1 Global Submarine Cable Market Insight Analysis
In 2024, the global submarine cable market sales will reach US$4,978.81 million, with a CAGR of 5% from 2024 to 2033.
Submarine cables are referred to as any type of cables that are laid along the bottom of a water body. These cables connect continents all over the world and rely on stations based on land to carry telecommunications and power signals. Submarine cables use optic fiber technology to carry digital data for telephone, internet, and private data. The implantation of submarine cables has numerous advantages over satellite communications.
For instance, they are more durable, cheaper, and reliable than satellite communication. Use of submarine cables has enhanced globalization and international connectivity, owing to the speed with which information can be exchanged all over the world. Submarine cables are important international assets for news agencies, trading & shipping companies, governments & their armed forces, and public. A single submarine cable is capable of carrying millions of telephonic data accompanied by internet and video data. International system across the world is dependent on security of the submarine cable.
Figure Global Submarine Cable Market Size (M USD) and CAGR (2024-2033)
2 Submarine Cable Market Growth Drivers and Restraints
As the global digitalization process accelerates, Internet data traffic has exploded, and the demand for long-distance, high-capacity communications has increased dramatically. As a key part of the global communication network, submarine cables carry more than 95% of intercontinental Internet data transmission, and their application in long-distance communication networks is indispensable. At the same time, offshore energy development, such as the rise of offshore wind farms, has also increased the demand for submarine cable power transmission, driving market growth.
Technological innovation has led to improved performance of submarine cables. For example, the development of optical fiber technology has enabled cables to have higher bandwidth and lower signal loss, and can transmit more data; the application of new insulation materials has improved the pressure resistance and stability of cables, such as extruded insulation cables, which are suitable for higher voltages and expand the scope of application.
Governments of various countries have realized the importance of submarine cables and have introduced policies to support their development. For example, Australia has set up a safety zone to protect cables, and some countries have granted construction project licenses and preferential treatment. In addition, companies and investment institutions have increased their investment in the field of submarine cables. Google plans to invest in laying submarine cables in Africa to increase local network speeds, driving market development.
Submarine cables face many natural disaster risks, such as earthquakes, tsunamis, and submarine volcanic activities. In 2006, the magnitude 7.0 earthquake in Taiwan damaged eight cables, and the 2011 earthquake and tsunami in Japan destroyed half of the trans-Pacific cable network. These disasters can cause cable damage, affect communications and power transmission, increase maintenance costs and repair difficulties, and hinder market development.
Human activities cause many problems for submarine cables. Commercial fishing equipment, dredging operations, anchoring and other activities may damage cables. About 40% of cable interruptions are caused by commercial fishing equipment and related dredging at the bottom, and 15% are caused by anchoring events. In addition, offshore oil and gas development, offshore wind power construction, etc. may also affect cable safety and interfere with the normal operation of the market.
The cost of submarine cable construction is high. Long-distance cables connecting multiple countries can cost hundreds of millions of dollars, which limits the investment of some companies and regions with insufficient funds. Moreover, cable laying and maintenance technology requires high requirements, professional equipment and technicians, and construction is more difficult in complex submarine environments. These factors restrict the rapid expansion of the market.
3 Technological Innovations in the Submarine Cable Market
Remarkable innovations in the field of materials have provided strong support for the optimization of submarine cable performance. Extruded insulated cables use new materials such as cross-linked polyethylene insulation and ethylene-propylene rubber insulation. Ethylene-propylene rubber performs well in preventing dendrites and local leakage, enabling cables to operate stably at higher voltages, improving the safety and efficiency of power transmission. Self-contained oil-filled cables enhance insulation performance by filling oil, which can meet the needs of up to 750kV DC or AC lines, and can be easily laid at a depth of 500m, effectively expanding the application scenarios and scope of submarine cables.
