As per MRFR analysis, the US Submarine Power Cable Market Size was estimated at 1.32 (USD Billion) in 2023. The US Submarine Power Cable Market Industry is expected to grow from 1.5(USD Billion) in 2024 to 5 (USD Billion) by 2035. The US Submarine Power Cable Market CAGR (growth rate) is expected to be around 11.567% during the forecast period (2025 - 2035).
Key US Submarine Power Cable Market Trends Highlighted
The US Submarine Power Cable Market is experiencing a noticeable shift towards renewable energy sources, primarily driven by the country’s commitment to reducing carbon emissions and increasing the share of renewable energy in its power mix. The expansion of offshore wind farms along the East Coast is a key driver, as these projects require robust submarine cable infrastructure to transmit electricity efficiently to the mainland. Government initiatives, such as incentives for clean energy development and the push for energy independence, are further stimulating demand for submarine power cables. Additionally, advancements in cable technology are enabling more efficient, durable, and high-capacity cables, which allows for longer distances in energy transmission while minimizing energy loss, thus supporting the growing offshore projects.
Currently, there are substantial opportunities to be captured in the areas of innovation and development of submarine cable systems. The recent trends in infrastructure investment and regulatory support from the US government present a favorable environment for new projects. Collaborations between private companies and public agencies can enhance technological capabilities and lead to cost reductions in cable production and installation. Moreover, the growing interest in interconnectors, which link electricity grids between different regions and states, highlights the potential for enhanced energy trading and stability, further driving the demand for submarine cables.In recent times, there has been a marked increase in public awareness regarding climate change and the need for sustainable energy solutions.
This social climate allows for greater public support for offshore wind and other marine energy projects, which rely heavily on submarine power cables for implementation. As the US government sets ambitious targets for renewable energy, the submarine power cable infrastructure is becoming more vital, establishing critical trends that are shaping the market dynamics in this region. This growing connectivity and collaboration trend among states will play an essential role in positioning the US as a leader in the energy transition, paving the way for a robust submarine power cable market.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
US Submarine Power Cable Market Drivers
Growing Demand for Renewable Energy
The US Submarine Power Cable Market Industry is experiencing significant growth driven by the increasing demand for renewable energy sources. According to the United States Department of Energy, renewable energy consumption in the United States reached approximately 12.6 quadrillion British Thermal Units (BTUs) in 2022, representing a 25% increase since 2018. As states implement more ambitious renewable energy targets, such as New York's aim for 70% renewable energy by 2030 and California's commitment to achieving 100% clean energy by 2045, the need for efficient energy transmission solutions, including submarine power cables, has become critical.Companies like General Cable and Prysmian Group are actively involved in developing submarine power cables to connect renewable offshore energy projects, enhancing grid reliability and energy distribution across coastal regions. This growing emphasis on renewable infrastructure is propelling the US Submarine Power Cable Market Industry forward.
Government Support and Investment
The US government is increasingly recognizing the importance of infrastructure development in the energy sector, leading to a rise in investments that positively impact the US Submarine Power Cable Market Industry. The Biden Administration's Infrastructure Investment and Jobs Act allocates significant funding for the modernization of energy systems, including offshore grid connections. This act includes a commitment to build an offshore wind power sector, aiming to generate over 30 gigawatts of energy by 2030 – a target that necessitates a substantial increase in submarine cable installations.Furthermore, initiatives from organizations like the Bureau of Ocean Energy Management expedite permitting processes for offshore energy projects, thus fostering a favorable environment for submarine power cable deployment.
Technological Advancements in Cable Manufacturing
Technological advancements in cable manufacturing are a critical driver of the US Submarine Power Cable Market Industry. Innovations in materials and production techniques have led to the development of high-capacity submarine cables that can transmit electricity over longer distances with minimal losses. For instance, the introduction of high-voltage direct current (HVDC) technology allows for more efficient power transmission compared to traditional systems.According to the Institute of Electrical and Electronics Engineers (IEEE), HVDC systems can reduce transmission losses by up to 50% over long distances, making them ideal for connecting offshore wind farms to the mainland. Manufacturers like Nexans and ABB are pioneering these technological improvements, which not only enhance the performance but also reduce the installation time and costs associated with submarine cables.
