Submarine cable systems Global Market Report 2024

The submarine cable systems market size has grown rapidly in recent years. It will grow from $18.28 billion in 2023 to $20.54 billion in 2024 at a compound annual growth rate (CAGR) of 12.3%. The growth observed in the historic period can be attributed to various factors including the rising demand for global connectivity, substantial growth in international trade, continuous development of telecommunication infrastructure, increasing requirements for energy transmission, and the expansion of data centers to accommodate growing digital needs. These elements collectively contributed to the growth and evolution observed within relevant industries or sectors during that period.

The submarine cable systems market size is expected to see rapid growth in the next few years. It will grow to $33.29 billion in 2028 at a compound annual growth rate (CAGR) of 12.8%. The anticipated growth in the forecast period can be linked to several factors, such as the growing connectivity demands in emerging markets, increased integration of renewable energy sources, the deployment of 5G networks, ongoing digitalization trends, and the expansion of telemedicine services.

The escalating number of telecom and internet subscriptions is a key catalyst for the submarine cable system market. These undersea cable systems, employing optical fiber technology, efficiently transmit telecommunication signals, aligning with the surge in smartphone utility and internet subscriptions. Notably, in India alone, broadband Internet subscribers increased from 747.41 million in 2020 to 778.09 million in 2021. This trend indicates a substantial rise in telecom and internet subscriptions, driving the growth trajectory of the submarine cable system market.

The burgeoning international trade landscape is expected to drive the submarine cable systems market, facilitating seamless global communication and data exchange. The United Nations Conference on Trade and Development reported a historic $28.5 trillion global trade value in 2021, marking a substantial 25% growth from 2020 and a noteworthy 13% surge compared to pre-COVID-19 levels. This surge highlights the pivotal role of submarine cable systems in supporting international trade, indicating a significant growth trajectory for this market.

Strategic partnerships and technological advancements characterize the submarine cable system market. Companies are increasingly forming partnerships to develop innovative technologies and products. A notable collaboration occurred in 2021 between Italy's Sparkle, a communication solutions company, and US-based Google Cloud. They collaborated to construct two new undersea cable systems, bolstering communication routes across Europe, Africa, the Middle East, and South Asia. These cable systems feature 16 fiber optic pairs, supporting multiple tenants and an open landing station, enhancing access to cable termination points.

Major companies are dedicated to developing advanced undersea cable networks to expand international connectivity and gain a competitive edge. These networks, laid across ocean floors, facilitate high-speed data transmission for telecommunications and internet connectivity between continents. In October 2022, Ooredoo Tunisia, in partnership with PCCW Global, launched the PEACE Subsea Cable System, spanning 15,000 kilometers. This high-speed network aims to meet the surging demand for high-capacity, low-latency data connectivity in Tunisia.

In 2021, Digital9 Infrastructure, a UK-based company specializing in digital infrastructure investment, successfully acquired Aqua Comms for $215 million. This acquisition notably enhances Digital9 Infrastructure's investment portfolio, particularly in digital infrastructure assets, including subsea cable systems. Aqua Comms, headquartered in Dublin, is a prominent player in the subsea cable network space.

Major companies operating in the submarine cable systems market report are Amazon.com Inc., Alphabet Inc., Microsoft Corporation, Sumitomo Electric Industries Ltd., Fujitsu Limited, Saudi Ericsson Communications Company Ltd., NEC Corporation, Hengtong Group Co. Ltd., TE Connectivity Ltd., Corning Incorporated, Prysmian SpA, Nexans S.A., Leoni Special Cables GmbH, NKT A/S, Apar Industries Ltd., Cablel Group Ltd., Tele-fonika Kable S.A., Hexatronic Cables & Interconnect Systems AB, SubCom LLC, The Okonite Company Inc., LS Cable & System Ltd., ZTT International Ltd., Alcatel Submarine Networks Company, JDR Cable Systems Ltd., Huawei Marine Networks Co. Ltd., Xtera Communications Inc., Hesfibel SA, Norddeutsche Seekabelwerke GmbH, Amphenol Fiber Systems International, Elettra Communications Ltd., Kokusai Cable Ship Co. Ltd., Global Marine Group Ltd., Orange S.A., PCCW Global Ltd., Aqua Comms Limited, Seaborn Networks LLC, Hawaiki Submarine Cable LP, Southern Cross Cable Network Ltd., MainOne Cable Company Limited, Angola Cables SA.

Asia-Pacific was the largest region in the submarine cable systems market share in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the submarine cable systems market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the submarine cable systems market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Global submarine cable systems primarily comprise wet plant and dry plant products. Wet plant products encompass a range of items and services associated with managing and sustaining underwater facilities, data centers, and submarine networks. This includes multicore and single-core systems categorized by voltage classes such as high and medium voltage. These systems find applications in communication cables, power cables, and are utilized in offshore wind power generation, inter-country and island connections, as well as offshore oil and gas operations.

The submarine cable system market research report is one of a series of new reports that provides submarine cable system market statistics, including submarine cable system industry global market size, regional shares, competitors with a submarine cable system market share, detailed submarine cable system market segments, market trends, and opportunities, and any further data you may need to thrive in the submarine cable system industry. This submarine cable system market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The submarine cable system market consists of sales of multicore fiber and single-core fiber. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.