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 2024, 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 2024. 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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