The demand for bandwidth and internet connection worldwide is likely to expand the submarine communication cables market size. Although, the demand for the cables is expected to curb due to the unsuitability of the cables for remote villages, terrains, small island nations and hilly regions.
NEWARK, DE / ACCESSWIRE / December 3, 2024 / In 2024, the global submarine communication cables market is projected to reach USD 3,870.1 million, with expectations to ascend to USD 7,062.7 million by 2034, reflecting a compound annual growth rate (CAGR) of 6.2% over the forecast period.
The submarine communication cables market is experiencing substantial growth, driven by the escalating demand for high-speed internet and the rapid digital transformation across various sectors. These underwater cables are pivotal in facilitating global data transmission, forming the backbone of international communication networks.
The surge in internet-connected devices, coupled with the proliferation of cloud computing and streaming services, has intensified the need for robust and high-capacity data transmission infrastructure. Submarine communication cables, leveraging advanced fiber optic technology, are integral in meeting this burgeoning demand by providing high-speed and reliable data transfer across continents.
A higher emphasis on the growth of underwater communication networks is likely to propel the market share. Moreover, fibre-optic submarine technology owners expanding their usage to handle massive internet traffic changes, especially due to cable damage, is expected to satisfy consumer demand.
The deployment of armoured submarine communication cables has a lower risk of being damaged by man-made accidents or natural disasters. This is expected to significantly contribute to the global market growth.
Submarine cable system projects, as well as upcoming offshore wind farms, are likely to surge the demand for submarine communication cables. Moreover, key investors such as Facebook, Google, Amazon, and Microsoft are expected to considerably boost the market growth.
Moreover, significant investments in the marine sector, particularly in technological advancements and infrastructure development, are further propelling market growth. Governments and private entities recognize the strategic importance of submarine cables in ensuring secure and efficient communication networks, leading to increased funding and deployment of state-of-the-art cable systems.
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Key Takeaways from Submarine Communication Cables Market Study:
Market Growth: The global submarine communication cables market is anticipated to grow at a CAGR of 6.2% from 2024 to 2034, reaching USD 7,062.7 million by 2034.
Regional Insights: North America holds the largest market share, with a revenue of 23.4% in 2022, followed by Europe at 21.1%. The Asia-Pacific region is experiencing significant growth due to increasing demand for bandwidth and rapid digitalization.
Technological Advancements: Continuous innovations in fiber optic technology are enhancing data transmission capacities and reducing latency, driving the deployment of advanced submarine cable systems.
Strategic Investments: Major technology companies, including Google, Facebook, Amazon, and Microsoft, are investing in submarine cable infrastructure to meet growing data demands and improve global connectivity.
"The global demand for submarine communication cables is primarily driven by the exponential increase in data traffic and the necessity for seamless international connectivity. The expansion of telecommunication networks, the advent of 5G technology, and the rising adoption of (IoT) devices are contributing to the escalating need for extensive submarine cable networks." opines Sudip Saha, managing director at Future Market Insights (FMI) analyst.
What Are The Key Elements That Drive The Submarine Communication Cables Market?
Growing investments in offshore wind farms, especially by OTT providers to provide accurate requirements, as well as increasing data traffic, are expected to accelerate the submarine communication cables market growth. Additionally, the demand is likely to increase due to the rise in new offshore wind capacity additions.
Several businesses opting to store data locally, as well as the increasing need for service providers to enhance the consumer experience by reducing latency, is a key market driver. Moreover, in terms of cost and efficiency, the adoption of submarine communication cables is anticipated to grow, owing to their high reliability and high carrying capacity.
Rising internet traffic across the world is expected to surge the submarine communication cables demand. In addition to this, the growing data consumption rate is due to the rapid increase in the use of mobile users, social networking and a shift towards cloud services. Furthermore, the increasing demand for inter-country and island connections has positively impacted the market growth.
Technology and information exchange trade around the world is rapidly increasing, which is significantly driving market growth. Moreover, research and development (R&D) activities increasing owing to the growing electrification of offshore oil and gas networks are likely to propel the market share.
Maintenance costs, as well as the higher implementation of submarine communication cables, are expected to hinder market growth. Moreover, the repair costs associated with submarine cable systems, along with the damaging of cables due to severe climatic conditions, are further likely to hamper the market size.
