Underwater Connectors Market Size, Share & COVID-19 Impact Analysis, By Type (Rigid Shell, Inductive Coupling, Rubber Molded, Electrical Mateable), By Application (Oil & Gas, Defense, Unmanned Underwater Vehicle, Telecommunication, Oceanography), By Connection (Electrical, Optical Fiber, and Hybrid), and Regional Forecast, 2021-2028

The global underwater connectors market size was USD 1.61 billion in 2020. The market is projected to grow from USD 1.66 billion in 2021 to USD 2.45 billion in 2028 at a CAGR of 6.01% during the 2021-2028 period. North America dominated the underwater connectors market with a market share of 33.95% in 2020.

The global impact of COVID-19 has been unprecedented and staggering, with underwater connectors witnessing a negative impact on demand across all regions amid the pandemic. Based on our analysis, the global market exhibited a lower growth of -5.07% in 2020 as compared to the average year-on-year growth during 2017-2019. The sudden rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.

Underwater connectors are critical and complex deep-sea engineering equipment components. For reference, underwater connectors are also called sub-sea connectors and marine connectors designed to work in extreme environments, including vibration, pressure, shock, and corrosive seawater. Efficient technical equipment is critical for the effective deep-sea exploration and usage of this vast blue ecological system. Many manned and unmanned underwater vehicles have been developed, requiring underwater connectors, such as remotely operated vehicles, autonomous underwater vehicles, human-occupied vehicles, and hybrid ROV and AUV.

Many undersea observatories have been built, such as the Hawaii Undersea Geo-Observatory (HUGO) and the Astronomy with a Neutrino Telescope and Abyss Environmental Research (ANTARES) project. Various kinds of marine engineering equipment have also been deployed to exploit oil and gas, as well as offshore renewable energy (ORE) farms.

Underwater Connectors Market Snapshot & Highlights

Market Size & Forecast:

• 2020 Market Size: USD 1.61 billion
• 2021 Market Size: USD 1.66 billion
• 2028 Forecast Market Size: USD 2.45 billion
• CAGR: 6.01% from 2021–2028

Market Share:

• North America dominated the underwater connectors market with a 33.95% share in 2020, driven by high defense expenditure, naval modernization programs, and strong demand for subsea communication systems in offshore oil & gas exploration.
• By type, rubber molded connectors are expected to retain the largest market share through 2028, owing to their ruggedness, ease of installation, and cost-effectiveness in military and commercial subsea applications.

Key Country Highlights:

• United States: Ongoing naval fleet modernization and deployment of unmanned underwater vehicles such as Orca Class XLUUV drive demand for advanced subsea connectors.
• China: Significant investments in deep-sea mining, oil & gas exploration, and telecommunication cable networks under national maritime expansion initiatives.
• India: Deep-sea exploration programs like the Samudrayaan Mission boost requirements for underwater connectors in research and energy sectors.
• United Kingdom: Growing demand for advanced subsea systems in offshore renewable energy and military communication networks.
• Europe (France, Germany, Switzerland): Strong presence of leading OEMs such as TE Connectivity, Fischer Connectors, and LEMO, supporting regional growth.

COVID-19 IMPACT

Marine Sector Faced Unmatched Challenges Due to Ongoing COVID-19 Pandemic

The global market has witnessed a significant decline due to the COVID-19 impact. Disruptions in the supply chain, reduced defense budget, and a slowdown in the economy hampered the market growth during the pandemic.

• According to UNCTAD, global maritime transport plunged by 4.1% in 2020 due to unexpected disruption from the COVID-19 pandemic. Due to less business, the disruption mainly hampered the supply chain, shipping network, trade volumes, and port.
• Investments in the shipbuilding sectors were declining during the pandemic. The decline in shipbuilding services for different offshore services, maritime trade, maritime export, and others has impacted the demand for autonomous underwater vehicles. This development has ultimately impacted the underwater connectors market growth.

