Submarine Cable System Market Size, Share, Analysis, Trends, Growth, 2032

Submarine Cable System Market

Submarine Cable System Market By Voltage (High Voltage and Medium Voltage), By Offering (Installation & Commissioning, Maintenance, and Upgrades), By Application (Communication Cables and Power Cables), and By Region - Global and Regional Industry Overview, Market Intelligence, Comprehensive Analysis, Historical Data, and Forecasts 2024 – 2032

Category: Technology & Media Report Format : PDF Pages: 227 Report Code: ZMR-8534 Published Date: Jul-2024 Status : Published
Market Size in 2023 Market Forecast in 2032 CAGR (in %) Base Year
USD 8.45 Billion USD 14.90 Billion 6.5% 2023

Submarine Cable System Industry Prospective:

The global submarine cable system market size was worth around USD 8.45 billion in 2023 and is predicted to grow to around USD 14.90 billion by 2032 with a compound annual growth rate (CAGR) of roughly 6.5% between 2024 and 2032.

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Submarine Cable System Market: Overview

A network of cables positioned on the ocean floor to send communications signals across continents, nations, or islands is known as a submarine cable system. The great majority of international data and voice traffic is made possible by these cables, which are crucial for global communications. Typically, submarine cables are constructed from multiple layers of watertight insulation, steel, and plastic for protection. Depending on the transmission capacity that the cables are intended to support, their diameters can change. They also have built-in redundancies to guarantee service continuity and are extremely dependable. Strict engineering prevents harm to them, and they are continuously checked for malfunctions or breakage.

Key Insights

  • As per the analysis shared by our research analyst, the global submarine cable system market is estimated to grow annually at a CAGR of around 6.5% over the forecast period (2024-2032).
  • In terms of revenue, the global submarine cable system market size was valued at around USD 8.45 billion in 2023 and is projected to reach USD 14.90 billion, by 2032.
  • The increasing expenditure by public and private entities to boost communication infrastructure is expected to drive the submarine cable system market growth over the forecast period.
  • Based on the voltage, the high voltage segment is expected to capture the largest market share over the projected period.
  • Based on the offering, the installation and commissioning segment is expected to hold a prominent market share over the projected period.
  • Based on the application, the power cables segment is expected to grow at the highest CAGR during the forecast period.
  • Based on region, the Asia Pacific is expected to dominate the market during the forecast period.

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Submarine Cable System Market: Growth Drivers

Growing investment by OTT providers drives market growth

OTT providers are starting to play a major role in the development of the submarine cable system market. Well-known companies like Amazon Inc., Google Inc., Facebook Inc., and Microsoft Corporation are transitioning from being capacity buyers to being owners of underwater cables. Given the increasing relevance of submarine cable usage in many industries, companies will spend on constructing underwater cables to promote advancements in the submarine cable sector. Additionally, data center providers and submarine cable operators are working together. Over the forecast period, it is anticipated that cooperation between Tier 1 telecom carriers, IIPs, OTTs, data center providers, and backhaul network providers will change the subsea connection landscape more quickly.

Submarine Cable System Market: Restraints

High investment and complex approval processes hinder market growth

Planning, installing, and maintaining underwater cable networks comes at a high expense. It requires sophisticated machinery, specific boats, and knowledge of marine engineering and logistics. The substantial initial outlay may discourage smaller firms and new competitors from entering the submarine cable system industry. Submarine cable deployment and planning also necessitate navigating complicated regulatory settings and securing licenses from several governments. The profitability of investments can be impacted by delays in project timeframes, cost increases, and regulatory approval and environmental assessment delays.

Submarine Cable System Market: Opportunities

Rising investment offers a lucrative opportunity for market growth

The rising investment is expected to offer a lucrative opportunity for the global submarine cable system market growth during the forecast period. For instance, in September 2023, the new TAM-1 underwater cable system, formerly known as the Trans Caribbean Fiber System, is now under construction, according to an announcement made by Trans Americas Fiber System and Xtera. To develop connectivity solutions through cutting-edge goods and services, TAM-1 is the first fiber optic cable created expressly to satisfy the Trans-Americas region's rapidly growing data demand. The TAM-1 system, which spans more than 7,000 km and connects Florida to Central America and the wider Caribbean, is engineered for low latency and high capacity solutions. The target year for Ready For Service is 2025. The Caribbean Basin will have a large-scale, very reliable network with extensions to Pacific South America thanks to the TAM-1 project, which is the first phase of a larger digital infrastructure project that will be completed in five years.

Submarine Cable System Market: Challenges

Competition from alternative technology poses a major challenge to market expansion

Although undersea cables are reliable and have a large capacity, they are competing with developments in satellite technology and terrestrial networks. Satellites are attractive to rural and underdeveloped areas because they offer flexibility in coverage and deployment. High-speed communication over shorter distances is provided by the expanding terrestrial fiber optic networks. Thus, posing a major challenge to the submarine cable system market growth.

Submarine Cable System Market: Segmentation

The global submarine cable system industry is segmented based on voltage, offering, application, and region.

Based on the voltage, the global submarine cable system market is bifurcated into high voltage and medium voltage. The high voltage segment is expected to capture the largest market share over the projected period. High-voltage cables with a voltage of more than 33 kV are frequently used to distribute and transmit power. Thus, the main factors propelling the expansion of the high-voltage cable segment are the growing demand for HVDC submarine power cables and the rising investments in offshore wind power generation. HV cables also enable efficient power transmission by lowering transmission losses. The fast-evolving HVDC power system enables the mainland to receive electricity from high-capacity, high-power sources. The development of HVDC power systems is aided by several organizations and research facilities, including DESERTEC, CIGRE, North Seas Countries Offshore Grid Initiative, and others.