The development of communications infrastructure under-water receiving higher focus is expected to garner significant prospects for the market. Furthermore, the rise in data center interconnect (DCI), cloud computing, artificial intelligence, IoT, Big Data and other developments in internet infrastructure are anticipated to further fuel the market growth.
Current and Future Trends
The submarine communication cables market is witnessing several key trends:
Expansion of Data Centers: The proliferation of data centers globally is increasing the need for high-capacity submarine cables to facilitate efficient data exchange across regions.
5G Deployment: The rollout of 5G networks is escalating the demand for low-latency and high-bandwidth communication channels, bolstering the need for advanced submarine cable systems.
Renewable Energy Integration: Submarine cables are increasingly being utilized to connect offshore renewable energy installations, such as wind farms, to mainland grids, highlighting their multifaceted applications.
Geopolitical Considerations: Strategic initiatives by governments to secure and control data transmission routes are influencing the deployment and management of submarine cable networks.
Submarine Communication Cables Market: Report Scope & Regional Analysis
North America: Holds the largest market share, driven by technological advancements and the need to upgrade existing submarine communication lines.
Europe: Significant investments in offshore wind projects and the expansion of regional offshore wind energy industries are propelling market growth.
Asia-Pacific: Rapid digitalization and increasing internet users are leading to a growing demand for bandwidth, making it a burgeoning market for submarine communication cables.
Middle East & Africa: Emerging markets with increasing investments in communication infrastructure to support growing data needs.
Latin America: Developing economies focusing on enhancing connectivity through submarine cable deployments.
Country-wise Insights
Countries |
Value CAGR (2024 to 2034) |
USA |
6.1% |
Germany |
5.2% |
China |
7.2% |
India |
6.5% |
UK |
5.5% |
Competitive Landscape in the Submarine Communication Cables Market
Key market participants of the submarine communication cables market:
NEC Corporation - They enable service providers to rapidly and effectively deliver convergent and content-rich offerings through software and implementation expertise.
OCC Corporation - They manufacture high performance and high quality optical submarine cables.
Hengtong Marine Cable System - They are steadily transforming intelligent manufacturing, with the aim of becoming the most advanced systematic integrator and internet service provider in the world.
ZTT Group - They have developed a diversified industrial model of telecom, power grid, renewable energy, marine system, precision equipment and so on.
Other players in the submarine communication cables market:
Alcatel Submarine Networks Inc.
Nexans S.A.
SubCom LLC
General Cable Technologies Corporation
Prysmian S.p.A
Google LLC
Microsoft Corporation
NKT A/S
Nexans Norway AS
Huawei Marine Networks Co. Ltd.
Corning Incorporated
FUJITSU
AEI Cables
Ericsson
General Cable
Hanhe Cable Company
Hasfibel
Jainson Cables India Pvt Ltd
Kerite
JDR Cable Systems Ltd.
Hexatronic Cables & Interconnect Systems
LEONI Special Cables GmbH
The Okonite Company
ALE International
Nokia
Norddeutsche Seekabelwerke
Reliance Jio (Partner)
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Key Segments of Submarine Communication Cables Industry
By Type:
In terms of type, the industry is divided into unarmoured and armoured.
By Project Type:
In terms of project type, it is divided new projects and upgradations.
By Ownership:
The ownership is classified as consortiums, private enterprises, and multilateral development banks.
By Region:
Key countries of North America, Latin America, East Asia, South Asia & Pacific, Western Europe, Eastern Europe, and Middle East & Africa (MEA) have been covered in the report.
Author By:
Sudip Saha is the managing director and co-founder at Future Market Insights, an award-winning market research and consulting firm. Sudip is committed to shaping the market research industry with credible solutions and constantly makes a buzz in the media with his thought leadership. His vast experience in market research and project management a consumer electronics will likely remain the leading end-use sector cross verticals in APAC, EMEA, and the Americas reflecting his growth-oriented approach to clients.
He is a strong believer and proponent of innovation-based solutions, emphasizing customized solutions to meet one client's requirements at a time. His foresightedness and visionary approach recently got him recognized as the ‘Global Icon in Business Consulting' at the ET Inspiring Leaders Awards 2022.
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