Cable laying vessels are specialized ships used for the installation and repair of subsea cables. They are equipped with tools and machinery required to handle cables weighing thousands of tons. Cable laying vessels lower and position cables on seabeds with high precision using technologies such as dynamic positioning systems, plows, and tensioners. Cable television networks, power cables, and telecommunication networks extensively rely on underground and undersea cables for connectivity. Rising investments in expanding telecom infrastructure and increasing offshore wind projects are fueling the demand for cable laying vessels.
The global cable laying vessel market is estimated to be valued at US$ 2.32 billion in 2023 and is expected to exhibit a CAGR of 22% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics
Rising underwater cable projects
The increased deployment of telecom and power cables underwater owing to factors such as connectivity needs and integration of renewable energy is driving the cable laying vessel market. Rising offshore wind projects necessitate extensive undersea cabling for collecting energy from turbines and delivering it to onshore substations, thereby increasing opportunities for cable laying vessels. The development of new telecom networks including internet cables in different regions is expected to accelerate the demand.
Explaining the first driver “Rising underwater cable projects”
Rising demand for high-speed internet and increasing use of undersea cables for connectivity purposes is necessitating more cable laying. The continuous upgradation of existing networks and laying of new submarine cables to expand telecom infrastructure is fueling market growth. Offshore wind energy sector is growing rapidly with many countries announcing targets to increase offshore wind power generation in the coming years. This will require massive cabling projects to collect energy from turbines located miles away at sea, thereby propelling opportunities.
Segment Analysis
The global cable laying vessel market is segmented into two major types – Vessel Charter by Ownership and Vessel Charter by Application. The vessel charter by ownership segment is further divided into owner operated and third party operated. Among these, the third party operated segment holds the dominant position as it provides flexibility to cable manufacturers and telecom operators by reducing upfront vessel investment costs. The vessel charter by application is segmented into telecommunication, electric transmission, submarine fiber optic cable and others. The telecommunication segment dominates due to rising demand for high-speed internet and growing mobile data traffic globally.
PEST Analysis
Political: Stable political environment and government support for development of telecommunication infrastructure in major economies creates conducive conditions for market growth.
Economic: Increasing marine and offshore activities coupled with rising investments in expanding and upgrading submarine cable networks to meet surging data traffic demand drives market expansion.
Social: Rising usage of internet-based services and growing consumer appetite for digital content and connectivity bolsters demand for high-speed communication networks globally.
Technological: Advancements in cable laying technologies enable deployment of cables in difficult terrains and deeper sea depths, and reduction in installation time and costs. Use of dynamic positioning systems improves vessel navigation and operational efficiency.
Key Takeaways
The Global Cable Laying Vessel Market Share is expected to witness high growth over the forecast period due to rising investments in offshore wind farms and expansion of marine telecommunication infrastructure.
Regional analysis: The Asia Pacific region currently accounts for over 35% share of the global market led by China, Japan and countries in Southeast Asia. This is attributed to significant ongoing and planned projects for expanding 4G and 5G networks as well as offshore wind farms in major economies. China has emerged as a production and export hub for cable laying vessels.
Key players operating in the cable laying market are Fugro, Royal Boskalis Westminster, NKT Victoria, DEME, Diehl, DeepOcean, China Communications Construction, DOF, Global Marine and Prysmian. Fugro and NKT Victoria are prominently involved in vessel chartering services while others have strong in-house fleet for cable installation projects globally.
