APAC Submarine Cable System Market to Grow at a CAGR of 12.8% to reach US$ 546.78 Million from 2021 to 2028

The APAC submarine cable system market is expected to grow from US$ 235.85 million in 2021 to US$ 546.78 million by 2028. It is estimated to grow at a CAGR of 12.8% from 2021 to 2028.

Submarine cable, fiber-optic cables laid in the ocean, carry more than 99% of intercontinental communication traffic, which makes them the invisible enablers of global connectivity. At present, there are more than 500 subsea cables in operation. The submarine cable installations are increasingly shifting toward cable projects led by over-the-top (OTT) hyperscalers from consortiums cables. Content providers such as Google, Facebook, Microsoft, and Amazon are investing vast amounts in data centers and cable projects across the world, including Asia Pacific countries.

The growing demand for offshore wind power from Asia Pacific countries is fueling the market growth over the forecast period. Offshore wind farms play a major role in the quest to increase the use of renewables and reduce its carbon footprint. The wind energy sector in Asia-Pacific is set for rapid expansion and could make up nearly a quarter of the power capacity mix. As per the Wood Mackenzie, China could add 93 GW worth of new offshore wind power capacity from 2021 to 2030. In India, the Ministry of New and Renewable Energy (MNRE) notified the National Offshore Wind Energy Policy - 2015 called as "Offshore Wind Policy" to ensure optimum exploitation of offshore wind energy in India. It also includes the setting up of offshore wind power projects and research & development activities. Thus, such supportive initiatives from government is anticipated to drive the market growth over the forecast period.

Communication segment is holding the largest APAC submarine cable system market share over the forecast period. The growth of the segment is primarily attributed to rise in demand for higher bandwidth and rising fiber connectivity from emerging countries. The advancements in technology, such as the next generation of submarine cables, carry telephone and data communication traffic. Thus, such technological development coupled with growth in the telecom industry is driving the market growth.

APAC submarine cable system market: Key Players

The top five players operating in the APAC submarine cable system market in 2020 were NEC Corporation, S. B. Submarine Systems Co., Ltd., SubCom, LLC, NTT WORLD ENGINEERING MARINE CORPORATION, and Alcatel Submarine Network. The market is moderately consolidated, with several prominent players catering to domestic demand. NEC Corporation is the most prominent player in the market, followed by S. B. Submarine Systems Co., Ltd. and SubCom.

Listing five key players based on a common criterion such as revenue is not feasible. Hence, we have derived this listing of "Key Five Players" in the APAC submarine cable systems by giving weightage to the following key parameters: overall revenue, segmental revenue, brand image & industry experience, current product portfolio, innovative and advanced technology integration/material enhancements, customer base, geographical reach, new product launches, partnerships, mergers & acquisitions, and other Indonesia process instrumentation market-related activities. The APAC submarine cable system market analysis is primarily focused on new upcoming developments, investments and macro and micro factors that influences the market growth. Opportunities for players in the industry are accelerated by the rise in demand for content providers.

APAC submarine cable system market: By Service

Based on service, the APAC submarine cable system market is classified into installation services and maintenance & upgrade services. In 2020, the installation services segment accounted the largest market share dominating the market growth. Also, the segment is expected to retain its dominance during the forecast period. The maintenance & upgrade services segment is expected to witness the fastest growing CAGR over the forecast period in the market.

Impact of COVID-19 Pandemic on APAC submarine cable system market

The global COVID-19 crisis drastically affected APAC countries, namely China, India, and Japan, especially in 2020. A halt in the international movements, and a temporary shutdown of factories and businesses were the other consequences of the COVID-19 pandemic. The shuttering of manufacturing factories did not have any immediate impact on global connectivity, but it pushed back the deployment of new systems. However, in 2021 and later, the APAC submarine cable system market is expected to start recovering from the impact of COVID-19 with the resumption of projects for renewable energy grids and communication networks. The telecom industry is recovering at faster pace from the diversities it faced during the early months of global crisis owing to rising number of internet users and growing inclination toward digital economies. Hence, APAC submarine cable system market size is expected to grow in coming years owing to effective connectivity between nations ensures the future growth of digital economies.

APAC submarine cable system market: Market Initiative

Market initiatives are a strategy adopted by companies to expand their footprint across the APAC region and meet the growing customer demand. The market players present in the APAC submarine cable system market are mainly focusing on product and service enhancements by integrating advanced features and technologies into their offerings.

• In October 2021, NEC Corporation has announced the contract by Facebook to build an ultra-high performance transatlantic subsea fiber-optic cable connecting the USA and Europe. The transmission capacity of the new submarine cable is said to be 1.5 times more than that of conventional cables.
• In February 2022, SubCom and the SEA-ME-WE 6 has a contract is in force and implementation has commenced for the supply and installation of a new 19,200 km undersea cable system connecting South East Asia, the Middle East, and Western Europe at 12 locations from Singapore to France.

APAC submarine cable system market Revenue and Forecast to 2028 (US$ Million)

APAC submarine cable system market Segmentation

APAC submarine cable system market – by Service

• Installation Services
• Maintenance & Upgrade Services

APAC submarine cable system market – by Application

• Grid Interconnection
• Offshore Wind Power
• Communication

APAC submarine cable system market - Companies Mentioned

• NEC Corporation
• S. B. Submarine Systems Co., Ltd.
• SubCom, LLC
• NTT WORLD ENGINEERING MARINE CORPORATION
• Alcatel Submarine Network
• HMN Technologies Co., Ltd.
• ASEAN Cableship Pte Ltd.
• OMS Group Sdn Bhd.
• PT Limin Marine & Offshore
• Dagang NeXchange Berhad
• Kokusai Cable Ship Co., Ltd.
• NTT WORLD ENGINEERING MARINE CORPORATION
• FiberHome

APAC Submarine Cable System Report Scope