Ottawa, Feb. 20, 2023 (GLOBE NEWSWIRE) -- According to Precedence Research, the global submarine cable system market growth is expanding at a noteworthy CAGR of 10.15% between 2023 and 2032. The global submarine cable system market is expected to witness significant growth due to increased global data transmission rate, accelerated online activities, demand for renewable energy and rising OTT platforms in the media industry.
Submarine cables are fiber-optic cables installed on the seabed to transmit international telecommunication data. Submarine cable systems are installed to improve connectivity and resilience between the two points. Submarine cables connect continents, countries and islands at several points. Trans-Atlantic, Trans-Pacific, Americas, Intra-Asia and EMEA-Asia are a few major submarine cable routes present globally. The length of submarine cables can reach up to 20,000 miles starting from just 100 miles. Mobile network providers, cloud services providers, governments, financial agencies and media companies use submarine cable systems for various purposes.
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Intercountry and island connections, the offshore oil & gas industry and the offshore wind power generation industry, are significant end-users in the submarine cable system market. The offshore wind power generation industry acquires the most considerable market revenue due to the rising number of wind farms.
Report highlights:
- Asia Pacific dominates the global submarine cable system market. At the same time, North America and Europe are expected to witness a significant increase in the revenue share of the submarine cable system market.
- Rising offshore oil & gas projects in the Middle East and Africa fuel the market's growth.
- By end-user, the offshore wind power generation industry leads in the global submarine cable system market.
- Deployment of AI, IoT and other advanced technologies in submarine cable installation and maintenance services is projected to ease the operations and subsequently help the market grow.
Regional snapshot:
Asia Pacific leads the global submarine cable system market; the region is anticipated to carry growth during the estimated period. The increasing rollout of 5G network services in developing countries such as India, Indonesia, Vietnam and many others has provided fortunate opportunities for the market to grow. Emerging cross-border power trading is another factor to fuel the market's growth in Asia Pacific. Moreover, rising industrialization in the region has increased the demand for faster telecommunication services. Rising e-commerce activities in South Asia have surged the demand for faster broadband services. These factors collectively help the market grow in the Asia Pacific region. The presence of major key players such as NEC Corporation, Jiangsu Hengtong Au Optronics Co, ZTT, Sumitomo Electric Industries Limited, Apar Industries, SSGCable and OCC Corporation has contributed to the noticeable market growth.
Regarding submarine cables, the United States is the far most connected country in the world. Along with this, North America carries the most competitive routes of submarine cable networks. The market in North America is projected to witness a significant increase in the upcoming years. The substantial market opportunities drive the constant growth of the market in North America due to the presence of well-established telecommunications and cross-border internet trading industries. Moreover, the presence of production facilities and the availability of capital for market research has boosted the market’s growth. Companies such as SubCom LLC, JDR Cable Systems Ltd, Corning Incorporated, The Okonite Company, AFL, 1X Technologies and General Cable work significantly in the region. These companies contribute to the growth of the market in North America.
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| Report Scope | Details |
| Market Revenue By 2032 | USD 41.02 Billion |
| CAGR | 10.15% from 2023 to 3032 |
| Largest Market | Asia Pacific |
| Fastest Growing Region | Europe |
| Base Year | 2022 |
| Forecast Period | 2023 to 2032 |
| Key Segmentation | Voltage, System, Transmission, Service, Cable Type, Fiber Glass, Depth, End User, Region |
Europe is considered the fastest-growing region for the submarine cable system market. The availability of advanced network infrastructure is the primary factor supporting the market's growth in the last decade. Several European governments are focused on developing stronger internet connections, which has increased demand for intra-region submarine cable systems. Furthermore, rising investments by prominent key players to connect other regions with Europe to induce international internet trade is fueling the growth of submarine cable system marker for Europe. For instance, in October 2022, the European Commission considered financing for fiber optic cables to connect Europe to Asia via the Arctic by avoiding chock points. The 14,000 km long cable will connect Scandalvania and Ireland to Japan. This line will be the first to connect Europe and Asia without passing the Suez Channel in Egypt. Moreover, Lucent Enterprise, NEXANS, Pyrsmian Group, NKT A/S, Cablel Hellenic Cables Group, Hexatronic and Tratos are key players in the European submarine cable system market.
