Submarine Power Cable Market Research Report: Information by Type (Single Core and Multi-Core), Insulation Type (Cross-Linked Polyethylene (XLPE) and Ethylene Propylene Rubber (EPR)), Voltage (Up to 66 KV, 66 KV-220 KV and Above 220 KV), Conductor Material (Copper and Aluminum), End-Use (Offshore Wind Power Generation, Offshore Oil & Gas, Island Connection, and Wave & Tidal Power Generation) and Region (North America, Europe, Asia-Pacific, Middle East & Africa, and South America) - Forecast till 2030

Submarine Power Cable Market Forecast

The global submarine power cable market is expected to reach USD 27,154.3 Millions by 2030 with CAGR of 12.5% during the forecast period of 2022 to 2030. Rising number of offshore wind farms is expected to drive global market.

Submarine Power Cable Market Overview:

The growth can be primarily attributed to the rising number of offshore wind farms and the increasing demand in offshore oil & gas operations. The growing demand for intercountry and island power connections is expected to create opportunities for the submarine power cable market players during the forecast period. However, the high installation costs and repairing complexity are expected to form a restraint in the growth of the submarine power cable market during the forecast period.

COVID-19 Impact

COVID-19 has led to severe impact across all the industries around the world. The rapid spread has led governments across the globe to take stricter actions for the operations of industrial plants and offices, leading to stricter lockdowns. The lockdown had a notable impact on the power sector overall as power demand had decreased majorly from commercial and industrial sectors. Moreover, the virus also had a significant impact on the factories manufacturing electric cable and accessories due to the non-availability of staff and factory shutdowns. The impact was in terms of decline in revenues and challenging situation with managing cash flow for the companies. Moreover, India's daily power demand reduced to 28% since the beginning of the nationwide lockdown in March 2020. This can be attributed to the closure of factories and offices in the commercial and industrial sectors. Distribution companies have had to incur higher aggregate technical & commercial (AT&C) losses compared to the levels specified by the regulators since the T&D losses incurred are higher than what was earlier predicted.

Submarine Power Cable Market Key Players

The prominent players in the global submarine power cable market are Prysmian Group, NEXANS, NKT A/S, FURUKAWA ELECTRIC CO., LTD., LS Cable & System Ltd, Sumitomo Electric Industries, Ltd, ZTT, HENGTONG GROUP CO., LTD., Qingdao Hanhe Cable Co., Ltd., and Fujitsu.

Recent Developments

• In February 2020, Nexans was awarded a contract to supply the HV submarine power cables for the Marjan oil and gas field project located on the eastern coast of the Arabian Gulf.


• In January 2020, Furukawa Electric Co., Ltd. has been awarded a contract by PT. PLN (Indonesia) to provide engineering, procurement, and construction facilities for the development of 150kV submarine cable Sumatera- Bangka. This would help the company expand its cable business in Indonesia.


• In December 2019, Prysmian Group signed a contract with Red Eléctrica de España, a Spanish transmission system operator for the design and installation of three-core submarine and land power cable system with XLPE insulation between island of Playa Blanca, in the Lanzarote and La Oliva, in the island of Fuerteventura.

Submarine Power Cable Market Dynamics

• Rising number of offshore wind farms

The demand for energy has been growing globally at a steady rate and is expected to grow submarine power cable market steadily during the forecast period. Rising income, increased access to electricity, and urbanization are the primary reasons for the rising demand of electricity globally. According to statistical data from IEA, energy demand in 2019 grew by 2.3% from 2018, primarily due to the growing heating and cooling needs worldwide. Energy generation companies have been focusing on renewable energy generation to reduce carbon emissions and promote sustainable growth globally. Furthermore, the rising concerns about the growing carbon emissions and the efforts to curb them result in a need to increase the share of renewable energy such as wind and wave & tidal energy in the power generation mix.

• Increasing Demand in Offshore Oil & Gas Operations

• High installation cost and repairing complexity

Submarine power cable market are a critical component used in the offshore oil & gas and offshore renewable energy sources. They are exposed to severe conditions beneath the water bodies. Rising offshore field developments in harsh environmental and seism genic risk-prone conditions expose submarine power cables to high pressure, harsh fluids, corrosive materials, and other chemical and mechanical conditions, leading to affected functions of the submarine power cables. In addition to this, high operational complexity such as high underwater pressure and temperature are also expected to hinder the growth of submarine power cables in offshore applications as they cause submarine power cables to crack and crush due to stretching. Such damage to submarine power cables might hinder sound operations and lead to an interrupted power supply.

