Submarine Fiber Cable Market By Type (Shallow-Sea Cable And Deep-Sea Cable), By Application (New Projects, And Upgrade Projects), and Region - Global Forecast to 2028

The global submarine fiber cable market was valued at around US$ 3.4 Bn in 2018, and is expected to register a CAGR of 6.2%. The report offers in-depth insights, revenue details, and other vital information regarding the global submarine fiber cable market and the various trends, drivers, restraints, opportunities, and threats in the target market till 2028. The report also offers insightful and detailed information regarding the various key players operating in the global submarine fiber cable market, and their financials, apart from strategies, acquisitions & mergers, and market footprint. The global submarine fiber cable market is segmented on the basis of type, application, and region/country.

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This report is based on synthesis, analysis, and interpretation of information gathered regarding the target market from various sources. Our analysts have analyzed the information and data and gained insights using a mix of primary and secondary research efforts with the primary objective to provide a holistic view of the market. In addition, an in-house study has been made of the global economic conditions and other economic indicators and factors to assess their respective impact on the market historically, as well as the current impact in order to make informed forecasts about the scenarios in future.

Introduction:

Submarine fiber cable or Subsea cable is designed to permit the interconnection of two or more terminal stations, and to transfer the communication signal from one place to another.

Global Submarine Fiber Cable Market: Dynamics

Increasing demand for high speed Internet bandwidth in most developed countries is leading to transformation of submarine fiber cable requirements. Also, growing number of Internet-driven businesses in countries across the globe is among some of the major factors driving demand for better Internet connectivity and bandwidth, which is resulting in rising demand for submarine fiber cables and network infrastructure.

In order to capitalize on emerging opportunities, various Internet service providers and telecom operators are focusing on addressing end-user requirements in order to ensure reliable and continuous network connectivity, better bandwidth, better Internet speed etc.

Demand for high bandwidth will increase with rising engagement and adoption of more advanced technologies across various sectors, owing to rising need for improved bandwidth for more powerful and accurate computation.

Data center interconnect in Internet Content Provider networks is a key driver of acceleration in technology adoption rate, and this is expected to continue in future as well.

Constantly increasing adoption smartphones among consumers as a means to have access to a range of benefits such as making online purchases, availing online healthcare, banking and financial services, navigation while traveling, searching for a location, etc., coupled with rising demand for high-speed Internet to gain access to information in real time, and for gaming applications among others in countries across the globe is resulting into rising need for introduction of  advanced technologies and infrastructure

According to GSMA Intelligence, by 2025, mobile Internet penetration will reach 61% of the global population and 86% of unique subscribers. Most of the number of mobile Internet users between 2017 and 2025 will be in China (around 350 million new users), India (330 million), and Sub-Saharan Africa (280 million).

Submarine fiber cables are prone to a range of attacks, which could adversely impact brand and product, and can act as one among some of the major restraints for growth of the target market

Undersea volcanoes are a concern off the Horn of Africa, where a number of cables converge as they pass from the Red Sea into the Gulf of Aden. An eruption could likely disrupt connectivity to a large part of Asia.

Submarine fiber cables attacks or damage can occur and the causes vary. Fishing, anchors, fish bites, icebergs, drilling activities, geological reasons etc., are some recorded ones.

Fishing can be considered the major cause of damage, Shark attacks on undersea cable segments and intense scraping of cable against rough or uneven surfaces and debris are others

In 2013, the South East Asia-Middle East-Western-Europe 4 (SMW 4) cable was intentionally cut by a diver, thereby crippling Internet speeds by 60% in Egypt. The damage caused Internet slowdowns for all service providers, and took around 20 hours to resolve.

Market analysis by type:

On the basis of type segmentation, the deep-sea cable segment is expected to contribute major revenue share, and is expected to maintain its dominance over the forecast period. The deep-sea cable segment is expected to witness highest CAGR of over 6.1%, during the forecast period

Market analysis by Application:

On the basis of application segment, the new projects segment is expected to contribute major revenue share, and is expected to maintain its dominance over the forecast period. The new projects segment is expected to witness highest CAGR of over 6.2%, over the forecast period.

Market analysis by region:

Rising demand for broadband services and increasing investments for upgrading existing projects and increasing deployment of new subsea cables in order to support increasing bandwidth demand for various broadband applications in North America are factors driving growth of the submarine cable market in the region

In October 2017 for instance, FP Telecommunications (FPT), which is US-based network construction management company and Alcatel Submarine Networks (ASN), which is France-based fully integrated turnkey submarine network solutions provider, a part of Nokia, have signed a turn-key agreement for deployment of AURORA Submarine Cable System to meet high bandwidth requirements in countries in North, Central, and South America. AURORA is based on ASN's advanced submarine system technology supporting regional, social, and economic development. The overall project investment was valued at US$ 310 Mn.

Developments in public private partnerships (PPPs) in order to meet increasing need for Internet bandwidth is in turn supporting and propelling revenue growth of the North America subsea cable market

According to report published by Public Private Analytical Exchange Program in 2017, collaborations between the United States Government (USG) and private sectors are increasing in order to mitigate threats against domestic cable communications and ensure business continuity

Increasing use of smart devices and mobile data, and rising demand for rich Internet connectivity is leading to increasing need for high speed broadband services in countries in the region.

Increasing bandwidth demands for broadband applications and growing telecommunication networks and rising demand for high speed broadband services from the IT and telecom sectors, and BFSI sector, among others to manage infrastructure, connectivity, and services are factors expected to drive revenue growth of the subsea cable market in Europe

According to Digital Agenda for Europe (DAE)-2013, the European Union has committed itself to ambitious Digital Agenda for Europe (DAE) goals. The DAE includes full broadband availability in 2013, 100% availability of 30 Mbps (henceforth called “fast broadband”) in 2020, and 50% adoption of 100 Mbps (henceforth called “ultra-fast broadband”) by 2020.

For instance, the BELLA (Building Europe Link to Latin America) consortium, whose leading investor is the European Commission, has signed a contract agreement with EllaLink, which is a private consortium, to launch the deployment of an underwater fiber cable connecting Europe and Latin America. The cable will provide reliable high capacity connectivity that will boost business, and scientific and cultural exchanges between the two continents. The European Commission is investing around US$ 30.6 million alongside the group of public stakeholders that form the BELLA consortium.

Presence of prominent players such as Nokia Corporation, Hydro Group Plc, Prysmian Group, Nexans S.A., and others in countries in the region, coupled with increasing investments in R&D activities and in new projects

Market Segmentation:

Global Submarine Fiber Cable Market Segmentation, by type:

• Shallow-sea Cable
• Deep-sea Cable

 Global Submarine Fiber Cable Market Segmentation, by application:

• New projects
• Upgrade projects

 Global Submarine Fiber Cable Market Segmentation, by region/country:

• North America
• Europe
• UK
• China
• Japan
• MEA
• India
• South America
• Rest of World

• Nokia Corporation
• NEC Corporation
• Prysmian Group
• Huawei Investment & Holding Co., Ltd.
• KDDI CORPORATION
• Fujitsu Ltd.
• KEI Industries Limited
• Nexans S.A.
• SubCom, LLC
• LS Cable & System Ltd.
• Turkuaz Cable, Inc.
• Hydro Group Plc.
• Xtera Communications, Inc.