Underwater Connectors Market Trends

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Advanced Subsea System for Commercial and Military Applications to Drive Market Growth

Rise in demand for underwater connectors has showcased the deployment of subsea platforms and the high adoption rate of the sub-sea equipment for applications, such as submarine communication cables, oceanography, deep-sea mining. The rubber molded connectors are widely used in the market. In 2019, Hydro Group launched a wide range of underwater rubber molded connectors capable of catering to a range of sizes, combinations, and voltages and have specifications, such as ruggedness performance, quick installation, cost-effectivity.

• North America witnessed underwater connectors market growth from USD 575 Million in 2019 to USD 546.6 Million in 2020.

With the high demand for subsea equipment and platforms in military and telecommunications, the market players emphasize on increasing the production of inductive coupling underwater connectors for data transfer applications.

Underwater Connectors Market Growth Factors

Increased Submarine Communication Cables and Defense Expenditure owing to Naval Modernization to Drive Market Growth

Over the last decade, the navies worldwide have emphasized the utility of manned and unmanned underwater vehicles, which has influenced the development of advanced communication and detection equipment. This impact has driven the need to modernize the existing subsurface fleet and acquire manned and unmanned underwater platforms for border protection and Intelligence, Surveillance, and Reconnaissance (ISR) activities.

This development has influenced the rise in defense expenditure by the governments worldwide to invest in naval capability enhancement. The U.S. Navy has been developing the Orca Class of XLUUV for its unmanned underwater capabilities. Also, it has been involved in developing the next-generation Columbia Class submarines, which will help in the increment in market growth during the forecast period.

Accelerating Deep-Sea Explorations, Mining, and Oil & Gas Activities to Boost Market Growth

AUV's major operations include bathymetry, acoustic imagery, optical imagery, sub-bottom profiling, water column characterization, ocean current profile with tides, temperature profile, salinity profiles, water clarity, and bio-luminescence. Several ocean surveys require a large amount of sampling, data profiles, and a longer period for precise evaluation, which are expensive in various countries. The AUV systems are fully equipped with numerous sensors, systems, and tools which gather extensive information in less time. These factors are projected to fuel demand for AUV systems in forthcoming years.

For instance, in October 2021, India’s National Institute of Ocean Technology launched a deep-sea exploration mission named Samudrayaan Mission to develop, test, and manufacture underwater deep-sea exploration vessels.

RESTRAINING FACTORS

High Installation and Maintenance Cost and Limitation of the Certain Underwater Connectors to Restrict the Market Growth

Despite the high underwater connector demand, rigid shell underwater connectors have certain limitations, such as pressure variation between their inner and outer shell, highly prone to corrosion. These factors influence the overall performance of the connectors in subsea applications. Hence, it leads to high installation and maintenance costs. The underwater platforms which are utilizing rigid shell connectors may face major setbacks and operational performance issues.

Underwater Connectors Market Segmentation Analysis

By Type Analysis

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Rubber Molded Segment Dominated the Market Owing to High Demand for Rubber Molded Connectors Applications

By type, the market is segmented into rigid shell, inductive coupling, rubber molded, and electrical mateable.

The rubber molded segment held the highest underwater connectors market share in 2020 and is estimated to show remarkable growth during the forecast period. The dominance is due to the increased number of underwater platforms and equipment applications from 2017-to 2021. Increasing demand for military sub-sea platforms from defense forces for real-time information propels the market growth. Also, rise in commercial underwater applications in oil & gas, telecommunication, and mining sectors is anticipated to drive the market growth.

• The rubber molded segment is expected to hold a 42.36% share in 2020.

The electrical mateable segment is anticipated to show significant growth at the highest CAGR during the forecast period. The growth is attributed to the growing need for improved underwater connectivity and technological advancement.

By Application Analysis

Oil & Gas Segment to Show Significant Growth Due to Growing Adoption of Advanced Propulsion System

Based on application, the market is segmented into oil & gas, defense, Unmanned Underwater Vehicles (UUVs), telecommunication, and oceanography.

The oil & gas segment held significant shares in the market during the forecast period. The growth is due to the rise in the energy demand across North America, Europe, Asia Pacific. These regions have influenced the rise in offshore oil & gas exploration activities, which require underwater vehicles for effective working and exploration. These applications are anticipated to drive the segmental growth in the market during 2021-2028.

