submarine power cable Market

The submarine power cable market is projected to grow from US$ 7,643.46 million in 2021 to US$ 11,829.01 million by 2028. It is estimated to grow at a CAGR of 6.4% from 2021 to 2028.

Governments in Taiwan and Japan are feeling pressure to meet their climate change commitments and have set ambitious targets for renewable energy development. To achieve these goals, it is necessary to replace large-scale, fossil fuel-based power generation with alternative sources. Offshore wind power is emerging as the most viable option, as recognized by many governments in the region. The Asian offshore wind industry has seen a surge of activity in recent years and is predicted to soon overtake Europe as the largest offshore wind market. China's offshore wind power generation capacity has grown at an impressive rate of 66% annually since 2015, expanding from 102 MW in 2010 to 565 MW in 2014, and reaching 7.03 GW in 2019. This accounts for around 94% of current operational offshore wind power generation in the APAC region, and 31% of the world's wind power capacity, with over 11 GW of offshore capacity installed as of January 2021. This progress in the power and IT sectors, focused on developing and expanding wind energy generation capacity, is driving growth in the submarine power cable market in APAC.

COVID-19 Impact on Submarine Power Cable Market

In the submarine power cable market research study, it was found that Brazil is the primary country in the region for acquiring submarine power cables, representing over 85% of the market in 2020. Brazil's 19 active offshore oil rigs produce a significant amount of oil for both domestic consumption and international export. However, in 2020, Brazil's offshore oil platforms faced numerous challenges, such as labor shortages, facility shutdowns, government restrictions on ongoing drilling operations, and supply chain difficulties due to critical worldwide disruptions in international trade. These challenges resulted in a decline in investments in submarine power cables throughout South America, as well as a reduction in offshore platform maintenance and repair operations, thereby limiting the growth of the submarine power cable market.

The submarine power cable market has been divided into five main regions: Europe, North America, APAC, Middle East & Africa, and South America. In 2020, Europe dominated the submarine power cable market, with the longest interconnector, the NorNed cable stretching 580 Km between Norway and the Netherlands. The UK has four major power interconnectors that bridge the power gap between the UK, France, Ireland, the Netherlands, and Northern Ireland, with a total capacity of 4 GW, accounting for about 5% of the UK's current energy-producing capacity. Besides, there are plans for several island power lines and large interconnector cables in the region, including NSN Link (Norway), Nemo Link (Belgium), Viking Link (Denmark), IceLink (Iceland), and Western Link (England). These initiatives are expected to drive the growth of the European submarine power cable market during the forecast period.

A few submarine power cable market players profiled in the study are Prysmian Group, Sumitomo Corporation, Furukawa Electric Group, LS Cable & System Ltd., and ABB Ltd.

The size of the submarine power cable market has been determined using both primary and secondary research methods. The research process began with extensive secondary research conducted through internal and external sources to collect qualitative and quantitative information on the market size. The purpose of this process was to obtain an overview and forecast of the submarine power cable market for all its segments. Additionally, several primary interviews were conducted with industry experts and commentators to validate the data and gain more analytical insights into the market. The participants involved in the primary research process include VPs, business development managers, market intelligence managers, national sales managers, external consultants, valuation experts, research analysts, and key opinion leaders who specialize in the submarine power cable market.