North America Submarine Cable System Market Analysis, Size, and Share by 2027

Submarine cable system market in North America is expected to grow from US$ 2.63 Bn in 2018 to US$ 4.78 Bn by the year 2027 with a CAGR of 6.6% from the year 2019 to 2027.

The rising bandwidth demands from the content and cloud service providers are driving the growth of the submarine cable systems market. Moreover, the significant number of ongoing projects for submarine cables is anticipated to boost the submarine cable systems market growth in the near future. However, the high installation cost is expected to hinder the market growth. The complete installation cost of submarine cable system and network, as compared to traditional network lines is on the higher side, which includes material and labor cost. The installation of these cable systems is pretty labor-intensive, especially for implementing undersea connections. The cables are laid on the bed of the ocean, where the trained diver needs to deploy these cables. This task involves high investments. Further, the submarine cable system suffer disruptions through accidental cable cuts and damages. These damages may be caused due to anchors, or seismic activities in the ocean beds. Damages to the cables cause disruptions and can lead to substantial losses to the users in the value chain. Proper protection and insulation for the submarine cables is, therefore, a necessity. However, insulations add up to the costs of deploying submarine cables.

The communication application dominated the submarine cable system market in the year 2018 with the highest market share and is expected to boost its dominance during the forecast period. The submarine cable systems market is segmented by application into communication and energy & power. Increasing international bandwidth requirement and growing internet penetration is prominently driving the communication market for submarine cable systems. Further, increasing investments by content providers is proliferating the growth of the market. Further, Rise in investments for offshore renewable energy and wind farms is fueling the market potential of submarine cable system in the energy & power application.

The US led the North America submarine cable system market in 2018 with the highest market share and is expected to continue its dominance during the forecast period. US being the IT hub, there has been a huge surge in the data being transmitted that has driven the submarine cable systems market. This has further led to the implementations of subsea cables for higher data transmission speeds and bandwidth requirements. Moreover, some of the leading players are expanding their operations in the US. For instance, NEC Corporation and NEC Corporation of America stated the expansion of its offices in Washington, DC, which includes new government relation functions. The office would handle requirements of US for the areas like effective border management and counterterrorism, which in turn is expected to drive the market. The figure given below highlights the revenue share of the Mexico in the submarine cable systems market in the forecast period:

Maxico Submarine Cable System Market Revenue and Forecasts to 2027 ( US$ Mn)

NORTH AMERICA SUBMARINE CABLE SYSTEM MARKET SEGMENTATION

Submarine Cable System Market - By Service

• Installation
• Maintenance & Upgrade

Submarine Cable System Market - By Application

• Communication
• Energy & Power

Submarine Cable System Market - By Country

• US
• Canada
• Mexico

Submarine Cable System Market - Companies Mentioned

• Fujitsu Limited
• Hawaiki Cable Limited
• Huawei Marine Networks Co., Limited
• Mitsubishi Electric Corporation
• NEC Corporation
• Nexans Sa
• Nokia Corporation
• Prysmian Group
• Subcom, LLC
• Sumitomo Electric Industries, Ltd.

North America Submarine Cable System Report Scope