The submarine cable system market is estimated to be valued at USD 20.84 Bn in 2024 and is expected to reach USD 41.01 Bn by 2031, growing at a compound annual growth rate (CAGR) of 10.15% from 2024 to 2031. This growth can be attributed to rising demand for high-speed internet and increased investments towards expansion of international network connectivity.

Market Driver - Rapid Deployment of 5G Internet Services in Developing Countries

The world is moving towards more digitization at a faster pace than ever expected before. While developed nations around the globe have already started adopting the new age 5G technology, many developing nations in Asia and Africa are also catching up quickly. For developing countries which are still working on building their digital and broadband infrastructure, 5G comes across as an excellent opportunity.

Many of these countries see ubiquitous high-speed internet access through 5G as crucial for digital transformation across key sectors. It is expected to enable new applications in areas like telemedicine, distance education, digital money and financial inclusion. All these factors have convinced governments across Asia and Africa to prioritize 5G rollouts in the coming years. Major initiatives are being planned to deploy 5G infrastructure in both urban and rural regions.

Thereby, rapid 5G adoption in emerging markets is expected to drive huge investments in submarine cable system market over the coming decade.

Market Driver - Rising Investments in Offshore Renewable Energy Projects

According to estimates, the global offshore renewable energy capacity may exceed 600 GW by 2030 from current levels of around 120 GW. Developing new offshore renewable farms at distant offshore locations requires substantial infrastructure for connectivity. The power generated needs to be brought ashore through undersea transmission cables. These submarine power cables have emerged as a crucial interconnect between offshore renewable plants and onshore power grids.

Nations and states seeking to achieve green energy goals are announcing massive renewable projects both near-shore and in deeper offshore zones. However, constructing such projects in remote sea areas without the required power cable infrastructure is difficult. This is boosting investments in specialized high voltage direct current (HVDC) submarine transmission cable industry.

The rising focus on harnessing ocean renewable energy reserves is propelling the submarine cable systems market forward. Investments are accelerating to deploy enabling transmission infrastructure between offshore energy sites and mainland power grids.

Market Challenge - High Installation and Maintenance Costs of Submarine Cables

One of the major challenges facing the submarine cable system market is the high installation and maintenance costs associated with these cables. Laying submarine cables on the ocean floor requires specialized equipment and ships that can withstand harsh ocean conditions. It takes a significant amount of time and capital to plan and execute cable laying projects across international waters.

Additionally, periodic maintenance and repair works are needed to ensure smooth operation of these cables throughout their lifespan, which is typically around 25 years. Cable repairs require locating and accessing damaged sections underwater, which involves further expenditures.

Natural disasters such as underwater landslides, earthquakes and typhoons also pose risks and can damage submarine cable systems, necessitating expensive repairs. The high costs of installation and maintenance limit the number of players who can viably enter this market and make route expansion or network upgrades challenging.

Market Opportunity - Increasing Demand for Efficient Data Transmission Technologies

One significant opportunity for the submarine cable system market is the rapidly increasing global demand for higher bandwidth and more efficient data transmission technologies. Over the past decade, there has been an exponential rise in internet usage, mobile data consumption, cloud computing and implementation of 5G networks worldwide.

Technologies like machine learning, artificial intelligence, internet of things, autonomous vehicles and augmented/virtual reality are also generating explosive data traffic. This vast and ever-growing consumption of data globally can only be supported through high-speed submarine cable systems that directly connect the main economic hubs and data centers across regions.

The large capacity and high reliability offered by modern submarine cables make them indispensable for handling current and future data transmission needs. Newer technologies and applications continue to push the boundaries of data demand. Thereby, submarine cable system market players stand to benefit from the necessity of regular network upgrades and expansion projects to lay new cables.

Key players in the submarine cable system market have adopted the strategy of owning and operating their own submarine cable systems rather than relying on third party operators. This gives them greater control over bandwidth capacity and reliability of connectivity.

Another strategy that has worked well is partnerships and consortium models. Major submarine cable system projects today are developed through partnerships between tech giants, telecom operators and investors. This allows risks and costs to be shared while expanding the addressable potential in submarine cable system market. For example, the 2Africa cable system is being built by a consortium led by Facebook, MainOne, Orange and Vodafone along with other investors.

Entering emerging submarine cable system market markets early has also proved strategic for long term gains. Operators like PCCW Global and Telecom Egypt have found success through preemptively expanding networks in Africa and Middle East over the last decade.