• Growing demand for intercountry and island power connections

Submarine power cable market are used for the transmission of electricity over long distances with low power losses. Authorities in many countries around the world are planning to ensure energy security in islands as well as other countries. Submarine power cables are preferably used for transmitting high power to such locations from the generation sites beneath the water bodies. However, geopolitical and geological instability due to the influence of various geographic and political factors is among the primary concerns for the operators in establishing islands and intercounty power connections.

Submarine Power Cable Market Segment Overview:

• Single Core

Single core segment refers to submarine power cables being suitable for both ground and underwater applications. Such single core power cables contain single applications that are constructed with materials such as copper and aluminum. Some of the primary materials used to encapsulate these types of cables include stainless steel, ethylene propylene, and cross-linked polyethylene. These single core cables are either stranded or solid core in nature.

• Multi Core

Multi core cables consist of more than one electric conductor that is generally insulated from each other. Such cables are primarily used to transmit electricity and signals in sectors including power generation and automobiles. The increasing demand of electricity is the primary driver increasing the demand for multi core cables. A multi core cable has a polyethylene jacket that is used to protect such cables against environmental and other harmful factors.

• Cross-linked polyethylene (XLPE)

The basic material used in cross-linked polyethylene (XLPE) cables is polyethylene, which is transformed through cross-link reaction of organic peroxides to form cross-linked polyethylene (XLPE) cables. Some of the conductor material such as copper and aluminum are primarily used in XLPE insulation cables. Cross-linked polyethylene (XLPE) cables are mostly suitable for higher voltage applications offering several benefits including lightweight, low material costs, ease in connectivity, and thermal characteristics.

• Ethylene Propylene Rubber (EPR)

Ethylene Propylene Rubber refers to the insulation material based on copolymers of propylene and ethylene. Such cables are widely used owing to its features such as high dielectric strength, flexibility, easier in install, and low thermal expansion. Sometimes, EPR cables are blended with polypropylene or polyethylene for getting enhanced physical properties. Companies have been focusing on the development of ethylene propylene rubber insulated cables. This segment is expected to grow steadily during the forecast period with a rise in the installation of EPR insulated cables in oil & gas, submarine, and power generation industry.

• Up to 66 KV

The submarine power cables in the up to 66 kV segment have voltage rating less than 66 kV. Submarine power cables rated up to 66 kV are widely used in various applications such as offshore production of oil and gas and offshore wind power generation. The type of insulation and conductor material used in the submarine power cable market depends upon the requirement of the end-users. Some of the companies offering submarine power cables up to 66 kV include Nexans, Prysmian Group, and NKT A/S.

• 66 KV – 220 KV

The 66 kV – 220 kV segment includes submarine power cable that have voltage rating in the range between 66 kV and 220 kV. Such submarine power cables are used to carry electricity for various applications in offshore wind power generation, wave & tidal power generation, and exploration and activities in oil & gas on regular basis, which drives the growth of the 66 kV – 220 kV voltage segment. Some of the key companies offering submarine power cables within the 66 kV – 220 kV range include Prysmian Group and Nexans.

• Above 220 KV

The submarine power cables above 220 kV segment have voltage greater than 220 kV. The submarine power cable market in the segment are extensively used to supply electricity to end-use applications including oil & gas, island power supply, wave & tidal power generation, and offshore wind power generation. Some of the companies offering submarine power cables above 220 kVA include Nexans, Sumitomo Electric Industries Ltd., and Prysmian Group.

• Copper

Copper is a soft, malleable, and ductile metal with properties of high electrical and thermal conductivity. The use of copper in the construction of submarine power cables offers better corrosion resistance and conductance as compared to aluminum. This as a conductor can be stranded or solid wire depending upon the requirement of end users. Copper has higher specific weight than aluminum, which offers better stability under the seabed, which is expected the fuel the growth of copper as a conductor material in the global submarine power cable market.

• Aluminum

Aluminum is one of the most abundant metallic elements present in the Earth’s crust which is soft, mon-magnetic, ductile, and lightweight in nature. Aluminum is a good conductor of heat and electricity and it is cheaper and low weight as compared to copper. It is one of the most preferred materials for the construction of submarine power cables. This leads to an increase in the demand for aluminum as a conductor in submarine power cables. NKT A/S, Prysmian Group, and Nexans are some of the key players under this segment in the global submarine power cable market.

