Submarine Cable System Industry is Expanding at a Higher Pace

Published Date : 09 May 2023

The global submarine cable system industry revenue will gain around USD 41.02 billion by 2032 from USD 15.6 billion in 2022 and is poised to grow at a CAGR of 10.15% between 2023 and 2032. The global submarine cable systems industry is expanding as a result of new investments being made in offshore wind management projects all over the world.

Market Overview:

A fiber optic cable constructed underwater to connect two or more landing locations is known as a submarine cable. Today's cables, which are rarely wider than a garden hose, typically consist of the optical fibers that carry the information. These fibers are then covered in silicone gel and sheathed in a variety of layers of plastic, steel wiring, copper, and nylon to provide insulation for the signal and shield the cable from damage from animals, anchors, fishing, weather, and other natural occurrences. Ships that have been specially adapted for this task are used to deliver and gradually lay the "wet plant" infrastructure for the cables on the seabed. These specialized vessels can transport optical fiber thousands of kilometers out to sea. Additionally, closer to the shorelines where nautical activities like anchoring and fishing are most common and potentially harm undersea cables, a special underwater plow is used to trough and bury submarine cables.

The worldwide industry for submarine cable systems is fragmented, and there are several major participants in different parts of the world. Some businesses in the industry specialize in production, while others supply the cables' basic materials. Only a few players, however, are involved in the installation procedure. The need for underwater cables throughout the world is mostly driven by the need to transfer large amounts of data traffic.

Regional Snapshot:

During the predicted period, North America is anticipated to grow noticeably. Cloud-based services are being quickly adopted, which is fostering industry expansion in North America. The installation of intelligent undersea cable networks is also a major driver in North America's industry expansion.

The US-based technology company Gold Data, which was established in 2000, said on Monday that it is constructing the first undersea cable system in the Gulf of Mexico to link Miami, Florida, with important locations in Mexico, including Mexico City, Cancun, and Queretaro.

The first cable to touch down in Mexico in 22 years will be the Gold Data 1 underwater cable system. This new US-Mexico digital highway will provide the bandwidth capacity and service quality needed by the industry and will be crucial in enabling Mexico's rapidly increasing data demand. It links Mexico City and Queretaro to the Miami NAP via the Veracruz, Mexico–Naples, USA trunk line, with a branch to Cancun. (Mexico).

Submarine cables play a significant role in linking the material stored in data centers all over the world, particularly in the APAC area where there are more island and archipelago states.

TeleGeography's most recent study predicts that India will overtake China as the world's most populated nation. This is now the driving force behind expanding undersea activity. No longer an industry for telecom carriers, IT companies including Meta, Google, Microsoft, and Amazon have launched subsea cable projects, largely encompassing Europe, South America, and Latin America.

Submarine Cable System Industry Report Scope:

Report Coverage Details
Market Revenue in 2023 USD USD 17.18 Billion
Projected Forecast Revenue in 2032 USD USD 41.02 Billion
Growth Rate from 2023 to 2032 CAGR of 10.15%
Largest Market Asia-Pacific
Base Year 2022
Forecast Period 2023 to 2032
Regions Covered North America, Europe, Asia-Pacific, Latin America and Middle East & Africa

Market Dynamics

Drivers: Increasing demand of high-quality internet access

Strong local and global economies are facilitated by high-quality internet access, which also offers people a voice and opens up new opportunities. The COVID-19 epidemic has increased reliance on distant work and online communication, which has resulted in a sharp increase in worldwide internet usage, making the need for universal dependable internet access and infrastructure more urgent than ever. However, the 2020 Inclusive Internet Index indicates that just around 50% of the world is currently online.

Although they are among the most crucial elements that enable greater connection, submarine fiber optic cables, or subsea cables, are not commonly recognized. In addition to linking nations, conveying communications, and facilitating trade and education, they are crucial for the infrastructure of the global network. Although it is commonly known that internet access is important for economic growth, there aren't many nations that have conducted thorough research to measure these effects.

Restraints: Natural calamities are restricting the industry growth.

Unpredictable natural risks like tsunamis and cyclones are likely to impede the industry growth for submarine cable systems. Additionally, it is anticipated that the industry for submarine cable systems would see growth restraints in the next years due to the adoption of satellite-based communication. In conclusion, risks (natural or artificial) related to underwater cables are not negligible; nonetheless, effective risk management techniques are anticipated to reduce industry restraints.