The advancement of optical fiber technology is one of the key driving forces for the development of submarine cables. With the continuous upgrading of optical fiber technology, the transmission capacity of submarine cables has been greatly improved, with higher bandwidth and lower signal loss. This enables submarine cables to not only meet the current needs of massive data transmission, but also reserve sufficient space for the development of future communication technologies, such as supporting emerging applications such as high-definition video, cloud computing, and big data transmission, further consolidating the core position of submarine cables in the global communication network.
Corporate mergers and acquisitions and restructuring are frequently staged in the submarine cable market, promoting the reshaping of the industry landscape. For example, the acquisition of General Cable by Prysmian Group enabled Prysmian to integrate the strong strength and rich experience of General Cable’s NSW company in fiber-optic submarine cables, accessories and solutions, significantly enhancing its competitiveness in the submarine cable market. By integrating resources, Prysmian has achieved synergies in technology research and development, production capacity and market coverage, and increased its share and influence in the global market.
Corporate mergers and acquisitions have played a positive role in promoting technological integration and market expansion. On the technical level, the acquirer can obtain the acquired company’s advanced technology and R&D team to accelerate its own technological innovation. In terms of the market, with the help of the acquired company’s market channels and customer resources, the acquirer can quickly expand its market coverage and enhance brand awareness. This deep integration of technology and market will help companies occupy a more advantageous position in the fierce market competition and promote the submarine cable market to develop in a more concentrated and efficient direction.
4 Global Submarine Cable Market Size by Type
Self-contained oil-filled cables are a critical component of the submarine cable market, known for their high voltage capabilities and reliability. These cables are designed to handle significant power transmission and are particularly suitable for long-distance communication networks. In 2024, the revenue generated by self-contained oil-filled cables is expected to reach $2,206.87 million USD, accounting for approximately 44.33% of the total market revenue. This dominant market share underscores their essential role in global communication infrastructure, especially as data demands continue to grow.
Extrusion insulated cables, which include cross-linked polyethylene (XLPE) and ethylene-propylene rubber (EPR) insulated cables, are known for their durability and efficiency in power transmission. These cables are widely used in medium and high voltage applications, particularly in offshore wind farms and power transmission projects. In 2024, the revenue from extrusion insulated cables is projected to be $823.00 million USD, representing about 16.53% of the total market revenue. Their growing adoption in renewable energy projects and power grids highlights their importance in the transition to sustainable energy sources.
Inflatable cables, also known as pressure-assisted cables, are designed for deep-sea applications where high water pressure is a significant factor. These cables use impregnated paper insulation and are suitable for long submarine cable networks. In 2024, inflatable cables are projected to generate a revenue of $681.10 million USD, contributing approximately 13.68% to the total market revenue. Their unique design and high-pressure resistance make them essential for specific applications, particularly in deep-sea environments.
Table Global Submarine Cable Market Size and Share by Type in 2024
Type | Market Size (M USD) 2024 | Market Share 2024 |
|---|---|---|
Self-contained Oil-filled Cable | 2206.87 | 44.33% |
Extrusion Insulated Cables | 823.00 | 16.53% |
Inflatable Cable | 681.10 | 13.68% |
Others | 1267.84 | 25.46% |
5 Global Submarine Cable Market Size by Application
In 2024, the revenue from submarine cables used in long – distance communication networks is a significant portion of the total market revenue. According to the data, the global revenue for this application in 2024 is estimated to be $3,706.69 million. The market shares of long – distance communication networks in the submarine cable market is approximately 88.24%. This high share is due to the increasing demand for global connectivity.
With the growth of the digital economy, the need to transmit large amounts of data across long distances has surged. For example, international business transactions, cloud – based services, and video – streaming platforms all rely on submarine cables to ensure fast and stable data transmission. These cables can carry huge volumes of data rapidly, meeting the requirements of modern communication.
