Submarine cables market is forecast to exhibit positive rate of growth between 2020 and 2030. Future Market Insights (FMI) in its recent study has projected the market to reach a valuation of US$ 13 bn by the end of 2020. Growing at an impressive 10.7% CAGR, the market is forecast to reach US$ 36 Bn by the end of 2020.
Through the course of the report’s forecast period, the market is expected to be driven by increasing investment towards infrastructure intended to better international communications. Besides transmitting communication, submarine cables are widely used for power transmission.
These cables are developed to transmit power generated in offshore wind farms to various power stations and countries via island connections. With regards to communication, these cables are laid along the ocean floor to carry staggering volumes of data traffic between countries.
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Submarine Cables Account for Over 90% Data Traffic across the Globe
Submarine communication cables account for more than 90% of the data traffic generated across the world. They have an impressive carrying capacity, which is measured in terabits per sector. Subsequently, these cables are highly valued by OTT and behemoth communication providers such as Facebook, Microsoft, Google, and Amazon.
They are also considered vital components, indispensable for economies by most governments. Various countries therefore have implemented specific regulations governing the market. Some of the countries have even created safety zones, prohibiting access to the cables along the ocean floor, thus protecting them again potential damage.
Submarine Cable Line Ownership Gaining More Prominence among Tech-Enabled Product and Service providers
The growing volume of data traffic has augmented investment in submarine cables. FMI forecasts the market to witness increasing investment in regions such as the Middle East, Asia Pacific, Latin America, and Europe. Some of the leading communication providers are behind surging investment recorded in these regions. For instance, Amazon’s cables are laid from the U.S. to Asia Pacific, connecting countries such as California, Japan, Oregon, and Singapore.
FMI studies various factors impacting growth of the market in detail. It offers in-depth insights into the market. Some of these are:
- Europe is forecast to emerge dominant in the global submarine cables market
- Increasing offshore wind farm activities will augment investment in the market
- Huge repair and maintenance cost may hinder growth
- Barriers to the entry of small players will continue especially since the market is highly capital intensive
- Nonetheless smaller companies are expected to focus on smaller projects across various regions
Despite a few disadvantages, submarine cables are considered cheaper and more efficient medium for communication between countries. Besides this, submarine cables are used in power transmission, which is expected to give impetus to the market in the coming years,” said a lead analyst at FMI.
Who is winning?
The submarine cables market is characterized by the presence of several behemoths hence it witnesses stiff competition. Because the market is highly capital intensive, it offers little opportunities for smaller and mid-sized companies. Nevertheless, smaller market players are expected to focus on smaller projects to stay afloat amid competition between behemoths.
FMI profiles some of the leading companies operating in the market. These include Alcatel Lucent, Google, NEC, Subcom, NKT A/S, Nexans, Prysmian Group among others.
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- Electrical cable
- Fiber Optic Cable
- Hybrid/ Composite Cable
- Umbilical Cable
- Oil/ Fluid Filled Cable
- Solid Fluid Cable
- Oil & Gas
- Renewable Energy
Get Valuable Insights into Submarine Cables Market
Future Market Insights executive level blueprint of the submarine cables market in its report. It offers refined forecasts pertaining to revenue growth witnessed across various segments. Trends impacting the market’s trajectory across these segments are also studied in detail for a period between 2020 and 2030.
The report studies the global submarine cables market in terms of products into electrical cable, fiber optic cable, hybrid/ composite cable, and umbilical cable. Based on filling type, the market is segmented into oil/ fluid filled cable and solid filled cable. On the basis of end use, the market covers oil and gas, renewable energy, telecommunication, and defense segments. Regionally, the global submarine cables market can be segmented into North America, Latin America, Europe, Asia Pacific, Oceania, and the Middle East and Africa.