Submarine optical fibre cables market to be US$67.8 billion by 2033: FMI
The global submarine optical fibre cable market's revenue is projected to increase substantially from its current value of US$20.6 billion in 2023. These insights are based on a report on the submarine optical fibre cables market by Future Market Insights (FMI).
FMI forecasts a CAGR of 12.6% for the market during the period.
“The demand for undersea optical fibre cables continues to grow with the expanding use of cloud services and the growth of data centres. Between data centres spread across several areas, these cables facilitate effective data transport and connection,” says FMI.
“Submarine optical fibre connections are becoming progressively more viable given rising investments in offshore renewable energy projects. Data and electricity transmission from offshore sites to onshore facilities depends on these connections.”
“The demand for underwater optical fibre cables has also been influenced by the continued growth of global trade. These cables enable cross-regional corporate connections and collaboration by facilitating global communication.”
The high installation and maintenance expenses related to extending cables across the waters are one of the top market barriers. Submarine cable installations are complicated and specialized, which raises the entire cost.
A significant concern is the susceptibility of submarine optical fibre cables to natural calamities like earthquakes and underwater landslides. These occurrences can interrupt or destroy the wires, resulting in expensive repairs and downtime.
Market restrictions could also originate from legal and political grounds. Delays could hamper the market expansion in specific locations in getting licenses and clearances for cable installations.
“The creation of higher-capacity cables is one of the key developments in the market. To accommodate the rising demand for bandwidth, manufacturers are always working to improve the capacity and data transfer speeds of these connections,” add researchers at FMI.
“The construction of new undersea cable lines offers the market several prospects. To link underserved locations and fulfil the rising demand for connectivity, businesses are looking into alternate routes and increasing their network coverage.”
Submarine optical fibre cable integration with other technologies, such as 5G networks, opens new market expansion prospects. Data transfer across many platforms becomes smooth and effective because of these synergies.
Some of the key takeaways in FMI’s report are as follows.
The submarine optical fibre cables industry in the United States is predicted to reach US$13.7 billion by 2033.
The submarine optical fibre cables industry in the United Kingdom is estimated to expand at a CAGR of 12.2% between 2023 and 2033.
During the forecast period, China's submarine optical fibre cables industry is expected to reach a market share of US$14.8 billion.
Japan's submarine optical fibre cables industry is predicted to boom at a 12.5% CAGR through 2033.
South Korea's submarine optical fibre cables industry is predicted to achieve a market share of US$3.6 billion by 2033.
“With a CAGR of 12.4% from 2023 to 2033, the single-mode segment is expected to dominate the submarine optical fibre cables industry. With a CAGR of 12.2%, the communication segment is expected to dominate the submarine optical fibre cables industry until 2033,” adds FMI.
The report also throws light on the competitive landscape of the industry.
“The submarine optical fibre cables market is witnessing vibrant growth. Key market players are deliberately positioning themselves to capitalize on this opportunity. They are focused on improving their product offerings. They also emphasize expanding their market presence through various initiatives. These heavily invest in research and development activities to develop advanced submarine optical fibre cables,” notes FMI.
“In addition, they are forming strategic partnerships and collaborations to strengthen their global footprint and ensure seamless connectivity across continents. With their commitment to innovation and customer-centric approaches, these industry leaders are shaping the future of submarine optical fibre cables.”
Some recent developments in the industry include Bharti Airtel's announcement in February 2022 about its participation in the South East Asia-Middle East-Western Europe 6 (SEA-ME-WE-6) underwater cable consortium. This move aimed to enhance the capacity of its high-speed global network and support India's rapidly growing digital economy.
In September 2022, C&W Networks upgraded the CFX-1 and EWC subsea fibre optic cable networks using Ciena's highly acclaimed GeoMesh Extreme. The aim was to deliver state-of-the-art broadband and IP services with up to 400 GB/s speeds. These network enhancements were explicitly designed to assist C&W Networks' telecom and internet service provider (ISP) clients in meeting their growing bandwidth requirements.