Submarine Cable System Market Size, Share & Industry Analysis, By System (Dry Plant, Wet Plant), By Cable Armor (Double armored optical fiber (DA) Multiple, Single armored optical fiber (SA)), By Transmission (Electric Power, Communication Signals), By Service (Installation, Maintenance & Upgrade), By End-User (Offshore wind power generation industry, Offshore oil & gas industry) and Regional Forecast, 2024-2032

The submarine cable system market is expected to display strong growth during the forecast period of 2024-2032. A submarine cable system allows land-based stations to transmit communication signals and electric power across the ocean or sea. Submarine cables play a vital role in establishing the internet and global connectivity.

The progress of the submarine cable system market can be endorsed to rise in global bandwidth demand, increasing internet traffic, and increasing demand for inter-country and island connections.

A rise in cloud computing,  data center interconnect (DCI), artificial intelligence, IoT, and Big Data also boost the demand for strong intercontinental cable infrastructure. Such development in internet infrastructure is anticipated to deliver potential opportunities for the submarine cable systems market.

High investments in deploying the cable system and damaging the cables due to severe climatic conditions will hamper the growth of the market.

Submarine Cable System Market Segmentation:

The Submarine Cable System industry is segmented on the basis of system, cable armor, transmission, service, end-user, and region

Based on the system, the market is bifurcated into the dry plant and the wet plant. In a submarine cable system, the dry plant is the section between beach manholes & the cable landing station, whereas the wet plant is the section between beach manholes.

By cable armor type, the market has been segmented into double armored optical fiber (DA) and single armored optical fiber. The double armored optical fiber cable is laid in shallow water where the cable is prone to damage by the environment or other factors. The single armored optical fiber cable is laid in a less vulnerable but hazardous environment.

Based on the transmission, the submarine cable system market is divided into electric power transmission and communication signal transmission. The submarine power cable carries electric power beneath the surface of the water. The submarine communication cable carries telecommunication signals across the stretches of the ocean or sea. The communication cable segment is anticipated to lead the market during the forecast period, owing to the rise in demand for cloud computing and internet services across the globe. The power cable segment is expected to grow significantly through the forecast period due to the rise in demand for power supply to remote islands and electricity generation from offshore wind farms.

On the basis of service, the market is classified into installation services and maintenance & upgradation services. The installation segment is anticipated to dominate the market during the forecast period owing to upcoming offshore wind farms and submarine cable system projects. The maintenance and upgradation service segment is expected to witness significant growth in the market during the forecast period. Advancements in cable system infrastructures are expected to fuel the growth of the upgradation services market.

Based on end-user, the submarine cable system industry is divided into offshore wind power generation, offshore oil & gas industry, and inter-country and island connection. The offshore energy and power generation sector is expected to dominate the market due to the rise in demand for electricity generation from renewable energy sources.  The need to connect renewable sources to the main grids and safeguard the reliability of power supply to remote islands will fuel the demand for inter-country and island connection segment of the market.

Key Players Covered:

Some of the key players in the submarine cable system market are:

• SubCom, LLC (the U.S.)


• ALE International (the U.S.)


• NEC Corporation (Japan)


• JDR Cable Systems Ltd. (the U.K.)


• Cablel Hellenic Cables Group (Belgium)


• Hengtong Group Co. Ltd. (China)


• Saudi Ericsson (Saudi Arabia)


• Nexans (France)


• Google (the U.S.)

Regional Analysis:

By Region, the submarine cable system market is segmented into North America, Europe, Asia Pacific, and rest of the world

North America is expected to be the dominating region in the market during the forecast period owing to the rise in internet-connected users combined with the economic growth of the developed economies such as the U.S and Canada. Google invested USD 47 Billion in the improvement of Google Cloud infrastructure, which includes 14 subsea cable systems, with approx. 112,000 km of cable length.

Europe is anticipated to play a vital role in the growth of the market owing to agreements with key players for upcoming offshore oil & gas projects and wind-power projects in North America.  

Asia-Pacific is expected to witness substantial growth in the market during the forecast period. The market in countries such as India, Japan, and China is expected to grow at a significant growth rate due to high investments in the offshore wind power generation industry. In 2018, the NEC Corporation signed an agreement with Southeast Asia–Japan 2 consortium (SJC2) to construct a high-performance submarine cable connecting Singapore, Thailand, Cambodia, mainland China,  Vietnam, Hong Kong, Taiwan, Korea, and Japan.

Segmentation

Key Industry Developments

• In July 2018, Bharat Sanchar Nigam Ltd. Selected NEC Corporation to build submarine cable system between Chennai & Andaman & Nicobar Islands. The total cable length will be approximately 2,300km and will carry 100Gb/s optical waves.


• In December 2019, Nexan, Eversource, and Ørsted signed an agreement for North American offshore wind farm development with the chance to provide up to 1,000 kilometers of subsea high voltage export cables for Ørsted’s offshore wind farms in North America.