Submarine optical fiber cables market is expected to have a market size of USD 6.31 billion by 2028 and a CAGR of 12% during the forecast period.
For data and voice transmission from one country to the rest of the world, fiber optical cables act as a direct link. Between the land-based stations, the submarine optical fiber cables are laid along the seabed. Telecommunication signals like telephone, internet, and private data traffic are carried across the oceans using these cables. The highest capacity of the submarine optical fiber cable is a maximum of 2 terabytes per second per cable. There are low error rates and real-time transmissions with the submarine optical fiber cables. The security of transmission is the best in submarine transmission.
Growing internet usage and smartphone penetration raise the market demand
With the increased usage of internet users, the demand for fast and high bandwidth speed is rising exponentially for the submarine optical fiber cables market. Smartphones are increasing in number with the increased penetration of internet users. The monitoring of the submarine optical fiber cable systems will be easier and more reliable if the adoption of an optoelectronic devices system allows the acoustic frequency strain signals to detect over large distances and in unfavorable environmental conditions. These factors drive the submarine optical fiber cables market.
Growing significant increase in the investment in high-speed internet infrastructure
There is an increased transfer of the vast amount of data across the world, resulting in the increased need for submarine optical fiber cables. The huge increase in demand in the coming years makes internet operators invest more amount in the submarine optical fiber cable market and acts as a positive growth driver for the submarine optical fiber cables market.
Submarine Optical Fiber Cables Market Restraints
The major restraint of the submarine optical fiber cable network is that there are many parts of the world where a lack of redundancy is observed, causing disruptions in the service. The expensive feature of the cables is due to the requirement for more coverings. Silicon gel is used to cover the optical cable and wrapped in the polyethylene insulator to protect the cables from damage. Regular maintenance of the optical cable is required to ensure safety and longevity, resulting in the increased maintenance cost becoming a challenging factor for the market. These features, like the high cost of installation and maintenance cost, are restraining the market growth.
Submarine Optical Fiber Cables Market Opportunities
The deployment of the 5G network is expected to be a good market opportunity for the submarine optical fiber cables market. The 5G network requires high-speed and reliable data transmission capabilities. There is a significant increase in investments in submarine optical fiber cable systems will be an opportunity for the manufacturers and service providers in the market. Government and private companies are investing large amounts in the development of submarine cable systems for enhanced communication and improved connectivity. There is a noticeable change in the advancement of the technologies in submarine cable, like high-capacity submarine cables are developed, and improved installation and maintenance techniques will be an opportunity for the market for improved performance and will be cost-effective. The use of these cables to transmit the electrical power generated by offshore wind turbines and onshore grids will be an opportunity for the submarine optical fiber cables market.
COVID-19 Impact on the Submarine Optical Fiber Cables Market
The COVID-19 pandemic has created a positive and negative impact on the Submarine optical fiber cables market. The delay in the supply and distribution of the products is observed due to disruptions in the supply chain. The temporary shutdown of the manufacturing industries led to a decreased supply causing a mismatch in the supply and demand in the market. With the gradual evasion of the restriction, the manufacturing industries started growing. Increased demand for high-speed internet connection and cloud-based technology will deploy the submarine optical fiber cables. The rise in the use of online services and remote working increased the need for high-speed internet connectivity resulting in the deployment of submarine optical fiber cables to meet the increasing demand for high-speed data transmission.
Key developments in the market
In 2022, a four-year charter agreement was signed between the NEC Corporation and Global Marine Systems Limited in the UK for the optical submarine cable-laying ship. This contract will strengthen NEC in its submarine cable system with the growing demand for submarine cables.
In 2022, a plan was announced by Google to connect with Blue Raman fiber optical cable from India to Europe. The plan would strengthen the current network of tech giants.
By Component
Wet
Dry
The wet plant products are expected to have a high market share in the submarine optical fiber cables market during the forecast period. These products are used on the seabed and used for the transmission of data over the long distance. The increased demand for high-speed internet connectivity and growth in cloud-based services are factors for the wet plant products’ high market share.
By Offering
Installation Commissioning
Maintenance
Upgrades
In the offering segment, the installation and commissioning category is expected to have high market value during the projected period. The installation of submarine optical fiber cables and commissioning services like system integration and activations are included activities in this category. The increased demand for intercontinental communication increases the deployment of high-speed internet connectivity will be a growth driver for the installation and commissioning category.
By Type
Single Core
Multicore
Multicore-type submarine optical fiber cable is expected to have the highest market in the Submarine Optical Fiber Cables Market. These cables are multiple optical fiber cores within a single cable that help in the high data transmission capacity and flexibility in the system design. The growth in cloud-based services and the growing use of high-speed internet services drive the category to the positive growth side in the market.
By End User
Offshore Wind Power Generation
Offshore Oil and Gas
The offshore oil and gas category is expected to have a high CAGR in the Submarine optical fiber cables market. For transmitting data between offshore production facilities and onshore operation centers, these submarine optical fiber cables are being used in offshore oil and gas companies. The electric power generated by the offshore wind turbines is transmitted to the onshore grids using submarine optical fiber cables. These are drivers for the category’s high market share in this segment’s market.
North America
Europe
Asia Pacific
Latin America
Middle East & Africa
Asia-Pacific region is expected to have high growth factors among other regions in the market. There is a significant increase in the usage of the internet, and increased cloud-based services will drive the market to a high share in the Submarine optical fiber cables market. On the other hand, increased investments in submarine optical fiber cable are a positive factor for market growth. Latin America and the Middle East & Africa regions are next expected high market value regions due to the increased demand for high-speed internet connectivity and increased usage of the submarine cables system.
Google LLC (Alphabet Inc.)
Alcatel-Lucent Submarine Networks SAS
Ciena Corporation
NEC Corporation
Xtera Communications, Inc.
Cable & Wireless Communications Ltd
S. B. Submarine Systems Co., Ltd
Fujitsu Ltd
Seaborn Networks LLC
NTT Communications and Corporation
Frequently Asked Questions
The forecast period of the submarine optical fiber cables market report is 2023-2028.
Growing internet usage and smartphone penetration and growing significant increase in investment in high-speed internet infrastructure are the market drivers.
The expensive nature of the cable acts as a restraint for the Submarine optical fiber cables market.
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