Submarine Fiber Cable Market Analysis APAC, Europe, North America, Middle East and Africa, South America - US, China, India, Japan, France - Size and Forecast 2024-2028

Submarine Fiber Cable Market Size 2024-2028

The submarine fiber cable market size is forecast to increase by USD 5.93 billion at a CAGR of 13.02% between 2023 and 2028. The growth rate of the market depends on several factors, including rapid developments in telecommunication networks. These advancements are driven by the increasing need for higher network bandwidth to support the growing demand for data-intensive applications and services. Additionally, there is a rising need for cloud-based services, further fueling the expansion of telecommunication networks. As businesses and individuals rely more on cloud computing for storage, processing, and collaboration, the demand for robust network infrastructure capable of supporting these services continues to grow. Therefore, the evolution of telecommunication networks and the proliferation of cloud-based solutions are key drivers shaping the market's growth trajectory. Our report examines historical data from 2018-2022, besides analyzing the current and forecasted market scenario.

Moreover, the market in APAC is poised for significant growth in the region, driven by various factors, including increasing investments in offshore wind farms and the surge in data traffic demands. Among the key players in this market is Cenergy Holdings SA, renowned for its subsidiary, Hellenic Cables, which specializes in offering high and extra-high-voltage submarine cables. Noteworthy projects by Cenergy Holdings SA include the Adriatic Sea Interconnection and the Greece Mainland Grid Connection, highlighting their expertise and capabilities in providing essential infrastructure for energy and data transmission needs.

Market Forecasting and Size

Market  Forecast 2024-2028

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Market Dynamic

The market serves as a critical infrastructure for global connectivity, supporting Automotive manufacturing hub and sectors like the furniture sector in facilitating efficient communication and data transfer. Major players such as China National Petroleum Corporation (CNPC) and Shell Australia Pty Ltd contribute to the market's robustness through investments in research and technological development (RTD). Government policies, including GST regulations and initiatives by the Chinese government and organizations like OICA and the National Bureau of Statistics, shape market dynamics. Production halts and remodeling activities in various regions influence the demand for reliable submarine fiber cables. The market benefits from advancements in dry plant products and wet plant products, enhancing connectivity capabilities amid increasing reliance on digital infrastructure. SGH Energy plays a significant role in supporting connectivity initiatives, while universal health insurance coverage ensures sustainable growth and resilience in the market. Our researchers studied the market research and growth data for years, with 2023 as the base year and 2024 as the estimated year, and presented the key drivers, trends, and challenges for the market.

Key Market Driver - Growing demand for cloud-based services

There has been exponential growth in cloud systems over the past few years, increasing the demand for fast Internet connectivity. However, this demand for high-speed internet connectivity will increase the need for higher bandwidths and result in new submarine cable laying projects. Also, to enable faster data transfer, companies are establishing data centers globally, resulting in an increased demand for data transmission networks. According to Cisco, the number of data centers worldwide will double by 2023 than in 2018. The existing subsea cable network cannot handle such a huge increase in data centers as they need stronger and higher network capacity to hold the increasing data flow.

As a result, the demand for new subsea cable projects is expected to rise exponentially during the forecast period. Many organizations such as Apple, Microsoft, Google, and Facebook are investing huge amounts in building their own data centers to reach out to their customers more easily. Microsoft has already invested in three undersea cable projects to improve its data center connectivity. This subsea cable network will provide faster connections for customers and provide users with more cloud services. Thus, the growing demand for cloud-based services will drive the growth of the market during the forecast period.

Significant Market Trends - Growing offshore renewable energy installations

The surge in offshore wind farm installations, particularly in Europe, underscores the escalating demand for renewable energy sources. Europe alone represents approximately 60% of the total offshore wind capacity, driven by the higher output potential of offshore wind power compared to onshore counterparts, often up to 40% more. In this landscape, the market emerges as a pivotal enabler, facilitating the transmission of newly generated offshore wind power to onshore grids.

Moreover, two primary types of submarine fiber cables, HVAC and HVDC, are instrumental in this process, with HVDC serving longer transmission distances. As offshore renewable energy installations expand, the market is poised for substantial growth. These cables form the backbone of offshore wind power integration, driving the market's trajectory amid the transition to sustainable energy solutions.

Major Market Challenge - Increased downtime for maintenance

Submarine cables form the essential infrastructure of telecommunication networks, crucial for communication, data transfer, and economic growth. However, disruptions like fishing activities, shark bites, and industrial operations lead to fiber cable cuts, interrupting network connectivity. Delays in identifying cut locations, obtaining permissions, and arranging maintenance exacerbate downtime. Factors such as adverse weather further prolong repair processes.

Further, these challenges result in increased maintenance downtime, adversely affecting the market. Any disturbance in these vital networks not only disrupts internet access but also impacts economic activities, underscoring the urgency of efficient maintenance and repair procedures to mitigate risks and ensure seamless connectivity. Such factors are expected to limit the market growth during the forecast period. 

Market Segmentation 

The market exhibits robust segmentation driven by various factors. With the aging population and increasing construction activities, there's a growing demand for reliable data traffic infrastructure. Additionally, the expansion of offshore wind farms and offshore oil & gas exploration fuels demand for high voltage cables and HVDC submarine power cables. Energy security concerns prompt investments in fiber optics for power stations and offshore renewable energy generation. Market trends, as reported by organizations like the BP Statistical Review of World Energy and the International Energy Agency (IEA), influence the deployment of submarine cables for oil and gas industry communication and monitoring. Moreover, the automotive industry benefits from advances in medical devices and the healthcare segment, driving the need for moisture-resistance properties in cable design. Amidst challenges like labour unavailability, these cables remain pivotal for Internet traffic and composite and engineered wood products used in furniture production within the European Union.

