Submarine Power Cable Market

Submarine Power Cable Market Size (2024-2029):

The Global Submarine Power Cable Market is expected to grow from USD 17.88 billion in 2023 and reach a valuation of USD 48.55 billion in 2029, with a CAGR of 18.68% during the forecast period 2024-2029.

Market Overview:

The Subsea Power Cable Market is influenced by factors such as new capacity additions in the offshore wind industry and the increasing demand for connections between countries and islands. Increasing demand from the offshore oil and gas sector is expected to drive demand for submarine power cables. The growing demand for HVDC connections presents a great opportunity for the submarine power cable market due to the large investments made in it. A submarine power cable is an electricity transmission line that is used to transport energy below the surface of the water. They are usually placed under salt water, but sometimes under fresh water.

They serve as interconnections of islands and transfer the electricity produced by offshore wind farms. Rapid investments by governments and private players driven by rigorous regulatory initiatives to incorporate an energy-efficient operating environment will increase the growth of the industry. In addition, the increase in the international transport network for underwater food has incorporated a favorable business scenario. Increasing demand for peak load poses challenges to network stability and security of supply around the world. Increasing the flow of funds to develop sustainable energy infrastructure in line with the positive regulatory reforms for the integration of renewable systems networks will complement the subsea power cable market. In 2018, the European Commission proposed investing more than $ 1 billion in the clean energy grid, including financing three subsea power lines for cross-border interconnection. The advent of offshore renewable energy, rising environmental concerns, and the growing demand for offshore oil and gas operations are the main growth drivers of the submarine power cable market. Growing environmental concerns are encouraging several countries to focus on producing electricity from renewable sources, hence the number of renewable projects, including wind and tidal power projects, has increased significantly in recent years in various regions of the world, which translates into a growing demand for these cables in the market.

Market Drivers:

The advent of offshore renewables, growing environmental concerns, and increasing demand for offshore oil and gas operations are the main drivers of submarine power cable market growth. The swift rise in island interconnections and the deployment of offshore wind farms will positively influence the global market. The submarine power cable market is positively influenced by various regulatory reforms, including leverage, incentive, and subsidy programs, along with increased government investments to integrate an energy-efficient environment. According to the IEA, increased offshore oil and gas production will increase investment in offshore wind farms, boosting the business scenario. Furthermore, the growing trend towards renewable energy production, coupled with the increasing deployment of offshore wind farms around the world, will enhance business potential.

Market Restraints:

The high cost of installation and the complexity of repairing deep-sea cable links have hampered the demand for submarine power cables. Any flaw or repair in undersea power cables imposes a substantial cost on the repair and redeployment process. Therefore, repairing any defects in such critical infrastructure poses both physical and monetary challenges.

Market Recent Developments:

• The Finnish company Cinia, which is implementing the development phase of the Arctic Connect submarine cable project with MegaFon, has publicized the addition of new international partners for the project, from Japan, Norway, and Finland.   

SUBMARINE POWER CABLE MARKET REPORT COVERAGE:

Market Segmentation:

Submarine Power Cable Market - By Core

• Single-core
• Multi-core

Long-distance power transfer, minimal transmission losses, as well as high-voltage (HV) power supply, are the key factors driving the single-core submarine power cable market deployment. The continued deployment of offshore wind farms has increased the demand for multi-core power lines.

Submarine Power Cable Market - By Voltage:

• Medium
• High
• Extra High

The low cost of installation, as well as its large-scale deployment in offshore wind farms, have had a positive influence on the demand for medium-voltage cables. In recent years, extra high voltage lines have seen a significant increase due to the rapid expansion of extra high voltage (UHT) transmission lines to suffer losses resulting from the long-distance power supply.

Submarine Power Cable Market - By Conductor:

• Copper
• Aluminum

High electrical conductivity and ductility, as well as non-magnetic properties, are some of the key factors that positively influence product penetration. Copper wires will experience an increase due to their properties, including the ability to withstand large surges, corrosion resistance, strength, and weight.

Submarine Power Cable Market - By End User:

• Offshore Wind Power Generation
• Inter-Country & Island Connection
• Offshore Oil & Gas

Market Regional Analysis:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

The submarine power cable market has been analyzed in regions Asia-Pacific, North America, Europe, the Middle East, Africa, and South America. The European market is expected to dominate the global submarine power cable market by 2025. The size of the market in this region can be attributed to the rise of the offshore wind industry, of which subsea power cables are major components. The UK and Germany are the main submarine power cable markets in Europe. The increasing demand for cross-country connections, coupled with the demand from the offshore oil and gas sector, is expected to drive the market in Europe.

Impact of Covid-19 on the Submarine Power cable market:

The submarine power cable industry is affected by the COVID-19 crisis, which has largely stopped international movement and temporarily closed factories and businesses around the world. At a time when the risk to human health is unprecedented, undersea fiber optic cables allow the world to continue to function and stay connected by providing lightning-fast communications around the world to homes and companies. The International Cable Protection Committee (ICPC) points out that around 99% of the world's communications are carried out by submarine cables, without this connectivity, life during this global pandemic would be unthinkable. This response to undersea cable capacity has amplified further, as people around the world have shown that social separation and isolation can be successfully undertaken together. However, the potential growth in the submarine power cable market is expected in the years to come.

Market Key Players:

Major manufacturers in the Submarine Power Cable Market include

1. Prysmian (Italy)
2. Nexans (France)
3. NKT (Denmark)
4. General Cable (US)
5. Furukawa Electric (Japan)
6. Sumitomo Electric (Japan)
7. KEI Industries (India)
8. LS Cable & System (South Korea)
9. ZTT (China)
10. TFKable Group (JDR Cables) (Poland)
11. Hydro Group (UK)
12. Hengtong Marine Cable system (China)