Cable Laying Vessels Market set to exhibit highest growth owing to rising undersea cable deployment
Cable laying vessels are specifically designed ships used for the laying of telecommunication cables on the seabed. They facilitate trenching, cable laying, burying, and maintenance work associated with submarine communication cables. Cable laying vessels offer accurate cable laying in deep waters and come equipped with dynamic positioning systems, cable tensioners, and anchor handling systems.
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The need for reliable telecommunication systems has been rising drastically with the growth of internet connectivity, resulting in increased investments in undersea cable networks. This is propelling the demand for cable laying vessels.
The Global cable laying vessel market is estimated to be valued at US$ 780 Mn in 2024 and is expected to exhibit a CAGR of 30% over the forecast period 2024 To 2031.
Key Takeaways
Key players operating in the cable laying vessel market are Aerovironment, Inc., PJSC Tupolev, and The Boeing Company. Rising investments in undersea communication cable networks from telecom companies and internet service providers is a major factor driving the growth of the market. Advancements in dynamic positioning systems, remote trenching systems, and cable laying capabilities have increased the efficiency of cable laying processes.
Growing demand for high-speed internet and mobile connectivity along coastal areas and countries is significantly driving Cable Laying Vessel Market Demand for the deployment of undersea cables. Major players in the telecommunication industry are investing heavily in establishing communication links between countries. For instance, in 2022, Google announced plans to lay three new subsea cables linking the US, Asia, and Europe, with a total investment of over $3 billion over the next 5 years.
Technological advancements have improved the capabilities of modern cable laying vessels. Modern systems such as dynamic positioning systems with DP3 standard, integrated remote trenching systems, ROVs for route surveys and maintenance works have enhanced the accuracy and reduced risks associated with cable deployment. Caterpillar propulsion systems with high power ratings and state-of-the-art cable engines have increased production rates.
Market Trends
1. Increasing investments in renewable energy interconnectors: As renewable energy generation capacities increase globally, there is a growing need to establish grids connecting areas of renewable energy production to demand centers. This is encouraging investments in offshore wind farms and associated subsea cables.
2. Adoption of autonomous technologies: Major manufacturers are working on developing autonomous cable laying vessels controlled using remote operations centers. Autonomous technologies such as dynamic positioning, trenching, and burying will reduce manpower requirements and improve safety.
Market Opportunities
1. Growing demand in Asia Pacific: Countries such as China, India, Japan, and South Korea are investing heavily in connectivity infrastructure. This presents lucrative growth opportunities for cable laying vessel manufacturers and service providers in the region.
2. Integrated solutions: There is scope for players to offer integrated cable installation solutions covering route surveys, cable laying, burying, and long term maintenance. This will help capture more value from cable infrastructure projects.
Impact of COVID-19 on Cable Laying Vessel Market Growth
The ongoing COVID-19 pandemic has impacted the growth of the cable laying vessel market. During the initial lockdown months in 2020, there was a supply chain disruption in terms of production and transportation of cable laying vessels due to shutdown of manufacturing facilities.
Various ongoing installation projects faced delays and scheduling issues. This adversely impacted the demand for cable laying vessels in the short term. However, with resumption of activities and restarting of projects post easing of lockdown restrictions, the demand is recovering gradually.
The cable laying vessel market is witnessing a shift towards installation of offshore renewable energy infrastructure like offshore wind farms. This is providing opportunities for market growth. Countries are focusing more on renewable energy generation to achieve sustainability targets. Investments are being made to leverage offshore renewable resources. Growing investments in upgrading the grid infrastructure especially undersea cables is further supporting the demand. The pandemic has emphasized the need to build resilient energy infrastructure. This is expected to drive the market in the coming years.
Overall, while COVID-19 posed initial challenges, the long term outlook remains positive backed by initiatives for offshore renewable developments and grid upgrades globally. Manufacturers and service providers need to closely coordinate with clients and stakeholders to overcome scheduling issues and complete delayed projects on a priority in the post COVID period to sustain the market momentum.
Geographical Regions With Highest Market Concentration
In terms of value, the cable laying vessel market witnesses highest concentration in Europe region. Countries like United Kingdom, Germany, Netherlands, Belgium are major markets in Europe due to extensive offshore wind development activity. Europe accounts for over 35% of global cable installation vessel demand mainly driven by offshore wind cable projects. North Sea region is a hub for cable laying vessel usage within Europe.
Asia Pacific region also contributes significantly with China, Japan, South Korea being major country markets. Economic development, power demand growth and grid infrastructure upgradation needs are driving demand. Countries are also increasingly investing in harnessing offshore renewable energy resources, thereby supporting regional cable laying vessel market.
Fastest Growing Regional Market
The cable laying vessel market in Middle East and Africa region is witnessing fastest growth. After initial focus on onshore renewable projects, countries in the region are now turning their focus towards harnessing offshore renewable resources like offshore wind. Economies are making commitments to transition to cleaner energy sources and reduce dependence on fossil fuels in the long run.
This is translating to rising investments and initiation of large scale offshore renewable projects. As a result, the need for cable installation vessels for projects in Africa and Middle East coastal regions is surging at a rapid pace. This makes MEA the fastest expanding regional market for cable laying vessels globally over the forecast period.
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