Industry Overview
A submarine power cable is a transmission cable that is used to carry electric power below the water surface. These are known as submarines, as they carry electric power beneath salt water. These cables can also be used beneath fresh water such as lakes and rivers. The global submarine power cable market has registered significant growth in recent years and is expected to witness exponential growth during the forecast period. The growing demand for power generation from renewable energy sources along with an increasing number of offshore wind farms, and increasing power generation facilities are the major factors fueling the growth of the Submarine Power Cable Market.
Market Segmentation
Insight by Type
Based on type, the submarine power cable market is categorized into single-core and multicore cables. The single core category is leading the market and is anticipated to register faster growth in the coming years. This is attributed to their easy and economical deployment as compared to multicore cables. The demands of single-core cables are majorly derived from the offshore wind sector, particularly in Europe, which is fueling the demand for these cables in the market. Also, single-core cables are suitable for covering long distances, as they experience lower reverse currents as compared to multicore cables.
Insight by Voltage
Based on voltage, the submarine power cable market is classified into medium voltage and high voltage. During the forecast period, the high voltage category is anticipated to hold the larger share in the market, owing to the increasing number of grid connections coupled with offshore wind projects, which require high-capacity cables to transmit power to long distances.
Insight by Conductor Material
Based on conductor material, the submarine power cable market is categorized into copper and aluminum. The copper wire category is the larger category; however, aluminum wire is expected to register faster growth in the submarine power cable market.
Insight by End-User
Based on end-users, the submarine power cable market is categorized into offshore wind power generation, inter-country and island connection, offshore oil and gas, and others. Of all these, the offshore wind power generation segment dominated the market and accounted for the largest share. The continuous technological advancement and reducing offshore wind costs are anticipated to drive the offshore wind power generation segment of the market by end-users.
Global Submarine Power Cable Market Report Coverage
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Report Metric
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Details
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Historical Period
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2018 - 2023
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Base Year Considered
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2024
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Forecast Period
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2025 - 2030
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Market Size in 2023
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U.S.D. XX Billion
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Revenue Forecast in 2030
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U.S.D. XX Billion
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Growth Rate
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XX%
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Segments Covered in the Report
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By Type, By Voltage, By Conductor Material, By End-User
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Report Scope
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Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast; Segmentation Analysis; Impact of COVID-19; Companies’ Strategic Developments; Market Share Analysis of Key Players; Company Profiling
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Regions Covered in the Report
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North America, Europe, Asia-Pacific, Middle East, and Rest of the World
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Industry Dynamics
Growth Drivers
The advent of offshore renewable energy, increasing environmental concerns, and growing demand from offshore oil and gas operations are the major factors driving the growth of the submarine power cable market. The growing environmental concerns are encouraging various countries to focus on power generation from renewable sources, hence the number of renewable projects which includes wind and tidal energy projects, has increased significantly in recent years in various parts of the world, resulting in increasing demand for these cables in the market.
Challenges
The challenges that are identified in the market that can hinder market growth are high installation costs, technical challenges in installation, and damages caused due to human intervention. The major damages are caused by accidental issues due to fishing boats or ships and also sometimes the anchor of the ships gets hooked to these cables, which causes serious damage to them, which is among the major challenges faced by the submarine power cable market.
Industry Ecosystem
The major players in the submarine power cable market are focusing on increasing production line efficiency by significantly investing in research and developmental activities related to these cables, which are expected to create stiff competition among the players operating in the market.
Geographic Overview
Globally, Europe is the key region in the submarine power cable market, owing to the major shift in the region towards renewable energy. For instance, The European Union (EU) has agreed to the proposal related to investing in energy security by strengthening the cross-border energy infrastructure, which can create ample opportunities in the region’s market. Also, countries such as Spain, Germany, and the U.K. are investing significantly in wind power generation projects lately, as these countries are focusing on producing surplus energy that can be transmitted to other countries using inter-country and island connections, which in turn will boost the demand of these cables in the market.
Competitive Insight
The major players in the submarine power cable market are competing against each other based on various factors such as quality, price, range of products, service, delivery time, and others. General Cable Technologies, Nexans, Furukawa Electric, LS Cable & System, Hydro Group, NKT Group, Prysmian Group, Sumitomo Electric Industries, Hengtong Marine Cable Systems, AEI Cables, JDR Cables, ABB, and TE Subcom are some of the major players operating in the submarine power cable industry.