The power transmission application of submarine cables also has its market share. In 2024, the revenue from power transmission using submarine cables is $520.35 million, accounting for about 11.76% of the total market revenue. Submarine power cables are used to transmit electricity to oil rigs, connect offshore wind farms to power stations, and for inter – country and island connections. As the development of offshore wind energy continues to expand, the demand for submarine power cables is also on the rise. For instance, in some European countries, large – scale offshore wind farms are being built, and submarine power cables are essential for delivering the generated electricity to the mainland.
Table Global Submarine Cable Market Size and Share by Application in 2024
Application | Market Size (M USD) 2024 | Market Share 2024 |
|---|---|---|
Long Distance Communication Network | 4393.31 | 88.24% |
Power Transmission | 585.51 | 11.76% |
6 Global Submarine Cable Market Size by Region
In 2024, the submarine cable market revenue in North America is forecasted to reach approximately $776 million. The United States, as the largest economy in the region, plays a dominant role. With its highly developed technology industry and extensive digital services, the demand for high – speed and reliable long – distance communication is insatiable. For instance, major tech giants like Google, Amazon, and Microsoft rely on submarine cables to transfer vast amounts of data between their data centers across the globe. This has led to continuous investment in submarine cable infrastructure.
Canada also contributes to the market growth, especially in areas related to its offshore oil and gas industry and the development of Arctic communication networks. The country is exploring the potential of submarine cables to enhance connectivity in remote northern regions, which could open up new opportunities for resource development and improved communication services.
Europe’s submarine cable market is projected to generate revenues of around $1,524 million in 2024. European countries have a long – standing history of investing in submarine cable networks. The United Kingdom, with its position as a global financial and communication hub, has a significant stake in the market. Its submarine cables connect it to continental Europe and other parts of the world, facilitating international trade, finance, and data exchange.
Germany, on the other hand, is a key player in the power transmission segment of the submarine cable market. As the country accelerates its transition to renewable energy, especially in offshore wind farms in the North Sea, the demand for submarine power cables has soared. These cables are crucial for transmitting the electricity generated from wind farms to the mainland grid. Additionally, France, Italy, and Spain are also actively involved in the development of submarine cable projects, driven by their needs for international communication and energy interconnection.
The Asia – Pacific region is expected to record a submarine cable market revenue of about $1,915 million in 2024, making it a major force in the global market. China has been at the forefront of the region’s growth. With its rapid economic development and the expansion of its digital economy, the demand for submarine cables has skyrocketed. China is not only increasing its investment in long – distance communication cables but also in submarine power cables for its growing offshore wind energy projects.
For example, the construction of large – scale offshore wind farms in the East China Sea and South China Sea requires a vast network of submarine power cables. Japan and South Korea are also significant players. Japan’s advanced technology and its need for reliable communication with neighboring countries, especially in the context of international trade and data – intensive industries, drive its demand for submarine cables. South Korea, with its strong presence in the global electronics and telecommunications sectors, is also actively investing in submarine cable infrastructure to enhance its global connectivity.
In 2024, South America’s submarine cable market revenue is estimated to be around $455 million. Brazil is the largest market in the region. The country’s growing economy, especially in sectors such as oil and gas, agriculture, and telecommunications, has increased the demand for submarine cables. For example, the expansion of Brazil’s offshore oil fields requires reliable power and communication connections, which are provided by submarine cables. Argentina and Chile are also gradually increasing their investment in submarine cable projects. Argentina is looking to improve its international communication capabilities, while Chile, with its long coastline, is exploring the use of submarine cables for both communication and power transmission, especially in its northern mining regions.
The Middle East and Africa region is projected to have a submarine cable market revenue of approximately $308 million in 2024. In the Middle East, countries like Saudi Arabia and the UAE are leading the way. Saudi Arabia, with its Vision 2030 plan aimed at diversifying the economy and promoting digital transformation, is investing heavily in submarine cable infrastructure. These cables are essential for connecting the country to international markets, supporting the growth of its technology – driven industries, and enhancing its global communication capabilities.
