Submarine Cable Systems Market - By Component (Dry Plant Product, Wet Plant Product), By Offering (Cable Installation, Cable Maintenance & Repair, Upgrade), By Deployment (Shallow Water, Deep Water), By Application, By End User & Forecast, 2024 – 2032

Submarine Cable Systems Market Size

Submarine Cable Systems Market was valued at USD 14.2 billion in 2023 and is estimated to register a CAGR of over 9.5% between 2024 and 2032. The growth of submarine cable system market is driven by several factors such as the rising demand for global connectivity, particularly driven by increased internet and smartphone usage, and the deployment of offshore wind farms, as these projects require extensive submarine cable systems for energy transmission.
 

For instance, in May 2024, Taihan Cable & Solution developed a 154-kilovolt ultra-high-voltage submarine cable system, which is primarily designed to connect offshore wind energy complexes with the mainland power grid, facilitating the integration of renewable energy sources into the grid.
 

Scientific research, academic collaborations, and data sharing initiatives often require the exchange of large volumes of data across borders and continents. Submarine cable systems facilitate this exchange, enabling global cooperation and knowledge sharing. Additionally, the development of offshore wind projects, particularly in regions like Europe and Asia-Pacific, is fueling the demand for robust and reliable submarine power cable systems. For instance, in May 2024, SubCom, a subsidiary of the Prysmian group, deployed a new submarine cable system. The system spans from Pakistan to France, enhancing connectivity between Asia, Africa, and Europe. This project reflected the increasing investments in global submarine cable infrastructure to meet the rising demand for global cloud-based connectivity.
 

The submarine cable systems market faces several pitfalls and challenges that can impede its growth and efficiency. Submarine cables are vulnerable to faults caused by natural events, human activities, and technical failures. Repairs of such cables are costly and logistically challenging, often requiring specialized ships and equipment. There are a limited number of specialized vessels capable of performing deep-sea repairs, leading to potential delays in addressing faults and damages. Also, the deployment of submarine cables requires significant upfront investments in materials, technology, and labor.
 

Submarine Cable Systems Market Trends

Recent trends in the submarine cable systems industry including innovations, such as Space-division Multiplexing (SDM) and advanced fiber optic technologies, are enabling cables to carry more data over longer distances. Ensuring network redundancy and reliability is becoming a priority. Companies are investing in diverse routing and multiple cable systems to ensure uninterrupted service in case of cable cuts or failures. Also, governments worldwide are setting ambitious renewable energy targets and providing financial incentives, promoting the growth of offshore wind farms and the associated demand for submarine cables.
 

There is a growing focus on interconnecting hyperscale data centers across continents. Submarine cables are crucial for linking these data centers, enabling fast and reliable data exchange. There is a rise in cross-industry collaborations to develop submarine cable infrastructure. Telecom companies, tech giants, energy firms, and even governments are collaborating to share costs and leverage each other's expertise. There is an increased emphasis on security as submarine cables carry a bulk of global internet traffic. Measures to protect cables from physical threats and cyber threats are becoming more sophisticated.
 

Submarine Cable Systems Market Analysis

Based on offering, the market is divided into cable installation services, cable maintenance and repair services, and upgrade services. In 2023, the cable installation services segment was valued at over USD 5 billion in 2023. There is a surge in regional connectivity projects aimed at improving internet access and data capacity within specific regions. These projects require extensive submarine cable networks, thereby increasing the demand for installation services. Innovations in cable laying and installation technologies are making it easier and more cost-effective to deploy submarine cables. Major tech companies are investing heavily in submarine cables to support their expansive data centers and cloud services.
 

For instance, in May 2024, Jan De Nul placed an order for a new XL cable-laying vessel. This vessel is intended to support various projects, including connecting Ireland with Wales and Crete with mainland Greece. The new vessel will enhance Jan De Nul's capabilities in subsea connections for offshore wind farms and electricity grids, reflecting the growing demand for cable installation services.
 

