Global Submarine Power Cable Market Size, Share & Industry Trends Analysis Report By Core Type (Single Core, & Multicore), By Conductor Material (copper & Aluminium), By Voltage, By Type, By End User, By Regional Outlook and Forecast, 2023 - 2030
The Global Submarine Power Cable Market size is expected to reach $26.4 billion by 2030, rising at a market growth of 11.5% CAGR during the forecast period. In the year 2022, the market attained a volume of 2,635.1 million feets, experiencing a growth of 9.4% (2019-2022).
The global offshore wind energy capacity has grown steadily due to favorable wind conditions, increased investment, and government support for renewable energy. Consequently, the Offshore Wind Power Generation segment registered $5,121.8 million revenue of the market in 2022. As more offshore wind farms are developed, the demand for submarine power cables to transmit the generated electricity to the shore has surged. Offshore wind farms are often situated several kilometers offshore, with abundant wind resources. Submarine power cables are used for grid interconnection in regions with multiple offshore wind farms and neighboring countries. Some of the factors impacting the market are growth of offshore wind farms, increasing adoption of HVDC submarine power cables, and high cost of installation and repair of submarine cables.
Offshore wind energy is a quickly growing sector that requires the efficient transmission of electricity generated by wind turbines located at sea to onshore grids. Submarine power cables are a critical infrastructure component to connect these offshore wind farms to the mainland electrical grids. The global offshore wind energy capacity has grown steadily due to favorable wind conditions, increased investment, and government support for renewable energy. HVDC submarine power cables are known for their superior efficiency when transmitting electricity over extended distances. They experience lower electrical losses than AC cables, making them ideal for connecting offshore wind farms and other remote power generation facilities to the onshore grid. As offshore wind farms have expanded, so has the demand for HVDC submarine power cables. The combination of these factors has led to an increased adoption of HVDC submarine power cables and, subsequently, significant growth in the market.
However, submarine cable projects can be capital-intensive, especially high-voltage or long-distance transmission. The cost includes cable manufacturing, installation, specialized vessels, and equipment, which may require substantial upfront investments. The high cost of submarine cable projects can complicate project financing and approvals. Delays in securing funding or approvals can postpone project implementation and slow market growth. Submarine cables may require maintenance and repair over their operational lifespan due to various factors such as damage from anchors, fishing activities, and natural events.
Core Type Outlook
By core type, the market is categorized into single core and multicore. In 2022, the single core segment registered the highest revenue share in the market. Single-core submarine power cables are underwater cables designed to transmit electrical power, typically using alternating current or direct current. Single-core submarine power cables consist of a single conductor, typically made of copper or aluminum, surrounded by insulation and protective materials. These layers are designed to provide electrical insulation, mechanical strength, and protection against the underwater environment.
Conductor Material Outlook
On the basis of conductor material, the market is classified into copper and aluminum. The aluminum segment covered a considerable revenue share in the market in 2022. Aluminum submarine power cables are underwater cables designed to transmit electrical power beneath bodies of water. These cables use aluminum as the conductor material instead of copper. While aluminum has slightly lower electrical conductivity than copper, it is often chosen for its cost-effectiveness and lower weight.
Voltage Outlook
Based on voltage, the market is segmented into low and high. In 2022, the high segment generated the highest revenue share in the market. High-voltage submarine power cables are specialized cables designed to transmit electrical power beneath bodies of water, such as seas and oceans, over long distances. These cables can carry high voltage levels, making them suitable for efficiently transmitting electricity across large expanses of water while minimizing energy losses. High-voltage submarine power cables are essential for efficient and reliable long-distance electrical transmission beneath the sea.
Type Outlook
On the basis of type, the market is segmented into AC and DC. The AC segment acquired a substantial revenue share in the market in 2022. AC (alternating current) submarine power cables are designed to transmit electrical power underwater using alternating current. These cables are essential for various applications, including connecting offshore power generation facilities, interconnecting power grids across bodies of water, and facilitating electrical distribution between different regions or countries. AC submarine power cables play a crucial role in the reliable transmission of electrical power across bodies of water, supporting renewable energy integration, grid interconnection, and the efficient distribution of electricity to areas with high energy demand.
End User Outlook
Based on end user, the market is fragmented into offshore wind power generation, inter-country and island connection, and offshore oil & gas. In 2022, the offshore wind power generation segment held the highest revenue share in the market. Submarine power cables play a vital role in offshore wind power generation by connecting offshore wind farms to onshore electrical grids. Offshore wind turbines generate electricity from the wind's kinetic energy. This electricity is initially in alternating current within the wind turbine generators. Submarine power cables transport this AC power from the wind turbines to an offshore substation.
Regional Outlook
Region-wise, the market is North America, Europe, Asia Pacific, and LAMEA. In 2022, the Europe region led the market by generating maximum revenue share. As European countries 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, European governments' supportive policies and financial incentives have attracted investments in offshore projects.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Sumitomo Electric Industries, Ltd., Prysmian Group, Nexans S.A., NKT Photonics A/S (NKT A/S), LS Cable & System Ltd., Furukawa Electric Co., Ltd., SSG Cable Group, KEI Industries Limited, TPC Wire & Cable (Audax Management Company, LLC), and Hengtong Group Co., Ltd.
Scope of the Study
Market Segments covered in the Report:
By Core Type (Volume, Million Feets, USD Billion, 2019 to 2030)
By Conductor Material (Volume, Million Feets, USD Billion, 2019 to 2030)
By Voltage (Volume, Million Feets, USD Billion, 2019 to 2030)
By Type (Volume, Million Feets, USD Billion, 2019 to 2030)
By End User (Volume, Million Feets, USD Billion, 2019 to 2030)
- Offshore Wind Power Generation
- Offshore Oil & Gas
- Inter-country and Island Connection
By Geography (Volume, Million Feets, USD Billion, 2019 to 2030)
- North America
- US
- Canada
- Mexico
- Rest of North America
- Europe
- Germany
- UK
- France
- Russia
- Netherlands
- Norway
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- South Korea
- Australia
- Malaysia
- Rest of Asia Pacific
- LAMEA
- Brazil
- Argentina
- UAE
- Saudi Arabia
- South Africa
- Nigeria
- Rest of LAMEA
Companies Profiled
- Sumitomo Electric Industries, Ltd.
- Prysmian Group
- Nexans S.A.
- NKT Photonics A/S (NKT A/S)
- LS Cable & System Ltd.
- Furukawa Electric Co., Ltd.
- SSG Cable Group
- KEI Industries Limited
- TPC Wire & Cable (Audax Management Company, LLC)
- Hengtong Group Co., Ltd.
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