Increasing Focus on Energy Security
Energy security has become a paramount concern for the United States, especially with ongoing geopolitical tensions that affect energy supplies. The US Submarine Power Cable Market Industry stands to benefit significantly from this focus as submarine cables provide essential pathways for transmitting electricity reliably across regions. Following the 2021 Texas freeze that led to widespread power outages, the importance of a resilient energy infrastructure has become more evident.The US Energy Information Administration reports that the adoption of diverse energy sources, combined with reliable transmission networks, is crucial to enhancing energy security. Companies like Siemens and Schneider Electric are increasingly engaged in projects aimed at strengthening energy infrastructure, which further supports the growth of the submarine power cable market.
US Submarine Power Cable Market Segment Insights:
Submarine Power Cable Market Type Insights
The US Submarine Power Cable Market has gained significant traction, particularly focusing on the Type segment, which primarily consists of AC and DC cables. The growth in renewable energy integration, such as offshore wind farms, has driven demand for efficient power transfer through submarine cables. AC cables are notably utilized for transmitting power over shorter distances and often serve interconnectors between regions, making them a vital component in the energy infrastructure of the United States. Conversely, DC cables are preferred for long-distance energy transmission, as they minimize power losses, enabling the transfer of large amounts of electricity from remote renewable sources to urban centers.The increasing push towards sustainable energy solutions and decarbonization efforts across the nation have further intensified the focus on the submarine power cable market, emphasizing the need for advanced cable technologies and infrastructure.
The complexities associated with installation, maintenance, and regulatory compliance pose certain challenges to the market; however, the opportunities presented by emerging technologies, including high-voltage direct current (HVDC) systems, continue to drive innovation within the industry. Both AC and DC segments play essential roles in shaping the future energy landscape in the United States, contributing to energy security and stability while facilitating the transition towards a greener economy.As the US government pushes initiatives to enhance grid resilience and integrate renewable energy sources, the importance and relevance of the Type segment within the US Submarine Power Cable Market will likely continue to grow, underscoring its integral role in addressing the power needs of an evolving energy grid.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Submarine Power Cable Market Core Type Insights
The Core Type segment of the US Submarine Power Cable Market plays a crucial role in facilitating the efficient transmission of electricity over underwater distances. This market can primarily be divided into Single Core and Multi-Core cables, both of which are essential for various applications ranging from offshore wind farms to interconnecting island grids.
The Single Core type is often preferred for its simplicity and effectiveness in high-voltage applications, providing a streamlined solution that minimizes installation complexity and enhances performance.On the other hand, Multi-Core cables are increasingly significant due to their ability to transmit multiple signals simultaneously, which is particularly important in renewable energy projects that require high data and power throughput. As the US government emphasizes renewable energy and infrastructure development, the demand for advanced submarine power cables, particularly those in the Core Type segment, continues to rise. The focus on reducing transmission losses and increasing energy efficiency further underscores the importance of these cables in modern electrical systems.Innovations in materials and manufacturing techniques are also expected to enhance the reliability and lifespan of these cables, thereby bolstering their adoption across the industry. Overall, the Core Type segment is vital in addressing the evolving energy demands while supporting the move toward a more sustainable electrical infrastructure in the US.
Submarine Power Cable Market Insulation Type Insights
The Insulation Type segment of the US Submarine Power Cable Market plays a crucial role in ensuring the efficiency and reliability of underwater electricity transmission. Two prominent materials in this segment are Cross-Linked Polyethylene (XLPE) and Ethylene Propylene Rubber (EPR). XLPE is known for its excellent thermal and chemical resistance, making it suitable for high-voltage applications. Its ability to withstand harsh marine environments provides durability and long-term performance, catering to the growing demand for renewable energy projects and interconnection of power grids.EPR, on the other hand, offers superior flexibility and environmental resilience, contributing to its significance in offshore power installations.
