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Subsea Power Cables Market Analysis- Industry Size, Share, Research Report, Insights, Covid-19 Impact, Statistics, Trends, Growth and Forecast 2023-2030

Published Date: October, 2022
No of Pages: 159
Delivery Format: PDF+ Excel

$2,950.00

The market for subsea power cables is anticipated to increase at a CAGR of 7.1% between 2017 and 2022, reaching a value of USD 12.03 billion by that time. The rising demand for power and energy around the world is credited with driving the expansion of the subsea power cable market. the type, application, and geographic segments that make up the subsea power cable market.

The market for subsea power cables is divided into three categories based on type: high voltage (HV), medium voltage (MV), and low voltage (LV). The HV category is anticipated to experience the fastest CAGR growth between 2017 and 2022. The world’s rising need for power and energy is to blame for this expansion. From 2017 to 2022, the LV segment is anticipated to expand at the second-highest CAGR. Transmission, distribution, and offshore wind are the market segments for subsea power cables based on application. From 2017 to 2022, the transmission segment is anticipated to develop at the highest CAGR.

The market for subsea power cables is anticipated to expand at a CAGR of 5.8% from 2018 to 2025. By 2025, the market, which was estimated to be worth USD 3.81 billion in 2017, is expected to be worth USD 5.53 billion. Increased demand for renewable energy and the requirement for grid interconnection are the main market drivers.

Electricity is transferred from offshore wind farms to onshore power systems using submarine power cables. Additionally, they are used to connect offshore oil and gas platforms. Due to the rising demand for renewable energy sources and the requirement for grid interconnection, the market for subsea power cables is anticipated to expand. The increase in offshore oil and gas exploration and production activities is another factor driving the market.

Type, application, and geography are the segments used to categorise the subsea power cable market. Direct current (DC) cables and alternating current (AC) cables are the two types of cables available on the market. During the projection period, the AC cables segment is anticipated to increase at the greatest CAGR. This is brought on by both the rising demand for renewable energy sources and the expanding use of AC cables for grid connections.

The offshore oil and gas, offshore wind, and inter-country grid interconnection segments of the market are organised according to application. During the projection period, the offshore oil and gas industry is anticipated to develop at the greatest CAGR. The increase in offshore exploration and production activity is to blame for this.

North America, Europe, Asia Pacific, the Middle East and Africa, and South America make up the geographical segments of the subsea power cable market. Due to the rising demand for renewable energy sources and the requirement for grid interconnection, North America is anticipated to be the region with the greatest market for subsea power cables. Due to the expansion of offshore wind farms and the increasing demand for renewable energy, Europe is anticipated to be the second-largest market.

Subsea Power Cables Market Report Scope and Segmentation
ATTRIBUTESDETAILS
ESTIMATED YEAR2023
BASE YEAR2022
FORECAST YEAR2030
HISTORICAL YEAR2017-2022
UNITValue (USD Million/Billion)
BY REGIONNorth America, Europe, Asia Pacific, Latin America, Middle East and Africa

Market Potential for Subsea Power Cables

In the upcoming years, there will likely be a major increase in the market for subsea power cables. The need for more effective and dependable power transmission as well as the rising demand for renewable energy are to blame for this. Electricity is transferred between offshore wind farms, oil and gas platforms, and other offshore structures using subsea power cables. Additionally, they are used to link onshore power networks to offshore renewable energy sources.

The market for subsea power cables is primarily driven by the rising demand for renewable energy sources as well as the need for more dependable and efficient power transmission. The demand for longer power lines and rising investment in offshore renewable energy projects are two other factors. The high installation costs and possibility of cable failure are obstacles for the market for subsea power cables.

  • The market segments for subsea power cables include type, voltage, application, and geography.
  • The AC power cables and DC power cables segments of the market are separated by type.
  • The market is divided into three categories according to voltage: low voltage (66 kV), medium voltage (66-220 kV), and high voltage (>220 kV).
  • The market is divided into three categories based on application: marine, offshore wind, and oil and gas.
  • North America, Europe, Asia Pacific, the Middle East and Africa, and South America are the regions into which the market is split geographically.

