Submarine Communication Cable Industry Analysis in the Mediterranean

Mediterranean Submarine Communication Cable Industry Outlook from 2023 to 2033

The Mediterranean submarine communication cable industry is expected to reach US$ 1,655.11 million in 2023. Over the projection period, the submarine communication cable industry is set to exhibit a 10.1% CAGR. It is estimated to reach a value of US$ 5,445.86 million by 2033.

Attributes	Key Insights
Base Value (2022)	US$ 1,498.20 million
Estimated Mediterranean Submarine Communication Cable Industry Size (2023)	US$ 1,655.11 million
Projected Mediterranean Submarine Communication Cable Revenue (2033)	US$ 5,445.86 million
Value-based CAGR (2023 to 2033)	10.1%

Submarine communication cables serve a crucial purpose in society by providing internet connection between countries and continents that are separated by seas and oceans. These submarine cables are the backbone of the internet that is used today.

Submarine cables are set to transmit data using fiber-optic technology, carrying information as light pulses through thin glass strands. This allows for high-speed and high-capacity data transmission, making it possible to transfer vast amounts of information quickly and efficiently.

Renowned over-the-top (OTT) media services and communication providers are spearheading growth. Growth in the installation of data centers across Morocco and Egypt is also driving the submarine cable industry.

Key Factors Driving the Mediterranean Submarine Communication Cable Industry

• Growing reliance on digital communication and data transfer fuels the demand for submarine communication cables in the Mediterranean.
• Governments and private entities are investing heavily in expanding and upgrading submarine cable networks to enhance connectivity & communication capabilities.
• The surge in data traffic, driven by cloud computing, streaming services, and online activities, is a crucial driver for expanding and maintaining submarine communication cables in the Mediterranean.
• The Mediterranean's geopolitical significance drives investments in secure and reliable communication infrastructure, making submarine cables crucial for military, economic, and diplomatic considerations.
• Ongoing advancements in submarine cable technology, including increased data capacity, enhanced reliability, and faster transmission speeds, contribute to the growth of the industry.
• Governments are investing in submarine cables to shield against future espionage.

Challenges in the Mediterranean Submarine Communication Cable Industry

• Huge investments in installation of submarine cables hinder growth
• The Suez Canal acts as a chokepoint for Mediterranean submarine communication cable companies.
• Regional conflicts and geopolitical instability in the Mediterranean region can threaten the security and maintenance of submarine communication cables.
• Complex and rugged undersea terrain in the Mediterranean Sea can present cable installation and maintenance challenges.
• Harsh environmental conditions, such as strong currents, seismic activity, and extreme weather events, can affect the reliability and durability of submarine communication cables.
• Diverse maritime activities, such as fishing, shipping, and resource exploration, can increase the risk of accidental damage to submarine cables.
• Stringent regulatory frameworks and bureaucratic processes related to submarine cable deployment & operations can hinder growth and the timely implementation of cable projects.

Opportunities in the Mediterranean Submarine Communication Cable Industry

• Growing demand for high-speed internet connectivity in the Mediterranean region.
• Increasing investments in offshore energy projects present opportunities for submarine cable infrastructure development in the Mediterranean.
• The rise of smart cities and IoT applications in the Mediterranean requires reliable submarine communication cables to support data transfer and Connectivity.
• Ongoing digital transformation initiatives by Mediterranean countries would foster the demand for advanced submarine cable systems to enhance telecommunications capabilities.
• The strategic location of the Mediterranean Sea makes it a key transit route for international data traffic, offering opportunities for the development of robust submarine communication cable networks.
• Development of new landing points to allow more routes for submarine communication cables.

Mediterranean Submarine Communication Cable Industry Trends

• Rising demand for high-capacity submarine communication cables to support increased data traffic across the Mediterranean region
• Rising investments in advanced submarine cable technologies would enhance connectivity and reduce latency in the Mediterranean.
• Increasing emphasis on security and resilience of submarine communication cables against potential disruptions in the Mediterranean Sea
• Adopting environmentally friendly submarine cable solutions to minimize ecological impact in the Mediterranean
• Collaborative efforts among Mediterranean countries to develop and maintain a robust submarine communication infrastructure for regional connectivity

Historical Mediterranean Submarine Communication Cable Demand Outlook

From 2018 to 2022, the submarine communication cable industry experienced a CAGR of 10.0%, reaching a size of US$ 1,655.11 million in 2023. The demand for submarine communication cables in the Mediterranean region were influenced by several factors from 2018 to 2022. Factors such as the increasing reliance on digital communication, growing data traffic, and internet connectivity expanded the demand for submarine cables to facilitate efficient and high-capacity data transmission.

Undersea Fiber Optic Cables Industry Outlook from 2023 to 2033

The submarine communication cable industry is expected to rise at a decent CAGR of 10.1% from 2023 to 2033. The continued proliferation of digital technologies, deployment of 5G networks, and increasing demand for reliable & high-speed internet connectivity are contributing to a sustained or even heightened need for submarine cable infrastructure.

