Subsea Cables Equipment Market
Subsea Cables Equipment Market (Type: Trenchers, Ploughs, and Others; and Application: Offshore Wind Power Generation, Inter-country and Island Connection, and Offshore Oil Rigs) – Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2020-2030
- Electronics & Semiconductors
- 148 Pages
Advancements in Transoceanic Communication to Fuel Market Growth
Technological advancements have played an important role in molding the overall growth of the global subsea cable equipment market over the past few years. Over the past couple of decades, considerable progress and advancements made in the transoceanic communication space have influenced the demand for subsea cables equipment– a factor that is expected to provide a considerable boost to the market growth. In addition, the surge in the number of offshore projects, including offshore wind power generation and construction of several new oilrigs in various locations has led to a considerable rise in the demand for subsea cables equipment– a trend that is expected to continue during the forecast period.
Over the past decade, data management across subsea cables equipment has witnessed considerable progress and gained noteworthy popularity. While telecommunications companies were primarily at the forefront in terms of development and construction of new subsea cables equipment, the tide is gradually shifting toward hyper-scale cloud companies and giant content providers. Considerable progress in the cable technology has played an important role in reducing project costs, while simultaneously improving capacity and efficiency due to which, the subsea cable equipment market is projected to grow at a consistent pace in the upcoming years.
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Demand for Subsea Cable on Rise as Internet Penetration Grows Worldwide
As the international telecommunications sector continues to advance at a rapid pace, data traffic volumes are growing at a blazing speed due to which, the demand for subsea cable systems is increasing at an impressive rate. The construction boom in offshore telecommunication projects, along with anticipated growth in the cable capacity of newly developed subsea cables is likely to play an imperative role in the expansion of the global subsea cable equipment market during the assessment period.
A number of prominent tech companies, including Google, Facebook, and Microsoft is increasingly investing in the development of the transoceanic communication space– a factor that is expected to boost the overall growth of the global subsea cable equipment market. In addition, current observable trends suggest that tech companies are anticipated to gradually emerge as primary investors in new subsea cable systems. For instance, Amazon came under the spotlight as one of the key investors in the Hawaiki Submarine Cable project that is estimated to connect Australia to the West Coast of the U.S. through Hawaii and New Zealand. As per the data revealed by TeleGeography, the capacity of new subsea cable systems deployed by Facebook, Amazon, Google, and Microsoft witnessed a 14-fold growth in the period from 2012 to 2016. The shift from a cloud-first approach to IT is a major factor that is expected to fuel this trend further.
Advent of 5G network and growing demand for faster connectivity are expected to have a strong impact on the growth of the global subsea cable equipment market in the forthcoming decade.
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Maintenance of Subsea Cables to Become Priority as Companies Aim to Minimize Losses
The offshore wind farm industry has garnered considerable attention over the past couple of decades, as it continues to mature steadily. One of the challenges players operating in the offshore wind generation sector is increasingly focusing on addressing is the installation and maintenance of subsea cables– a barrier that has dented several companies financially and caused delays in the completion of several key projects. Market players are increasingly focusing on reducing the damage to offshore wind farms by restricting the mechanical damage to the subsea cable equipment. The increasing need to improve the maintenance process of subsea cables equipment is another factor that is likely to provide a considerable boost to the overall growth of the global subsea cable equipment market.
Demand Likely to Remain Low amid COVID-19 Pandemic
The onset of the novel COVID-19 pandemic is expected to have a short-term impact on the growth of the global subsea cable equipment market. While the industrial sector in China was under stringent lockdown during the first quarter of 2020, delivery and overall supply of raw materials and components required to produce subsea cable equipment were largely affected. In addition, stringent restrictions on cross-border trade and transportation are another factor that led to a steep decline in the demand for subsea cables equipment, especially in the second quarter of 2020. However, as governments in several key regions of the world are gradually lifting the restrictions on trade and transportation, the delayed or stalled offshore projects are likely to resume due to which, the demand for subsea cables equipment is projected to grow in the upcoming months.
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The global subsea cable equipment market is projected to expand at a moderate CAGR of ~5% during the forecast period. Advancements in transoceanic communication, increasing country and island connectivity, soaring investments from tech companies, including Facebook and Google, and advancements in the communications technology are likely to drive the market for subsea cables equipment during the assessment period. Market players should focus on improving the durability of their subsea cables equipment and minimize the losses inflicted due to failures and issues at the time of maintenance of subsea cable equipment.
Subsea Cable Equipment Market: Overview
- According to Transparency Market Research’s latest research report on the global subsea cable equipment market for the historical period 2017–2018 and the forecast period 2020–2030, advanced subsea cable equipment, and increasing inter country and island connections are factors expected to boost the global subsea cable equipment market during the forecast period
- In terms of revenue, the global subsea cable equipment market is estimated to reach a value of US$ 2.4 Bn by 2030, expanding at a CAGR of ~5% throughout the forecast period
Increasing Advanced Subsea Cables Equipment and Increasing Inter-country and Island Connection: A Key Driver
- Manufacturers of subsea cables equipment are continuously engaged in the designing of advanced subsea cables equipment
- For instance, Osbit has developed a new multifunction plough with pre lay and backfill features. This PLP 240 plough offers single pass capability, enabling boulder clearance and pre trenching up to 1.7 m in a single run. This plough also has an additional feature of extensive surveillance for trenching. These new and advanced features in subsea cables equipment are further boosting the growth of the subsea cable equipment market.
- The major use of subsea cables equipment such as trenchers and ploughs are in inter-country and island connection by cables. Need for subsea cable equipment increases with the rising demand for connection between countries. These equipment help to bury the cables under the seabed.
