Enjoy complimentary customisation on priority with our Enterprise License!
The wind energy cables market size is estimated to grow by USD 16.58 billion at a CAGR of 30.45% between 2023 and 2028. The growth of the market depends on several factors such as increasing investment in offshore wind turbines, growing preference for renewable power, and rising requirement to lower carbon emissions.
To learn more about this report, Request Free Sample
Our market research and growth report includes the data with 2023 as the base year and 2024 as the estimated year and also includes the key drivers, trends, and challenges for the market.
The market is largely driven by the rising amount of money being invested in offshore wind turbines. Large cables are needed to transfer electricity from offshore wind farms' turbines to the onshore grid. The market is being driven by rising investments in offshore wind turbines for the following main reasons the growing offshore wind power capacity, where the demand for greener, more sustainable energy sources is driving a sharp increase in offshore wind power capacity worldwide. The demand is rising as a result of large capital investments made by governments and energy companies in the construction of farms. Also, technological developments in offshore wind where larger and more efficient turbines, among other technological developments, have increased the economic viability of offshore wind farms. Due to the increased investment in projects, there is a greater need for specialized cables that can handle higher voltages and long transmission distances.
Similarly, the government rules and incentives, through a variety of rules and incentives, numerous governments are actively encouraging the expansion of offshore wind energy. Financial incentives that promote private investment in the industry, such as feed-in tariffs and tax credits, are part of this support. Due to these policies, there is a huge demand as there has been an increase in installations. Thus, increasing investment in offshore wind turbines will drive the growth of the market during the forecast period.
The use of HVDC (high-voltage direct current) technology is one of the market trends in the industry. Electricity can be transmitted over great distances with low power losses, thanks to HVDC technology. Because this technology can transmit large amounts of power over long distances, it has gained popularity in the wind energy industry. The necessity for long-distance transmission is a major factor in the adoption of HVDC technology in wind energy cables. Since farms are frequently situated far from the coast, onshore substations must receive electricity from them efficiently. HVDC cables are appropriate for offshore wind farms because they have a greater transmission capacity than conventional AC (alternating current) cables. The industry's adoption of HVDC technology has been aided by the growing need for renewable energy sources and the drive toward decarbonization.
Moreover, by facilitating the effective integration of wind power into the grid, HVDC helps move away from fossil fuels and toward a cleaner energy system. Because HVDC technology can integrate multiple wind farms, transmit electricity over long distances, improve power quality, and facilitate the switch to renewable energy sources, it is generally a growing trend in the market. Thus, the adoption of HVDC technology will drive the growth of the market during the forecast period.
High installation and maintenance costs are indeed major challenges for the market. Some of the major costs are initial installation costs, there are a number of reasons why installing cables can be costly. These consist of the price of the supplies, labour, and specialized machinery needed to install high-voltage cables over lengthy distances. Because operating in marine locations presents extra hurdles, farms have considerably greater costs. Also, maintenance and repairs: trong gusts, chilly temperatures, and exposure to seawater (for offshore applications) are just a few of the challenging environmental factors that wind energy cables must endure. This raises the possibility of cable damage and malfunctions, requiring routine upkeep and repairs. The total cost of operations is increased by the expense of maintaining and repairing broken or defective cables.
Similarly, access and logistics: it can be expensive and logistically difficult to access and repair wind energy cables, particularly those that are situated offshore or in remote locations. The total cost of maintenance is increased by the requirement for specialized vessels, tools, and knowledgeable operators. Therefore, high installation and maintenance costs will hamper the growth of the market during the forecast period.
The offshore segment will account for a major share of the market's growth during the forecast period. The offshore segment in the market refers to the installation of cables that connect offshore wind farms to onshore electrical grids. Most farms are situated on huge lakes or seas, using the wind's energy to create electricity.
Customised Report as per your requirements!
