The submarine cable market is estimated to be valued at USD 2,444.3 million in 2024. The submarine cable is predicted to rise at a CAGR of 5.0% from 2024 to 2034. The global submarine cable market is anticipated to reach USD 3,970.0 million by 2034.
The rising global focus on transitioning to green energy and addressing climate change has heightened the need for submarine power cables. Submarine power transmission is in demand particularly from wind, wave, and tidal energy generators, as they utilize these cables to transmit renewable energy to grids. This facilitates the distribution of clean energy for both commercial and residential use.
The rapid expansion of global technology and information exchange trade is a major catalyst for the significant growth in the market. The increasing emphasis on research and development (R&D) initiatives, driven by the expanding electrification of offshore oil and gas networks, is expected to contribute significantly to the market share's upward trajectory.
Electricity network operators are increasingly employing submarine power cables to interconnect power grids across different countries. Submarine cables are used in subsea production systems to withstand harsh underwater conditions, including pressure, temperature, and corrosive environments.
Submarine cable manufacturers, system integrators, and service providers are directing their efforts toward deploying submarine cable solutions and associated services. These solutions are designed to meet the anticipated demand, especially as next-generation telecommunication technologies such as the Internet of Things (IoT) and 5G gain momentum.
| Attributes | Key Insights |
|---|---|
| Estimated Market Size in 2024 | USD 2,444.3 million |
| Projected Market Value in 2034 | USD 3,970.0 million |
| Value-based CAGR from 2024 to 2034 | 5.0% |
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From 2019 to 2023, the submarine cable industry experienced a CAGR of 2.8% in market value. The global demand for infrastructure improvement by content providers has risen significantly during this period.
The current upgrades to existing submarine cable systems are insufficient to meet this growing demand. With numerous submarine cable systems approaching the end of their technological and economic viability, there is a pressing need for replacements in the upcoming years to address the evolving requirements of the industry.
The growing need for route diversity and the increasing demand for capacity from content providers are key drivers behind the acquisition and deployment of submarine cables. Projections indicate that the global submarine cable market is expected to experience a CAGR of 5.0% from 2024 to 2034.
| Historical CAGR (2019 to 2023) | 2.8% |
|---|---|
| Forecasted CAGR (2024 to 2034) | 5.0% |
Principal Consultant
The following table shows the top five countries by revenue, led by Australia and Japan. Australia's robust engagement in international trade and economic activities underscores the critical need for seamless communication and data exchange with global partners, emphasizing the essential requirement for dependable and high-capacity submarine cables.
The escalating demand for high-speed and reliable connectivity in Japan is propelling investments in the enhancement and expansion of telecommunications networks, which include submarine cable systems.
| Countries | Forecast CAGRs from 2024 to 2034 |
|---|---|
| United States | 1.8% |
| Germany | 4.4% |
| China | 5.5% |
| Japan | 6.2% |
| Australia | 8.5% |
The submarine cable market in the United States is expected to grow with a CAGR of 1.8% from 2024 to 2034. The United States has a high demand for reliable and high-capacity connectivity due to its extensive telecommunications infrastructure, data centers, and the overall digital economy.
This demand contributes to the growth of the submarine cables market as these cables facilitate international and intercontinental data transmission. The United States is home to numerous data centers that serve both domestic and international clients.
Submarine cables play a crucial role in connecting these data centers to ensure efficient data transfer and support the growing demand for cloud services.
Germany has been a pioneer in renewable energy adoption, particularly with its transition to clean energy sources. Submarine cables play a role in connecting offshore wind farms in the North Sea to the mainland, contributing to the growth of the market. The submarine cable market in Germany is expected to grow with a CAGR of 4.4% from 2024 to 2034.
The growing emphasis on technological innovation contributes to the growth of the submarine cables market in Germany. Government initiatives and policies related to digital infrastructure, connectivity, and energy transition can influence the submarine cables market. Supportive policies and investments in critical infrastructure may foster market growth.
The submarine cable market in Japan is expected to grow with a CAGR of 6.2% from 2024 to 2034. Japan's strong focus is on technological innovation, and this emphasis can contribute to the growth of the submarine cables market.
Japan collaborates with other countries on various technological and infrastructure projects. International submarine cable partnerships and projects can contribute to the growth of the market as Japan strengthens its global connectivity.
The submarine cable market in China is expected to grow with a CAGR of 5.5% from 2024 to 2034. China is the growing submarine cable market owing to the increasing investment in the development and expansion of its telecommunications.
The rollout of 5G networks in China requires advanced and high-capacity infrastructure. Submarine cables play a role in supporting the international connectivity needs of 5G networks, contributing to market growth.
China has a rapidly growing digital economy, driven by e-commerce, cloud services, and emerging technologies. The demand for high-speed and reliable connectivity, facilitated by submarine cables, is crucial for sustaining and expanding the digital economy. Government support and investments in critical infrastructure, including submarine cables, can drive market growth.
Australia, being a geographically isolated continent, relies heavily on submarine cables for international internet connectivity and global communication. The growth of the digital economy and the increasing demand for high-speed internet services contribute to the development of submarine cable infrastructure. The submarine cable market in Australia is expected to grow with a CAGR of 8.5% from 2024 to 2034
Policies aimed at enhancing digital connectivity, promoting technological innovation, and supporting critical infrastructure projects may influence market growth in Australia.
