The global submarine optical fiber cables market size is expected to surface with a staggering value of USD 20.6 billion in 2023. As the demand for high-speed internet continues to surge. Diving deep into the future, FMI forecasts a tidal wave of growth, with market revenue projected to surge beyond USD 67.8 billion by 2033. This remarkable growth is expected to make waves with a CAGR of 12.6%, creating a flow of opportunities for market players.
Key Drivers Boosting the Demand for Key Drivers Boosting the Demand for Submarine Optical Fiber Cables:
Challenges for Market Players in the Submarine Optical Fiber Cables Industry:
| Attribute | Details |
|---|---|
| Current Year Value (2023) | USD 20.6 billion |
| Expected Forecast Value (2033) | USD 67.8 billion |
| Projected CAGR (2023 to 2033) | 12.6% |
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The submarine optical fiber cables market share was USD 18.2 billion between 2018 and 2022, where it exhibited a CAGR of 14.0%. During this period, various telecom operators, internet service providers, and technology companies invested in their submarine cable network expansion to meet the increasing demand for data transmission. Numerous new submarine cable systems were deployed during this period to establish better connectivity between continents and regions.
Emerging markets could be the next frontier for strengthening the cable network as internet access becomes more prevalent in developing regions. This trend has led many companies, to view the undersea optical fiber cables market as a promising opportunity. As a result, the market is anticipated to have promising prospects between 2023 and 2033, when it is anticipated to grow by 3.3X.
The globalization of businesses and the digital economy is increasing. As a result, there is projected to be a demand for more intercontinental connectivity. Submarine cables are the backbone of international data transfer. As emerging markets and regions become more connected, the demand for new submarine cable routes is expected to rise. In addition, content distribution and streaming partners are boosting their investments to open up a wealth of prospects
Fiber optic underwater cables provide reliable and high-bandwidth communication channels for various industries, including offshore oil and gas, scientific research, and telecommunications. Armored optical fiber cables, including single-armored optical and double-armored optical variants, offer enhanced protection against external threats and mechanical stress in underwater environments. These factors are likely to open up opportunities for submarine cable system market players.
Many developing countries are witnessing a surge in internet adoption. Many locations across the world are introducing 5G networks. These networks offer faster speeds, lower latency, and better capacity compared to previous generations. Submarine optical fiber cables are likely to play a critical role in connecting 5G base stations and supporting the backhaul of data traffic. Several internet operators are expected to invest in the underwater optical fiber cables market.
| Countries | Projected Market Value (2033) |
|---|---|
| United States | USD 13.7 billion |
| United Kingdom | USD 2.5 billion |
| China | USD 14.8 billion |
| Japan | USD 11.5 billion |
| South Korea | USD 3.6 billion |
Optical fiber submarine cables are the lifeline of communication across North America. This helps in establishing the interconnection of continents and supporting international data exchange. In December 2019, Nexan, Eversource, and Ørsted entered into an agreement. The agreement focuses on the development of North American offshore wind farms. The collaboration intends to supply up to 1,000 kilometers of subsea high-voltage export cables.
| Attribute | Details |
|---|---|
| Country | United States |
| Historical CAGR (2018 to 2022) | 13.9% |
| Forecasted CAGR (2023 to 2033) | 12.5% |
The United States is a key player in North America given its vast coastlines and extensive offshore communication requirements. The United States submarine optical fiber cables market has witnessed significant growth lately. The demand for higher data speeds and lower latency is driving the deployment of advanced submarine cable systems in the country.
Leading corporations are deploying ocean fiber optic cables to connect continents and facilitate global communication networks beneath the ocean's surface. Google announced the successful deployment and testing of the Dunant submarine cable system in February 2021. This method effectively broadens Google's global footprint by linking Saint-Hilaire-de-Riez on the French Atlantic coast with Virginia Beach in the United States.
The Asia Pacific region contributes to around half of all global internet traffic. This has fueled the demand for submarine (undersea) optical fiber cables. In March 2021, Google, Facebook, and Pacific Light Data Communication (PLDC) put forward a revised plan to link North America and Asia Pacific through six additional transoceanic cables. Facebook reported that these new cables could raise subsea capacity in the Pacific region by about 70% while granting internet access to locations that previously lacked connectivity.
| Country | China |
|---|---|
| Historical CAGR (2018 to 2022) | 13.8% |
| Forecasted CAGR (2023 to 2033) | 12.3% |
| Country | Japan |
|---|---|
| Historical CAGR (2018 to 2022) | 13.4% |
| Forecasted CAGR (2023 to 2033) | 12.5% |
| Country | South Korea |
|---|---|
| Historical CAGR (2018 to 2022) | 11.7% |
| Forecasted CAGR (2023 to 2033) | 12.3% |
The China submarine optical fiber cables market is anticipated to experience significant growth during the forecast period. The government initiatives to increase internet penetration in the country and the increasing investment in the telecommunication industry are key factors driving the market growth. The ‘Internet Plus’ initiative promotes the integration of the Internet with traditional industries. This is likely to surge the demand for underwater optical fiber cables in China.
Several market players are adopting different strategies to expand their market share and increase their product portfolio. China Mobile Internatnal Limited and China Unicom Global announced their renewed partnership in May 2022. This collaboration on the construction and operation of the South East Asia Hainan - Hong Kong Express Cable System (SEA-H2X). This upcoming submarine cable system aims to establish connectivity between multiple regions, including Hong Kong SAR China, Hainan China, Philippines, Thailand, East Malaysia, and Singapore.
