Acumen research and consulting, estimates that the global submarine power cable market is anticipated to reach market size of around US$ 21,800 Mn by 2028 and is anticipated to grow at a CAGR of around 15.4% in terms of revenue during the forecast period 2021 - 2028.
Submarine power cables are carrying power, mainly seawater, which is submerged under water. The demand for underwater power cables in recent decades has exponentially increased, largely owing to the technical advancement that has allowed the use of deep water energies. U-boat power cables are used primarily to relay high voltage electricity. The power cables of submarines have a consolidated layer arrangement comprising optical fibers, conductors, shielding layers and isolations.
The growth in the submarine power cable market has been led primarily by the introduction of green offshore energies, increasing environmental issues and increased demand from offshore gas and oil sector. In recent years there has been a substantial growth in the number of Sustainable Projects that involves wind and tidal energy schemes in different parts of the world, resulting in growing demand for such cabling in the industry. Their sustainability considerations cause multiple countries to concentrate on sustainable power production. High construction cost, technological issues in the facility and harm caused by human interference are the challenges that are found in the market which may impede business development. The main damage comes from the accidental problems caused by fishing boats or ships and the ships' anchors are also sometimes attached to these cables which cause them grave injury, which is one of the major challenges facing the submarine power cable business.
Offshore Wind Power Generation Segment to Remain Highly Lucrative
The global submarine electricity cabling industry has been broadly divided into the production, cross-country and island links, offshores and others of offshore oil plants on the basis of demand. Offshore wind power output became the world's leading market, led in 2018 by the offshore oil plants group. The global cable electricity submarine industry is powered by growing investment in the clean energy sector, technological advances and beneficial policy initiatives. Across some developed countries , new extensions to offshore wind resources are under way. In contrast to traditional wind turbines, the use of offshore wind turbines provides more electricity. Many countries are pushing towards the use of wind and ocean wave resources as renewable energy demands are increasing. In line with the increasing demand from offshore oil & natural gas industries, increased demand for cross-country connections and development of the petroleum & gas industry, this segment is projected to rise at a significant CAGR of 9.9 percent during the forecast period. The growing need for energy to be produced from offshore petroleum and gas projects also stimulates the section. Growing demand for submarine power cables with direct high-voltage current (HVDC) and technical advances are key developments on the global submarine cable industry.
Europe, due to the big shift in the area toward green energies, is the main field on the submarine power cable market. The European Union (EU), for instance, approved the plan to invest in energy security by consolidating cross-border energy networks, which could generate significant opportunities on the market in the region. Countries like France, Germany and Great Britain are also active. In recent times these countries have invested heavily on schemes to produce wind energy, as they concentrate on the production of surplus electricity which can be distributed in other countries via inter-country and islands, thus raising the domestic demand for the cables. The increased demand for electricity is a factor which drives the use of submarine power cables for electric energy supply for offshore oil and gas operations, and focuses on offshore exploration and production (E&P) for oil or gas. Most oil and gas extraction firms concentrate on the development of petroleum and gas. The Development Project for Offshore Mako Gas at Duyung PSC, Indonesia in 2020 was approved by the Indonesian Ministry of Energy and Minerals. CNOOC ltd (China), in December 2017, announced the discovery in Bozhong, Bohai of a medium-sized natural gas field. In June 2020, the US W&T Offshore (US) confirmed a Gladden Deep Outlook oil discovery on the Gulf of Mexico's Mississippi Canyon floor. In fact, the Chevron Group (US), which has worked on the north-west coast of West Australia for US$ 18-20 trillion in Australia, announced its offshore production of the Gorgon Natural Gas field. Thus, the deployment of submarine power cables to provide electricity for various E&P operations in the petroleum and gas industry is expected to increase. Those projected to drive growth in the global submarine power cable industry over the forecasting period are therefore rising demand for the offshore oil and gas cables.
Major players included in this report are ZTT, Prysmian, Nexans, Furukawa Electric, KEI Industries, TF Kable, NKT, LS Cable & Systems, ABB, Hengtong Marine Cable Systems, Kelani cables, Intertek Group, Sumitomo Electric, Ningbo Orient wires & cables, and others.
The global submarine power cable market is segmented as below:
Submarine Power Cable Market By Type
Submarine Power Cable Market By Insulation Type
Cross-linked Polyethylene (XLPE)
Ethylene Propylene Rubber (EPR)
Submarine Power Cable Market By Voltage
Up to 66 KV
66 KV –220 KV
Above 220 KB
Submarine Power Cable Market By Conductor Material
Submarine Power Cable Market By End User
Offshore wind power generation
Offshore oil & gas
Wave and tidal power generation
Submarine Power Cable Market By Geography
The market value of submarine power cable is anticipated to be around US$ 21,000 Mn in 2027.
It is anticipated to grow around 15% CAGR amid the forecast period.2020-2027
Asia Pacific held maximum share in 2019.
Europe is projected to grow at a fast pace during forecast period from 2020-2027.
Increasing demand for inter-country & island power connections is expected to drive the growth of the submarine power cable market.
Regulatory environmental & complex authorization procedures leading to delays is a major factor expected to restraint the growth of the market.
ZTT, Prysmian, Nexans, Furukawa Electric, KEI Industries, TF Kable, NKT, LS Cable & Systems, ABB, Hengtong Marine Cable Systems, Kelani cables, Intertek Group, Sumitomo Electric, Ningbo Orient wires & cables, and others are the prominent players in the submarine power cable market.