The Submarine Power Cable Market is one of the dynamically growing sectors because of the increasing need for renewable energy transmission, interconnecting power grids, and new offshore energy projects which are under continuous development. These cables take the primary responsibility of transmitting electrical power offshore energy sources, be it wind farms or oil platforms, to the onshore grids, while connecting different countries' energy systems.
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Market Size of the Submarine Cable Market
The market for submarine power cables is immense and has been on an upward rise, being largely pushed by offshore activities in energy projects and, in particular, with wind. Indeed, the size of such a market is anticipated to not only reach, but be operating at billions of value within the next decade, with driving forces from major investments in energy infrastructure and the push for decarbonization. The market of submarine power cables on a global scale is crucial for the energy sector; it is valued at US$ 14.81 billion for the year 2024 and is set to reach US$ 46.83 billion by the end of 2034, growing at a CAGR of 12.2% between 2024 and 2034. For example, investments in grid extension, which predominantly fosters growth of these products in countries like Europe and North America, with the number of renewable projects garnering at an increasing rate.
Demand for Submarine Power Cables
The demand for submarine cables has, therefore, been pegged to the global trend for sustainable energy solutions. This has equally been aided by wind farms located offshore, interconnectors between countries, and oil and gas platforms. As many countries set ambitious renewable energy targets, submarine power cables become very important for transmitting electricity from these remote, offshore generation sources back to the mainland. A good example is the installed capacity of offshore wind energy in Europe, estimated at about 25 GW in 2022, which will face exponential growth in the near future; hence, boosting demand for submarine power cables.
One other great contribution to the market is the interoperability of various continents, which enable countries to share energy across borders. Being more or less an intermittent mode of generation source, the functioning of grid interconnectors is very much important to achieve supply and demand balancing over large areas.
Key Companies Profiled
- Prysmian Group
- NKT A/S
- Nexans SA
- Sumitomo Electric Industries Limited
- ABB Ltd.
- General Cable Corp.
- Furukawa Electric Group
- LS Cable & System
- Hengton Group Co., Ltd.
- KEI Industries Ltd.
- Hydro Group
- ZTT
- Tele Fonika Kable SA
- Taihan Cable & Solution Co., Ltd.
- Tratos
- The Okonite Company
- Hellenic Cables
- Bhuwal Insulation Cable Pvt. Ltd.
- Apar Industries
Cost of Submarine Power Cables
Submarine power cables are extremely expensive investments due to their complexity and the difficult installation process under water. The actual cost is very dependent on the type of cable, the length to be installed, the particular project, and other environmental conditions at the site. HVDC cables used usually for longer lengths are more expensive than HVAC cables used within a shorter length.
The material cost of a submarine power cable, its laying comes to anywhere between $1 - $ 3 million per kilometer. Considering these as factors, some of the reasons leading to such high costs are copper and aluminum; installation requires vessels with special features and complicated engineering to protect them from environmental damage.
Market Outlook for Submarine Power Cables
A number of these macro trends include a global demand for renewable energy, grid modernization, and technological advancement in the power transmission arena, all of which will make the outlook for the submarine power cable market bright. One of the mainstays driving this growth could be offshore wind energy, more so with countries upscaling their targets on renewable energy. For example, the European Union aims to achieve 300 GW of offshore wind capacity by 2050, and such targets are leading in place or being considered in other regions too, such as North America and Asia.
Improvement in cable insulation and increased transmission capacity because of technological advances will also further reduce losses in the transmission of power. Submarine cables will, therefore, be more efficient. Additionally, new developments of floating offshore wind farms that are positioned further from the shore into deeper waters will create a new market for advanced submarine cables capable of withstanding harsher environmental conditions.
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Interconnectors at a country level will also be critical to grid stabilization. As supplies from renewable sources increase, countries will rely more and more on interconnectors to balance supplies across borders. Development of subsea interconnectors between Europe and the UK has continued, including a series of planned projects in Asia and North America that will keep driving demand for submarine cables.
In essence, the submarine power cable market is getting huge, and the augury of growth is laid by the ongoing expansion in renewable energy projects, mainly offshore wind, and increasing needs for cross-border grid interconnections. Not only is cost-effective power transmission from remote energy sources technologically critical, but a high-summed initial investment in submarine cables is also a critical component for long-term large benefits. The general assumption was that the goals set for renewable energy and modernization efforts within global power grids will only increase the demand for submarine power cables, making one of the important building blocks for the new energy infrastructure.
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