• Offshore Wind Power Generation

Offshore wind power generation refers to the production of electricity through the wind farms constructed in water bodies. Offshore wind power generation offers several advantages such as higher wind speed, limited turbulence, and no physical restrictions such as buildings or hills that block the wind flow over the onshore wind power generation. Submarine power cables are used for transferring electricity generated from offshore wind farms into the grids to provide power in commercial and non-commercial sectors. Many countries around the world such as the UK, Germany, and Norway are focusing on the developments of offshore wind power generation.

• Offshore Oil & Gas

Offshore oil and gas production involves the exploration and production of oil and gas beneath the sea. Many oil & gas companies such as Chevron Corporation, BP p.l.c. and Royal Dutch Shell Plc are focusing on the offshore extraction activities of oil and gas. Moreover, the rise in shale production under the seabed is also expected to increase during the forecast period. Continuous offshore oil and gas production activities are being planned, which leads to the increased demand for submarine power cables for supplying electricity. Such factors are expected to drive the growth of the offshore oil & gas production segment during the forecast period.

• Island Connection

Submarine power cables are used to supply electricity from the mainland electricity grid networks to the islands. The rising demand for reliable and secure power supply to the islands and increasing developments in offshore renewable energy projects are expected to fuel the growth of submarine power cables in supplying electricity to the islands. In October 2018, Prysmian Group awarded a contract by an Independent Power Transmission Operator, a transmission system operator in Greece of worth USD 125 million for designing, supplying, installation, and commissioning of submarine power cables between the island of Crete and mainland Greece.

• Wave and Tidal Power Generation

Wave and tidal power generation refers to the generation of electricity by utilizing the wave and tidal energy. Submarine power cables are used to supply the electricity generated from wave and tidal power generation to the onshore electricity grid network. Countries around the world such as South Korea, France, and the UK are focusing on the development of wave and tidal energy to meet the electricity demand of consumers.

Submarine Power Cable Market Regional Analysis

The global submarine power cable market has been segmented, on the basis of region, into North America, Europe, Asia-Pacific, Middle East & Africa, and South America.

Global submarine power cable MARKET share, by Region, 2020 (%)Source: MRFR Analysis Industry Expert, Secondary Research, and MRFR Analysis

Europe

Europe accounted for the largest market share of in 2020, with a market value of USD 2,827.7 million; the market is expected to register the highest CAGR of 13.8% during the forecast period.

Asia-Pacific

China accounted for the largest market share in 2020 in the Asia Pacific region. The market is expected to register the highest CAGR of 15.4% during the forecast period. Japan was the second-largest market in 2020 and is projected to witness growth at a CAGR of 12.3% during the review period.

Competitive Landscape Outlook

The global submarine power cable market is characterized by the presence of many local, regional, and global vendors. The market is highly competitive, with all the players continually competing to gain a larger market share. High competition, rapid advances in technology, frequent changes in government policies, and stringent environmental regulations are some of the critical factors that could restrain the submarine power cable market growth. The vendors compete in terms of cost, product quality, reliability, and aftermarket services. It is crucial for vendors to provide cost-effective and efficient products to survive and succeed in a competitive market environment.

Submarine Power Cable Market Report Overview

The study covers the existing short-term and long-term market effects, helping decision-makers draft short-term and long-term plans for businesses by region. The report covers submarine power cable market major regions in North America, Europe, Asia-Pacific, and Rest of the World. The report analyzes market drivers, restraints, opportunities, challenges, Porter's Five Forces.

Market Segmentation Insights

Global Submarine Power Cable Market, by Type

• Single Core


• Multi Core

Global Submarine Power Cable Market, by Insulation Type

• Cross-linked polyethylene (XLPE)


• Ethylene Propylene Rubber (EPR)

Global Submarine Power Cable Market, by Voltage

• Up to 66 KV


• 66 KV – 220 KV


• Above 220 KV

Global Submarine Power Cable Market, by Conductor Material

• Copper


• Aluminum

Global Submarine Power Cable Market, by End-use

• Offshore Wind Power Generation


• Offshore Oil & Gas


• Island Connection


• Wave and Tidal Power Generation

Global Submarine Power Cable Market, by Region

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  • Mexico
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • UK
  
  
  • Norway
  
  
  • Denmark
  
  
  • The Netherlands
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • Malaysia
  
  
  • Indonesia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Middle East & Africa
  
  
  
  • Saudi Arabia
  
  
  • UAE
  
  
  • Angola
  
  
  • Rest of Middle East & Africa
  
  
  
  


• South America
  
  
  
  • Brazil
  
  
  • Argentina
  
  
  • Rest of South America