Submarine Power Cable Market

[183 Pages Report] The submarine power cable market is expected to grow from an estimated USD 12.9 billion in 2023 to USD 22.3 billion by 2028, at a CAGR of 11.5% during the forecast period. The submarine power cable market is propelled by factors like the expansion of offshore wind energy capacity and the rising need for cross-border and island connections. Additionally, the growing demand from the offshore oil and gas sector is anticipated to drive demand for submarine power cables. Furthermore, the increasing interest in high-voltage direct current (HVDC) connections represents a promising opportunity for the submarine power cable market, given the substantial investments being allocated to this segment.

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Submarine Power Cable Market Dynamics

Driver: Growth of Offshore Wind Farms

The growth of Wind Power Generation in offshore locations is fueled by the abundant wind resources near coastlines, proximity to urban centers, reduced environmental impact, and government support for renewable energy. Submarine power cables are vital for connecting offshore wind farms to the grid, facilitating this growth and promoting clean energy adoption.

The global energy transition is fueling a surge in demand for submarine power cables, notably in the offshore wind sector. Offshore wind projects are expanding into more remote and deeper waters, often employing innovative floating wind technology in previously untapped regions. These developments necessitate longer and more robust submarine cables to transmit generated electricity ashore. Deep-sea wind turbines, boasting increased height and exposure to consistent, high-velocity winds, offer enhanced power generation potential. However, this also requires larger and more efficient submarine cables. This burgeoning demand presents a substantial business opportunity for companies engaged in cable manufacturing, installation, and maintenance, with the industry striving to push the boundaries of cable length and capacity to meet the offshore wind sector's growing needs.

Restraints: High Cost of Installation and Repair of Submarine Cables

The deployment and maintenance of submarine cables can present notable financial hurdles for power transmission ventures. These expenses stem from the intricate installation procedures, specialized equipment prerequisites, and the demand for expert workforce. Moreover, the distinctive attributes and operational circumstances of submarine settings amplify the associated expenditures.

Also, submarine power cable projects often cross international borders and involve multiple jurisdictions, each with its own set of regulations. This can make it difficult to get all of the necessary permits and approvals and can lead to delays in the start of construction and the completion of the project. In addition, submarine power cable projects are often complex and involve a number of different stakeholders, including government agencies, environmental groups, and local communities. This can make it difficult to reach a consensus on the project and to address all of the concerns of the stakeholders. This can also lead to delays in the project.

Opportunity: Increasing Adoption of HVDC Submarine Power Cables

The growing integration of intermittent renewable sources of energy increases the need for transmitting electric energy over long distances, encompassing wide and deep-water bodies using submarine power cables. With the increasing installation of submarine power cable projects, there has arisen a need for efficient power transmission enabling reduced dissipative losses. This is achieved with the application of HVDC submarine power cables, which offer several advantages over conventional High Voltage Direct Current (HVAC). HVDC cables require less material and space than HVAC cables. HVDC cables only need one power line to transmit electricity, while HVAC cables need three. HVDC cables also have a shorter length limit than HVAC cables due to the capacitance between the active conductors and the surrounding earth or water. This means that HVDC cables can be used to transmit electricity over longer distances without losing power.

Challenges: Environmental Compliance Challenges in Submarine Power Cable Installations

Submarine power cables face several challenges. Installation costs are substantial due to their complexity, specialized equipment, and skilled labor requirements. Maintenance and repair in underwater environments are costly and technologically demanding. They are vulnerable to natural disasters, such as storms and earthquakes, which can lead to service interruptions and expensive repairs. Marine life, including fishing activities and accidental anchoring, poses risks. Submarine cables also need to comply with environmental regulations to minimize ecological impacts. The growing demand for longer and higher-capacity cables for offshore wind and energy interconnections necessitates ongoing innovation to address these challenges and ensure the reliability and sustainability of underwater power transmission.

Submarine Power Cable Market Ecosystem

Notable players in this industry comprise long-standing, financially robust manufacturers of the Submarine power cable Market. These companies have a significant track record in the market, offering a wide range of products, employing cutting-edge technologies, and maintaining robust global sales and marketing networks. Prominent companies in this market include Prysmian (Itlay), Sumitomo Electric Industries Ltd. (Japan), LS cable & system LTD. (Korea), NKT A/S (Denmark), and Nexans (France).

