The submarine cable system market report emphasizes the key factors driving the market and prominent players’ developments. The increasing demand for transmitting energy over long distances, including wide and deep-water bodies, necessitates the integration of renewable energy sources. As the installation of submarine cable systems rises, there is a growing need for efficient power transmission and reduced dissipative losses. High-voltage direct current (HVDC) submarine power cables offer various advantages over conventional high-voltage alternating current (HVAC) technologies, making them a preferred choice for efficient power transmission.
HVDC power transmission technology is rapidly evolving, enabling the transfer of electrical power from offshore power generation sites to the mainland. China, Brazil, and many other developing countries are already utilizing HVDC transmission systems to transmit several gigawatts of electrical power over long distances. This technology is particularly beneficial for integrating renewable energy sources and reducing dissipative losses in submarine cable systems.
A few of the major initiatives and projects, such as Friends of the Supergrid, DESERTEC, North Seas Countries Offshore Grid Initiative, and the Council on Large Electric Systems (CIGRE), support the deployment of HVDC systems, with Europe accounting for approximately 70% of HVDC submarine cables. According to the ENTSO-E TYNDP 2016 report, Europe needs to build and refurbish ~40,000 kilometers of extra-high-voltage power lines (both land and sea) by 2030, with a significant portion to be built of HVDC submarine cables.
Thus, the growing number of projects based on HVDC power transmission technology is likely to fuel the submarine cable system market growth during the forecast period.
The Europe market is segmented into Germany, the UK, France, Russia, Italy, and the Rest of Europe. In Europe, the rise of the marine industry is one of the factors driving the market. In terms of revenue, Europe dominated the submarine cable system market share. The increasing adoption of mobile devices and cloud-based services in Europe has led to a surge in data consumption. This, in turn, has created a need for robust and high-capacity communication networks. Submarine cable systems play a crucial role in meeting this demand by providing reliable and high-speed connectivity between different European countries and other regions. Moreover, Europe has witnessed a significant boost in data center activities, driven by the growing demand for big data analytics, cloud computing, and digital services. Data centers require efficient and secure connectivity to ensure seamless data transfer and access. Submarine cable systems enable the interconnection of data centers across different countries, facilitating the efficient transfer of data and supporting the growth of the digital economy. Europe is a hub for international trade and collaboration, with businesses and organizations requiring reliable and efficient communication infrastructure. Submarine cable systems facilitate seamless communication and data transfer between European countries and their global partners, supporting international trade, research collaborations, and multinational operations. All these factors are boosting the submarine cable system market growth in Europe.
Segmental Overview
The “submarine cable system market analysis” has been carried out by considering the following segments: service, cable capacity, application, and type. Based on service, the submarine cable system market is bifurcated into installation services and maintenance and upgrade. Based on cable capacity, the market is segmented into less than 10 Tb/s, 10–20 Tb/s, 20–30 Tb/s, and more than 30Tb/s. Based on application, the market is divided into communication and energy & power. Based on type, the market is bifurcated into single-core and multi-core.
Submarine cable systems are a key requirement to establish efficient international communication networks. Maintenance and upgrade services have become crucial for submarine cable systems to ensure uninterrupted transmission of data between different regions. Maintenance services are vital for the continuous operation and longevity of submarine cable systems. These services encompass proactive monitoring, routine inspections, and regular repairs to address potential issues before they cause disruptions. Maintenance providers employ advanced technologies and specialized equipment to detect faults, perform cable repairs, and optimize system performance. With a rise in technological advancement and an increase in data demand, submarine cable systems require periodic upgrades to meet evolving industry standards. Upgrade services involve enhancing system capacity, improving transmission speeds, and implementing the latest technologies to support the ever-growing demand for bandwidth. Service providers leverage their expertise to seamlessly integrate new equipment, upgrade existing infrastructure, and ensure compatibility with emerging technologies. Based on service, the installation services segment is anticipated to account for a significant submarine cable system market share by 2030.
Market Analysis: Competitive Landscape and Key Developments
The submarine cable system market forecast is estimated on the basis of various secondary and primary research findings, such as key company publications, association data, and databases. Fujitsu Limited; Hawaiki Cable Limited, HMN Technologies; Mitsubishi Electric Corporation; NEC Corporation, Nexans SA; Nokia Corporation; Prysmian Group; SubCom, LLC, and Sumitomo Electric Industries, Ltd are among the prominent players profiled in the submarine cable system market report. In addition, several other players have been studied and analyzed during the study to get a holistic view of the market and its ecosystem. The market report provides detailed market insights to help major players strategize their growth. A few strategic initiatives by major market players are listed below:
- In 2023, the construction of a new network named Medusa started, which will connect multiple locations in North Africa and Southern Europe. This will be run under the partnership between an independent submarine infrastructure operator and Orange and Alcatel Submarine Networks (ASN). This milestone marked the start of an ambitious project that will boost connectivity across the Mediterranean.