Geopolitical and economic factors are expected to influence investment in such infrastructure during the forecast period. Additionally, technological advancements and the emergence of new communication protocols are shaping the landscape of submarine cable deployment.

Semi-annual Industry Update

The table presents the expected CAGR for Mediterranean submarine communication cable industry over several semi-annual periods spanning from 2022 to 2033. In the first half (H1) of the decade from 2022 to 2032, the industry is predicted to surge at a CAGR of 10.1%, followed by a slightly higher growth rate of 10.2% in the second half (H2) of the same decade. Moving into the subsequent period, from H1 2023 to H2 2033, the CAGR is projected to surge slightly to 12.4% in the first half and remain relatively moderate at 12.5% in the second half.

Particular	Value CAGR
H1	10.1% (2022 to 2032)
H2	10.2% (2022 to 2032)
H1	12.4% (2023 to 2033)
H2	12.5% (2023 to 2033)

Country-wise Insights

The below table shows the estimated growth rates of key countries in Mediterranean. Among these, Turkiye, Egypt, and Spain are set to record high CAGRs of 14.4%, 13.4%, and 12.6%, respectively, through 2033.

Countries	Value CAGR
Spain	12.6%
Italy	10.3%
Turkiye	14.4%
Egypt	13.4%
Greece	8.5%
Portugal	4.2%

Growing Infrastructure Improvements in Italy Contributing to Economic Expansion

Italy's submarine communication cable industry is expected to surge at a CAGR of 10.3% in the assessment period.

• A combination of strategic economic reforms, surging exports, and ongoing improvements in infrastructure would drive Italy's submarine communication cable industry.
• The nation's commitment to economic reforms has created a favorable industry environment, fostering innovation and investment in the communication technology sector.
• Increased exports indicate a growing demand for Italy's products and services, enhancing its economic outlook.
• The continuous development in infrastructure positions Italy as a key player in the Mediterranean, attracting investments and contributing to the expansion of its regional economic presence.

Growing Investment and Technological Advancements in Spain to Fuel Sales

The submarine communication cable industry in Spain is expected to rise at a CAGR of 12.6% during the forecast period.

• Growing investment signifies a commitment to developing and expanding the nation's communication infrastructure.
• Technological advancements underscore Spain's capacity to adopt cutting-edge solutions, enhancing the efficiency and reliability of its submarine communication networks.
• The strategic geographical position of Spain further amplifies its role as a pivotal player, strategically connecting diverse regions in the Mediterranean.

Increasing Demand for High-speed Connectivity to Uplift Industry in France

The submarine communication cable industry in France is estimated to expand at a CAGR of 10.9% through 2033.

• France's robust growth in the Mediterranean submarine communication cable industry is fueled by a surging demand for high-speed connectivity, reflecting the nation's commitment to meet evolving communication needs.
• The country’s government is pivotal in driving this growth by strategically investing in submarine communication cables, providing financial support, and fostering an environment conducive to technological advancements.

Ongoing Infrastructure Development Initiatives in Turkiye to Propel Demand

Turkiye is estimated to surge at a CAGR of 14.4% during the forecast period.

• The ongoing infrastructure development initiatives and surging demand for increased data transmission capacity are driving the Turkiye industry.
• The country's proactive approach to enhancing its underwater communication infrastructure aligns with the escalating need for efficient and high-capacity data transmission.

Through strategic investments and forward-looking initiatives, Turkiye is positioning itself as a key player, meeting the growing demands of modern communication and contributing to the overall advancement of the industry.

Category-wise Insights

The below section highlights the projected CAGR of key segments, including cable type and installation:

• Demand for optical fiber cable is projected to surge at a CAGR of 10.1% through 2033.
• The new installations segment is predicted to register a CAGR of 10.8% between 2023 and 2033.

Segment	Value CAGR
New Installations (Installation)	10.8%
Optical Fiber Cables (Cable Type)	10.1%

Unparalleled Ability of Optical Fiber Cables to Skyrocket Their Popularity

Optical fiber cables are the predominant choice in the Mediterranean submarine communication cable industry, primarily owing to their unparalleled ability to deliver high bandwidth. This capability addresses the escalating demand for enhanced regional data transmission capacity.

As the Mediterranean continues to play a vital role in global communication networks, optical fiber cables emerge as the technological backbone, ensuring the swift and reliable transfer of vast data volumes.

The dominance underscores the pivotal role of optical fiber cables in meeting the evolving communication needs of the Mediterranean and fostering a robust & resilient underwater network. Due to these factors, the optical fiber cable segment is estimated to surge at a CAGR of 10.1% by 2033.

New Installations to Gain Momentum in the Industry

The imperative to replace outdated infrastructure and upgrade existing submarine cables to align with modern standards is a driving force behind the increasing trend of new installations in the industry. As technology evolves and communication demand surges, there is a pressing need to revitalize the existing underwater infrastructure to ensure it meets contemporary requirements.

