Submarine Cable System Market is expected to reach US$ 30.50 billion by 2030

According to our latest market study on "Submarine Cable System Market Size and Forecast (2023–2030), Global and Regional Share, Trend, and Growth Opportunity Analysis – by Service, Cable Capacity, Application, and Type," the submarine cable system market was valued at US$ 12.58 billion in 2022 and is expected to reach US$ 30.50 billion by 2030; it is estimated to record a CAGR of 11.7% from 2022 to 2030.

The submarine cable system market report emphasizes the key factors driving the market and prominent players' developments. Rising investments in submarine cable infrastructure are expected to create opportunities in the market during 2022–2030. The submarine cable system market trends include a rise in the adoption of cloud-based services.

Submarine communication cables account for 90% of worldwide data transmission, with a total carrying capacity measured in terabits per second. Many prominent OTT and submarine cable service providers, such as Amazon, Google, Facebook, and Microsoft, place a high importance on underwater cable infrastructure. For instance, in October 2023, KKR, a private equity firm, made a significant investment of US$ 400 million in OMS Group—a prominent telecommunication infrastructure company specializing in subsea cable services. This investment will play a key role in boosting the revenue generated by OMS Group. A major portion of this investment is focused on the development of its fleet and infrastructure in order to increase the size and capabilities of the fleet. The investment is also made in cable landing stations and subsea cable routes to cater to customer needs for fast-growing cross-border data transmission and comprehensive subsea cable services. All these factors can help the company further solidify its position in the submarine cable system market.

As businesses widely rely on cloud computing for their operations, the demand for reliable and high-speed connectivity through submarine cables is growing. Cloud-based services have changed the way businesses operate by offering flexible, scalable, and cost-effective solutions. Organizations are leveraging cloud computing and its associated features, such as data storage, software applications, and virtual infrastructure, to streamline their operations and enhance productivity. As the adoption of these services continues to increase, the need for robust and efficient connectivity becomes crucial. For instance, in the third quarter of 2023, the three leading cloud providers—AWS, Microsoft Azure, and Google Cloud—experienced a collective growth of 20% in terms of productivity. These providers accounted for 65% of the total spending in the telecommunication industry.

Submarine Cable System Market — by Geography, 2022

The submarine cable system market analysis is carried out by identifying and evaluating key players in the market across different regions. Fujitsu Limited; Hawaiki Cable Limited; HMN Technologies; Mitsubishi Electric Corporation; NEC Corporation; Nexans SA; Nokia Corporation; Prysmian Group; SubCom, LLC; and Sumitomo Electric Industries, Ltd are among the key players operating in the market. Various other companies are introducing new technologies and product offerings to contribute to the proliferation of the submarine cable system market report. Several other major companies have been analyzed during this research study to get a holistic view of the ecosystem.

In terms of revenue, Europe dominated the submarine cable system market share. In Europe, the increasing adoption of mobile devices and cloud-based services has led to a surge in data consumption. This, in turn, has created a need for robust and high-capacity communication networks. Submarine cable systems play a crucial role in meeting this demand by providing reliable and high-speed connectivity between different European continents, countries, and regions. Moreover, Europe has witnessed a significant boost in data center activities, driven by the increasing demand for big data analytics, cloud computing, big data analytics, and digital services. Data centers require efficient and secure connectivity to ensure seamless data transfer and access. Submarine cable systems enable the interconnection of data centers across different countries, facilitating the efficient transfer of data and supporting the growth of the digital economy. Europe is a hub for international trade and research collaboration, with businesses and organizations requiring reliable and efficient communication infrastructure. Submarine cable systems facilitate seamless communication and data transfer between European countries and their global partners, supporting international trade, research collaborations, and multinational operations.

The North America submarine cable system market is segmented into the US, Canada, and Mexico. The submarine cable system market share in North America is witnessing prominent growth due to the rising number of offshore wind projects in the region, particularly in the US. Offshore wind farms require submarine power cables to transmit electricity from wind turbines to the mainland. The need to enhance oil output and the surge in demand for clean energy are driving the installation of these offshore wind projects. According to the US Department of Energy's Wind Vision Report, there are quantified benefits associated with the installation of offshore wind capacity in the US. The report states that by 2030, the country is expected to record up to 22 gigawatts of installed offshore wind with significant advantages, and this figure is likely to reach 86 gigawatts by 2050. In the US, the Biden administration has also expressed its commitment to support the development of offshore wind energy. In 2021, the administration announced its plan to achieve 30 GW of offshore wind energy capacity by 2030. This ambitious target aligns with the goal of creating a sustainable future by supporting local communities, creating jobs, and minimizing environmental impacts.

With the presence of a large population, the need to expand internet connectivity to underserved areas is growing across Asia Pacific. Submarine cable systems provide the extension of high-speed internet access to remote areas and islands, bridging the digital divide and encouraging economic development. Governments and Telcom companies are investing in submarine cable systems to boost connectivity and contribute to the region's digital transformation. Furthermore, there is a rise in investments from the submarine cable system market players in the region. For instance, in December 2022, NTT India announced its plan to invest approximately US$ 2 billion in infrastructure development. This investment will be made to establish new data centers, cloud computing facilities, and submarine cable landing stations in the upcoming 3–4 years. With this investment, the company aims to improve the connectivity and digital infrastructure in India, enabling the uninterrupted transmission of data as well as supporting the growth of various industries in the region.

In the MEA and SAM, the market is vastly competitive, with a presence of local as well as international players. The rise in offshore oil & gas exploration activities in Angola and other countries in the MEA supports the submarine cable system market growth in the region. In order to boost these activities, there is a significant need for reliable and efficient communication infrastructure, which drives the demand for submarine cable systems in the region. The rising demand for inter-country and island power connections also fuels the submarine cable system market growth in the region. Moreover, various governments and companies in South America are investing in infrastructure development, such as the establishment of data centers, submarine cable landing stations, and cloud computing facilities. The rise in investments in such development projects aims to improve connectivity and boost the digital economy in SAM. All these factors are likely to have a significant impact on the submarine cable system market forecast in the next few years.

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