Based on application, the market is categorized into submarine power cables and submarine communication cables. The submarine communication cables segment is anticipated to register a CAGR of over 9% from 2024 to 2032. The global rollout of 5G technology necessitates improved international connectivity, which submarine cables provide. The exponential growth in internet usage, cloud services, and data consumption requires robust and high-capacity communication infrastructure, facilitating the growth of submarine communications cable. Innovations in cable technology, such as higher fiber count and improved transmission equipment, are enhancing the capacity and efficiency of submarine cables. For instance, in June 2024, Viettel and Singtel collaborated on a new direct submarine cable system between Vietnam and Singapore. This initiative is part of Viettel's broader strategy, which includes investments in the Asia Direct Cable and the Asia Link Cable, enhancing connectivity to major IP hubs in Asia.
 

Asia Pacific dominated the global submarine cable systems market with a major share of over 37% in 2023. The region's geographical positioning makes it a critical hub for global data traffic. Submarine cables in this region facilitate data transfer between major economic centers, such as North America and Europe, making it a strategic location for investments in submarine cable infrastructure. Several high-profile investments and projects have been announced by major technology companies to enhance the region's connectivity. The governments in the Asia Pacific region are actively supporting the deployment of submarine cables to enhance digital infrastructure. For instance, in November 2023, Fiji announced a major partnership with Google to establish the South Pacific Connect Initiative. This includes a new subsea cable linking the U.S., Fiji, Australia, and French Polynesia. The initiative aimed to enhance digital connectivity, capacity, and resilience across the Pacific region.
 

The submarine cable systems industry in Europe is experiencing significant growth due to several key developments and strategic projects. Noteworthy developments include Portugal's installation of the 2Africa cable system, the largest globally, and Google's planned Nuvem cable, highlighting the country's emerging role in global digital infrastructure. These initiatives, fueled by increasing broadband demand and offshore wind development, highlight Europe's strategic importance in the global submarine cable market.
 

In the North America region, major technology companies, such as Google, Meta, Microsoft, and Amazon, are investing heavily in submarine cables to support their cloud services. North America's strategic positioning as a hub for trans-Atlantic and trans-Pacific communications makes it a critical region for submarine cable investments. Projects, such as the Amitié cable system, which connects the U.S. to Europe, and the North Pacific Connect initiative, linking the U.S. with Asia and Pacific Island nations, highlight the region's significance in global data transmission.
 

Submarine Cable Systems Market Share

Alcatel-Lucent Submarine Networks (ASN), NEC Corporation, and Hengtong Marine Cable Systems held significant market share of over 12% market share in 2023. These major players in the market compete fiercely by providing comprehensive submarine cable systems solutions. They are investing heavily in the development and expansion of their own private submarine cable networks to ensure greater control over their data transmission and to support their vast global operations.
 

NEC Corporation and Alcatel-Lucent Submarine Networks (ASN) are upgrading existing networks with advanced technologies to increase capacity and reliability and participating in consortiums to share the high costs associated with laying and maintaining these cables. They are focusing on strategic routes that connect major economic hubs and emerging markets, enabling them to meet the rising demand for international connectivity and data transfer.
 

Submarine Cable Systems Market Companies

Major players operating in the submarine cable systems industry are:

• Alcatel-Lucent Submarine Networks (ASN)
• Corning Incorporated
• Fujitsu Limited
• Global Marine Systems
• Gulf Bridge International (GBI)
• Hengtong Marine Cable Systems
• NEC Corporation
• Nexans
• Orange Marine
• SEACOM
   

Submarine Cable Systems Industry News

• In June 2024, Huawei Marine Networks successfully completed the installation of the Maldives Sri Lanka Cable system (MSC), a key infrastructure project aimed at improving regional connectivity. The 840-kilometer cable system enhances internet access and supports economic development in the region.
   
• In January 2024, NEC completed the Kochi-Lakshadweep Islands Submarine Cable project in India. This 1,870 km system, funded under India's Digital India Mission, connects the port city of Kochi with 11 Lakshadweep islands.
   

The submarine cable systems market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue ($Bn) from 2021 to 2032, for the following segments:

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Market, By Component

• Dry plant product
• Wet plant product

Market, By Offering

• Cable installation services
• Cable maintenance and repair services
• Upgradate services

Market, By Deployment

• Shallow water
• Deep water

Market, By Application

• Submarine power cables
• Submarine communication cables

Market, By Application

• Offshore wind power generation
• Inter country & island connection
• Offshore oil & gas

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific 
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America
• MEA
  • UAE
  • South Africa
  • Saudi Arabia
  • Rest of MEA