Submarine Cable Industry Overview
The global submarine cable market size was estimated at USD 25.50 billion in 2021 and is projected to grow at a compound annual growth rate (CAGR) of 6.1% from 2022 to 2030. The major factors driving the market are increasing investments in offshore wind farms, increasing data traffic, and investments by OTT providers to suffice the requirements. Submarine cables are widely used for power and communication applications. They are widely used for power transmission to the oil rigs, power generated from offshore wind farms to the power station, and inter-country and island connections. Increasing demand for interconnecting countries' power grids is the factor influencing the demand for low-power cables. Submarine communication cables are used for inter-region/country communications. Around 97% of the worldwide internet traffic is entirely dependable on submarine cables, and with rising internet, the demands for the product is slated to rapidly rise. The surging focus on joining offshore renewable energy generation and increased energy security has driven the expansion of the market across the globe. These communication cables help in faster communication and carry a large amount of data traffic across the globe.
The submarine communication cables carry around 90% of the data traffic across the world. In addition, their total carrying capacity is in terabits per second. As a result, they are the most valued cables for OTT and communication providers such as Google, Amazon, Facebook, and Microsoft. For instance, in October 2021 NEC, the Japanese IT company announced plans to build a huge submarine cable with four crore fiber optics for Facebook. The submarine is expected to hold a capacity of up to 500mbps across 24 fiber pairs. Most economies consider submarine cables a vital component of the economy and have set regulations to protect them from threats. For instance, the Australian Communications and Media Authority (ACMA) has created safety zones that prohibit activities that can damage these cables linked through Australia & the Rest of the World. In addition, it legalizes the installation of new submarine cables projects.
Gather more insights about the market drivers, restraints and growth of the Global Submarine Cable Market
The communication cables have observed a surge in demand due to increased data traffic. Regions such as Europe, the Middle East, Asia Pacific, and South America have noted rising investments in submarine communication cables. Companies such as Google, Facebook, Amazon, and Microsoft are the primary influencers of the submarine cables. Google owns 10,433 miles of submarine cables internationally and 63,605 miles in consortium with Facebook, Amazon, and Microsoft. Facebook owns 57,709 miles, Amazon owns 18,987 miles, and Microsoft owns 4,104 miles of submarine cables. Amazon’s cables run from the U.S. to the Asia Pacific region, connecting Singapore, Japan, California, and Oregon.
The efficient power transmission and distribution systems from renewable energy sources and the growth of offshore wind farms are expected to fuel the overall industry growth. For instance, the Government of Japan is constructing a floating wind farm 12 miles away from the seacoast and is expected to install 140 floating wind turbines by 2020.
Growing demand for submarine cables has encouraged the manufacturers to actively participate in the installation & commissioning, upgrades, and maintenance of the submarine cables. For instance, in February 2020, The Europe India Gateway (EIG) submarine cable system was upgraded to fast-track and reinforced the connectivity amongst businesses in Europe, the Middle East, and India by Ciena Corporation.
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Submarine Cable Industry Segmentation
Grand View Research has segmented the global submarine cables market on the basis of application, voltage, end- user, component, offerings, and region:
Submarine Cables Application Outlook (Revenue, USD Billion, 2017 - 2030)
- Submarine Power Cables
- Submarine Communication Cables
Submarine Power Cables Voltage Outlook (Revenue, USD Billion, 2017 - 2030)
- Medium Voltage
- High Voltage
- Extra High Voltage
Submarine Power Cables End-user Outlook (Revenue, USD Billion, 2017 - 2030)
- Offshore Wind Power Generation
- Inter country & island connection
- Offshore Oil & Gas
Submarine Communication Cables Offerings Outlook (Revenue, USD Billion, 2017 - 2030)
- Installation & Commissioning
- Upgrade
- Maintenance
Submarine Communication Cables Component Outlook (Revenue, USD Billion, 2017 - 2030)
- Dry Plant Products
- Wet Plant Products
Submarine Power Cables Regional Outlook (Revenue, USD Billion, 2017 - 2030)
- North America
- Europe
- Asia Pacific
- South America
- MEA (Middle East & Africa)
Market Share Insights:
November 2020: ZTT, also known as the Zhongtian Technology Submarine Cable Co. Ltd., collaborated with Jiangsu Zhongtian Technology CoLtd and developed an insulation power system of 500 kV XLPE.
December 2017: Alcatel Submarine Networks (ASN), part of Nokia, was awarded a turnkey contract (EPCI) by Statoil to supply and install DC/FO technology as the subsea control infrastructure for the Johan Castberg field in the Barents Sea.
Key Companies profiled:
Some prominent players in the global Submarine Cable Industry include
- ALE International, ALE USA Inc.
- SubCom, LLC
- NEC Corporation
- Prysmian S.p.A
- Nexans
- Google LLC
- Amazon.com, Inc.
- Microsoft
- NKT A/S
- ZTT
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