- In January 2020, the project of laying submarine cables from Chennai (India) to Andaman & Nicobar Island was flagged off. The project involves laying of around 2,250 km of submarine optical fiber cable.
- Hong Kong, Singapore, Japan, Vietnam, Guam, and Philippines are connected through TGN - Intra Asia Cables System (TGN-IA). The TGN-IA cable route has been deliberately designed to avoid areas prone to earthquakes and other hazardous areas, such as south and east coast of Taiwan Island. Such inter-country and island connection through subsea cables are expected to contribute to the growth of the subsea cable equipment market.
High Cost of Equipment and Challenges
- Subsea cable equipment involves high amount of risk, cost, and difficulties in installation of cables. The average weight of the trenchers or the plough weighs around 60 to 80 tons. Thus, it becomes difficult to handle the equipment and suspend it to the seabed.
- The cost of the equipment includes carrying the equipment from the land to the offshore location via ship or vessels, taking it to the seabed via cranes, and operation of the equipment from the vessel
- All such processes involves high amount of risk and difficulties. Such parameters restricts the growth of the subsea cable equipment market. Though the impact of these factors is expected to be low during the forecast period, it is still hindering the growth of the subsea cable equipment market.
Subsea Cable Equipment Market: Competition Landscape
- Detailed profiles of providers of subsea cables equipment have been provided in the report to evaluate their financials, key product offerings, recent developments, and strategies
- Key players operating in the global subsea cable equipment market are
- Com&Sens bvba
- Cybel LLC
- FBGS Technologies GmbH
- Femto Sensing International
- Hottinger Baldwin Messtechnik GmbH
- iXBlue Photonics
- Optical Fiber Solutions
- QPS Photronics
- Technicia Optical Components LLC
- TeraXion Inc.
Subsea Cable Equipment Market: Key Developments
- Key providers of subsea cables equipment, such as Royal IHC, Osbit, Soil Machine Dynamics Ltd., and S. B. Submarine Systems Co., Ltd. are focusing on the construction of cost-effective subsea cables equipment to attract more customers. Some other key developments in the global subsea cable equipment market are highlighted below:
- In February 2020, Osbit, the U.K.-based offshore technology company was awarded a contract by FTAI Ocean, a subsidiary of Fortress Transportation and Infrastructure Investors LLC (FTAI), to design and construct an innovative new well intervention tower system. According to the contract, the company is expected to construct riser-less and riser-based well intervention operations in water depths up to 1,500 meters.
- In February 2020, Royal IHC and National Marine Dredging Company successfully launched a trailing suction hopper dredger (TSHD) GHASHA, which includes an enlarged hopper capacity of 8,000m³ and a larger dredging depth of 45 meters
- In the global subsea cable equipment market report, we have discussed individual strategies, followed by company profiles of providers of subsea cables equipment systems. The ‘Competition Landscape’ section has been included in the report to provide readers with a dashboard view and company market share analysis of key players operating in the global subsea cable equipment market.
Subsea Cable Equipment Market – Scope of the Report
A new study on the global subsea cable equipment market is published by Transparency Market Research (TMR). It presents detailed information of key market dynamics, including drivers, trends, and challenges for the global subsea cable equipment market as well as its structure. TMR’s study offers valuable information on the global subsea cable equipment market in order to illustrate how the global market is expected to expand during the forecast period i.e. 2020–2030.
Key indicators of market growth, which include value chain analysis and compound annual growth rate (CAGR) have been elucidated in TMR’s study in a comprehensive manner. This data can help readers interpret the quantitative growth aspects of the global subsea cable equipment market.
An extensive analysis of business strategies adopted by leading market players has also been featured in TMR’s study on the global subsea cable equipment market. This can help readers understand key factors responsible for growth of the global subsea cable equipment market. In this study, readers can also find specific data on avenues for qualitative and quantitative growth of the global subsea cable equipment market. This data would guide market players in making apt decisions in the near future.
Key Questions Answered in TMR’s Study on Global Subsea Cable Equipment Market
- What would be the Y-o-Y growth trend of the global subsea cables equipment market between 2020 and 2030>
- What is the influence of changing trends in technology on the global subsea cables equipment market?
- Would North America continue to be the most dominant regional market for providers of subsea cables equipment over the next few years?
- Which factors would hinder the global subsea cable equipment market during the forecast period?
- Which are leading companies operating in the global subsea cable equipment market?
A unique research methodology has been utilized by TMR to conduct a comprehensive research on the global subsea cable equipment market and arrive at conclusions on future growth prospects for the market. This research methodology is a combination of primary and secondary research, which helps analysts warrant the accuracy and reliability of the conclusions drawn.
Secondary research sources referred to by analysts during production of the report on the global subsea cables equipment market include statistics from company annual reports, SEC filings, company websites, World Bank database, investor presentations, regulatory databases, government publications, and market white papers. Analysts have also interviewed senior managers, product portfolio managers, CEOs, VPs, and market intelligence managers who have contributed to the production of TMR’s study on the global subsea cable equipment market as a primary research source.
These primary and secondary sources provided exclusive information during interviews, which served as a validation from leading players operating in the global subsea cable equipment market. Access to an extensive internal repository as well as external proprietary databases allowed this report to address specific details and questions about the global subsea cable equipment market with accuracy. The study also uses a top-down approach to assess the numbers for each segment and a bottom-up approach to counter-validate them. This has helped in making TMR’s estimates on future prospects for the global subsea cable equipment market more reliable and accurate.
Subsea Cable Equipment Market Segmentation
TMR’s study on the global subsea cable equipment market divides the market based on type, application, and region. Changing market trends and other crucial market dynamics associated with segments of the global subsea cable equipment market have been discussed in detail in TMR’s study.