is ensured by the strategic relevance of secure and robust communication networks, which improve connectivity with the rest of the world.

Market Competition Landscape

The competitive landscape of the submarine cable market is made up of consortiums, established industry players, and up-and-coming IT firms. Large, international companies that are skilled in developing, producing, and implementing underwater cable systems control the majority of the industry. By using fiber optic technology developments and creative solutions, newcomers and emerging firms are also adding to the competitive field. Big IT companies such as Google, Facebook, and Microsoft fund undersea cable projects in order to provide their worldwide data centers and cloud services with high-capacity, low-latency connectivity. The competitive dynamics are shaped by government-backed efforts as well. For example, nations and regions invest in undersea cable infrastructure to bolster their geopolitical positions and digital economy. Beyond conventional connectivity providers, there are businesses competing to provide end-to-end solutions such as integration of renewable energy sources and cybersecurity safeguards. Cable route diversification and alternate path exploration improve resilience to disturbances. Ongoing advancements in 5G networks, IoT applications, and the expanding significance of underwater cables in facilitating global communication networks all have an impact on the competitive landscape.

Prominent players in the market include:

·         SubCom (Submarine Communications, LLC)

·         NEC Corporation

·         TE SubCom (Tyco Electronics Subsea Communications)

·         Alcatel Submarine Networks (ASN)

·         Google

·         Facebook

·         Microsoft

·         Huawei Marine Networks

·         Xtera

·         Ciena Corporation

·         Prysmian Group

·         XSite Modular

·         Global Cloud Xchange (GCX)

·         Seaborn Networks

·         ASN (Alcatel Submarine Networks) Marine Services

Submarine cables are being used by Google, Facebook, and Microsoft to improve their cloud services and global data centers. Facebook is concentrated on securing dependable and effective connectivity for its data centers and user services, while Google is heavily engaged in underwater cable projects to ensure high-capacity and low-latency connectivity. On the other hand, Microsoft is aggressively working on undersea cable projects to support global data centers and Azure cloud services, improving its infrastructure for data connectivity.