Middle East Submarine Cable System Market, By Product (Wet Plant Products and Dry Plant Products), Voltage (Medium Voltage, High Voltage, and Extra High Voltage), Fibre Class (Unrepeatered and Repeatered), Cable Types (Loose Tube Cables, Ribbon Cables, and Others), Armor Type (Light Weight Armor, Single Armor, Double Armor, and Rock Armor), Depth (0 to 500 M, 500 M to 1000 M, 1000 M to 5000 M, and Others), Application (Power Cables and Communication Cables) - Industry Trends and Forecast to 2031.
Middle East Submarine Cable System Market Analysis and Size
Submarine cable is a type of cable that is laid on the sea bed between land-based stations to carry telecommunication signals across stretches of sea and ocean. The rising telecom subscriptions and high investments in offshore wind farms have been directly influencing the market growth. In addition, the growing investments of content and cloud service providers and the increasing internet traffic in emerging regions are flourishing the market growth.
Data Bridge Market Research analyzes that Middle East submarine cable system market is expected to reach USD 1,556,030.39 thousand by 2031 from USD 826,415.46 thousand in 2023, growing at a CAGR of 8.3% during the forecast period of 2024 to 2031.
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Report Metric
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Details
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Forecast Period
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2024 to 2031
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Base Year
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2023
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Historic Years
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2022 (Customizable to 2016-2021)
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Quantitative Units
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Revenue in USD Thousand
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Segments Covered
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Product (Wet Plant Products and Dry Plant Products), Voltage (Medium Voltage, High Voltage, and Extra High Voltage), Fibre Class (Unrepeatered and Repeatered), Cable Types (Loose Tube Cables, Ribbon Cables, and Others), Armor Type (Light Weight Armor, Single Armor, Double Armor, and Rock Armor), Depth (0 to 500 M, 500 M to 1000 M, 1000 M to 5000 M, and Others), Application (Power Cables and Communication Cables)
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Countries Covered
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Saudi Arabia, U.A.E., Qatar, Iran, Israel, Oman, Kuwait, Iraq, Bahrain, and Rest of Middle East and Africa
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Market Players Covered
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HENGTONG GROUP CO., LTD, TE Connectivity, Saudi Ericsson, APAR, NEC Corporation, NXT A/S, Norddeutsche Seekabelwerke GmbH (A Subsidiary of Prysmian Group), JDR Cable Systems Ltd, ZTT, Hexatronic Group, Alcatel Submarine Networks, Corning Incorporated, The Okonite Company, AFL (a subsidiary of Fujikura Ltd.), LEONI, NEXANS, Ocean Specialists, Inc. (a subsidiary of Continental Shelf Associates, Inc.), The Okonite Company, Sumitomo Electric Industries, Ltd., Tratos, Hellenic Cables S.A., Alcatel Submarine Networks, and HESFIBEL SUBSEA CABLES, among others
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Market Definition
A submarine cable system refers to the cable framework connected to a land-based station that helps transmit the signals through ocean and marine water bodies. The connectivity combination for long distances combines communication and electricity transmission through the cable systems underwater.
The demand and the deployment of the submarine cable system are completely dependent on the Middle East's increase in telecom and internet subscriptions, and they are expected to put effort into expanding the submarine systems in unexplored areas. Moreover, sea freight and GPS play a major role in developing submarine cables in the modern world across all countries and regions. This needs the application of proper and unique government regulations to develop a standard procedure and connectivity. Hence, it includes several set of rules and regulations that helps in boosting market growth.
Middle East Submarine Cable System Market Dynamics
This section deals with understanding the market drivers, opportunities, restraints, and challenges. All of this is discussed in detail below:
Drivers
- Surge in the Communication Projects Undersea Path Across the Middle East
Communication projects aim to expand and enhance global connectivity, fostering economic growth and technological advancements in the region. The Middle East has witnessed a remarkable increase in data consumption and digitalization, making robust submarine cable systems essential for handling the growing demand for high-speed internet and data transfer.
The Middle East is strategically positioned at the crossroads of Europe, Asia, and Africa, making it a critical hub for international data traffic. Submarine cables provide the most reliable and high-capacity means of connecting the Middle East to other continents, ensuring low-latency communication and high-speed data transmission. This connectivity is vital for the region's economic development and international trade, and the growth of communication projects will lead to a corresponding rise in the demand for submarine cable systems.
The surge in communication projects reflects the Middle East's commitment to diversifying its economy beyond oil and gas. The demand for submarine cable systems becomes even more pronounced as the region invests in technology, smart cities, and digital services. These cables are the backbone of global communication networks, enabling data centers, cloud services, and e-commerce platforms to thrive. Consequently, the Middle East submarine cable system market is poised for considerable growth as these projects continue to unfold.
- Rise in the Trend of Offshore Wind Power Generation
Offshore wind power generation is an energy source gaining traction in the region due to its numerous benefits, including clean energy generation and reduced greenhouse gas emissions. Offshore wind farms require a reliable and efficient transmission network to connect the generated electricity to onshore grids, making submarine cable systems crucial for this endeavor. It is growing as Middle Eastern countries seek to diversify their energy sources and reduce their dependence on fossil fuels. The region's abundant coastline offers a prime location for wind farms, as the Arabian Peninsula and other areas are exposed to strong and consistent winds. As a result, investments in offshore wind energy projects have been increasing, creating a need for robust submarine cable systems to transport electricity to the mainland.
Opportunity
- Penetration of Submarine Cable Owing to the Increasing Internet Traffic Across the Region
Submarine cables are becoming essential for facilitating data transmission between countries and continents as the demand for high-speed and reliable internet connectivity continues to rise. This penetration of submarine cables has opened up numerous opportunities in the market.
