Subsea Power Cables Market: Executive Summary

The global subsea power cables market is expected to see significant growth in the coming years, driven by increasing demand for renewable energy sources and the need for reliable power transmission in offshore oil and gas operations. The market is expected to be valued at USD 5.55 billion by 2028, growing at a CAGR of 10.5% from 2021 to 2028.

Important Note: The companies listed in the image above are for reference only. The final study will cover 18–20 key players in this market, and the list can be adjusted based on our client’s requirements.

Key Market Insights

• The global subsea power cables market is expected to grow at a CAGR of 10.5% from 2021 to 2028, driven by increasing demand for renewable energy sources and the need for reliable power transmission in offshore oil and gas operations.
• The market is expected to be valued at USD 5.55 billion by 2028, up from USD 2.61 billion in 2020.
• The demand for subsea power cables is being driven by the growth of offshore wind power generation, which is expected to account for 25% of global electricity demand by 2050.
• The increasing demand for renewable energy sources is also driving the demand for subsea power cables in offshore oil and gas operations, as these operations require reliable and efficient power transmission systems.
• The Asia-Pacific region is expected to be the fastest-growing market for subsea power cables, driven by the growth of offshore wind power in countries such as China, Japan, and South Korea.

Market Drivers

1. Increasing demand for renewable energy sources

One of the key drivers of the subsea power cables market is the increasing demand for renewable energy sources. The growth of offshore wind power generation, in particular, is driving the demand for subsea power cables, as these cables are essential for transmitting electricity from offshore wind turbines to onshore power grids.

2. Need for reliable power transmission in offshore oil and gas operations

Another key driver of the subsea power cables market is the need for reliable power transmission in offshore oil and gas operations. These operations require reliable and efficient power transmission systems in order to power the equipment and machinery used in offshore drilling and production.

3. Growing demand for subsea power cables in emerging economies

The growing demand for subsea power cables in emerging economies is also driving the growth of the market. Countries such as China, India, and Brazil are investing heavily in offshore wind power generation and offshore oil and gas operations, which is driving the demand for subsea power cables.

Market Restraints

1. High installation and maintenance costs

One of the main restraints on the subsea power cables market is the high installation and maintenance costs associated with subsea power cables. The installation and maintenance of subsea power cables require specialized equipment and expertise, which can be expensive.

2. Environmental concerns

Another potential restraint on the subsea power cables market is environmental concerns. The installation and maintenance of subsea power cables can have a significant impact on marine ecosystems, and there are concerns about the potential for subsea power cables to disrupt or damage these ecosystems.

Market Opportunities

1. Advancements in cable technology

One of the key opportunities in the subsea power cables market is the development of new cable technologies that can improve the efficiency and reliability of power transmission. For example, the use of superconducting materials in subsea power cables could significantly reduce power losses during transmission.

2. Growing demand for interconnectors

Another key opportunity in the subsea power cables market is the growing demand for interconnectors, which are cables that are used to connect the power grids of different countries. Interconnectors are becoming increasingly important as countries seek to balance their energy systems and integrate more renewable energy sources.

Market Dynamics

The subsea power cables market is characterized by a number of key dynamics, including technological advancements, changing regulatory environments, and increasing competition.

Technological advancements are driving the development of new subsea power cable technologies that can improve the efficiency and reliability of power transmission. At the same time, changing regulatory environments are shaping the way that subsea power cables are designed, installed, and maintained.

In addition, increasing competition in the subsea power cables market is driving companies to develop new products and technologies that can meet the evolving needs of the market.

Regional Analysis

The subsea power cables market is segmented into North America, Europe, Asia-Pacific, and the Rest of the World. The Asia-Pacific region is expected to be the fastest-growing market for subsea power cables, driven by the growth of offshore wind power in countries such as China, Japan, and South Korea.

Competitive Landscape

Leading companies in the Subsea Power Cables Market:

1. Nexans S.A.
2. Prysmian Group
3. Sumitomo Electric Industries, Ltd.
4. General Cable Corporation
5. NKT A/S
6. LS Cable & System Ltd.
7. Furukawa Electric Co., Ltd.
8. Hengtong Group Co., Ltd.
9. Zhongtian Technology Submarine Cable Co., Ltd.
10. ABB Ltd.

