Submarine Cable Market Overview

According to Custom Market Insights (CMI), the Global Submarine Cable Market was valued at approximately USD 25 billion in 2021 and is projected to reach nearly USD 35 billion by 2030. This reflects a compound annual growth rate (CAGR) of about 10% between 2022 and 2030. The research report provides a complete 360-degree analysis of the submarine cable industry, covering both key drivers and market restraints. It also examines the effect these factors have on demand during the forecast period, while exploring emerging global opportunities and offering a competitive analysis of market participants.

Major technology and content companies, including Facebook, Google, Amazon, and Microsoft, have become prominent investors in new submarine cables. In recent years, private network operators have installed more cable capacity than traditional internet backbone providers. The ownership of these new cables gives these corporations enhanced control over bandwidth availability, helping them meet the growing demand for high-speed data transfer. An example of this trend is the Pacific Light Cable Network, a major infrastructure project in which both Google and Facebook are key investors.

Growth Factors

Several forces are driving growth in the submarine cable market. A major contributor is the increasing investment in offshore wind farms, which require submarine power cables for transmitting electricity to onshore grids. Additionally, rising global data traffic and growing capital expenditure from OTT (Over-The-Top) service providers, such as streaming platforms and cloud service companies, are boosting demand.

Submarine cables serve multiple purposes in both power and communication sectors. They are used to transmit power to offshore oil platforms, deliver energy generated from offshore wind farms to mainland power stations, and provide essential connectivity between countries and islands. The growing need to interconnect power grids across different nations is also creating demand for low-voltage submarine cables.

In communication infrastructure, submarine cables are the backbone of international internet connectivity, carrying around 97% of the world’s total internet traffic. With internet usage continuing to grow worldwide, the demand for high-capacity, low-latency connections is rising accordingly. This growth is further fueled by global efforts to integrate offshore renewable energy sources, strengthen energy security, and enhance international communication capabilities.

Segmental Overview

The submarine cable market can be segmented based on offering, application, voltage, and end-user.

From an application perspective, submarine power cables accounted for approximately 60% of the total market revenue in 2021. This strong share is attributed to the increasing need for inter-country and island connectivity, along with substantial capacity additions in the offshore wind sector. The expansion of offshore oil and gas projects, combined with their electrification, has also contributed to rising demand. Furthermore, ongoing research and development activities in the field of offshore wind power generation are supporting market growth.

From an offering perspective, the installation & commissioning segment held more than 35% of the total market share in 2021. This dominance is due to the high costs associated with installation processes, the need for advanced technological expertise, and the use of specialized equipment. Equipment categories include undersea cable-laying vessels, jointing and testing tools, operational management software, and underwater installation machinery.

For submarine optical cables, the underwater installation process often involves remotely operated vehicles (ROVs), beach burying machines, cable burial ploughs, and automated control systems. Given the rapid expansion of offshore infrastructure projects, this segment is projected to present strong growth opportunities over the forecast period.

Regional Overview

In 2021, the Asia-Pacific region accounted for the largest share of the global submarine cable market. This dominance is largely driven by the rapid approval and deployment of offshore wind farms, especially in China, which is currently the regional leader. The region is also seeing significant direct investment in submarine cable infrastructure from global technology companies.

Major players such as Google, Microsoft, and Facebook have intensified their focus on the Asia-Pacific market. For example, Google has already secured a strong position in the region’s undersea cable industry and, in 2021, invested in a new subsea cable system designed to connect Australia and Japan via Guam. This reflects the strategic importance of the region in terms of global data traffic and energy connectivity.

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