The market is flourishing in the Middle East and Africa with rising investments of major regional companies to expand the undersea cable networks. For instance, in January 2023, Facebook decided to construct its massive submarine cable ‘2Africa’ in three sites in Africa. The line is predicted to launch at the end of 2023. The Middle East is a powerhouse of the oil & gas industry, and submarine cables play a substantial role in the oil & gas industry. Connecting oil & gas platforms to the mainland, providing high-quality communication platforms and providing oceanographic surveillance are a few functions played by submarine cables for the oil & gas industry. Thus, the rising number of oil & gas industries will increase demand for submarine cable systems in the Middle East. The availability of capital for investment is another factor boosting the market's growth in the Middle East.
Market dynamics:
Driver:
Rising deployment of 5G network services
5G network services that provide faster downloading speed and advanced capabilities of networks have become a revolutionary platform in recent years. The rise of 5G will continue to drive the demand for advanced submarine cables. The deployment of 5G services is prone to increase data traffic, where the requirement for volume connectivity increases. Submarine cables carry the potential to satisfy the tremendous demand for faster network services. Submarine cables are a perfect fit for holding data traffic generated with the deployment of 5G services owing to their higher capacity of carrying terabytes per second with bi-directional fiber strands to transmit communication signals effectively.
Moreover, Key players in the global telecom industries are focused on deploying 5G services by using submarine cable systems for faster operations; this is estimated to boost the market's growth in upcoming years. For instance, in January 2023, India-based Reliance Jio, a pioneer of 5G services in India, announced an investment in the 5G network infrastructure in Tamil Nadu, India. This investment includes the installation of submarine cables, telecom towers and other expenses. Considering the advantages of submarine cables for emerging 5G network services, the deployment of 5G network services is likely to drive the growth of the submarine cable system market.
Restraint:
High installation cost of submarine cable system
The installation process of submarine cables is complex. The process requires the involvement of skilled professionals, including geologists and oceanographers. The higher standard manufacturing process produces costly fiber optic cables for underwater purposes. Along with this, the advancement in the manufacturing process has led to an increase in prices. The challenging installation method comprises route selection, underwater inspection, specialized vessel involvement, and cable laying. All these requirements in the installation process make it expensive, which is prone to hinder the growth of the global submarine cable system market.
Opportunity:
Deployment of advanced technologies in submarine cable system
Deployment of various technologies in submarine cable systems offers increased data transmission capacity. An enormous amount of data transmission power can be achieved by deploying AI, IoT and cloud-based technologies in the submarine cable system. Along with the higher capacity, such technologies can help achieve manageability and reliability by reducing human errors. The advanced technology employed in the submarine cable system will likely detect potential threats to the system. Thus, deploying advanced technology in operations associated with submarine cable systems is considered an advantageous and possible factor to offer lucrative opportunities for the market players to induce the efficiency of operations.
Challenge:
Complex maintenance and repairing services
The average lifespan of an installed submarine cable is 25 years. However, these cables require timely maintenance or repair services due to potential hazards present in the ocean environment. The maintenance and repair services of submarine cables are critical, which creates an obstacle for the market players. The service comprises the survey of cables, cable path and replacement of cables which require a skilled workforce to approach the seabed. Access to the seabed for maintenance and access to specialized ships for repairing services, along with the necessary fund, make the maintenance and repair services complex/critical.
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Recent Developments:
- In September 2022, a leading telecommunication firm in the market, PLDT Inc., announced that the company is set to start constructing a subsea cable system and cable landing station to build up its communication technology infrastructure.
- In September 2022, a wholesale telecommunication service provider, C&W Networks, upgraded its CFX-1 and EWS submarine cable networks. This step aims to offer consumers advanced and improved broadband and IP services.
- In October 2022, Bevan Slattery unveiled a submarine cable project unveiled 2019 to link Oman and Australia is all set to begin operation. This submarine cable will improve the connectivity between the regions.
Key players in the submarine cable system market:
Companies involved in the submarine cable system market are focused on providing raw materials, manufacturing cables, installing systems and timely maintenance. The rising demand for the transmission of massive data has forced the key players to develop advanced and efficient submarine cables for efficient services. Leading vendors/key players involved in the global submarine cable system market are-
- SSG Cable
- Tratos
- 1X Technologies
- Ocean Specialists
- Hexatronic
- General Cable
- ZTT
- OCC Corporation
- Alcatel-Lucent Enterprises
- Prysmian Group
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
By Geography
- North America
- Europe
- Asia-Pacific
- Latin America
- The Middle East and Africa
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