Insights, By Product Type: Growing Infrastructure Needs Drive High Voltage Submarine Cable Demand

In terms of product type, high voltage contributes 44.7% share of the submarine cable system market in 2024, owning to increasing needs for bulk power transmission across long distances between countries and regions. Power grids are expanding internationally and offshore renewable energy sees more widespread adoption. So, there is higher demand for equipment capable of handling bulk transmission of electricity over submarine cable systems spanning hundreds of kilometers under seas and oceans.

High voltage submarine cable systems can transmit heavy loads of power with low transmission losses over long distances. This makes them particularly suitable for meeting the infrastructure needs of linking synchronous networks between neighboring countries or territories separated by water bodies. Investments in upgrading aging power infrastructure and expanding interconnectivity are providing a fillip to the high voltage segment in the submarine cable system market.

Insights, By System: Rapid Growth in Telecom and Internet Usage Energizes Dry Plant Systems

In terms of system, dry plant contributes 55.5% share of the submarine cable system market in 2024, owing to its critical role in submarine networks. As Internet usage, telecommunications and data consumption grows exponentially worldwide, there is heightened need to boost connectivity between lands separated by oceans and seas. This is fueling requirements for dry plant equipment such as repeaters, branching units, and terminals that facilitate cable laying operations.

Advances in dry plant technology also allow higher network capacity, reliability and uptime required by ever increasing data traffic. Investments in new submarine cable systems as well as modernization of aging systems continues to drive prospects for dry plant manufacturers.

Insights, By Application: Surging Demand for Internet and Cloud-based Services Lifts Communication Applications

In terms of application, communication contributes the highest share of the submarine cable system market underpinned by the towering global demand for Internet, broadband and cloud-based services. As digital transformation and hybrid working gain momentum, consumption of bandwidth-intensive content and migration to cloud platforms is witnessing a massive rise. This has amplified the importance of submarine cable networks for international and regional connectivity required to support seamless flow of data traffic.

The rapidly growing requirements for high-speed data transmission has made submarine telecom cables vital global digital arteries. Their ability to handle voice, video, and data for telecom as well as internet applications has cemented the dominance of the communication segment in the submarine cable system market.

• The collaboration between global tech giants and submarine cable system providers has accelerated the deployment of private networks, influencing dynamics and competition in the submarine cable system market.
• Over 95% of international data transmission occurs via submarine cable systems, highlighting their critical role in global communications infrastructure.
• The increasing adoption of cloud services and streaming platforms significantly boosts the demand for higher-capacity submarine networks.

The major players operating in the submarine cable system market include SubCom LLC, NEC Corporation, Nexans S.A., Huawei Marine Networks Co., Ltd., JDR Cable System Ltd, Hexatronic Cables & Interconnect Systems, Corning Incorporated, Hengtong Group Co, Saudi Ericsson, Jiangsu Zhongtian Technology Co., Ltd, The Okonite Company, TE Connectivity, Apar Industries, America Fujikura Ltd., Alcatel Submarine Networks, Tele-fonika Kable, Cablel Group, Sumitomo Electric Industries, Norddeutsche Seekabelwerke GmbH, Hesfibel, Leoni Special Cables GmbH, HMN Technologies, Sumitomo Electric Industries, and Nokia (through Alcatel-Lucent Submarine Networks).

• In September 2022, Google officially launched the Equiano submarine cable system, connecting Western Europe to South Africa. The cable spans approximately 15,000 kilometers and features 12 fiber pairs, each with a capacity of 12 terabits per second (Tbps), resulting in a total design capacity of 144 Tbps.
• In July 2022, Southern Cross NEXT Submarine Cable was launched, connecting Australasia to the US. The system also supports 400GbE services, marking a milestone in submarine cable system technology.
• In May 2022, Etihad Etisalat Co. (Mobily) signed a strategic Memorandum of Understanding (MoU) with Telecom Egypt to establish the first direct bilateral submarine cable system connecting Saudi Arabia and Egypt.

• By Product Type
  • High Voltage
  • Medium Voltage
  • Extra-High Voltage
• By System
  • Dry Plant
  • Wet Plant
• By Application
  • Communication
  • Power
• By Depth
  • 0 to 500M
  • 500M to 1000M
  • 1000M to 5000M
  • Others
• By Fiber Class
  • Unrepeatered
  • Repeatered
• By Cable Type
  • Loose Tube Cables
  • Ribbon Cables