Submarine Power Cable Market Size

Increasing number of offshore wind farms boost the market growth

Global energy demand has been increasing gradually, and it is anticipated that this trend will continue to fuel the market for submarine power cables. The main factors driving the increase in power demand worldwide are rising income, greater access to electricity, and urbanization. In 2019, the world's energy demand increased by 2.3% compared to 2018, mostly as a result of rising heating and cooling demands. To cut carbon emissions and encourage sustainable growth worldwide, energy producing businesses have been concentrating on the production of renewable energy.

Submarine communication cables carry approximately 90% of global data traffic. Their total carrying capacity is measured in terabytes per second as well. As a result, OTT and communication service providers such as Google, Amazon, Facebook, and Microsoft place a premium on these connections. For example, in October 2021, the Japanese IT conglomerate NEC announced plans to build a large submarine cable with 4 crore fibre optics for Facebook. The submarine will have 24 fibre pairs with a maximum bandwidth of 500 maps.

Most countries have laws in place to protect underwater cables from harm because they are an important part of their economies. For example, the Australian Communication and Media Authority (ACMA) has established safety zones to prevent activities that could disrupt the cables that connect Australia and the rest of the world. It also legalises new submarine cable installations.

Submarine power cable industry are used for the electricity transmission over vast distances with reduced power losses. Authorities in numerous nations intend to guarantee energy security in both islands and other nations. For delivering high power from the generation facilities located beneath the water bodies to such locations, submarine power cables are preferred. However, one of the main problems for the operators in creating islands and combined power connections is geopolitical and geological instability caused by the influence of numerous geographic and political factors.

The Global Submarine Power Cable Market Industry is projected to experience substantial growth over the coming years. With an estimated market value of 14.2 USD Billion in 2024, the industry is expected to expand significantly, reaching approximately 41.3 USD Billion by 2035. This growth trajectory indicates a robust compound annual growth rate (CAGR) of 10.16% from 2025 to 2035. Such projections reflect the increasing investments in renewable energy projects, advancements in cable technology, and the growing need for interconnectivity between power grids. The market's expansion is indicative of the critical role submarine cables play in the global energy landscape.

Supportive government policies and incentives are playing a crucial role in shaping the Global Submarine Power Cable Market Industry. Many governments are implementing regulatory frameworks that promote the development of submarine cable infrastructure, particularly in the context of renewable energy projects. For instance, subsidies and tax incentives for offshore wind projects encourage investments in submarine cables necessary for energy transmission. Additionally, international agreements aimed at reducing carbon emissions further bolster the demand for renewable energy solutions, including submarine cables. Such policies are likely to contribute to the market's growth trajectory, reinforcing the industry's importance in achieving energy transition goals.

The Global Submarine Power Cable Market Industry is experiencing a notable surge in demand driven by the increasing shift towards renewable energy sources. Governments worldwide are investing heavily in offshore wind farms and solar energy projects, which necessitate robust submarine cable infrastructure for efficient energy transmission. For instance, the European Union has set ambitious targets for renewable energy, aiming for a significant portion of its energy mix to come from offshore wind by 2030. This transition is projected to contribute to the market's growth, with the industry expected to reach 14.2 USD Billion in 2024 and potentially 41.3 USD Billion by 2035.

The Global Submarine Power Cable Market Industry is significantly influenced by the rising energy demand in emerging economies. Countries in Asia and Africa are experiencing rapid urbanization and industrialization, leading to increased electricity consumption. This surge in demand necessitates the development of robust energy infrastructure, including submarine cables for efficient energy transmission from remote generation sites to urban centers. For example, nations like India and Nigeria are investing in submarine cable projects to enhance their energy distribution networks. As these economies continue to grow, the demand for submarine power cables is expected to rise, further propelling market expansion.

The Global Submarine Power Cable Market Industry is witnessing a rise in interconnectivity initiatives aimed at enhancing energy security and reliability. Countries are increasingly investing in submarine cables to connect their power grids, facilitating energy trade and improving grid stability. For example, projects like the North Sea Wind Power Hub aim to interconnect multiple countries through a network of submarine cables, allowing for efficient energy distribution across borders. This trend not only supports renewable energy integration but also enhances energy resilience, thereby driving market growth. As interconnectivity expands, the demand for submarine cables is expected to rise significantly.

Technological innovations in the manufacturing of submarine power cables are significantly enhancing the capabilities and efficiency of the Global Submarine Power Cable Market Industry. Advances in materials science, such as the development of high-performance insulation and conductor materials, enable cables to operate at higher voltages and longer distances. This is particularly relevant for intercontinental connections, where efficiency is paramount. Furthermore, the introduction of advanced installation techniques, including remotely operated vehicles, reduces installation time and costs. As these technologies evolve, they are likely to drive market growth, aligning with the projected CAGR of 10.16% from 2025 to 2035.

Major market players are spending a lot of money on R&D to increase their product lines, which will help the submarine power cable market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the submarine power cable industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.

One of the primary business strategies adopted by manufacturers in the global submarine power cable industry to benefit customers and expand the market sector is to manufacture locally to reduce operating costs. In recent years, submarine power cable industry has provided submarine power cable with some of the most significant benefits. The submarine power cable market major player such as Nexans SA, Prysmian Group and others are working to expand the market demand by investing in research and development activities.

Feb. 2020, Nexans was awarded the contract to to provide the HV submarine power cables for the Marjan gas and oil field project located on the eastern coast of the Arabian Gulf.

Also, In order to design and instal a three-core submarine and land power cable system with XLPE insulation between the islands of Playa Blanca in Lanzarote and La Oliva in the island of Fuerteventura, Prysmian Group entered into a contract with Red Eléctrica de Espaa, a Spanish transmission system operator in Dec. 2019.