Underwater Connectors Market size was valued at USD 2.13 Billion in 2023 and is set to cross USD 4.95 Billion by 2036, expanding at more than 6.7% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of underwater connectors is evaluated at USD 2.26 Billion. The growth of the market can be attributed to growing demand for oil and gas. In 2022 as a whole, oil demand growth was increased to about 3 mb/d (+140 kb/d), and in 2023 it was increased to approximately 2 mb/d (+100 kb/d), when it would reach about 100 mb/d, globally. Hence, oil production and exploration operations rise along with the demand for oil, necessitating the usage of subsea machinery and sensors. Hence, owing to this the market is anticipated to grow.
Moreover, underwater connectors are in high demand as a result of the expansion of offshore renewable energy projects such as offshore wind farms. By 2030, the US federal government aims to have installed 30 gigawatts of new offshore wind energy. These connectors are necessary for transporting power from the turbines to the coast via the undersea cables. Hence, their demand is growing. Additionally, the usage of underwater sensors and monitoring tools has increased as a result of an increasing emphasis on environmental monitoring and preservation. These gadgets necessitate dependable and long-lasting connectors to provide proper data transmission and monitoring.
Growth Drivers
Challenges
Base Year |
2023 |
Forecast Year |
2024-2036 |
CAGR |
6.7% |
Base Year Market Size (2023) |
USD 2.13 Billion |
Forecast Year Market Size (2036) |
USD 4.95 Billion |
Regional Scope |
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Application (Oil & Gas, Defense, Unmanned Underwater Vehicle, Telecommunication, Oceanography)
The global industry is segmented and analyzed for demand and supply by application into oil & gas, defense, unmanned underwater vehicle, telecommunication, and oceanography. Out of which, the oil & gas segment is expected to garner the highest revenue by the end of 2036. The growth of the segment can be attributed to growing transportation. Oil and gas are key consumers in the transportation industry, and as more people and goods are carried internationally, the need for oil and gas rises. A daily average of over 54 million tons of freight worth more than about USD 53 billion was transported via the U.S. transportation sector in 2019. Hence, the demand for the segment is growing, further boosting the market growth. A large amount of oil and gas exploration and production takes place in subsea environments, where it is essential to link equipment and instrumentation situated on the seafloor to surface vessels and platforms. A dependable and secure method of joining the various instruments and pieces of equipment together is through underwater connections. Moreover, it might be difficult to maintain and repair equipment when oil and gas exploration and production take place in isolated areas distant from shore. In order to provide dependable and secure connections that are less prone to failure, underwater connectors could assist decrease the need for regular maintenance and repair.
Connection (Electrical, Optical Fiber, Hybrid)
The global underwater connectors market is also segmented and analyzed for demand and supply by connection into electrical, optical fiber, and hybrid. Amongst which, hybrid segment is expected to have the significant growth over the forecast period. Through a single connector, hybrid connectors enable the transmission of both electrical power and data. As a result, subsea systems and instruments are now more functional and adaptable. Moreover, hybrid connectors could conserve space and lower the total size and weight of subsea systems and equipment by merging power and data transmission into one connector. Further, hybrid connectors are frequently made in accordance with industry standards, which could make it simpler for businesses to collaborate on subsea projects and share data.
Our in-depth analysis of the global market includes the following segments:
By Type |
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By Application |
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By Connection |
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North American Market Forecast
The market share of underwater connectors in North America, amongst the market in all the other regions, is projected to have the highest growth by the end of 2036, backed by growing urbanization, along with rising use of underwater connectors in defense in this region. The urban population in North America in 2021 increased by about 0.3% from 2020 to approximately 306,343,264. In North America as a whole, and particularly in the Northeastern United States and Atlantic Canada, the offshore wind energy business is expanding. The electrical infrastructure of offshore wind turbines and their connection to the onshore grid depend on underwater connectors. Additionally, in North America, a large portion of the current subsea infrastructure is deteriorating and has to be repaired or replaced. In response to this, demand for underwater connectors and related subsea equipment has increased. Additionally, in North America, environmental monitoring is receiving more attention, especially in regions with a lot of oil and gas production. Sensors and other monitoring tools that could track changes in water quality, temperature, and other environmental variables are connected using underwater connectors.
APAC Market Statistics
The Asia Pacific underwater connectors market is estimated to be the second largest, to have the highest growth over the forecast period. Subsea cables, which link nations and regions with high-speed internet, data centers, and other communication infrastructure, are in high demand in the Asia Pacific region. These subsea cables are ineffective without underwater connectors. Moreover, The Asia Pacific region is becoming increasingly interested in undersea exploration and research, which has increased demand for underwater connectors for subsea sensing, imaging, and other scientific equipment. Additionally, there are numerous nations in the Asia Pacific region that have maritime borders and territories, and maritime security is becoming more of an issue. Sonars, as well as other security equipment, utilize underwater connectors for underwater surveillance systems.
Europe Market Forecast
Additionally, the market in Europe region is also estimated to have the significant growth over the forecast period. Europe is a global leader in underwater robotics, and it has launched a number of R&D projects aimed at creating sophisticated underwater robots for a variety of uses. For these robots to operate and communicate with the surface control systems, underwater connectors are necessary. Additionally, a growing interest in underwater archaeology to investigate and resurface shipwrecks and other historic sites is being driven by Europe's long history of maritime activities. Applications for subsea sensing, imaging, and data transmission for underwater archaeology use underwater connectors. Hence, these all factors are estimated to boost the growth of the market in this region.
Author Credits: Abhishek Verma
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