- Summary
- Table Of Content
- Methodology
Submarine Optical Fiber Cable Market Size :
Submarine Optical Fiber Cable Market size is estimated to reach over USD 53,082.13 Million by 2030 from a value of USD 19,214.71 Million in 2022, growing at a CAGR of 13.8% from 2023 to 2030.
Submarine Optical Fiber Cable Market Scope & Overview:
Submarine optical fiber cables, also known as subsea cables, are specialized cables that are laid underwater to enable the transmission of data across long distances between continents or islands. They play an important role in the international telecommunication infrastructure facilitating global connectivity and communication.
Submarine Optical Fiber Cable Market Insights :
Submarine Optical Fiber Cable Market Dynamics - (DRO) :
Key Drivers :
Growing demand for high-speed internet
The growing global reliance on digital connectivity is resulting in the increased need for high-speed internet connectivity. Submarine optical fiber cable plays a crucial role by providing the necessary infrastructure required for high-capacity & low-latency data transfer. Further, the need for seamless connectivity has surged due to the interconnected nature of businesses, organizations, and individuals worldwide. The optical fiber network is the primary means of data transfer and information exchange. For instance, in September 2022, the World Economic Forum published a report according to which, in 2021, 70% of homes in the European Union had high-speed internet connections compared to 13% in 2016.
In addition, the increased need for high-speed connectivity for data clouds and cloud computing is further driving the market. These cables are essential for interconnecting data centers and facilitating the transfer of vast amounts of data. The cables ensure efficient data transmission, low latency, and high reliability which in turn drives the global submarine optical fiber cable market growth.
Increasing government initiatives and investment in digitalization
Governments around the world are increasing investment in digitalization to boost economic growth and improve connectivity. Many governments have implemented national broadband plans aimed at expanding high-speed internet to promote digital inclusion. For instance, in August 2020, the Government of India inaugurated a submarine optical fiber network between Chennai and Andaman Nicobar Islands. The project was launched by the government to improve digital connectivity in the country.
Further governments are actively promoting digital transformation across various sectors including healthcare, education, transportation, and public services among others. Submarine optical fiber cables are vital for seamless data exchange and communication in the aforementioned sectors. Thus, considering the overall trend drives the submarine optical fiber cable market demand.
Key Restraints :
High installation and maintenance cost
The installation and maintenance of submarine cables involve complex processes and substantial investment. The installation of submarine optical fiber involves processes including marine surveys, cable lying, burial & plowing, and connection to land-based networks. Further, submarine cables are exposed to various risks including anchor damage, geological events, and natural disasters. The protection of the cables from the aforementioned trends requires additional investment in protective measures such as burying the cables or using heavy armoring.
Additionally, maintaining and repairing submarine cables is a challenging and costly endeavor. The maintenance of cables requires specialized vessels equipped with equipment & tools resulting in a further rise in the maintenance cost. Therefore, the high cost associated with the installation and maintenance of submarine optical fiber is limiting the market growth.
Future Opportunities :
Growing trend of deployment of 5G networks
The growing need for high-speed internet connectivity is resulting in the increased deployment of 5G networks. The network provides significant data speed enabling high-definition video streaming and seamless real-time gaming. Also, the growing trend for enhanced speed and capacity supports the increasing need for data-intensive applications and services. For instance, according to the International Trade Administration, NTT DOCOMO, one of the key telecom providers in Japan launched 5G services in March 2020. Further, the company plans to invest up to USD 7 billion by 2025 to expand the 5G network in the country. Additionally, according to Fitch Research, 4G subscriptions will start reducing in Japan and by 2026 the 5G technology will become dominant, and 5G subscriptions are expected to reach 151 million by 2029.
Moreover, the 5G networks provide less latency resulting in reduced time for information to travel which in turn results in the increased need for 5G networks. Thus, the growing need for high-speed connectivity and low latency is resulting in the growing deployment of 5G networks which in turn promotes submarine optical fiber cable market opportunities.
Submarine Optical Fiber Cable Market Report Insights :
| Report Attributes | Report Details |
| Study Timeline | 2017-2030 |
| Market Size in 2030 | USD 53,082.13 Million |
| CAGR (2023-2030) | 13.8% |
| By Type | Deep Sea Fiber Optic Cable and Shallow Sea Fiber Optic Cable |
| By Product Type | Single Core and Multicore |
| By Component | Wet Plant Products and Dry Plant Products |
| By Offering | Installation & Commissioning, Maintenance, and Upgradation |
| By End-User | Communication, Oil & Gas, Others |
| By Region | North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa |
| Key Players | Fujitsu Limited, NEC Corporation, Ciena Corporation, ABB Ltd., SubCom, Xtera, Alcatel-Lucent Submarine Networks SAS, Cable & Wireless Communications Ltd., NTT World Engineering Marine Corporation, S. B. Submarine Systems Co., Ltd., Seaborn Networks LLC |
Submarine Optical Fiber Cable Market Segmental Analysis :
By Type :
The type segment is bifurcated into deep sea fiber optic cable and shallow sea fiber optic cable. The deep-sea fiber optic cable segment accounted for the largest market share in 2022 and is expected to witness the highest CAGR during the forecast period. The increasing requirement for deep sea fiber optic cables is for transmitting data over large distances. The cables are designed to span vast distances connecting continents and islands. Further, the analysis shows that the deep-sea fiber optic cable has a higher capacity and bandwidth. The cables are designed to handle large volumes of data traffic that is essential for communication.
By Product Type :
The product type segment is bifurcated into single-core and multicore. The multicore segment accounted for the largest market share in 2022 and is anticipated to grow at the fastest CAGR during the forecast period. The use of multicore fiber optic cable is increasing due to the growing need for higher bandwidth. Further, the multicore cables allow parallel data transmission resulting in higher data rates and supporting the increasing data traffic requirements. Thus, analysis depicts that the capability of multicore cables to transmit multiple signals or data streams is driving the market.
By Component :
The product type segment is bifurcated into wet plant products and dry plant products. The wet plant products segment accounted for the largest market share in 2022 and is forecasted to grow at the highest CAGR. The growing need for wet plant products owing to the advantages including seawater resistance, durability, and flexibility is driving the market. The submarine's optic fiber cables are exposed to the harsh environment of the sea which can be corrosive. The wet plant products are designed in a way that cable offers excellent protection against water penetration which in turn improves the corrosive resistance. Thus, the analysis concludes that the aforementioned are expected to promote submarine optical fiber cable market demand.
By Offering :
The Offering segment is classified into installation & commissioning, maintenance, and upgradation. The installation & commissioning segment accounted for the largest market in 2022 of the total submarine optical fiber cable market share owing to the exponential rise in internet traffic. The Internet traffic is driven by the increased number of connected devices, cloud computing, video streaming, and digital services among others. The installation of new submarine cables helps meet the growing need for bandwidth and ensures efficient data transfer across the globe. In addition, submarine fiber optic cables are vital for supporting the economic growth and development of a country. For instance, in October 2021, NEC Corporation got a contract for laying a subsea fiber cable network in India between Kochi-Lakshadweep. Thus, analysis portrays that the increasing installation & commissioning activities around the world are expected to drive the industry.
By End-User :
The end-user segment is classified into communication, oil & gas, and others. The communication segment accounts for the largest market share in 2022 and is likely to grow with the highest CAGR. The several factors driving the demand for optic fiber cable in communication include increasing bandwidth requirements, global connectivity, a growing number of data centers, and government initiatives among others. The need for global connectivity is growing as individuals and organizations around the world are becoming more interconnected. The submarine fiber optic cable provides infrastructure for high-speed communication between different countries. In addition, the rising trend in the adoption of cloud services and the establishment of data centers around the world are resulting in an increased need for these cables. For instance, in May 2022, Telstra announced the first direct subsea cable to connect Australia with the US. The subsea connectivity between Asia Pacific and the US is expected to meet the growing demand for high-speed data communication in the region. Thus, the analysis depicts that the aforementioned factors drive the submarine optical fiber cable market trends and opportunities.