Opportunities: High-quality, reliable broadband is increasingly used by numerous sectors

The newly announced 2Africa cable, which we are building with local and international partners, is one of the biggest underwater cable projects in the world. By connecting 23 nations in Africa, the Middle East, and Europe, it will have a greater capacity than all of the undersea cables currently servicing Africa combined. Africa will connect the continent from east to west for the first time, stretching 37,000 kilometers in length, or almost as far as the Earth's diameter. 2Africa would dramatically boost internet capacity and connectivity at a time in which broadband traffic is expanding significantly worldwide. Trends in the global economy are what is driving the increase in demand for broadband technology, as many industries are using high-quality, dependable broadband more and more.

Voltage Insights:

The industry's dominant high voltage category is anticipated to continue growing during the projected period. Power distribution uses high-voltage cables with voltages over 33kV. Long-distance electric power transmission is maintained via high-voltage cables.

The demand for high voltage cable segments will expand in the future years due to the increasing requirement for efficient power transmission around the world and rising communication traffic.

Component Insights:

Based on component type, the industry for underwater communication cables is segmented into dry plant goods and wet plant products. The industry for submarine cable components was led by the category of dry plant items. This is because it is economically advantageous and because of recent developments in the dry plant, including SDM cables with more fibers and capacity, aluminum conductors, smart cables with earthquake and tsunami emergency alerts, repeater pump farming, virtualized submarine networks, artificial intelligence, and machine learning in submarine systems.

Offering Insights:

This is brought on by the expensive price, necessary technological processes, and installation equipment. Undersea cable boats, jointing and testing tools, operation management software, and underwater installation tools are all parts of the equipment used to deliver undersea cables. Underwater robot remotely operated vehicles, beach burying equipment, burial machines, and an automatic control system make up the underwater installation equipment for submarine optical cables. Over the forecast period, this industry is anticipated to provide potential development possibilities.   

Recent Development:

  • In September 2022, an Internet cable link between Batam and Sarawak was introduced by international provider Irix. (BaCISC). A privately built subsea cable system known as BaCISC connects Malaysia and Indonesia.  
  • In September 2022, Equiano, a $1 billion undersea cable that links South Africa and Western Europe, was launched by Google. The 15,000 km long undersea cable has a 150 Tpbs design capacity. 
  • In August 2022, the first high-speed undersea cable in the Red Sea, Saudi Vision Cable, was introduced by the Saudi Telecommunication Company (STC). Jeddah is the first landing site on the 1.1 million-meter-long Saudi Vision underwater cable.  
  • In July 2022, Australasia and the US are connected by the Southern Cross Cables-launched Southern Cross NEXT Submarine Cable. The undersea cable will provide access to the rest of the globe for the citizens of Australia, New Zealand, and the Pacific Islands. The NEXT undersea cable was installed with help from Southern Cross and Ciena.  
  • In July 2022, in a joint announcement, NTT Ltd. Japan Corporation, PC Landing Corporation, Mitsui & Co. Ltd., and JA Mitsui Leasing Ltd. introduced the new business, "Seren Juno Network Co. Ltd." "JUNO" is what this firm seeks to build and run. The new trans-Pacific submarine cable system is called JUNO. This network will connect the US with Japan. The goal of the JUNO undersea cable system is to support the digital economy.

Major Key Players:

  • SubCom LLC
  • NEC Corporation
  • Nexans S.A.
  • Huawei Marine Networks Co., Ltd.
  • JDR Cable System Ltd
  • Hexatronic Cables & Interconnect Systems
  • Corning Incorporated
  • Hengtong Group Co
  • Saudi Ericsson
  • ZTT
  • The Okonite Company
  • TE Connectivity
  • Prysmian Group
  • Apar Industries
  • AFL
  • Alcatel Submarine Networks
  • Tele-fonika Kable
  • Cablel Group
  • Sumitomo Electric Industries
  • Norddeutsche Seekabelwerke GmbH
  • Hesfibel
  • Leoni Special Cables Gmbh

Market Segmentation:

By Voltage

  • Medium Voltage
  • High Voltage
  • Extra-High Voltage

By System

  • Dry Plant
  • Wet Plant 

By Transmission

  • Electric Power
  • Communication Signals

By Service

  • Installation 
  • Maintenance 

By Cables Type

  • Loose Tube Cables
  • Ribbon Cables

By Fiber Class

  • Unrepeatered
  • Repeatered

By Depth

  • 0 to 500M
  • 500M to 1000M
  • 1000M to 5000M
  • Others

By End-User

  • Intercountry & Island Connection
  • Offshore Oil & Gas Industry
  • Offshore Wind Power Generation Industry

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