The global submarine power cables market is poised for significant growth, with an estimated valuation exceeding US$5.8 billion by the end of 2022 and a potential to surpass US$11 billion by 2027, according to a report by Fairfield Market Research. Despite the strong growth outlook, the market faces short-term challenges, with installation costs accounting for a substantial portion of the overall expenses.
Key Insights from the Report:
- The global submarine power cables market is expected to experience robust growth, driven by the increasing need for sustainable energy transmission solutions.
- Deployment of power generators utilizing variable renewable energy sources such as wind and solar is leading to challenges in power balancing, which submarine power cables are poised to address.
- Investments in offshore wind power projects and offshore oil and gas initiatives are anticipated to fuel the expansion of the submarine power cables market.
Market Overview:
The rising global demand for energy, coupled with efforts to reduce carbon emissions and shift toward renewable energy sources, is driving the need for efficient and environmentally friendly power transmission solutions. Submarine power cables play a crucial role in transmitting electrical power across vast distances, particularly beneath wide and deep-water bodies.
Drivers of Market Growth:
- Increased Investments in Offshore Projects: The global energy demand is expected to grow significantly by 2035. To meet this demand and reduce carbon emissions, there is a rapid expansion of green energy, particularly in Asia and Europe. Offshore wind power and offshore oil and gas projects are creating substantial demand for high-voltage (HV) submarine cables, both high-voltage alternating current (HVAC) and high-voltage direct current (HVDC).
- Rising Demand for Offshore Wind Power: Governments and power suppliers are increasingly supporting renewable energy sources like wind power. Substituting less efficient and CO2-emitting gas-turbine generation with power supplies from the mainland is leading to a surge in demand for submarine power cables.
Challenges:
- High Installation Costs: Installing submarine power cables involves significant financial investments, and the process itself is costly and technically challenging. Repairs and maintenance of these cables also come at a substantial cost.
- Technical Challenges and Environmental Impact: Selecting cable routes that minimize environmental impact is crucial. Technical interventions for repairs in case of faults can be expensive and complex, further adding to the challenges faced by the industry.
Copper Conductor Dominates the Market:
In terms of conductors used in submarine power cables, copper dominates the market, accounting for over 70% of the market share in 2021. Copper conductors are preferred due to their advantages over aluminum conductors. While aluminum is used in some projects, coppers attributes, including superior conductivity and resilience, make it the preferred choice for submarine power cables.
Demand Driven by Offshore Wind Power:
Offshore wind power is the dominant end-user segment, constituting over 65% of the market share in 2021. The shift toward renewable energy sources and the substitution of gas-turbine generation with offshore power supplies are driving the demand for submarine power cables.
Single Core Cables and High Voltage Lead the Market:
Single core cables accounted for 79.3% of the market in 2021. These cables are favored for their technical ease and cost-effectiveness, particularly in offshore wind projects. In terms of voltage, high voltage (above 500 kV) submarine power cables constituted 67% of the market in 2021, providing reliable solutions for bulk power distribution.
Regional Growth:
- Europe Dominates: Europe held the largest share of the global submarine power cables market in 2021. The regions expansion efforts in interconnection cables to ensure energy security have driven the markets growth. Europes shift toward renewable energy sources is expected to further boost demand.
- Asia Pacific Follows: Asia Pacific, including Japan and China, accounted for over 30% of the market share in 2021. India, in particular, has become a strategic destination for global underwater cables, and the region expects strong growth in demand.
- North Americas Growth: In the United States, the demand for submarine power cables has been steadily increasing, driven by offshore renewable energy projects. The Biden Plans goal of installing 30 GW of new wind capacity by 2030 is expected to further boost the market.
- Middle East, Africa, and Latin America: These regions anticipate fair-paced growth in demand for submarine power cables due to various offshore projects, including oil and gas initiatives, renewable energy development, and inter-country connections.
Global Submarine Power Cables Market: Competitive Landscape
Key players in the submarine power cables market include Nexans S.A., Prysmian Group, NKT A/S, Furukawa Electric Co., LTD., Sumitomo Electric Industries, Ltd., ABB, LS Cable & System Ltd, ZTT, KEI Industries Limited, and Hengtong Marine Cable Systems. These companies are actively expanding their production and marketing efforts to meet the growing demand for submarine power cables.
Browse Global Submarine Power Cables Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2022-2027 – [2023 UPDATE Available – Forecast 2023-2030*] (By Type Coverage, Conductor Coverage, Voltage Coverage, End-user Coverage, By Geography, Leading Companies): https://www.fairfieldmarketresearch.com/report/submarine-power-cables-market
Similar Reports:
Wire and Cable Materials Market: https://www.fairfieldmarketresearch.com/report/wire-cable-materials-market
Active Optical Cable Market: https://www.fairfieldmarketresearch.com/report/active-optical-cable-market
Contact
Fairfield Market Research
London, UK
UK +44 (0)20 30025888
USA (Toll-free) +1 (844) 3829746
Web: https://www.fairfieldmarketresearch.com/
Email: [email protected]
This press release first seen on Brilad
COMTEX_440952292/2840/2023-09-26T03:18:13
Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No Smart Herald journalist was involved in the writing and production of this article.