With technological advancement, the adoption of 5G, IoT, machine learning, and other technologies also increases. Internet users are widely using these technologies to manage their day-to-day operations. Increasing demand for connectivity, cost-efficiency, and reliability in telecommunication solutions is fueling the growth of the global market.
Moreover, increasing government initiative and support is expected to propel the global market during the forecast period. A few of these initiatives are listed below:
- For instance, in July 2022, the Ministry of Internal Affairs and Communications established Technical Research and Development Theme II in Japan. The Technical Research and Development Theme II is a multicore, high-capacity optical transmission system technology that assists and enhances the creation of cutting-edge optical network technology. The government is constantly engaged in expanding the optical fiber technology, which is anticipated to fuel the subsea cable market growth during the forecast period.
- In May 2022, the India’s Ministry of Communications and the Department of Telecom approved a development package that includes the conversion of 19 existing 2G tower sites to 4G service, the construction of 18 new 4G mobile tower sites, and the laying of 225 km of optical fiber for offering FTTH (Fiber to the Multi-Mode) connections in Lakshadweep Islands.
- In December 2020, the Central Government of India provided approval by making an investment of US$ 7.38 million (INR 61 crore) in the Kochi-Lakshadweep subsea optical fiber link project. The project is scheduled to be completed by the end of 2023. This project raised the current level of 1.71 Gbps to 100 Gbps of internet speed in Lakshadweep.
US Dominates Subsea Cable Market in North America
The market in the US is anticipated to expand during the forecasted period due to the high rate of technological adoption across all industries. Rising internet usage increases the demand for fast bandwidth speeds among consumers, which is driving the subsea cable market growth. For instance, according to World Bank Data, 92% of the US population, with ~4.9 million individuals, used the internet in 2021, up from 4.6 million in 2020, which is surging the demand for subsea cables across the nation. The growing penetration of smartphones is associated with the increasing number of internet users in the US, creating growth opportunities for the market. Moreover, the growing adoption of optoelectronic device systems among users to detect acoustic frequency strain signals in harsh environments over large distances is fueling the market. The optoelectronic devices system allows easy and reliable monitoring of subsea optical fiber cable systems, which is expected to propel the market growth in the near future.
In addition, the US subsea market is projected to expand at a significant rate during the forecast period. The market is driven by favorable regulatory frameworks, economic factors, and the growing need for service providers to enhance the consumer experience. Subsea cable support service providers reduce latency by allowing local data storage to prevent the risk from cyber attackers. Major tech giants in the US are engaged in developing subsea cables to enhance connectivity across North America. For instance, in September 2023, Google LLC announced the Nuvem subsea cable system for connecting the US, Portugal, and Bermuda. This helps improve network resiliency across the Atlantic and supports Google LLC in meeting the growing demand for digital services.
Segmental Overview
Based on type, the subsea cable market is divided into single core and multi core. The single core segment recorded a larger market share in 2022 and is anticipated to record a significant revenue share during the forecast period. On the basis of voltage, the market is bifurcated into medium and high. The high segment held a larger subsea cable market share in 2022, and is expected to hold a substantial CAGR during the forecast period. In terms of offering, the subsea cable market is divided into installation services and maintenance & upgrade services. The maintenance & upgrade services segment held a larger market share in 2022, whereas the installation services segment is anticipated to record a higher CAGR during the forecast period. Based on application, the subsea cable market is divided into communication and power. The communication segment recorded a larger market share in 2022 and is expected to hold a significant revenue share during the forecasted period.
Market Analysis: Competitive Landscape and Key Developments
Nokia; SubCom, LLC; NEC Corporation; Prysmian S.p.A; NKT A/S; Furukawa Electric Co., Ltd.; Hengtong Group Co., Ltd.; Ciena Corporation; ZTT Cable; and JDR Cable Systems Ltd. are among the key market players that are profiled in the report. Several other essential subsea cable market players were also analyzed for a holistic view of the market and its ecosystem. The market report provides detailed market insights to help major players strategize their growth.
- In December 2022, Empresa de Telecomunicaciones de Cuba S.A. signed an agreement with Orange to integrate the Arimao project with the ARCOS-1 cable system in Cojimar, Cuba. The companies are also planning to make the project ready for service by the end of 2023.
- In November 2022, Reliance Industries Limited received approval to deploy the world’s largest submarine cable connecting Singapore and Europe. The two submarine cables, India-Europe-Xpress (IEX) and India-Asia-Xpress (IAX), are expected to start operation between 2023 and 2024.
- In November 2022, PLDT Inc. invested US$ 75 million to increase its international capacity by linking East and Southeast Asia. The company has installed a 9,400-km Asia Direct Cable (ADC) that connects seven international landing points across multiple areas in the continent.