Market Restrictions for Subsea Power Cables

Due to the rising need for renewable energy, the market for subsea power cables is anticipated to expand over the next few years. But there are some limitations on the market that are preventing it from expanding. Following are some of the main market inhibitors for subsea power cables:

High Price:

The high expense of installing and maintaining these cables is one of the main factors limiting the market for subsea power cables. Building a subsea power cable is substantially more expensive than installing an overhead power cable. The expense of maintaining these cables is likewise fairly significant. This is because the cables are hidden under the sea and challenging to reach. As a result, the market for subsea power cables is anticipated to grow at a slow pace due to the high cost of installation and maintenance.

Technical Difficulties:

The technical difficulties involved in installing these cables are a significant barrier to the market for subsea power cables. Subsea power line installation is a difficult and intricate process. This is because these cables must be buried beneath the seabed and are vulnerable to a variety of environmental elements, including waves, currents, and tides. Therefore, installing these wires is an extremely risky and difficult process.

Environmental Issues

Environmental issues related to the installation of these cables are another significant barrier to the market for subsea power lines. The marine ecosystem may be harmed by the installation of subsea power cables. This is because these cables, which are buried beneath the sea bed, have the potential to harm the delicate marine habitat. Environmental pollution may also result from the electrical leakage from these wires. As a result, the market for subsea power cables is anticipated to grow slowly due to environmental concerns.

Key Trends in the Subsea Power Cable Market

  • During the forecast period, the market for subsea power cables is anticipated to expand at a CAGR of more than 5%.
  • The market for subsea power cables is expanding primarily due to the increased demand for sustainable energy, the expansion of the offshore wind industry, and the requirement for effective interconnection of offshore oil and gas platforms.
  • The market segments for subsea power cables include type, voltage, application, and geography.
  • Direct current (DC) and alternating current (AC) subsea power cables make up the majority of the market.
  • During the projected period, the sector for alternating current (AC) is anticipated to increase at the greatest CAGR.
  • This is because there is an increasing need for AC subsea power lines to connect offshore wind farms.
  • The subsea power cable market is divided into three voltage categories: low voltage (less than 33 kV), medium voltage (between 33 kV and 132 kV), and high voltage (more than 132 kV).
  • During the projection period, the high-voltage category is anticipated to develop at the highest CAGR.
  • The connectivity of offshore oil and gas platforms as well as the long-distance transfer of power from offshore wind farms use high-voltage subsea power cables.
  • By application, the offshore oil and gas, offshore wind, and other subsea power cable markets are divided.
  • In 2019, the market for subsea power cables is anticipated to be dominated by the offshore oil and gas sector.
  • This is because there is an increasing need for subsea power cables to connect offshore oil and gas platforms.
  • The industry segment for offshore wind is anticipated to expand at the greatest CAGR throughout the forecast period.
  • The expansion of offshore wind farms around the world is credited with this segment’s rise.
  • The markets for North America, Europe, Asia Pacific, the Middle East and Africa, and South America are all examined.
  • In 2019, the market for subsea power cables is anticipated to be dominated by Europe.
  • The area is a major producer of offshore oil and gas, in addition to having a large number of offshore wind turbines.

Market drivers for subsea power cables

In the upcoming years, there will likely be a major increase in the market for subsea power cables. The need for grid upgrades and expansion as well as the rising demand for offshore oil and gas production are some of the causes that are driving this. Other factors include the rising demand for renewable energy.

A number of factors, such as the rising expense of conventional energy sources, the desire to reduce greenhouse gas emissions, and the growing accessibility of renewable energy sources, are driving the demand for renewable energy. Since these cables are needed to link offshore wind farms to the onshore grid, the rise of the offshore wind power sector is a significant factor driving this market for subsea power cables. The growing demand for electricity, the requirement to connect various grid components, and the requirement to increase grid efficiency are the factors that are driving the need for grid expansion and upgrades. The rise in offshore oil and gas developments is another factor driving the demand for subsea power cables. The offshore platforms must be connected to the onshore grid via these connections.

impact of the subsea power cable market for 2019

The worldwide economy has been significantly impacted by the COVID-19 epidemic, with the energy and power sectors taking the brunt of the damage. Power demand has sharply decreased as a result of the epidemic as businesses all across the world have been forced to close. Due to the strong correlation between the need for these cables and the demand for power, this has had a negative impact on the market for subsea power cables.

A recent analysis by MWR projects that the market for subsea power cables will grow at a CAGR of 6.10% over the projected period (2020–2025). By 2025, the market is anticipated to be worth USD 15.65 billion.

