Enjoy complimentary customisation on priority with our Enterprise License!
The submarine power cable market size is estimated to grow at a CAGR of 12.14% between 2022 and 2027 and the size of the market is forecast to increase by USD 3,975.36 million. The growth of the market depends on several factors, such as the growing offshore renewable energy installations, the increasing inter-country and island connections, and the rising global energy demand.
This report extensively covers market segmentation by type (single core and multicore), application (offshore wind, island connection and inter-country, offshore oil, and others), and geography (Europe, APAC, North America, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges.
Submarine Power Cable Market Forecast 2023-2027
To learn more about this report, Request Free Sample
Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market. Although there has been a disruption in the growth of the market during the COVID-19 pandemic, a holistic analysis of drivers, trends, and challenges will help companies refine marketing strategies to gain a competitive advantage.
The IEA forecasts that, due to growing environmental concerns, energy demand will increase by 40% and the majority of this is met from renewable sources. Because of this, the majority of nations are attempting to invest in renewable energy initiatives like tidal and wind energy projects, which will raise the demand for submarine power lines. As a result, in response to the rising demand for energy, the number of generating stations and transmission lines has increased by a massive amount.
However, there are many countries or islands that are not able to generate electricity according to their demand. This will raise the demand for submarine energy cables because it is easy to transfer power from one country to another and vice versa, giving rise to interconnections between islands. Therefore, with the increase in the number of inter-country and island connection projects, the global submarine power cable market is expected to witness significant growth during the forecast period.
A viable alternative to the transmission of submarine power over longer distances is underground high-voltage direct current cables. HVDC power systems are economically viable for long-distance, bulk power delivery. Such projects are aimed at ending energy isolation and removing the factors that hinder the growth of the European internal energy market.
These renewable power projects are typically set up in places far away from the energy load centers. In such cases, the losses resulting from the transmission of electricity by means of the AC line are significant, which is why it is expected that HVDC cables would prove useful in this area. Moreover, the rising number of offshore wind energy projects in Europe will boost the sales of submarine HVDC cables hence driving the growth of the market in focus during the forecast period.
For submarine power cables, aluminum and copper are the primary materials. This raw material constitutes an important proportion of submarine cable production costs. The cost of aluminum and copper accounts for roughly half of the total production cost incurred in manufacturing these cables.
Moreover, the instability in the cost of raw materials is often recovered by negotiated changes in the price of the final product. However, in such instances, The change in the selling price can lag by a certain time as far as changes in metal prices are concerned. The delay is caused by the time needed for the adaptation of the customer pricing strategy. This will lead to a significant hindrance in the growth of the market in focus during the forecast period.
The single core segment will account for a major share of the market's growth during the forecast period. The single core cables emerged as a prominent type in the global submarine power cable market in 2022 in terms of revenue. There are many benefits to such cables, which have one conductor covered with a protective sheath. These are helpful for long-distance underwater power transmission due to their flexible design and compact construction.
Get a Customised Report as per your requirements for FREE!
The single core segment was valued at USD 2,354.53 million in 2017 and continued to grow until 2021. Single-core cables have greater insulating qualities and fewer transmission losses, ensuring an efficient and consistent power supply. Because they can withstand adverse environmental conditions, such as high pressure and seawater hardness, it's ideal for offshore renewable energy installations and interconnection with global power grids.
Multicore cables have emerged as an essential type of submarine power cable in the recent decade. These cables are made up of several insulated cores that are bunched together under a protective sheath and are intended to deliver electrical power over considerable distances underwater. High voltage and current electrical transmission are possible with cores that are commonly made from copper or aluminum. The electricity distribution is good and there's flexibility in terms of meeting the various power requirements with a Multicore setup. Multi-core submarine power cables are essential for providing dependable and sustainable energy transmission over long distances beneath the oceans across the world owing to their capacity to manage high power levels and resist severe marine environments.