Based on the offering, the global submarine cable system industry is bifurcated into installation & commissioning, maintenance, and upgrades. The installation and commissioning segment is expected to hold a prominent market share over the projected period. This is because they are expensive, need special installation tools, and involve complex technological processes. Operation control software, underwater installation tools, jointing and testing tools, and cable vessels are all examples of submerged cable deployment equipment. Underwater robots remotely operating vehicles, beach burying equipment, burial machinery, and an automatic control system make up the underwater installation equipment for submarine optical cables.

Based on the application, the global submarine cable system market is bifurcated into communication cables and power cables. The power cables segment is expected to grow at the highest CAGR during the forecast period. The offshore wind industry's new capacity expansions and the growing need for inter-country and island connectivity are driving the submarine power cable market. The need for submarine power cables has also grown as a result of an increase in research and development efforts brought on by the growing number of offshore wind farms and the growing electrification of offshore oil and gas networks.

Submarine Cable System Market: Report Scope

Report Attributes Report Details
Report Name Submarine Cable System Market
Market Size in 2023 USD 8.45 Billion
Market Forecast in 2032 USD 14.90 Billion
Growth Rate CAGR of 6.5%
Number of Pages 227
Key Companies Covered Prysmian Group, JDR Cable Systems Ltd., Sumitomo Electric Industries Ltd., Fujitsu, HMN Tech, Alcatel Submarine Networks, Nexans S.A., HENGTONG GROUP CO. LTD., SubCom LLC, NEC CORPORATION, and others.
Segments Covered By Voltage, By Offering, By Application, and By Region
Regions Covered North America, Europe, Asia Pacific (APAC), Latin America, Middle East, and Africa (MEA)
Base Year 2023
Historical Year 2018 to 2022
Forecast Year 2024 - 2032
Customization Scope Avail customized purchase options to meet your exact research needs. Request For Customization

Submarine Cable System Market: Regional Analysis

Asia Pacific is expected to dominate the market during the forecast period

The Asia Pacific is expected to dominate the global submarine cable system market during the forecast period. A sizable fraction of the world's population resides in this region, which also has several developing economies experiencing rapid economic growth. The increasing population and economic activity lead to a significant need for dependable undersea cable infrastructure to support digital content consumption, cloud computing, e-commerce, and high-speed internet services. Asia Pacific nations, which include South Korea, China, India, Japan, and other countries in Southeast Asia, are also rapidly undergoing digital change. The expansion of digital economies, rising smartphone adoption rates, and rising internet penetration are driving this change. To facilitate international data transmission and link these nations to global internet centers, submarine cables are necessary.

Submarine Cable System Market: Competitive Analysis

The global submarine cable system market is dominated by players like:

  • Prysmian Group
  • JDR Cable Systems Ltd.
  • Sumitomo Electric Industries Ltd.
  • Fujitsu
  • HMN Tech
  • Alcatel Submarine Networks
  • Nexans S.A.
  • HENGTONG GROUP CO. LTD.
  • SubCom LLC
  • NEC CORPORATION

The global submarine cable system market is segmented as follows:

By Voltage

  • High Voltage
  • Medium Voltage

By Offering

  • Installation and Commissioning
  • Maintenance
  • Upgrades

By Application

  • Communication Cables
  • Power Cables

By Region

  • North America
    • The U.S.
    • Canada
  • Europe
    • France 
    • The UK
    • Spain
    • Germany
    • Italy
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Southeast Asia
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Middle East & Africa
    • GCC
    • South Africa
    • Rest of Middle East & Africa

Table Of Content

Methodology

FrequentlyAsked Questions

A network of cables positioned on the ocean floor to send communications signals across continents, nations, or islands is known as a submarine cable system. The great majority of international data and voice traffic is made possible by these cables, which are crucial for global communications.

The submarine cable system market of submarine cable systems is being driven by several factors such as the growing penetration of smartphones across the globe, rising demand for high-speed internet, rising collaboration among public and private entities, and increasing government initiatives.

According to the report, the global submarine cable system market size was worth around USD 8.45 billion in 2023 and is predicted to grow to around USD 14.90 billion by 2032.

The global submarine cable system market is expected to grow at a CAGR of 6.5% during the forecast period.

The global submarine cable system market growth is expected to be driven by the Asia Pacific. It is currently the world’s highest revenue-generating market due to the rising penetration of smartphones and increasing government initiatives.

The global submarine cable system market is dominated by players like Prysmian Group, JDR Cable Systems Ltd., Sumitomo Electric Industries, Ltd., Fujitsu, HMN Tech, Alcatel Submarine Networks, Nexans S.A., HENGTONG GROUP CO., LTD., SubCom, LLC and NEC CORPORATION among others.

The submarine cable system market report covers the geographical market along with a comprehensive competitive landscape analysis. It also includes cash flow analysis, profit ratio analysis, market basket analysis, market attractiveness analysis, sentiment analysis, PESTLE analysis, trend analysis, SWOT analysis, trade area analysis, demand & supply analysis, Porter’s five forces analysis, and value chain analysis.

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