By Source 

The market share growth by the consortia segment will be significant during the forecast period. Consortia investments are among the oldest and strongest sources of investment as the shareholders have equal investment shares with equal risks. More than a hundred submarine cable projects have been completed with investments from consortiums. 

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The consortia was the largest segment and was valued at USD 4.37 billion in 2018. In the consortia model, telecom operators, ISPs, and private enterprises form partnerships to construct, operate, and maintain large undersea fiber cable networks spanning multiple countries' territorial waters. While investments from consortia may decline, private enterprises are increasing their investment, albeit independently. Despite this, new projects, like the Bay of Bengal Gateway (BBG) consortia, led by Reliance Jio and Vodafone, continue to emerge. BBG aims to establish an advanced 8,100-km submarine system connecting Southeast Asia, the Middle East, Europe, Africa, and Far-East Asia, facilitating network upgrades and new installations. Such initiatives are poised to propel growth in the market during the forecast period.

By Service Type : 

Based on the service type, the market has been segmented into installation, maintenance, and upgrades. The installation?segment will account for the largest share of this segment.?Submarine transmission line installation is an expensive and difficult task. An undersea cable may last for tens of years, and fixing defects with it requires expensive and challenging technical operations.  According to the International Energy Agency (IEA), close to 1.2 billion people lack access to electricity, of which more than 95% living without electricity are from sub-Saharan Africa and developing Asia. Offering access to these unserved populations is expected to increase the electricity demand. To cater to the growing demand for electricity, various governments have planned to lay more emphasis on renewable energy sources. Increased demand for electric power is expected to drive power imports and trigger more demand. This, in turn, will drive the growth of the segment and market during the forecast period.

By Region

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APAC is estimated to contribute 54% to the growth by 2028.  Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. The energy demand in APAC is surging due to population growth and improved living standards, prompting a shift towards renewable energy for enhanced power generation. China and India are poised to lead wind energy installations, with India exploring offshore wind farm development. Japan, driven by companies like Eurus and Hitachi, is also embracing wind power expansion. South Korea's offshore program further contributes to market growth. Government policies in China have alleviated wind power curtailment concerns, fostering a positive outlook for the industry and manufacturing sector.

Notably, Chaozhou plans to build the world's largest offshore wind farm by 2025, while South Korea aims for an 8.2 GW project by 2030, targeting 18 GW capacity. In India, initiatives include reaching 140 GW of wind power capacity by 2030 and exploring offshore farms, backed by fiscal incentives. These governmental efforts and offshore wind energy focus are poised to propel the regional market growth during the forecast period. 

Who are the Major Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Corning Inc - The company offers submarine fiber cable through its subsidiary Hellenic Cables, which provides high and extra high-voltage submarine cables. Some of its recent projects include Adriatic Sea Interconnection, Greece Mainland Grid Connection and others.

We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including Cenergy Holdings SA, Corning Inc., Hengtong Group Co. Ltd., Hexatronic Group AB, HOC, Jiangsu Hengtong Au Optronics Co., Jiangsu Zhongtian Technology Co Ltd, Kflex Cables and Conductors, NEC Corp., Nexans SA, NKT AS, OCC Corp., Prysmian Spa, Qingdao Hanhe Cable Co. Ltd., Sopto Technology Co. Ltd., SSG cable group, Tratos Cavi S.p.A., and VERI CABLE IMPORT AND EXPORT Co. LTD. 

Technavio market forecast is an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.  

Segment Overview

The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments 

• Source Outlook 
  • Consortia
  • Private enterprises
  • Governments and development banks

• Service Type Outlook 
  • Installation
  • Maintenance
  • Upgrade
  Region Outlook 
  • North America
    • The U.S.
    • Canada
  • South America
    • Chile
    • Brazil
    • Argentina 
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

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Market Analyst Overview

The market is witnessing significant growth driven by various factors, including the increasing demand for adhesive strength in underwater installations. Government bodies like the Australian Communications and Media Authority (ACMA) are playing a crucial role in regulating the market and ensuring compliance with safety standards. In the construction industry, the demand for moisture resistance properties is driving the adoption of specialized submarine cables. The discovery of offshore resources like the Crux natural gas field has spurred investments in submarine communication cables to facilitate connectivity to remote locations. Moreover, initiatives by organizations like the India Brand Equity Foundation are promoting the adoption of submarine fiber cables to support offshore wind power generation projects.

Additionally, stringent regulatory measures enforced by entities like the Ministry of Housing and Urban-Rural Development ensure the safety and reliability of submarine cable installations. The market is witnessing robust growth driven by various factors, including the Chinese government's initiatives to enhance connectivity infrastructure.  With increasing urbanization, demand for furniture and other goods is rising, necessitating reliable inter-country connections facilitated by submarine cables. The International Trade Administration plays a pivotal role in regulating supply chains and ensuring adherence to stringent regulations.

Furthermore, the market is influenced by major market trends, such as the expansion of OTT providers and the growth of power and communication applications. As demand surges, stakeholders are focusing on efficient installation & commissioning processes to meet growing connectivity needs in island connections and remote areas. Overall, the market is poised for significant expansion amidst evolving regulatory landscapes and increasing demand for connectivity. The market also witnesses growth amid EPC stage expansions, driven by North Kalimantan (Kalutara) province developments. Low-power cables cater to specific needs, while REITs invest in infrastructure. Safety zones ensure secure operations, addressing concerns like the toxic and carcinogenic nature of formaldehyde in oil rigs.

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What are the Key Data Covered in this Market Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2024 and 2028
• Precise estimation of the market growth and trends and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Market growth and forecasting across APAC, Europe, North America, Middle East and Africa, and South America
• A thorough market analysis and report of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market  companies

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