The global submarine cable system market accounted for a value of USD 11.3 billion in 2019 and it is projected to register growth at a CAGR of 9.3% during forecast period.
COVID-19 has impacted the submarine cable system market significantly. The supply chain of raw materials and finished products got disrupted due to travel restrictions. Manufacturing facilities have to shut or halt its production due to lockdown. The demand for submarine cable is decreased across various regions. The submarine cable market is likely to foresee significant decline during forecast period.
For more details, visit: Global Submarine Cable System Market By Offering (Upgrade, Maintenance Others, Others), By Voltage (Medium, High, Others), By End-Users (Offshore Oil & Gas, Offshore Wind Power Generation, Others) By Region, Forecast & Opportunities to 2026
The demand for bandwidth is increasing around the world which involves use of cables. The telecom subscriptions and internet connections are increasing around the world. This increases the market for submarine cables and this drives growth in submarine cable during forecast period.
On the basis of offering, the submarine cable market is segmented into upgrade, maintenance others and installation & commissioning. The upgrades segment is estimated to register growth at highest CAGR during forecast period. Submarine cable upgrades are needed to meet capacity requirement. The network capacity can be increased by combination of right equipment, careful planning and accurate field expertise. Upgrades significantly changed the introduction of coherent transmission technology. The innovation is increasing upgrades segment and this drives growth in upgrades segment during forecast period.
On the basis of voltage, the submarine cable market is segmented into medium voltage, high voltage and extra high voltage. The high voltage segment accounted for XX% of largest market share in 2019. It is estimated to hold largest market share during forecast period. High voltage cables are widely used for the power distribution and transmission. The demand for high voltage DC submarine power cables is increasing and many companies are investing in this market largely. It helps in effective power transmission and reduces transmission losses. This drives growth in high voltage cables segment during forecast period.
On the basis of component, the submarine cable market is segmented into offshore oil & gas, inter country & island connection, offshore wind power generation. The offshore wind power generation segment is estimated to register growth at highest CAGR during forecast period. The installation of offshore wind farms is increasing in many countries. UK is considered as world’s largest offshore wind market. Various countries such as China, Japan, Taiwan, UK and Germany are investing in offshore wind power generation and this drives growth in offshore wind power generation during forecast period.
Asia-Pacific region accounted for the largest market share in 2019 and it is estimated to register growth at highest CAGR during forecast period. The adoption and installation of wind farms is increasing in this region. China is highest contributor of growth in this region. The projects are increasing in China which increases demand for submarine cables system. This drives growth in this region during forecast period.
The key market players in submarine cables system industry are Alcatel-Lucent, Subcom, NEC, Prysmian, Nexans, Google, Saudi Ericsson, Hengtong, ZTT, NKT, Corning Inc., Cablel Group, hesfibel, JDR Cable System, Okonite and AFL.
- What are the expected industry trends over the next three to five years?
- Which of the submarine cable system offering is likely to lead by 2025?
- Which of the end-user segments is expected to have the maximum potential to during the forecast period?
- Which region is going to have the highest smart meters market share by 2025?
- What are different organic and inorganic strategies implemented by companies to gain increased market share?