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The utilization of submarine power cables for the efficient transmission of electricity over extended distances with minimal power losses has become paramount in the global pursuit of energy security. A noteworthy trend has emerged as authorities in various countries worldwide are proactively planning and implementing strategies to fortify energy security on islands and establish cross-border power connections. Submarine power cables, designed for the transmission of high power from generation sites beneath water bodies, play a pivotal role in realizing these objectives. However, the realization of such ambitious projects is not without its challenges, as geopolitical and geological factors introduce complexities and uncertainties for operators and stakeholders.
One of the primary concerns faced by operators involved in establishing power connections between islands and countries is the geopolitical and geological instability influenced by diverse geographic and political factors. The intricate interplay of territorial disputes, political tensions, and varying geological conditions in underwater regions poses challenges to the seamless deployment and maintenance of submarine power cable systems. Navigating these challenges requires meticulous planning, international collaboration, and innovative technological solutions to ensure the resilience and longevity of these critical energy infrastructure projects.
Despite these challenges, governments and officials around the world are increasingly recognizing the importance of enhancing long-distance power interconnectors to meet the surging demand for electricity. This global focus on bolstering energy infrastructure is underscored by initiatives such as the contract awarded to Nexans, a French company, by ADMIE (Greece) in November 2018. Valued at nearly USD 125.58 million, the contract involved the design, manufacture, and installation of HVAC (High Voltage Alternating Current) submarine power cables. The objective was to establish a reliable power supply between the islands of Syros and Lavrion in Greece, showcasing the commitment of nations to overcome geographic challenges for the benefit of their citizens.
Additionally, the collaboration between France and Spain in the construction of an electricity interconnection project through the Bay of Biscay exemplifies the international efforts to ensure a stable and dependable power supply between these two countries. According to Red Eléctrica de España (Spain), this interconnection project is slated to be commissioned by 2025, reflecting a concerted push toward fostering energy cooperation and resilience on a regional scale.
Several countries, including Spain, Italy, Saudi Arabia, China, and the United States, are actively pursuing intercountry and island power connection projects. The strategic development of such projects aligns with the broader goal of strengthening energy networks, enhancing energy security, and facilitating the efficient sharing of electricity resources. For submarine power cable manufacturers and industry stakeholders, these initiatives present a significant opportunity to contribute to the global energy landscape by providing the necessary infrastructure for seamless power connections between nations.
The growing emphasis on intercountry and island power connections is anticipated to create a favorable environment for key market players in the submarine power cables sector. As nations continue to prioritize energy security, sustainability, and collaborative infrastructure development, the demand for advanced submarine power cable solutions is poised to surge. This represents a substantial opportunity for market players to contribute to the realization of interconnected, resilient, and sustainable energy systems that transcend geographic boundaries.
In conclusion, the global landscape of submarine power cables is evolving in response to the increasing demand for intercountry and island power connections. While challenges related to geopolitical and geological factors persist, the commitment of nations to overcome these obstacles underscores the critical role of submarine power cables in fortifying global energy infrastructure. As governments around the world collaborate on cross-border energy projects, the submarine power cables market is presented with an opportune moment to contribute to the creation of a more interconnected, reliable, and sustainable energy future.
Covered Aspects:
| Report Attribute/Metric | Details |
|---|---|
| Segment Outlook | Voltage, Installation, End Use, and Region |
XLPE Cables Market Highlights:
Global XLPE Cable Market Overview:
The XLPE Cable Market Size was valued at USD 28.1 Billion in 2022. The XLPE Cable market industry is projected to grow from USD 30.0 Billion in 2023 to USD 51.6 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 7.0% during the forecast period (2024 - 2032). Increased demand for electricity and investments in the renewable sector and power generation are the key market drivers enhancing the market growth.
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
XLPE Cable Market Trends
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Growing demand for energy generation from renewable sources is driving the market growth
Market CAGR for XLPE cable is being driven by the rising demand for the generation of energy from renewable sources and urbanization, and industrialization. The adoption of the renewable energy technologies is growing with the emerging economies and is more reliable and safe. The key market players in XLPE are opting for acquisition, merging, and collaboration with local market players in order to expand their market reach. The inclination of consumers towards renewable energy for electricity production and grid infrastructure upgradation is fueling market growth.
The increasing population and thus the electricity consumption is growing because of the influence of technology in human life as electrical energy is the basic requirement. The production of electricity has increased over the last decade, which has made the cross-linked polyethylene cables market grow at a significant rate. The key market players are emphasizing increasing the revenue of renewable energy sources in the total power generation mix as the market players seek opportunities to minimize their carbon footprint. Renewable energy sources like solar, wind, and hydel are used for the generation of electricity as these renewable energy sources, without any polluting emissions, emit harmless gases and wastes; coal and natural gas generate electricity.
With the increased generating capacity of renewable energy generation sources to maximize the share of renewable energy in the power generation mix, several countries globally have set targets. As per the International Energy Agency (IEA), by 2040, offshore wind energy is expected to achieve an investment of around 1 trillion US dollars, and the installation capacity of offshore wind energy is foreseen to reach 110 GW in China. Hence, the supply of electricity in the oil & gas and power industries is expected to boost the XLPE cables. The demand in the market for XLPE cable products has increased rapidly; urbanization and the growing capital spending for the renewable section will fuel the XLPE cable market globally. The growing investments in grid interconnections, offshore wind, a rise in power generation, and growing utilization of xLPE cables for enhanced efficiency. These XLPE cables are resistant to water, chemicals, and oils. Thus, driving the XLPE Cable market revenue.