By Region :
The regional segment includes North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
North America accounted for the largest revenue share in the year 2022 valued at USD 6,319.72 Million and is projected to grow at a CAGR of 13.9% during the forecast period. The growth is attributed to the increasing internet usage in the region for a wide range of applications including digital devices, online services, and streaming platforms among others. Further, people rely on the Internet for various activities including communication, entertainment, education, and e-commerce among others. Consequently, the rising demand from data centers for efficient transfer of data is primarily responsible for boosting the submarine fiber optic cable market opportunities in the region. For instance, in August 2022, according to Cushman and Wakefield, the Northern Virginia region was the largest data center market that needed high-speed internet connectivity for operation. The surge in data centers is contributing considerably to propelling the industry in North America.
Asia Pacific accounted for USD 4,590.39 Million in 2022 and is anticipated to witness the fastest CAGR of 14.1% in the submarine optical fiber cable market during the forecast period. In addition, in the region, China accounted for the maximum revenue share of 27.1% in the year 2022. This is attributed to the increasing trend of economic growth and digitalization in the region. The Asia Pacific region is home to a large and rapidly growing middle-class segment which is resulting in an increased demand for internet usage. Further, submarine optical fiber cable market analysis shows that the growing penetration of the internet in rural areas and the increasing adoption of smartphones are driving the submarine optical fiber cable market trend.
Top Key Players & Market Share Insights:
The competitive landscape of the submarine optical fiber cable market has been analyzed in the report, along with the detailed profiles of the major players operating in the industry. Further, the surge in Research and Development (R&D), market analysis, product innovation, various business strategies, and application launches have accelerated the submarine optical fiber cable market growth. Key players in the submarine optical fiber cable industry include-
- Fujitsu Limited
- NEC Corporation
- Ciena Corporation
- ABB Ltd.
- SubCom
- Xtera
- Alcatel-Lucent Submarine Networks SAS
- Cable & Wireless Communications Ltd.
- NTT World Engineering Marine Corporation
- S. B. Submarine Systems Co., Ltd.
- Seaborn Networks LLC
Recent Industry Developments :
- In July 2022, NEC Corporation launched a high-capacity multi-core optical transmission system. The multi-core fiber cable has a high demand which is expected to boost the company's market presence.
- In October 2021, Xtera and GCS Pte. Ltd. launched the construction of the Galapagos Cable System. The cable system has a design capacity of 20 terabits per second and the state-of-the-art submarine system is expected to increase the regional bandwidth by more than 2,500 times.
Key Questions Answered in the Report
What is Submarine Optical Fiber Cable? +
A Submarine Optical Fiber Cable is referred to as a networking device capable of transferring data between an Ethernet local area network and a computers or a device’s serial port.
What specific segmentation details are covered in the Submarine Optical Fiber Cable Market report, and how is the dominating segment impacting the market growth? +
The report consists of segments including type, product type, component, offering and end use. Each segment has a key dominating sub-segment being driven by industry trends and market dynamics. For instance, the type segment has witnessed Deep Sea Fiber Optic Cable as the dominating segment in the year 2022. The growth is attributed to the increasing application of cable to meet the growing demand for high sped internet.
What specific segmentation details are covered in the Submarine Optical Fiber Cable market report, and how is the fastest segment anticipated to impact the market growth? +
The report consists of segments including type, product type, component, offering and end use. Each segment is projected to have the fastest-growing sub-segment fueled by industry trends and drivers. For instance, in offering segment, the installation & commissioning is anticipated to witness the fastest CAGR growth during the forecast period. The growth is attributed to the growing need for connectivity for transfer of data an communication among different regions.
What specific segmentation details are covered in the Submarine Optical Fiber Cable market report, and how does each dominating segment is influencing the demand globally? +
As aforementioned, each dominating segment is influencing the demand globally due to growing industrial needs. Moreover, fluctuation in demand being witnessed from different sectors is responsible for driving the Submarine Optical Fiber Cable market.
