Submarine Cables Market Growth & Trends
The global submarine cable market is expected to reach USD 44.33 billion by 2030, registering a CAGR of 6.1%, according to a new report by Grand View Research, Inc. Increasing investments in offshore wind farms, inter-country, and island connections for improved power supply and communication, and growing investments in oil & gas deep-water drilling activities are the major factors driving the overall market. The increased investment by OTT companies in the deployment of high-capacity communications systems and the growing need for HVDC underwater power cables will provide numerous new opportunities that will lead the industry growth in the times to come. The rising internet and data traffic in the region, such as APAC, are the critical factors driving the market over the forecast period.
The densely populated regions, including APAC, South America, and MEA, actively invest in offshore wind power generation. These investments are expected to fuel the demand for submarine cables. The increasing demand and penetration of the internet, their collaboration with tier-1 vendors, and the rising demand for bandwidth caused due to the rise of 5G are a few factors that propel the demand for the product.
Regional governments worldwide are aiming to increase their electricity generation output from fossil fuel-based sources of energy. The high costs incurred for the installation of cables and the difficulty in restoring and maintaining deep-water cables have adversely affected the adoption and implementation of submarine cables. Several threats, such as fishing hooks, cyclones, ships, and cruises, among others, raise the need for maintenance services. Therefore, proper installation techniques, materials, and the length of the cables will propel the overall market growth. Any fault in submarine cables levies hefty costs to be spent for the repair and re-deployment process.
The OTT providers are an integral part of the market development. These players own, manage, and fund their submarine cables infrastructure. Facebook, Google, Microsoft, and Amazon are amongst the leading OTT providers, which have drastically changed the landscape of the overall industry.
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Submarine Cables Market Report
Submarine Cables Market Report Highlights
- The market accounted for USD 25.50 billion in 2021 and is expected to grow at a CAGR of 6.1% from 2022 to 2030.
- Offshore wind power generation emerged as the largest segment in 2021 and is estimated to generate revenue of over USD 12.48 billion by 2030.
- The Asia Pacific market held the largest share in the submarine power cables market in 2021. Increasing offshore wind farms projects, growing investments by OTT providers, and increasing data traffic in the region are anticipated to drive the market
