Underwater Connector Market size is set to surpass USD 1.5 billion by 2027, according to a new research report by Global Market Insights Inc.
The rising deployment of submarine fiber-optic cables across the globe will drive the market growth. The ongoing commercialization of 5G services has led to a huge demand for subsea cables and underwater connectors to ease data traffic congestion and support the growing bandwidth requirements. These connectors offer several high-end features, such as low data losses & high-power efficiency and can transfer terabytes of data within seconds across vast distances. The increasing submarine cable projects of telecom companies will fuel the adoption of underwater connectors.
High installation and maintenance costs associated with underwater connectors are major factors restraining the market expansion. The exposure of underwater connectors to stressful environments, such as high-temperature and extreme sea pressures, result in the frequent replacement of these components. Adding to this, underwater connectors are integrated submarines, cruise ships, and underwater pipelines that require frequent repair and inspection. This further increases the maintenance cost, hampering the industry growth.
Developments in inductive coupling technology will spur the market value
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The inductive coupling segment is projected to witness 8% growth rate by 2027 owing to several features offered by the inductive coupling technology, such as low power losses, robust build, and ability to withstand high pressure & temperatures in subsea environments. These connectors provide high-speed data transfer capabilities without establishing any physical contact. Market players are focusing on the development of inductive type connectors to serve the increasing industry demand from underwater robotics and deep oceanography applications.
Browse key industry insights spread across 238 pages with 138 market data tables and 37 figures & charts from the report, “Underwater Connector Market Size, By Type (Rigid Shell, Inductive Coupling, Rubber Molded, Underwater Electrical Mateable Connectors), By Application (Defense, Oil & Gas, Remotely Operated Underwater Vehicles (ROVs)/Autonomous Underwater Vehicles (AUVs), Telecommunication, Oceanographic), COVID19 Impact Analysis, Regional Outlook, Application Potential, Competitive Market Share & Forecast, 2021 - 2027” in detail along with the table of contents:
The increasing acceptance of underwater connectors in ROVs/AUVs will propel the market progression
The ROVs/AUVs application segment held 13.5% of the market share in 2020 and will grow at a CAGR of 8% through 2027 led by rising integration of underwater connectors in ROVs/AUVs systems. Unmanned underwater vehicles, such as ROVs and AUVs, are equipped with battery systems, lightings, and high-definition camera modules that incorporate fiber optic, Ethernet, and coaxial cabling assemblies. To support these cabling assemblies in deep-sea environments, the market demand for underwater connectors is expected to increase over the forecast timeline.
Several ROV/AUV manufacturers are focusing on the development of energy-efficient underwater vehicles, which can sustain extended survey and inspection missions. This factor is poised to increase the market revenue for advanced connectors in ROVs/AUVs. For instance, in February 2021, Kongsberg Maritime developed advanced HUGIN Autonomous Underwater Vehicles (AUVs). The new AUV offers an operational duration of approximately 15 days, enabling extended survey and inspection missions far from the shore. Such developments are predicted to support the industry expansion over the forecast period.
Growing government spending on the defense sector will create the growth opportunities for North America region
The North America underwater connector market captured 20% of revenue share in 2020 and is estimated to attain a CAGR of over 7% by 2027 on account of increasing government spending in the defense sector. For instance, in February 2021, the U.S. Department of Defense (DoD) allocated USD 161.01 billion budget to the U.S. Navy and USD 46.04 billion to its U.S. Marine Corp. The government will invest these allocated budgets for the expansion of the naval forces through new contracts for the procurement of submarines and patrol ships.
Key companies operating in the market include Fischer Connectors SA, TE Connectivity, Teledyne Marine, Eaton Corporation, Amphenol Corporation, Lemo S.A., Birns Aquamate LLC, GISMA Steckverbinder GmbH, and Hydro Group PLC, among others. Industry leaders are focusing on inorganic growth strategies, such as collaboration and acquisition activities, to stay competitive in the market.