Please note: This is a preliminary list; the final study will feature 18–20 leading companies in this market. The selection of companies in the final report can be customized based on our client’s specific requirements.

Report Segmentation

The subsea power cables market can be segmented on the basis of type, voltage rating, and end use. By type, the market can be segmented into single-core and multi-core cables. By voltage rating, the market can be segmented into low voltage, medium voltage, and high voltage. By end use, the market can be segmented into offshore wind power generation, oil and gas, and interconnectors.

Category-wise Insights

1. Single-core cables

Single-core cables are a type of subsea power cable that are used to transmit electricity over long distances in underwater environments. They are typically used in offshore wind power generation and oil and gas operations.

2. Multi-core cables

Multi-core cables are a type of subsea power cable that are used to transmit multiple signals or power supplies over a single cable. They are typically used in telecommunications and power transmission applications.

3. Low voltage cables

Low voltage subsea power cables are typically used for shorter underwater transmission distances, such as those found in offshore wind power generation.

4. Medium voltage cables

Medium voltage subsea power cables are typically used for longer underwater transmission distances, such as those found in interconnectors.

5. High voltage cables

High voltage subsea power cables are typically used for very long underwater transmission distances, such as those found in international interconnectors.

Key Benefits for Industry Participants and Stakeholders

Industry participants and stakeholders in the subsea power cables market can benefit from the growing demand for subsea power cables in offshore wind power generation and oil and gas operations. This demand is expected to drive significant growth in the market in the coming years, creating new opportunities for companies that operate in the market.

SWOT Analysis

Strengths:

• Growing demand for subsea power cables in offshore wind power generation and oil and gas operations

• Technological advancements in subsea power cable design and construction
• Increasing demand for interconnectors

Weaknesses:

• High installation and maintenance costs
• Environmental concerns

Opportunities:

• Advancements in cable technology
• Growing demand for interconnectors

Threats:

• Intense competition in the market
• Changing regulatory environments

Market Key Trends

1. Growing demand for renewable energy sources

The growing demand for renewable energy sources is driving the growth of the subsea power cables market, particularly in the offshore wind power generation sector.

2. Increasing demand for interconnectors

The increasing demand for interconnectors is driving the growth of the subsea power cables market, as countries seek to balance their energy systems and integrate more renewable energy sources.

3. Technological advancements in subsea power cable design

Technological advancements in subsea power cable design are driving the development of new cable technologies that can improve the efficiency and reliability of power transmission.

Covid-19 Impact

The Covid-19 pandemic has had a mixed impact on the subsea power cables market. On the one hand, the pandemic has disrupted supply chains and delayed the development of some offshore wind power projects. On the other hand, the pandemic has increased demand for renewable energy sources, as countries seek to reduce their carbon emissions and improve their energy security.

Key Industry Developments

1. Nexans SA to supply subsea power cables for Dogger Bank Wind Farm

In January 2021, Nexans SA announced that it had been awarded a contract to supply subsea power cables for the Dogger Bank Wind Farm, which is currently under construction off the coast of the UK.

2. ABB Ltd. to supply subsea power cables for Hornsea Two offshore wind farm

In May 2020, ABB Ltd. announced that it had been awarded a contract to supply subsea power cables for the Hornsea Two offshore wind farm, which is located off the coast of the UK.

Analyst Suggestions

Analysts suggest that companies operating in the subsea power cables market should focus on developing new cable technologies that can improve the efficiency and reliability of power transmission, while also addressing environmental concerns. In addition, analysts suggest that companies should focus on expanding their presence in emerging markets, particularly in the Asia-Pacific region.

Future Outlook

The subsea power cables market is expected to see significant growth in the coming years, driven by increasing demand for renewable energy sources and the need for reliable power transmission in offshore oil and gas operations. The market is expected to be valued at USD 5.55 billion by 2028, growing at a CAGR of 10.5% from 2021 to 2028.

Conclusion

The subsea power cables market is an essential component of offshore power transmission systems, providing a reliable and efficient means of transmitting power over long distances and in challenging environmental conditions. The market is expected to see significant growth in the coming years, driven by increasing demand for renewable energy sources and the need for reliable power transmission in offshore oil and gas operations. As such, companies operating in the market should focus on developing new cable technologies that can improve the efficiency and reliability of power transmission, while also addressing environmental concerns, and expanding their presence in emerging markets.