Australia plays a key role in providing submarine cable connectivity to Pacific Island nations. Projects aimed at improving internet access and communication infrastructure in the Pacific contribute to the growth of the submarine cables market.
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The below section shows the leading segment. The product segment accounts for a market share of 71.3% in 2024. Based on the application, the renewable energy segment is anticipated to hold a dominant share through 2034. It is set to exhibit a Share of 31.2% in 2024.
| Category | Market Share |
|---|---|
| Product | 71.3% |
| Renewable Energy | 31.2% |
The product segment is anticipated to capture a significant share of approximately 58.2% of the global market. Submarine electric cables play a crucial role in interconnecting power grids between different countries and regions, enabling the efficient and reliable transfer of electrical power over long distances beneath the sea.
Submarine fiber optic cables form the backbone of international telecommunications infrastructure, connecting continents and enabling global data and voice communication. They are vital for maintaining seamless connectivity across borders.
Hybrid/composite cables are commonly used in offshore wind farms and other renewable energy installations. These cables connect offshore wind turbines to onshore power grids, carrying both the electricity generated by the turbines and providing communication capabilities for monitoring and control.
The submarine cable industry is significantly influenced by the renewable energy segment, which commands a substantial market share of 31.2%. Submarine cables are used for undersea power transmission to connect offshore renewable energy installations, such as wind farms and tidal energy projects, to onshore power grids. These cables facilitate the efficient transport of electricity over long distances beneath the seabed.
The growth of renewable energy sources necessitates the integration of these intermittent power sources into existing power grids. Submarine cables play a crucial role in connecting offshore renewable energy projects to onshore grids, contributing to a more reliable and sustainable energy supply.
Offshore renewable energy projects are often located far from the shore to leverage stronger and more consistent wind or water currents. Submarine cables are the most practical means for transporting electricity over these longer distances.
Companies in the submarine cables sector invest in R&D to develop and enhance cable technologies. This includes improving data transmission speeds, increasing cable reliability, and exploring innovations that address environmental concerns.
Anticipated growth in demand for submarine communication cables in the coming years is likely to be driven by the initiation of new projects and an increased need for the refurbishment of existing submarine cable systems. This surge in demand aligns with broader trends in upgrading overall networking infrastructure.
| Attributes | Details |
|---|---|
| Estimated Market Size in 2024 | USD2,444.3 million |
| Projected Market Valuation in 2034 | USD 3,970.0 million |
| Value-based CAGR 2024 to 2034 | 5.0% |
| Forecast Period | 2024 to 2034 |
| Historical Data Available for | 2019 to 2023 |
| Market Analysis | Value in USD million |
| Key Regions Covered | North America; Latin America; Western Europe; Eastern Europe; South Asia and Pacific; East Asia; Middle East and Africa |
| Key Market Segments Covered | Solution, Filling Type, End Use, Region |
| Key Countries Profiled | The United States, Canada, Brazil, Mexico, Germany, The United Kingdom, France, Spain, Italy, Russia, Poland, Czech Republic, Romania, India, Bangladesh, Australia, New Zealand, China, Japan, South Korea, GCC countries, South Africa, Israel |
| Key Companies Profiled | ABB; Alcatel Submarine Networks; Corning Incorporated; Huawei Marine Networks Co. Limited; Hydro Group plc; JDR Cable Systems Ltd.; J-Power Systems Corporation; NEC Corporation; Nexans S.A.; NKT Cables Group GmbH |
As of 2024, the market for submarine cables is expected to be valued at USD 2,444.3 million.
By 2034, the market value of submarine cables is expected to reach USD 3,970.0 million.
From 2024 to 2034, submarine cable is expected to flourish at a CAGR of 5.0%
The product segment is expected to account for a market share of 71.3% in 2024.
Australia is likely the top-performing market, with a CAGR of 8.5%.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034 5. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Solution 5.1. Product 5.2. Service 6. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Filling Type 6.1. Oil/Fluid Filled Cables 6.2. Solid Filled Cables 7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By End Use 7.1. Oil and Gas 7.2. Renewable Energy 7.3. Telecommunications 7.4. Defence 8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region 8.1. North America 8.2. Latin America 8.3. Western Europe 8.4. Eastern Europe 8.5. South Asia and Pacific 8.6. East Asia 8.7. Middle East and Africa 9. North America Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 10. Latin America Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 11. Western Europe Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 12. Eastern Europe Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 13. South Asia and Pacific Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 14. East Asia Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 15. Middle East and Africa Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 16. Key Countries Market Analysis 17. Market Structure Analysis 18. Competition Analysis 18.1. ABB 18.2. Alcatel Submarine Networks 18.3. Corning Incorporated 18.4. Huawei Marine Networks Co., Limited 18.5. Hydro Group plc 18.6. JDR Cable Systems Ltd. 18.7. J-Power Systems Corporation 18.8. NEC Corporation 18.9. Nexans S.A. 18.10. NKT Cables Group GmbH 19. Assumptions & Acronyms Used 20. Research Methodology
Technology
December 2023
REP-GB-18726
361 pages
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Submarine Cable Market