Single core is expected to be the largest market based on core type

Single-core submarine power cables are a type of specialized cable designed for transmitting electrical power underwater, typically between two points on land or between an offshore installation and the shore. These cables are essential for various applications, including offshore wind farms, interconnections between power grids in different countries, and power distribution to remote islands or offshore facilities.

DC, by type, to hold the fastest market share during the forecast period during the forecast period

The market has been segmented by type into AC and DC. HVDC submarine cables typically operate at high voltage levels, often ranging from hundreds of kilovolts (kV) to several megavolts (MV). Higher voltage levels reduce transmission losses over long distances. DC segment is expected to be the fastest segment in the market by type due to the reduced transmission losses when compared to AC submarine power cables. Moreover, the cost of the DC power cables are lesser when compared to AC power cables which is driving the market for the segment.

High voltage, by voltage, to hold the largest market share during the forecast period.

The market has been segmented by voltage into high and medium voltage. The high voltage segment is expected to be the largest segment in the market by voltage. High-voltage submarine cables typically operate at high voltage levels, often ranging from hundreds of kilovolts (kV) to several megavolts (MV). Higher voltage levels reduce transmission losses over long distances. The market growth for this segment is because of rising investments in grid interconnections and the offshore wind sector requiring longer and higher capacity cables are expected to drive the high-voltage segment during the forecast period.

Europe is expected to account for the largest market during the forecast period.

Europe is the largest market due to the high number of projects in terms of new offshore wind farm installation. As countries in Europe work towards achieving carbon neutrality and meeting their renewable energy targets, offshore power generation has emerged as a versatile and efficient solution to optimize energy generation. Furthermore, supportive policies and financial incentives from European governments have attracted investments in offshore projects. The European Union's focus on fostering green innovation and supporting sustainable energy initiatives has created a favorable environment for the growth of the submarine power cable market. Moreover, the versatility and adaptability of submarine cable have captured the interest of diverse sectors in Europe, including offshore wind power generation, Inter-country & Island Connection, and offshore oil and gas users. submarine power cables provide a scalable and flexible approach to cater to varying energy transmission needs, for offshore applications.

Key Market Players

The submarine power cable market is dominated by a few major players that have a wide regional presence. The major players in the submarine power cable market are Prysmian (Itlay), Sumitomo Electric Industries Ltd. (Japan), LS cable & system LTD. (Korea), NKT A/S (Denmark), and Nexans (France). Strategies such as product launches, contracts, agreements, partnerships, collaborations, alliances, acquisitions, and expansions are followed by these companies to capture a larger share of the submarine power cable market.

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Scope of the Report

This research report categorizes the Submarine Power Cable market by type, end user industry, module, and region

On the basis of type, the Submarine Power Cable market has been segmented as follows:

• AC
• DC

On the basis of end user, the Submarine Power Cable market has been segmented as follows:

• Offshore Wind Power Generation
• Inter-country and Island Connection
• Offshore Oil & Gas

On the basis of by Core Type, the Submarine Power Cable market has been segmented as follows:

• Single Core
• Multicore

On the basis of by conductor material, the Submarine Power Cable market has been segmented as follows:

• Copper
• Aluminium

On the basis of by voltage, the Submarine Power Cable market has been segmented as follows:

• Medium
• High

On the basis of region, the Submarine Power Cable market has been segmented as follows:

• Asia Pacific
• Europe
• North America
• Middle East & Africa
• South America

Recent Developments

• In April 2023, Sumitomo Electric Industries, Ltd. announced plans to establish a new Power Cable factory (high voltage cable manufacturing plant) in the Scottish Highlands to support UK Government’s goal to achieve Net zero 2050.
• In April 2023, Nexans successfully finalized the acquisition of Reka kaapeli oy, a leading Finnish manufacturer of high, medium, and low voltage cables, as part of its strategy to become a key player in electrification and contribute to carbon neutrality by 2030.
• In April 2020, Prysmian Group successfully completed the brand integration process after acquiring General Cable. The company introduced a multi-brand strategy and updated its visual identity and logos.

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