In Africa, South Africa is a major market for submarine cables. The country’s need for reliable communication and power transmission, especially in the context of its mining and financial sectors, drives the demand. Additionally, other African countries are also starting to recognize the importance of submarine cables in promoting economic development and improving communication services, leading to potential growth in the market in the coming years.
Figure Global Submarine Cable Market Size (M USD) by Region in 2024
7 Global Submarine Cable Market Analysis by Major Players
7.1 Prysmian Group
Company Introduction and Business Overview:
Prysmian Group is an Italian company founded in 1879, with its headquarters in Milan. It is a global leader in the production of electrical cable for the energy and telecom sectors, including optical fibers. The company has a strong presence worldwide, with 23 plants in North America, 48 in Europe, 13 in Latin America, 7 in the Middle East and Africa, and 13 in Asia-Pacific. It is listed on the Milan Stock Exchange in the FTSE MIB index.
Prysmian Group is the world leader in the production of cables for wind farms and offers a wide range of high-voltage and submarine transmission cables. The company focuses on innovation and R&D to support the development and production of transmission grids, facilitating the bulk movement of electrical energy. It also provides fiber-optic submarine cables, accessories, and solutions through its subsidiary NSW.
Products:
Prysmian offers both HVAC and HVDC cable systems for power transmission, suitable for both land and submarine connections. It provides a full range of submarine cables, including self-contained oil-filled cables, extrusion-insulated cables, and other specialized solutions for long-distance communication networks and power transmission.
Market Performance in 2021:
Revenue of $830.57 million, Gross Margin of $440 million, Gross Margin Percentage of 52.95%.
7.2 Nexans
Company Introduction and Business Overview:
Nexans is a global company in the cable and optical fiber industry, headquartered in Paris, France. Established in 2000, Nexans operates in four main business areas: buildings and territories, high voltage and projects, data and telecoms, and industry and solutions. The company is known for its expertise in manufacturing cables for various applications, including submarine cables.
Nexans is active in multiple sectors, including offshore wind farms, subsea interconnections, telecom networks, and data transmission. The company is committed to innovation and sustainability, offering a wide range of cable solutions for both terrestrial and submarine applications. Nexans’ mass impregnated HVDC cables are particularly renowned for their reliability and efficiency in long-distance submarine power transmission.
Products:
Nexans provides a comprehensive range of submarine cables, including mass impregnated HVDC cables, extrusion-insulated cables, and other specialized cables for offshore wind farms and interconnector projects. Its products are designed to meet the highest standards of reliability and performance for long-distance communication networks and power transmission.
Market Performance in 2021:
Revenue of $575.84 million, Gross Margin of $257 million, Gross Margin Percentage of 44.55%.
7.3 Sumitomo Electric Industries
Company Introduction and Business Overview:
Sumitomo Electric Industries, Ltd. is a Japanese company founded in 1897, with its headquarters in Osaka. The company is a leading manufacturer of electric wire and optical fiber cables, with a diverse business portfolio that includes automotive, information & communications, electronics, environment & energy, and industrial materials. Sumitomo Electric is known for its pioneering work in the subsea cable industry.
Sumitomo Electric Industries has a long history of innovation and excellence in the subsea cable market. The company provides a wide range of solutions for offshore renewable energy projects, including wind farms and interconnector projects. Its integrated design, production, installation, and project management capabilities enable reliable and timely completion of complex projects.
Products:
Sumitomo Electric offers a comprehensive range of subsea cables, including XLPE, mass impregnated (MI), fluid-filled, HVAC, HVDC, medium voltage to extra-high voltage cables, and in-house developed power cable accessories. Its products are designed to meet the demanding requirements of long-distance communication networks and power transmission.
Market Performance in 2021:
Revenue of $114.48 million, Gross Margin of $51 million, Gross Margin Percentage of 44.38%.