The proactive approach enhances the reliability & efficiency of data transmission and positions the Mediterranean region at the forefront of cutting-edge communication networks. The ongoing efforts to upgrade submarine cables underscore a commitment to maintaining a future-ready underwater communication infrastructure that aligns with the dynamic needs of the digital age. These would allow the new installations of the submarine communication cables segment to expand at a CAGR of 10.8% over the forecast period.

Competitive Landscape

Key players are focusing on providing tailored submarine communication cable solutions to meet the specific needs of their clients. This approach allows companies to have data infrastructure that aligns perfectly with their requirements, ensuring efficiency and cost-effectiveness.

Network expansion is another vital strategy, as key players extend their submarine cable networks across continents, establishing a comprehensive and interconnected infrastructure. Continuous investment in submarine cable infrastructure remains a focal point, ensuring these companies possess state-of-the-art networks that meet the escalating demand for high-speed and reliable communication services in the Mediterranean.

Key Strategies Adopted by Key Players

• Product Innovation

Companies are investing in research & development to create cutting-edge submarine communication cable solutions that offer improved efficiency, security, and scalability. They constantly evolve their offerings to meet the changing needs of companies in the Mediterranean, incorporating technologies such as AI, cloud integration, and sustainable energy solutions.

• Strategic Partnerships and Collaborations

Companies form strategic partnerships and collaborations with other technology companies, cloud service providers, and local companies. These alliances allow them to leverage each other's strengths and provide comprehensive solutions to customers.

• Expansion

The Mediterranean submarine communication cable industry is growing, and vendors often expand into emerging regional sectors. This diversification allows them to tap into new customer bases and support companies with submarine communication cable services in emerging economies.

• Mergers and Acquisitions

Companies in the submarine communication cable industry are implementing mergers and acquisitions to expand their offerings and acquire new technologies and customer bases. Vendors acquire smaller submarine communication cable companies to expand their presence or merge with competitors to consolidate their position. These strategic moves help vendors gain a larger industry share and access new capabilities.

Key Developments

• In 2020, Tata Communications announced that the Asia Direct Cable (ADC) Consortium, which is a member, is building a high-performance submarine cable connecting China (Hong Kong SAR and Guangdong Province), Japan, the Philippines, Singapore, Thailand, and Vietnam.
• In April 2023, Prysmian Group launched the first optical cable to address the telecom sector's greener expectations.
• In January 2022, NKT acquired Ventcroft Ltd, specializing in fire-resistant building wires and low-voltage power cables.

Scope of the Report

Attribute	Details
Estimated Value (2023)	US$ 1,655.11 million
Projected Value (2033)	US$ 5,445.86 million
Anticipated Growth Rate (2023 to 2033)	10.1%
Historical Data	2018 to 2022
Forecast Period	2023 to 2033
Quantitative Units	Value (US$ million) and Volume (million tons)
Report Coverage	Revenue Forecast, Volume Forecast, Company Ranking, Competitive Landscape, Growth Factors, Trends, and Pricing Analysis
Segments Covered	Cable Type, Installation, Application, Region
Key Countries Covered	France, Spain, Italy, Greece, Morocco, Turkiye, Egypt, Portugal, Rest of Mediterranean Countries
Key Companies Profiled	Medusa Submarine Cable System; Telecom Italia Sparkle; Telecom Egypt; Elettra Tlc; AFR-IX Telecom; Unitirreno; Tata Communications; Altice Portugal; Orange; Aqua Comms

Segment Analysis of the Mediterranean Submarine Communication Cable Industry

By Cable Type:

• Optical Fiber Cable
  • Light Weight (LW)
  • Light Weight Protection (LWP)
  • Light Weight Armour (LWA)
  • Single Armour (SA)
  • Double Armour (DA)
• Power Cables
  • MVAC Submarine Cable
  • HVAC Submarine Cable
  • HVDC Submarine Cable
• Subsea Umbilical Cables
• Subsea Composite Cables
• Other

By Installation:

• New Installations
• Upgradations / Retrofit

By Application:

• Telecommunication
• Oil and Gas
• Power Transmission
• Military and Defense
• Renewable Energy
• Others

By Mediterranean Countries:

• France
• Spain
• Italy
• Greece
• Morocco
• Turkiye
• Egypt
• Portugal
• Rest of Mediterranean Countries

Frequently Asked Questions

How big is the submarine communication cable industry in Mediterranean?

The industry is set to reach US$ 1,655.11 million in 2023.

What is the forecast for the submarine communication cable industry?

Demand in the Mediterranean is slated to expand at a 13.4% CAGR through 2033.

What is the outlook for the submarine communication cable industry in Mediterranean?

The target industry is set to reach US$ 5,445.86 million in 2033.

What was the historical CAGR of the target industry?

The industry exhibited a 10.0% CAGR from 2018 to 2022.

Which application will garner significant value share by 2023?

The telecommunication segment is expected to garner a significant value share by 2023.

Who are the key players in submarine communication cable industry?

Orange, Telecom Italia Sparkle, and Telecom Egypt are the key players.