Submarine Cables Market was valued at US$ 2,435.3 Million in 2021 and is expected to surpass US$ 7,321.2 Million by 2030, registering a CAGR of 6.3% during the forecast period (2022-2030), according to Submarine Cables Market, By Service (Installation, Maintenance and Upgrade), Application (Submarine Power Cables, Submarine Communication Cables) and by Region (North America, Europe, Asia Pacific, Latin America, Middle East and Africa), published by Coherent Market Insights.
Submarine cables are widely used for power and communication applications. They are widely used for power transmission to the oil rigs, power generated from offshore wind farms to the power station, and inter-country and island connections. Increasing demand for interconnecting countries' power grids is the factor influencing the demand for low-power cables. Submarine communication cables are used for inter-region/country communications. Around 97% of the worldwide internet traffic is entirely dependable on submarine cables, and with rising internet, the demands for the product is slated to rapidly rise. The surging focus on joining offshore renewable energy generation and increased energy security has driven the expansion of the market across the globe. These communication cables help in faster communication and carry a large amount of data traffic across the globe.
The Submarine Cables Market is estimated to account for US$ 7,321.2 Mn in terms of value by the end of 2030.
Key Developments
In April 2020, JDR Cable Systems, a global supplier of undersea power cables to the offshore energy industry, owned by the TFKable Group, completed the delivery of subsea power cables and accessories to Jan De Nul Group for the Taiwan Power Company Offshore Wind Farm Phase One (Changhua).
In October 2021 NEC, the Japanese IT company announced plans to build a huge submarine cable with four crore fiber optics for Facebook. The submarine is expected to hold a capacity of up to 500mbps across 24 fiber pairs.
Market Driver
Submarine communication cables are used by telecom carriers, mobile operators, multinational corporations, and research institutions across the world. Deployments of high-capacity communication systems by private network operators has led to an increase in demand for submarine communication cables. The maintenance & upgrade segment in the global submarine communication cable market is projected to grow at the highest CAGR during the forecast period. Submarine communication cable upgrades are required to meet the capacity requirements within fixed budgets. A combination of accurate field expertise, careful planning, and the right equipment is essential to increase undersea network capacity. Submarine communication cable upgrades have significantly changed with the introduction of coherent transmission technology. This technology combines polarization, the modulation of the amplitude, and phase modulation to transmit large volumes of information through a fiber-optic cable. Therefore, upgrade and innovation of submarine communication cables has enabled developments in power budget formulations, field trials, models, and design methodologies to ensure successful upgrades in the capacity installations of these cables.
Global Submarine Cables Market - Impact of Coronavirus (Covid-19) Pandemic:
According to Coherent Market Insights analysis it shows that the top six firms in the market for submarine cable systems saw a delay in contract timeframes as a result of the COVID-19 outbreak in 2020–2021. When compared to the prior year, the installation capacity fell by roughly 3-4% in 2020, while the number of oil and gas rigs fell by double digits. The market is anticipated to begin recovering from the effects of COVID-19 in 2021 and beyond, and projects for communication networks and grids for renewable energy would then pick back up.
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Key Trends and Analysis of the Submarine Cables Market:
IT & Telecom companies’ investments
Various IT & Telecom companies are doing huge investments in the submarine optical fiber cables which is expected to boost the market growth over the forecast period. For instance, in March 2022, Telconet – operating in connectivity solutions and Alcatel Submarine Networks (ASN), part of Nokia, started the construction of the Carnival Submarine Network-1 (CSN-1). The 4,500 km submarine cable will enhance the resilience of international communications between Ecuador, Panama, Colombia, and the USA, plus potentially other countries within Central and South America.
Major players operating in the global submarine cables market are Alcatel Submarine Networks, SubCom, LLC, ABB, Huawei Marine Networks Co., Ltd., NEC Corporation, NEXANS NORWAY AS, FUJITSU, Prysmian Group, Saudi Ericsson, HENGTONG GROUP CO., LTD., ZTT, Corning Incorporated, NKT A/S, Hellenic Cables Group. The Okonite Company, Apar Industries Ltd., JDR Cable Systems Ltd., AFL, Hexatronic Cables & Interconnect Systems, and LEONI Special Cables GmbH.
