Submarine Optical Fiber Cables Market

Submarine Optical Fiber Cables Market Outlook (2023 to 2033)

The global submarine optical fiber cables market size is expected to surface with a staggering value of US$ 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 US$ 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:

• Increasing demand for high-speed internet and data transmission as well as investments in offshore renewable energy projects
• Expansion of telecommunication networks and the need for intercontinental connectivity
• Growing internet usage in offshore oil gas and offshore wind power sector is creating demand for fiber optic cable under the ocean
• Increased data consumption from mobile users coupled with the use of networking sites
• Increasing adoption of cloud-based backup services and storage along with the growing need for reliable and secure communication systems
• Growing international trade and the need for efficient communication networks
• The need for technology and information exchange among countries is creating demand for internet cables under the ocean
• High-speed data delivery over bandwidth is increasing the adoption of submarine fiber optic cable network
• The adoption of optoelectronic devices is making it easier and more reliable to monitor submarine optical fiber cable systems
• These cables allow for the detection of acoustic frequency strain signals over large distances and in harsh environments

Challenges for Market Players in the Submarine Optical Fiber Cables Industry:

• Technical challenges associated with long-distance and deep-sea fiber optic cable installations
• Submarine cables are vulnerable to natural disasters and human interference
• Submarine optical fiber cables installation and maintenance expenses are extremely high
• Submarine cables require periodic maintenance to ensure their safety and longevity which is costly
• Inadequate internet infrastructure persists in numerous regions across the globe
• Limited availability of skilled professionals for installation and repair of submarine power cables
• Dependence on government regulations and approvals for laying cables in certain areas
• Geopolitical tensions and security concerns in certain regions impacting the development of submarine cable projects

2023 to 2033 Submarine Optical Fiber Cables Demand Outlook in Comparison to Sales Registered from 2018 to 2022

The submarine optical fiber cables market share was US$ 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.

Submarine Optical Fiber Cables Market Key Trends & Opportunities

• Growing adoption of fiber optic sensing technology in submarine cables for oil and gas exploration
• Increasing investment in offshore wind farms, wind power generation, and other renewable energy projects
• Rising demand for high-capacity communications systems and high-voltage direct current submarine power cables
• Increased deployment of submarine cables for scientific research and monitoring of the ocean environment
• The popularity of 5G networks along with the need for high-speed and high-capacity submarine cables to support these networks
• A growing interest in building more diverse and resilient submarine cable networks to improve reliability
• Rising interest in developing new trade routes and connectivity between different countries

Sudip Saha

Principal Consultant

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Exploring the Regional Patterns of the Submarine Optical Fiber Cables Market: An In-depth Examination at the Country Level

Telecom Giants in North America Collaborate to Expand Submarine Fiber Optic Networks

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.

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.

Asia Pacific Embraces Undersea Fiber Optic Cables for Enhanced Communication Networks

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.

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.

Investments in Submarine Fiber Optic Cable Infrastructure Soar in Europe

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 US$ 1 billion Equiano cable, which connects Western Europe to South Africa.

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.

Exploring the Submarine Optical Fiber Cables Market: An In-depth Segment Analysis

Dominant Role of Single-Mode Segment in the Submarine Optical Fiber Cables Industry

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 Segment Takes Center Stage in the Submarine Optical Fiber Cables Sector

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 Cables Market: Analyzing Key Players, Strategies, and Market Share in the Global Landscape

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

• ABB Ltd.
• Bharti Airtel Ltd.
• Corning, Inc.
• Ciena Corporation
• Amphenol Corporation

Recent Developments by Key Market Players

• In March 2023, Asia Submarine-Cable Express (ASE) partnered with Ciena to improve the design capabilities and sustainability of its cable infrastructure. As part of this collaboration, the ASE cable incorporates a domain controller and utilizes Ciena's 6500 Packet-Optical Platforms in the SLTE (Submarine Line Terminal Equipment) configuration.
• In December 2022, Bharti Airtel revealed to collaborate with Facebook parent Meta to collaboratively invest in the 2Africa Pearls underwater cable and other global connectivity projects.
• In March 2020, Corning Incorporated introduced a range of new developments to expand its portfolio of smaller, denser long-haul fiber and cable products. One of these advances was the world's first submarine and terrestrial long-haul fibers, which have a diameter of just 200 microns.
• In March 2017, ABB completed the divestment of its high-voltage cables and cable accessories businesses. The divestment was made to NKT Cables. This transaction led to the establishment of a prominent power cable company.

How can Submarine Optical Fiber Cables Market Players Grow Their Businesses?

• Expand into new markets and regions to increase coverage
• Invest in infrastructure and technology upgrades for improved performance
• Broaden service offerings to cater to diverse customer needs
• Establish strategic partnerships to leverage expertise and resources
• Drive innovation by developing cutting-edge solutions
• Prioritize exceptional customer support and service
• Collaborate in consortium projects to enhance network capabilities
• Stay up-to-date on market trends and adapt accordingly
• Emphasize sustainability practices to align with environmental concerns
• Allocate resources to strengthen cybersecurity measures

Submarine Optical Fiber Cables Market Segmentation

By Type:

• Single-mode
• Multi-mode

By Application:

• Communication
• Oil & Gas
• Defense
• Scientific Research

By Region:

• North America
• Latin America
• Europe
• Asia Pacific
• The Middle East and Africa(MEA)