The Middle East is strategically located between Europe and Asia, making it an ideal transcontinental connectivity hub. Submarine cables connecting the Middle East to these regions provide shorter and more direct routes for internet traffic, reducing latency and enhancing connectivity. This geographical advantage presents a lucrative opportunity for market growth. The growing adoption of cloud services and data centers in the Middle East requires robust and high-capacity connectivity. Submarine cables offer the bandwidth and reliability needed to support these critical services, thereby driving the demand for submarine cable systems.
Restraint
- High Initial Investments acts as an Entry Barrier For SMES
The Middle East submarine cable system market involves substantial capital requirements for the development, deployment, and maintenance of undersea infrastructure. The costs associated with manufacturing, laying, and maintaining submarine cables and establishing landing stations are exorbitant. SMEs typically have limited financial resources and, therefore, struggle to secure the necessary funds, making it difficult for them to compete with well-established, financially robust industry leaders.
Recent Developments
- In October 2023, PRYSMIAN S.p.A. manufactured cables for the 3 GW interconnection between Egypt and Saudi Arabia, marking the first significant link between the Middle East and North Africa. This achievement, under a USD 233.57 thousands contract, demonstrates Prysmian's commitment to advancing regional energy connectivity and sustainability. The project is set to enhance electricity exchange in the region and promote greater energy security
- In April 2023, HENGTONG GROUP CO.,LTD. invested USD 500.00 thousands in a subsea internet cable network linking Asia, the Middle East, and Europe to compete with a U.S.-backed project. This move signals the escalation of a technology rivalry between China and the U.S. with potential implications for global internet connectivity
- In July 2022, NEXANS announced the winning of new project by EuroAsia interconnector Limited to develop European electricity interconnection linking the national grids of Israel, Cyprus and Greece (Crete). This project helped the company to provide technology for deep water subsea power cables utilizing Nexans long term developments for 3,000 m ultradeep waters together with the installation capabilities which will be recognised in the market
- In February 2021, Nexans secured a substantial purchase order for the provision of 180 km of 230 kV cables for the expansive offshore Marjan increment development mega-project on the eastern Arabian Gulf coast. The order included two 90 km lengths of 230kV HVAC three-core submarine power cables featuring an internal fiber optical element. This helped the company by strengthening the company position in the market
- In June 2020, Okonite successfully expanded its Compound Plant and added a new Logistical Building just before the onset of the COVID-19 pandemic. The increased space eased logistical challenges and enhanced material handling, benefiting both raw materials reception and finished compounds shipment. Okonite's team has seamlessly transitioned to their new facilities, and future customer tours will offer a more extensive insight into the company's dedication to capital improvement, product quality, and innovation
Middle East Submarine Cable System Market Scope
The Middle East submarine cable system market is segmented into seven notable segments based on product, voltage, fiber class, armor type, cables type, depth, and application. The growth amongst these segments will help you analyze meager growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.
Product
- Wet Plant Products
- Dry Plant Products
On the basis of product, the market is segmented into dry plant products and wet plant products.
Voltage
- Medium Voltage
- High Voltage
- Extra High Voltage
On the basis of voltage, the market is segmented into medium voltage, high voltage, and extra high voltage.
Fiber Class
- Unrepeatered
- Repeatered
On the basis of fiber class, the market is segmented into unrepeatered and repeatered.
Cables Type
- Loose Tube Cables
- Ribbon Cables
- Others
On the basis of cables type, the market is segmented into loose tube cables, ribbon cables, and others.
Armor Type
- Light Weight Armor
- Single Armor
- Double Armor
- Rock Armor
On the basis of armor type, the market is segmented into light weight armor, single armor, double armor, and rock armor.
Depth
- 0 to 500 M
- 500 M to 1000 M
- 1000 M to 5000 M
- Others
On the basis of depth, the market is segmented into 0 to 500 m, 500 m to 1000 m, 1000 m to 5000 m, and others.
Application
- Power Cables
- Communication Cables
On the basis of application, the market is segmented into power cables and communication cables.
Middle East Submarine Cable System Market Regional Analysis/Insights
The Middle East submarine cable system market is analyzed and market size insights and trends are provided by product, voltage, fiber class, cables type, armor type, depth, and application as referenced above.
The countries covered in this market report are Saudi Arabia, U.A.E., Israel, Qatar, Oman, Bahrain, Iran, Kuwait, Iraq, and rest of Middle East and Africa.
Saudi Arabia is expected to dominate the market as it develops cloud-based solutions and services designed to improve security and contribute new levels of operational intelligence for governments, enterprises, transport, and communities. This will boost the demand for submarine cable system products in the Middle East.
The country section of the report also provides individual market-impacting factors and market regulation changes that impact the market's current and future trends. Data points like downstream and upstream value chain analysis, technological trends, Porter's five forces analysis, and case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of regional brands and their challenges faced due to large or scarce competition from local and domestic brands, the impact of domestic tariffs, and trade routes are considered while providing forecast analysis of the country data.
Competitive Landscape and Middle East Submarine Cable System Market Share Analysis
The Middle East submarine cable system market competitive landscape provides details of the competitors. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, and new market initiatives. The above data points provided are only related to the companies' focus related to the market.
Some of the major market players operating in the market are HENGTONG GROUP CO.,LTD., Alcatel Submarine Networks, Corning Incorporated, JDR Cable Systems Ltd., PRYSMIAN S.p.A., LS Cable & System Ltd, APAR, NEC Corporation, ZTT, Hexatronic Group, NEXANS, Sumitomo Electric Industries, Ltd., Saudi Ericsson, Tratos, TE Connectivity, and The Okonite Company and among others.
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