The telecommunication segment will showcase remarkable growth at the highest CAGR during the forecast period. The growth is due to the adoption of advanced internet and network connectivity due to the rise in digitalization and growing demand for internet across civilian, military, and commercial applications. These developments are anticipated to drive the segmental market growth in the market.

By Connection Analysis

Hybrid Segment Dominated Market Growth Owing to Growing Deployment of AUVs

By connection, the market is divided into electrical, optical fiber, hybrid.

The hybrid segment is anticipated to grow at a remarkable growth rate during the forecast period. The growth is due to the rising deployment of UUVs and the rise in deep-sea exploration, and telecommunication applications

The electrical segment is projected to show noticeable growth during the forecast period. It is due to the rising demand for electrical mateable connectors for various applications in subsea operations.

REGIONAL INSIGHTS

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The market is segmented into North America, Europe, Asia Pacific, and the Rest of the World.

North America dominated the market in 2020 and is valued at USD 546.6 million. The growth is attributed to the year-on-year growth in defense expenditure in the naval sector and the rising number of subsurface fleet and submarine fleet modernization contracts between the U.S. Department of Defense and key players in the market. For instance, in November 2020, the U.S. Navy was engaged in the existing submarine fleet modernization, acquiring new submarines from Huntington Ingalls and Orca Class XLUUVs, which are anticipated to drive market growth in the region during the forecast period.

Asia Pacific is projected to show remarkable growth and could be the fastest-growing region during the forecast period. The growth is attributed to the increasing expenditure from China, South Korea, and India on defense, deep-sea exploration, mining, and the oil & gas sector. Also, the rise in technical development and integration of Autonomous Underwater Vehicles (AUVs) and Unmanned Underwater Vehicles (UUVs) for varying applications are anticipated to drive the market growth during 2021-2028.

Europe is expected to grow at a significant growth during the forecast period due to the increasing defense spending in the U.K, Germany, France, Russia, and others. Furthermore, the presence of key OEMs, such as Eaton, Fischer Connectors S.A., TE Connectivity, and others drive the market growth across Europe.

The rest of the world will showcase moderate growth during the forecast period owing to the increasing expenditure on the space sector from Saudi Arabia, the UAE, Israel, and others. The high adoption rate of the AUVs in the Middle East, Latin America for oil & gas exploration and investigation activities are anticipated to propel the market during the forecast period.

KEY INDUSTRY PLAYERS

Key OEMs Focusing on Business Expansion Through New Product Launches, and Contracts, Agreements

Underwater connectors’ original equipment manufacturers are focusing on business expansion through new product launches, agreements, and contracts. In February 2021, Blue Logic, a Norwegian subsea technology company, developed a new firm, Subsea USB, to provide its underwater inductive connectors to the world's marine industry. Furthermore, in February 2021, Suburban Marine launched the Baromax underwater connector, the smallest high power density underwater connector with continuous submersion up to 10,000 psi.

List of Top Underwater Connectors Companies:

• Amphenol Corporation (U.S.)
• BIRNS AQUAMATE LLC (U.S.)
• BIRNS Inc. (U.S.)
• C.R.Encapsulation Limited (U.K.)
• Eaton (Ireland)
• Fischer Connectors SA (Switzerland)
• Hydro Group (U.K.)
• LEMO (Switzerland)
• Oceaneering International, Inc. (U.S.)
• TE Connectivity (Switzerland)
• Teledyne Marine (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• August 2019 – AMETEK SCP signed a contract worth USD 7 million with its international partner to provide cable assemblies hull penetrators, and related equipment for upcoming construction activities and deep maintenance spares.
• February 2020 – Northrop Grumman signed a contract with iCONN Systems to produce a niobium-based connector that improves electrical connectivity in underwater areas.

REPORT COVERAGE

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The report provides a detailed analysis of this market and focuses on key aspects such as top marine companies, types, connections, and leading applications. Moreover, the report includes market trends, market dynamics, SWOT analysis, business strategy, growth opportunities, and the status of regional development. In addition to the factors mentioned above, the report encompasses several direct and indirect factors that have contributed to the growth of the market in recent years.

Report Scope & Segmentation