Based on application, the market has been segmented into offshore wind, island connection and inter-country, offshore oil, and others. The offshore wind segment will account for the largest share of this segment. Compared to conventional turbines, coastal wind turbines can offer more energy with a lower number of turbines. It has been set by the European countries to ensure that renewables account for more than 20 % of their energy needs by 2030. In order to achieve that aim, in 2021 all of the countries cooperated on installing and operating a huge number of undersea wind turbines. China and India, due to the huge amount of investment in offshore wind power plants over recent years, are expected to represent a large share of Asia Pacific. Hence, the demand for submarine power cable from the offshore segment is expected to increase and hence, drive the growth of the market in focus during the forecast period.
In the island connection and inter-country segment, according to the International Energy Agency (IEA), close to 1.2 billion people lack access to electricity, of which more than 95% living without electricity are from sub-Saharan Africa and developing Asia. The supply of electricity is expected to increase as a result of the provision of access to these populations which are not served. The Indian government has set a higher priority for wind and solar energy sources in order to meet increasing electricity demand. In addition, there are even programs in Africa to create a mini-grid using only renewable sources of energy. Imports of power and more demand for submarine cables are projected to be driven by an increase in electricity consumption. The major interconnection of islands is expected to happen in Southeast Asia. Owing to such factors, the submarine power cable demand is expected to increase from the island connection and inter-country application segment, hence, driving the growth of the market in focus during the forecast period.
For more insights on the market share of various regions View PDF Sample now!
Europe is estimated to contribute 48% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period. The submarine power cable market in Europe witnessed steady growth in 2022. Countries such as the UK, Belgium, Denmark, and the Netherlands, are anticipated to contribute significantly to the market in focus in Europe. Countries in Europe have been increasingly installing wind turbines of greater height and diameter with a view to increasing their energy production. This is further expected to drive the adoption of offshore wind turbines.
According to the Global Wind Energy Council (GWEC), In 2021, China, the UK, Germany, and the Netherlands were among the largest offshore wind markets in the world. Although Denmark, by 2021, had the third highest market share in the global wind energy sector, China surpassed Denmark and became the third-largest country in the global offshore wind market in 2021. Thus, government support and the growing focus on wind energy are projected to drive the submarine power cable market in Europe during the forecast period.
COVID-19 cases in the UK witnessed an increase in 2021, fueled by the new and more transmissible Omicron variant of the virus. However, the region gradually recovered from the pandemic owing to successful large-scale vaccination drives conducted by the regional governments, rising health awareness, and several other measures, such as social distancing. The resumption of operations at submarine power cable manufacturing plants, which then triggered demand for submarine cables across Europe in 2021, was also due to the relaxation of lockdown restrictions in many countries throughout the region in 2021. Furthermore, the goal of closing all oil and gas rigs by 2050 to achieve the target of net-zero carbon emission has led to increased investment in renewable power production in the region, which will support the recovery of the market in focus and enable growth during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
ABB Ltd. - The company offers submarine power cables namely XLPE Submarine Cable Systems.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The submarine power cable market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Submarine Power Cable Market Scope |
|
Report Coverage |
Details |
Page number |
172 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 12.14% |
Market growth 2023-2027 |
USD 3,975.36 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
11.35 |
Regional analysis |
Europe, APAC, North America, Middle East and Africa, and South America |
Performing market contribution |
Europe at 48% |
Key countries |
US, China, Japan, Germany, and the UK |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
ABB Ltd., Eland Cables Ltd., Europacable, Fujikura Co. Ltd., HELUKABEL Romania Srl, Hengtong Group Co. Ltd., Hydro Group, Jiangsu Zhongtian Technology Co Ltd, KEI Industries Ltd, LS Cable and System Ltd., Nexans SA, NKT AS, Parker Hannifin Corp., Prysmian Spa, Southwire Co. LLC, Sumitomo Electric Industries Ltd., The Okonite Co., Furukawa Electric Co. Ltd., Leoni AG, and Subsea 7 SA |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
Get lifetime access to our
Technavio Insights
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.