The off-shore segment was the largest and was valued at USD 1.72 billion in 2018. The research and development investments provide cutting-edge cable systems that are resilient to the particular difficulties encountered by offshore installations, such as inclement weather and corrosive saltwater environments. In conclusion, as farms become a more significant source of renewable energy, the offshore section of the market is seeing substantial expansion. Innovation and investment are being driven by the need for specialized cables that can resist the rigors of offshore installations will drive the growth of the offshore segment in the market during the forecast period.
Based on end-user, the market has been segmented into utility, industrial, and commercial. The utility?segment will account for the largest share of this segment. The utility segment in the market refers to the use of these cables for connecting wind farms to the power grid. Wind energy cables are essential components for transmitting the electricity generated by wind turbines to substations and eventually to end-consumers. In the utility segment, cables are used to interconnect individual turbines within a wind farm and then transmit the electricity collected from multiple turbines to a central substation. Moreover, due to the growing popularity of wind energy and the requirement for dependable and efficient transmission infrastructure, the utility segment of the market is anticipated to experience substantial expansion during the forecast period.
For more insights on the market share of various regions Download Sample PDF now!
North America is estimated to contribute 37% to the growth by 2028. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period. The market in North America is expected to witness significant growth during the forecast period. With abundant wind resources in nations such as the US and Canada, North America is a crucial area for the development of wind energy. The need for cables is rising in North America due to the growing use of wind energy as a clean, renewable energy source. To meet their targets for renewable energy, governments and utility companies in the region are heavily investing in the development of transmission infrastructure and wind farms.
Additionally, government initiatives and incentives, such as production tax credits and feed-in tariffs, are also boosting the market. The growing use of wind power as a renewable energy source is predicted to cause the market in North America to expand significantly. The market is expanding due to factors such as government initiatives, technological developments, and the incorporation of wind power into sophisticated transmission systems. Such factors are expected to drive the regional market 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 cable laying vessels for efficient energy consumption, as well as safe and precise operations.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including ABB Ltd., Belden Inc., Deutsche Windtechnik AG, Finolex Cables Ltd., Fujikura Ltd., Furukawa Electric Co. Ltd., Hengtong Group Co. Ltd., Hydro Group, KEI Industries Ltd., LS Corp., Nexans SA, Ningbo Orient Wires and Cables Co. Ltd., NKT AS, Prysmian Spa, Southwire Co. LLC, Subsea 7 SA, Sumitomo Electric Industries Ltd., Tele Fonika Kable SA, and Viohalco S.A.
Technavio's market growth analysis 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 Wind Energy Cables Market, particularly in the Offshore Wind Cable segment, thrives on the demand for reliable transmission solutions in marine environments. Offshore wind cables, including subsea cables, endure harsh conditions in oceans and large lakes, necessitating resilience to saltwater exposure. With a focus on inter-array connections, standardization and modularization drive efficiency and cost-effectiveness, adhering to industry standards and certifications. Manufacturers ramp up manufacturing capacities to meet growing demands, exploring new materials and construction techniques. Additionally, the Aluminum Offshore Wind Cable Market emerges as a viable alternative, offering lightweight and corrosion-resistant solutions for offshore wind energy transmission.
The market growth and forecasting report includes market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
Wind Energy Cables Market Scope |
|
Market Report Coverage |
Details |
Page number |
162 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 30.45% |
Market Growth 2024-2028 |
USD 16.58 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
28.7 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
North America at 37% |
Key countries |
US, China, Germany, UK, and France |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ABB Ltd., Belden Inc., Deutsche Windtechnik AG, Finolex Cables Ltd., Fujikura Ltd., Furukawa Electric Co. Ltd., Hengtong Group Co. Ltd., Hydro Group, KEI Industries Ltd., LS Corp., Nexans SA, Ningbo Orient Wires and Cables Co. Ltd., NKT AS, Prysmian Spa, Southwire Co. LLC, Subsea 7 SA, Sumitomo Electric Industries Ltd., Tele Fonika Kable SA, and Viohalco S.A. |
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 market forecasting 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.