XLPE Cable Market Segment Insights:
XLPE Cable Voltage Insights
The XLPE Cable market segmentation, based on voltage, includes Up to 25kV, 26kV-50kV, 51kV-75kV, and 76kV-100kV. The 26kV-50kV segment dominates the market, accounting for the largest market share, and is expected to remain the same throughout the forecast period. This is due to its compatible nature and easy availability, and it's widely utilized in transformers, substations, and generator sets of medium voltage.
XLPE Cable Installation Insights
The XLPE Cable market segmentation, based on installation, includes Underground, Submarine, and Overhead. The underground category dominates the market globally and is anticipated to remain the rapid-growing category during the forecast period owing to the increasing urbanization and industrialization.
XLPE Cable End-Use Insights
The XLPE Cable market segmentation, based on end use, includes Industrial, Commercial, and Utility. The industrial segment dominates the market and is anticipated to remain the rapid-growing during the forecast period. The dominance is due to the increase in electric vehicles, telecom, and other industries. Furthermore, electric chargers utilize medium voltage cables, thus increasing the growth of the market.
Figure 1: XLPE Cable Market, by End Use, 2024 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
XLPE Cable Regional Insights
By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American XLPE Cable market dominates the market due to the rise in spending on transmission and distribution networks. The inclination towards renewable energy to produce electricity, grid upgradation activities, and upgrading the existing distribution & transmission networks.
Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: XLPE Cable Market Share By Region 2022 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
The Asia-Pacific XLPE Cable Market accounts for the second-largest market revenue due to the rising demand for effective technology to reduce power outages, efficiency in electricity distribution & transmission, and offshore wind farm connections, and increasing adoption of low voltage XLPE cables. Moreover, China’s XLPE Cable market held the largest market share, and the Indian XLPE Cable market was the rapid-growing market in the Asia-Pacific region.
Europe's XLPE Cable market is expected to grow at the fastest CAGR from 2023 to 2032, as they are slowly phasing out the conventional generation sources of power and are structuring the renewable power plants to meet the increasing need for electricity. Further, the German XLPE Cable market held the largest market share, and the UK XLPE Cable market was the rapid-growing market in the European region.
XLPE Cable Key Market Players & Competitive Insights
Leading market players are investing heavily in research and development in order to spread their product lines, which will help the XLPE Cable market grow even more. Market participants are also undertaking a various strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the XLPE Cable industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the XLPE Cable industry to benefit clients and increase the market sector. In recent years, the XLPE Cable industry has offered some of the most significant advantages to the telecommunication industry. Major players in the XLPE Cable market, including Nexans, J Murphy and Sons Limited, Borealis and Borouge, National Grid, NKT A/S, Prysmian Group, KEI Industries Limited, Eland Cables, Encore Wire Corporation, Finolex Cables Ltd., Laser Power & Infra, Brugg Kabel AG, Sumitomo Electric Industries Ltd., Universal Cables Ltd., and others, are trying to increase market demand by investing in research and development operations.
NKT, headquartered in Denmark, provides high-quality power cable technology and is a world leader that focuses on the greener world with green energy. The low, medium, and high-voltage power cable solutions are designed, manufactured, and installed by the NKT company, enabling sustainable energy transmission. The company is a worldwide supplier of turnkey AC/DC cable solutions, present in 37 markets with the most technologically advanced facilities in Europe. In December 2018, the shore power through the globally longest high-voltage alternating-current (HVAC) sea cable that measures 162 kilometers starting from the onshore substation at Kollsnes north of Bergen to the platform was received by the Martin Linge platform in the North Sea. The shore power cable was specifically designed, manufactured, and installed by the NKT; this cable order contained the 145kV three-core XLPE HVAC submarine cable inclusive of the fiber optic links with a 55 MW capacity.
Prysmian Group has been the leader in high-technology cables and systems for the energy and telecommunication industry globally for more than 140 years. Prysmian focuses on providing sustainability and spans over 50 countries across the region, with 104 plants and 25 centers for research and development. The Gropu provides a large range of services and know-in business. Thousands of miles of underground and submarine cables and systems are manufactured by the group for power transmission and distribution, along with medium and low-voltage cables for the purpose of construction. In July 2019, Vattenfall gave the submarine inter-array cable systems project to Prysmian Group for the 750MW HollandeKust Zuid III and IV offshore wind farms in the Netherlands. According to this project, the group is expected to test and supply 175km of 66kV XLPE-insulated inter-array cables with the related accessories.
Key Companies in the XLPE Cable market include
- Nexans
- J Murphy and Sons Limited
- Borealis and Borouge
- National Grid
- NKT A/S
- Prysmian Group
- KEI Industries Limited
- Eland Cables
- Encore Wire Corporation
- Finolex Cables Ltd.
- Laser Power & Infra
- Brugg Kabel AG
- Sumitomo Electric Industries Ltd.
- Universal Cables Ltd.
XLPE Cable Industry Developments
July 2019: A manufacturer of advanced cabling systems, Nexans, has passed its 420kV XLPE subsea cable for installation at a depth of 550m, which is a world record.
August 2018: J Murphy and Sons Limited have been given a contract by National Grid worth around US$ 38 Mn for the installation of a power cable in South London.
March 2018: In order to expand the high electrical testing facilities for simulation testing, investment has been made by the Borealis and Borouge to improve the performance of commercial cable materials.
XLPE Cable Market Segmentation
XLPE Wire Voltage Outlook
- Up to 25kV
- 26kV-50kV
- 51kV-75kV
- 76kV-100kV
XLPE Cable Installation Outlook
- Underground
- Submarine
- Overhead
XLPE Cable End-Use Outlook
- Industrial
- Commercial
- Utility
XLPE Cable Regional Outlook
- North America
- US
- Canada
- Europe
- Germany
- France
- UK
- Italy
- Spain
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Australia
- Rest of Asia-Pacific
- Rest of the World
- Middle East
- Africa
- Latin America
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