Submarine Power Cable Market Forecasts to 2030 – Global Analysis By Type (AC, DC and Other Types), Conductor Material (Copper and Aluminium), Voltage, End User and By Geography

Submarine Power Cable Market Forecasts to 2030 – Global Analysis By Type (AC, DC and Other Types), Conductor Material (Copper and Aluminium), Voltage, End User and By Geography

According to Stratistics MRC, the Global Submarine Power Cable Market is accounted for $12.90 billion in 2023 and is expected to reach $31.30 billion by 2030 growing at a CAGR of 13.5% during the forecast period. A submarine power cable is a specialized electrical cable designed for the transmission of electrical power beneath water bodies, such as oceans, seas, or lakes. Typically encased in multiple layers of insulation and protective materials, these cables are essential for connecting offshore renewable energy installations, such as offshore wind farms or tidal energy projects, to onshore power grids. They play a crucial role in transporting large amounts of electrical energy over long distances underwater, enabling the integration of marine-based renewable energy sources into the broader electrical infrastructure.

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.

Market Dynamics:

Driver:

Interconnection projects

Interconnection projects serve as a key driver for the submarine power cable market, facilitating the efficient transfer of electricity between regions across bodies of water. As nations increasingly focus on integrating renewable energy sources and creating interconnected grids, submarine power cables have become essential for transmitting electricity over long distances. These projects support the development of offshore wind farms and interconnect national power networks, fostering energy security and grid reliability. The demand is further propelled by the growing need to share and optimize power resources, promoting sustainable energy practices on a global scale.

Restraint:

Limited lifespan

The lifespan of these cables typically ranging from 25 to 50 years. This constraint poses challenges for long-term investments and necessitates frequent replacements, leading to increased maintenance costs and potential disruptions in power transmission. Factors such as environmental conditions, cable design, and material degradation contribute to this limited lifespan. As a result, stakeholders in the submarine power cable market must strategically plan for replacements and advancements in technology to address this constraint.

Opportunity:

Deep sea mining and oil & gas exploration

As these industries expand into deeper offshore locations, reliable and efficient power transmission becomes crucial for various operations. Submarine power cables enable the seamless transfer of electricity from onshore sources to remote underwater sites, supporting the energy-intensive requirements of mining and exploration activities. The demand for robust and high-capacity cables is expected to rise, driven by the growing need for power connectivity in challenging underwater environments. This dynamic market aligns with the increasing global focus on deep-sea resources, offering a vital infrastructure component for sustainable energy supply in these industries.

Threat:

Natural disasters

Natural disasters pose a significant threat as they can cause damage to underwater cable infrastructure. Earthquakes, tsunamis, and hurricanes can result in cable breaks, leading to service disruptions and costly repairs. Additionally, the geographical locations of submarine cable routes often coincide with regions prone to natural disasters, increasing the susceptibility of these critical energy transmission networks to unexpected disruptions. As the demand for offshore renewable energy projects grows, addressing the potential impact of natural disasters on submarine power cables becomes paramount for resilient energy transmission systems.

Covid-19 Impact

Disruptions in global supply chains, workforce shortages, and project delays have hindered the manufacturing and installation of submarine cables. Travel restrictions and lockdowns have impeded project timelines, leading to increased costs and uncertainties. Additionally, economic uncertainties have affected investment decisions in renewable energy projects, which often rely on submarine power cables. Despite challenges, the growing demand for clean energy and offshore wind projects is expected to drive the recovery of the submarine power cable market in the post-pandemic era.

The aluminum segment is expected to be the largest during the forecast period

The aluminum segment has experienced notable growth due to its advantageous properties. Aluminum cables offer high conductivity, lightweight construction, and corrosion resistance, making them a preferred choice for submarine power transmission. As demand for efficient energy transfer across underwater environments rises, the cost-effectiveness and performance characteristics of aluminum cables have contributed to their increasing market share. Additionally, aluminum's abundance and lower material costs compared to alternatives further drive its adoption in submarine power cables.

The offshore wind power generation segment is expected to have the highest CAGR during the forecast period

The offshore wind power generation segment is driving substantial growth in the submarine power cable market due to the increasing deployment of offshore wind farms. As countries globally transition towards cleaner energy sources, offshore wind projects have gained prominence. Submarine power cables are essential components in these projects, facilitating the transmission of electricity generated at sea to onshore grids. The escalating demand for renewable energy, coupled with advancements in offshore wind technology, has led to a surge in the installation of underwater power cables. Furthermore, this trend is expected to persist as offshore wind capacity expands, emphasizing the crucial role of submarine power cables in the growth of the offshore wind power generation sector.

Region with largest share:

The North American region has experienced significant growth in the submarine power cable market, driven by rising demand for reliable and efficient power transmission infrastructure. Increasing investments in renewable energy projects, such as offshore wind farms along the Atlantic coast, have propelled the need for advanced submarine cables to connect these sources to onshore grids. Additionally, the region's focus on upgrading and modernizing existing power networks has led to a surge in submarine cable installations for interconnecting islands and improving cross-border electricity transmission.

Region with highest CAGR:

The Asia-Pacific region is experiencing robust growth in the submarine power cable market due to escalating demand for reliable and efficient power transmission infrastructure. Rapid urbanization, industrialization, and renewable energy initiatives are driving the need for interconnecting power networks across coastal areas. Governments in countries like China, India, and Japan are heavily investing in submarine cable projects to enhance energy security and support renewable energy integration. Furthermore, the burgeoning offshore wind energy sector in the region is further propelling the demand for submarine power cables to transmit electricity from offshore wind farms to onshore grids.

Key players in the market

Some of the key players in Submarine Power Cable market include ABB Ltd, Furukawa Electric Co Ltd, KEI Industries Limited, LS Cable & System Ltd, Nexans SA, Ningbo Orient Wires & Cables Co., Ltd, NKT A/S, Prysmian Group , Sumitomo Electric Industries Limited, TFKable and ZTT International Limited.

Key Developments:

In January 2023, Prysmian Group and Telstra announced an expansion to Prysmian optical cable manufacturing plant In Australia, to build the industry-leading fibre optic cable required for Telstra’s intercity fibre network, with advanced technology that aims to reduce the environmental impact of the project. Telstra InfraCo is building the intercity fibre network in response to the ever-growing demands for fast and capable digital networks.

In April 2023, Nexans announced the successful completion of its acquisition of Reka Cables, a premium high, medium and low voltage cables manufacturer in Finland, from Reka Industrial following receipt of regulatory clearance. This acquisition marks an additional milestone of Nexans’ ambition to become a pure electrification player committed to contribute to carbon neutrality by 2030, focusing on the overall value chain.

Types Covered:
• AC
• DC
• Core Type
• Other Types

Conductor Materials Covered:
• Copper
• Aluminium

Voltages Covered:
• Medium
• High

End Users Covered:
• Inter-country and Island Connection
• Offshore Oil & Gas
• Offshore Wind Power Generation
• Other End Users

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2021, 2022, 2023, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances