According to the report released by the international market Research And Markets, the global submarine cable market size is expected to reach US $44.33 billion by 2030, growing at a CAGR of 6.1% during the period.
Increased investments in offshore wind farms, inter-country and island connectivity to improve power supply and communications, and increased investments in oil and gas deepwater drilling activities are the major factors driving the overall market.
For example, increased enterprise investment in the deployment of high-capacity communication systems and the growing demand for HVDC submarine power cables will provide many new opportunities to lead the industry in the future. The growing Internet and data traffic in regions, such as APAC, is the key factor driving the market during the forecast period.
In addition, Asia Pacific, South America, MEA and other densely populated regions are actively investing in offshore wind power. These investments are expected to drive demand for undersea power cables.
The growing demand and penetration of the Internet, their collaboration with Tier 1 providers, and the rising demand for bandwidth due to the rise of 5G are driving the growth in demand for undersea communications cables.
Regional governments around the world are committed to increasing the amount of electricity generated from fossil fuel-based energy sources. The high cost of laying cables and the difficulty of repairing and maintaining deepwater cables have limited the adoption and implementation of submarine cables.
At the same time, undersea threats such as fishing hooks, cyclones, ships and cruise ships have increased the demand for maintenance services. Therefore, installation technology, materials, and cable length all affect the overall market growth. Any failure in an undersea cable incurs huge costs for the repair and redeployment process.
In terms of the application market, in 2021, offshore wind power was the largest segmented application market, which is expected to generate $12.48 billion of submarine cable demand by 2030.
In terms of regional markets, Asia-Pacific accounted for the largest share in 2021. The market will be driven by the increase in offshore wind farms, increasing investments by OTT providers, and increasing data traffic in the region during the forecast period.