Since Japan is highly focused on technology, it has seen a rise in internet usage. The country has a well-developed submarine optical fiber cables infrastructure, with an extensive network of cables connecting the country to various international destinations. The Japan submarine optical fiber cables market is primarily driven by the need to cater to the rising bandwidth requirements of enterprises and consumers. Natural catastrophes like earthquakes and tsunamis are also common in Japan.
The government has focused on enhancing the resilience of submarine cable infrastructure to ensure uninterrupted connectivity during and after such events. Japan has engaged in partnerships and collaborations with other countries to enhance submarine cable connectivity. For instance, Seren Juno Network Co. Ltd was jointly established in July 2022 by NTT Ltd Japan Corporation, JA Mitsui Leasing Ltd., Mitsui & Co. Ltd., and PC Landing Corp. It was formed to build and run JUNO, the recent submarine cable system that is going to link Japan and the United States.
The South Korea submarine optical fiber cables market has been experiencing significant growth given the proliferation of data centers and the rising adoption of cloud-based services. South Korea has been at the forefront of 5G adoption which is likely to upsurge the submarine optical fiber cable sales. South Korea has been also investing in offshore wind farms.
This necessitates submarine optical fiber cable application for efficient communication and power transmission. Key players in the country are focusing to increase their global footprint by constructing new projects. For instance, in February 2022, the South Korean telecommunications company KT Corporation declared a new 9,000-kilometer underwater cable project. The project aims to cover six nations in East Asia and Southeast Asia. KT is going to participate in the endeavor as both an owner and operator.
Marine fiber cables are gaining traction in Europe to establish undersea communication infrastructure as well as facilitate seamless connectivity between coastal regions and offshore facilities. In September 2022, after it arrived in Cape Town last month, Google opened its USD 1 billion Equiano cable, which connects Western Europe to South Africa.
| Attribute | Details |
|---|---|
| Country | United Kingdom |
| Historical CAGR (2018 to 2022) | 13.7% |
| Forecasted CAGR (2023 to 2033) | 12.2% |
The United Kingdom submarine optical fiber cables market is expected to grow significantly given the increasing demand for high-speed internet connectivity. The country has the maximum internet penetration rates in Europe. The offshore renewable energy projects are rising in the country since it has a vast offshore wind capacity. The government is targeting to achieve net-zero carbon emissions by 2050.
These factors are expected to boost the demand for submarine optical fiber cables in the renewable energy sector. Market players are focusing on strategic partnerships and collaborations to expand their presence in the market. For instance, a four-year charter deal for an optical underwater cable-laying ship was struck by NEC Corporation and Global Marine Systems Limited in the United Kingdom in October 2022. As a result of this agreement, NEC is going to be more prepared to meet the rising demand for underwater cables as the volume of data transmission throughout the world grows.
| Segment | Type |
|---|---|
| Top Sub-segment | Single-mode |
| Historical CAGR (2018 to 2022) | 13.5% |
| Forecasted CAGR (2023 to 2033) | 12.4% |
| Segment | Application |
|---|---|
| Top Sub-segment | Communication |
| Historical CAGR (2018 to 2022) | 13.8%% |
| Forecasted CAGR (2023 to 2033) | 12.2% |
Single-mode fibers have a smaller core size than multi-mode fibers. This allows greater signal transmission over long distances which is ideal for submarine communications. This type of fiber also provides a higher bandwidth capacity. They can also carry more data than multi-mode fibers which is particularly important for submarine communications.
These fibers also experience lower signal loss. Single-mode fiber technology is widely adopted as the standard for long-haul submarine communications in the submarine cable industry. This standardization has created a strong ecosystem of equipment, components, and expertise specifically tailored for single-mode fiber systems. As a result, the dominance of single-mode fibers in the market is further reinforced.
Communication dominates the submarine cable market since the demand for connectivity has increased steadily over the years. Submarine cables provide the backbone for international communication networks. Supporting diverse communication services requires the use of submarine cables. To connect continents, submarine cables are essential.
They enable seamless global communication and facilitate information exchange across borders. Submarine cables provide long-term economic benefits. Submarine cables offer a stable and reliable communication infrastructure. Telecommunication companies and infrastructure developers find them attractive investments. Submarine cables are becoming increasingly significant since the world is becoming more interconnected. They enable seamless communication across continents.
Submarine optical fiber cable companies are investing in advanced technologies to enhance the transmission capacity and reliability of undersea network cables. They leverage their expertise to manufacture high-quality cables capable of withstanding harsh underwater conditions.
Key players often collaborate with other industry stakeholders, including telecommunications companies, internet service providers, and government organizations. Partnerships enable them to share resources, expertise, and market knowledge. This leads to the successful implementation of large-scale submarine cable projects.
Market players actively participate in global submarine cable projects by offering their services as cable system suppliers, installers, or maintenance providers. They also provide ongoing maintenance and repair services for submarine cable systems. This includes regular inspections, fault detection, and timely repairs to ensure uninterrupted data transmission.
With the increasing demand for reliable connectivity in emerging markets, key players focus on expanding their presence in these regions. Likewise, they continuously explore innovative technologies to enhance the capacity and performance of submarine cable systems.
Key Players
Recent Developments by Key Market Players
Rising demand for high speed internet witnessing higher growth in Asia Pacific.
The growing need for intercontinental connectivity in the United Kingdom.
Rising international trade has necessitated submarine optical fiber cable.
The United States held a maximum share of the global market in 2023.
North America region to witness a higher CAGR through 2033.
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Submarine Optical Fiber Cables Market
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