Submarine Power Cable Market Analysis

Submarine Power Cable Market Overview

Submarine Power Cable Market Size was valued at USD 10.7 billion in 2021. The submarine power cable market industry is projected to grow from USD 12.03 Billion in 2022 to USD 31.55 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 9.4% during the forecast period (2022 - 2030). Growing number of offshore wind farms, rising demand for inter-country & island power connections, and demand from offshore oil & gas operations are the key market drivers enhancing the market growth.

Source Secondary Research, Primary Research, MRFR Database and Analyst Review

Submarine Power Cable Market Trends

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  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. Additionally, the necessity to increase the proportion of renewable energy sources like wind and wave & tidal power in the power generation mix is a result of the growing concerns about the rising carbon dioxide emissions and the measures to reduce them.

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.

Submarine Power Cable Market Segment Insights

Submarine Power Cable Type Insights

The Submarine Power Cable Market segmentation, based on type, includes Single Core, Multi-Core. The Multi-Core submarine power cable segment held the majority share in 2021 contribution to around ~75-78% in respect to the Submarine Power Cable Market revenue. A multi core cable has numerous cores and can be used for a wide range of purposes, particularly ones that demand for a lot of cables. With advantages for the cable system's cost-per-bit, multicore cables' number of cores is growing without the cable's diameter.

Submarine Power Cable Insulation Type Insights

The Submarine Power Cable Market segmentation, based on insulation type, includes Cross-linked polyethylene (XLPE), ethylene propylene rubber (EPR). The ethylene propylene rubber (EPR) segment dominated the market in 2021. This is owing to its properties such as high electrical properties, flexibility, easier in install, and low thermal expansion. For improved physical qualities, EPR cables are occasionally combined with polypropylene or polyethylene. The production of ethylene propylene rubber insulated cables has been a focus for companies. With an increase in the installation of EPR insulated cables in the oil and gas, submarine, and power generation industries, this segment is anticipated to grow gradually during the projected period.

Submarine Power Cable Conductor Material Insights

The Submarine Power Cable Market data has been bifurcated by Conductor Material into Copper, and Aluminum. The Aluminum segment dominated the market in 2021. The soft, nonmagnetic, ductile, and light aluminum is one of the most common metallic elements in the Earth's crust. Aluminum is less expensive and lighter than copper and is a strong conductor of heat and electricity. It is one of the materials used most frequently to build undersea power cables. The need for aluminum as a conductor in underwater power lines rises as a result. NKT A/S, Prysmian Group, and Nexans are a few of the leading companies in this market area for submarine power cables.

Figure 2 Submarine Power Cable Market, by Conductor Material, 2021 & 2032 (USD Billion)

Source Secondary Research, Primary Research, MRFR Database and Analyst Review

Submarine Power Cable Regional Insights

By Region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. Europe Submarine Power Cable market dominate the global market the Europe market hold 43.10% market share globally. This is attributed to the growing offshore Wind Power Generation, and Offshore Oil & Gas projects in the region.

Further, the major countries studied in the market report are The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3 Submarine Power Cable Market Share By Region 2021 (%)

Source Secondary Research, Primary Research, MRFR Database and Analyst Review

North America submarine power cable market is growing significantly rate and it is driven by rising energy demand from developing nations and continuous progress toward a reliable transmission network. The regional industrial dynamics will be further pushed by strict standards for effective power transmission and rising cross-border electricity trading. Further, the United States submarine power cable market held the largest market share, and fastest growing market in the North America region

The Asia-Pacific Submarine Power Cable Market is expected to grow at the fastest CAGR from 2022 to 2030. The acceptance and deployment of wind farms are at their highest levels in this area, with China leading the pack. China had 4.6GW1 of active offshore wind generating capacity in 2018, according to IEEFA. A total of 4.5GW of offshore wind power was added globally in 2018, although only 1.8GW of that was deployed in the country. A total of 24 offshore wind power projects with a combined capacity of 6.7GW and an investment boost of USD 18 billion were approved by China in January 2019 off the coast of Jiangsu Province. These offshore wind projects are supported by some of China's biggest companies, including China General Nuclear Power Corp., China Energy Group, China Huaneng Group, and the State Power Investment Corp. Moreover, China submarine power cable market held the largest market share, and the India submarine power cable market was the fastest growing market in the Asia-Pacific region

Submarine Power Cable Key Market Players & Competitive Insights

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.

Key Companies in the submarine power cable market includes

• Prysmian Group


• NKT A/S


• Nexans SA


• Sumitomo Electric Industries Limited


• ABB Ltd., among others

Submarine Power Cable Industry Developments

Jan. 2020 PT. PLN (Indonesia) has given Furukawa Electric Co., Ltd. a contract to provide engineering, procurement, and construction services for the construction of the 150kV underwater cable Sumatera-Bangka. The business would be able to grow its cable operations in Indonesia as a result.

Feb. 2022 A Memorandum of Understanding was signed by the independent cable construction and operator Inligo Networks and Indonesian telecommunications company Indostat Ooredoo Hutchison to develop an 18,000 km submarine cable connecting Indonesia, Singapore, Australia, Japan, and the United States.

In May 2023 Sumitomo Electric announces its plans to establish a new power cable factory in UK for supporting the goal of UK government of achieving Net zero 2050. Sumitomo Electric announced on 27th April 2023 to establish a new Power Cable factory in the Scottish Highlands, UK to support UK Government’s goal to achieve Net zero 2050.

December 2023- Prysmian Group, a leading Cables manufacturer, has attained a €630m ($674.81m) order from Italian transmission system operator Terna's subsidiary for its Adriatic Link project, a 1GW submarine interconnection project in the Adriatic Sea. Prysmian will propose, supply, deploy, and commission the submarine interconnection, which can transfer 1GW of energy between Italy's central-southern and central-northern areas. The high-voltage direct current bipolar cable line will expand for 250km and is anticipated to enhance the safety and strength of the country's electricity transmission grid. Total financing for the project is predicted to be €1.3 billion. Terna international development director Giacomo Donnini stated that the Adriatic Link retains deliberate significance for the incorporation of renewable sources, therefore contributing to the decarbonization of the Italian energy system.

Submarine Power Cable Market Segmentation

Submarine Power Cable Type Outlook

• AC


• DC

Submarine Power Cable Core Type Outlook

• Single Core


• Multi-Core

Submarine Power Cable Insulation Type Outlook

• Cross-Linked Polyethylene (XLPE)


• Ethylene Propylene Rubber (EPR)

Submarine Power Cable Voltage Outlook

• Up to 66 KV


• 66 KV-220 KV


• Above 220 KV

Submarine Power Cable Conductor Material Outlook

• Copper


• Aluminum

Submarine Power Cable End Use Outlook

• Offshore Wind Power Generation


• Offshore Oil & Gas


• Island Connection


• Wave & Tidal Power Generation

Submarine Power Cable Regional Outlook

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  North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


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  Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


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  Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


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  Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America