The global submarine cables market was valued at US$ 14.3 Billion in 2017 and is projected to surpass US$ 34.6 Billion by 2027, registering a CAGR of 9.1% during the forecast period (2019-2027), according to the Global Submarine Cables Market Report, By Service (Installation and Maintenance & Upgrade), By Application (Submarine Power Cables and Submarine Communication Cables), by End-user (Offshore Wind Power Generation, Inter country & island connection, and Offshore Oil & Gas), and by Region (North America, Europe, Asia Pacific, Latin America, and Middle East and Africa), published by Coherent Market Insights.
The surge in demand for bandwidth across the globe and internet connectivity worldwide is expected to drive the market growth during the forecast period. The internet is essential for nearly all forms of international trade. Around 95% of intercontinental and other international internet traffic travels by means of submarine cables.
Additionally, new offshore wind capacity additions and the rising demand for inter-country and island connections are significant factors fueling the growth of global submarine cables market. For instance, in August 2020, JDR Cable Systems Ltd., the global subsea cable supplier and servicer owned by the TFKable Group, has signed a contract with Boskalis, a Dutch dredging and heavy-lift company that provides services relating to the construction and maintenance of maritime infrastructure, to provide the 100 array cables and two offshore substation interconnector cables for the Moray East offshore wind farm in Scotland.
Interlinking countries in order to promote economic growth worldwide is driving the growth of submarine cables market during the forecast period. In June 2020, NEC Corporation announced that the Asia Direct Cable (ADC) Consortium is building a high-performance submarine cable connecting Japan, China (Guangdong Province and Hong Kong SAR), the Philippines, Vietnam, Singapore, and Thailand. The group has selected NEC to build the 9,400 Km long ADC cable, which is anticipated to be completed by 2022.
Data traffic through undersea optical fiber cables offer advantages such as high reliability, security, and carrying capacity. This is another factor facilitating growth of the global submarine cables market. Submarine cables are also cost efficient which is expected to favor the market growth. Submarine cables are advantageous compared to satellite links in terms of reliability, signal speed, capacity and cost.
Submarine Cables Market - Impact of Coronavirus (Covid-19) Pandemic
The COVID-19 outbreak has hampered economic activities all over the world. The supply chain of several companies has been affected due to shutting down of manufacturing processes. There has been a significant impact on the growth of the submarine cables market. Submarine cable repairing requires government permits to access ports and for ships to perform repairs in territorial waters. Delays in permits is already an existing issue in some countries prior. With the importance of connectivity at its pinnacle, it’s more vital than ever for governments to expedite permits to ensure swift repairs.
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