The rising need for renewable energy is what is driving the market. Offshore wind farms are connected to the grid through subsea power cables, and as the installed capacity of offshore wind farms worldwide is anticipated to rise in the future years, so does the demand for these cables. Additionally, it is anticipated that the rising demand for international connections will accelerate market expansion. However, the high cost of installing and maintaining subsea power lines is anticipated to impede market expansion. Additionally, it is anticipated that the risk of cable damage from extreme weather and other natural disasters may slow market expansion.

Voltage, application, and geographical regions have all been used to segment the global market for subsea power cables. Based on voltage, the market has been divided into three categories: low voltage (66 kV), medium voltage (66-220 kV), and high voltage (> 220 kV).Given that these cables are used to link offshore wind farms to the grid, the low-voltage segment is anticipated to account for the biggest proportion of the market. The market has been divided into interconnections, oil and gas, and renewables categories based on application. As subsea power cables are used to connect several nations, the interconnections category is anticipated to have the biggest market share.

Subsea Power Cables Market Key Industry Developments

Due to the rising need for renewable energy, the market for subsea power cables is anticipated to expand rapidly over the next few years. The market is also being driven by the development of technology and the desire to lower greenhouse gas emissions.

The following are some significant market advancements for subsea power cables:

1. One of the major factors propelling the market for subsea power cables is the rising need for renewable energy. The market is also being driven by the requirement to lower greenhouse gas emissions.

2. Another important factor in the market’s growth is the development of technology. Subsea power cables are now more effective and reliable thanks to the creation of new materials and the advancement of manufacturing techniques.

3. Another significant change in the market is the rising investment in projects for offshore renewable energy. Subsea power lines are becoming more and more in demand as offshore wind farms are being built at an increasing rate.

4. Another significant industry development is the increase in interconnectivity demand. The need for subsea power cables is being driven by the requirement for dependable and effective transmission of electricity between various regions.

5. The growing rate of mergers and acquisitions is another significant market change. The market’s dominant players are strengthening their positions by purchasing smaller businesses.

Outlook for the Subsea Power Cable Market

Over the course of the projected period, it is expected that the global market for subsea power cables will expand at a rate of over 5%. This is a result of rising investments in the field of renewable energy and the demand for effective power distribution. Due to expanding investments in renewable energy sources, rising electricity demand, and the need for effective power distribution, the market for subsea power cables is anticipated to expand. The expensive cost of installation and upkeep, however, is anticipated to impede market expansion.

Type, voltage, application, and region have all been used to segment the market. Alternating current (AC) and direct current (DC) are the two categories into which the market has been splitd direct current (DC) are the two categories into which the market has been split. During the projected period, the segment for AC subsea power cables is anticipated to develop at the highest CAGR. This is because AC cables are able to transport more power and are more effective than DC ones.

The market has been divided into low voltage (66 kV), medium voltage (66-220 kV), and high voltage (>220 kV) categories based on voltage. Due to the fact that high-voltage cables are more effective and can transport more power than low-voltage cables, the high-voltage sector is predicted to grow at the greatest CAGR over the projection period. The market has been divided into offshore wind, oil and gas, and other applications. Due to rising investments in offshore wind farms, the offshore wind segment is anticipated to develop at the highest CAGR during the forecast period.

North America, Europe, Asia-Pacific, South America, and the Middle East and Africa make up the geographic segments of the market. Due to growing expenditures in the renewable energy sector and the demand for effective power distribution, Europe is expected to be the largest market for subsea power cables.

By Cable Type·      Single Core

·      Multi-Core

By Voltage Type·      Medium Voltage

·      High Voltage

By Insulation  ·      Paper Insulated or Fluid Filled

·      Extruded plastic insulation

Ø  Cross-linked Polyethylene (XLPE)

Ø  Ethylene Propylene Rubber (EPR)

By Conductor Type·      Copper

·      Aluminium

By Application·      Inter-Country & Island Connection

·      Offshore Wind Power Generation

·      Offshore Oil & Gas

Prysmian, Nexans, LS Cable & Systems, ZTT Cable, Europacable, Sumitomo Electric Industries, Furukawa Electric Co., Ltd., NKT A/S, Hengtong Group CO., Ltd., General Cable, KEI Industries Ltd., and ABB Ltd.

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