The choice between these materials often hinges on specific project requirements and environmental considerations, ensuring that the insulation used can withstand varying depths and temperatures found in US waters. The trends toward renewable energy and sustainable infrastructure are driving innovations in these insulation materials, with ongoing Research and Development efforts focused on enhancing performance characteristics to meet future demands in the US Submarine Power Cable Market.Overall, the dynamic interplay of these materials reflects the broader industry shifts towards improving energy reliability and efficiency.
Submarine Power Cable Market Voltage Insights
The US Submarine Power Cable Market, particularly within the Voltage segment, showcases a diverse landscape reflecting the varying needs for energy transmission across marine environments. This market is segmented into three important categories: Up to 66 KV, 66 KV-220 KV, and Above 220 KV. Each category serves distinct applications, with the Up to 66 KV segment being critical for connecting smaller renewable energy sources to the grid, particularly in offshore wind farms and localized energy systems.
The 66 KV-220 KV segment is important due to its capacity to facilitate medium-distance power transmission, thereby effectively connecting power generated from distant renewable sources to urban consumption areas.Meanwhile, the Above 220 KV category is significant for long-distance high-capacity transmission, playing a pivotal role in ensuring stable and reliable energy supply to meet the growing demands of industrial and urban development. The expansion of these segments is driven by increasing investments in renewable energy and the need for modernizing grid infrastructure in the United States, reflecting a clear trend towards sustainable energy solutions and efficient transmission systems. Overall, these Voltage categories are crucial in shaping the future landscape of the US energy market, paving the way for more robust energy networks.
Submarine Power Cable Market Conductor Material Insights
The Conductor Material segment within the US Submarine Power Cable Market is crucial for efficient energy transfer, primarily utilizing materials such as Copper and Aluminum. Copper remains a preferred choice due to its excellent electrical conductivity and durability, making it incredibly significant in high-performance applications. The properties of Copper enable reliable transmission over long distances, which is a vital requirement for submarine cable systems.
On the other hand, Aluminum, while offering a lightweight alternative with lower cost implications, still provides substantial conductivity, making it a practical option for various projects.This segment is characterized by an increasing focus on sustainable energy solutions, with governmental policies pushing the agenda for renewable energy infrastructure in the US. The trend toward higher-capacity power cables to meet growing energy demands places additional importance on the selection of conductor materials. As the US government invests in renewable energy networks, the Conductor Material segment is positioned to grow, driven by the need for efficient, durable, and economic solutions to enhance energy transmission and sustainability in the electrical grid.
Submarine Power Cable Market End-Use Insights
The End-Use segment of the US Submarine Power Cable Market plays a crucial role in enhancing energy infrastructure and connectivity across the region. Offshore Wind Power Generation is increasingly gaining traction, driven by the US government's focus on renewable energy sources and fading reliance on fossil fuels, contributing significantly to job creation and environmental sustainability. In addition, the Offshore Oil and Gas sector necessitates reliable power supply solutions to support operations in remote offshore locations, thereby underscoring the importance of efficient submarine power cables.Island Connection projects facilitate energy distribution to isolated communities, which enhances energy security and decreases reliance on imported fuels. Furthermore, the growth of Wave and Tidal Power Generation segments represents a promising avenue for clean energy, tapping into the vast marine resources available in the US. Overall, this segment reflects the broader trends toward sustainable energy solutions and infrastructure expansion, with a focus on energy resilience and innovation across various sectors within the industry. By catering to a diverse range of end-uses, the US Submarine Power Cable Market is positioned to address key energy challenges while aligning with national sustainability goals.
US Submarine Power Cable Market Key Players and Competitive Insights:
The US Submarine Power Cable Market is characterized by its intense competition and a dynamic landscape influenced by innovations in technology and increasing demand for renewable energy sources. The growth in offshore wind farms and interconnection projects among regions are significant drivers influencing market dynamics. As the industry evolves, numerous players are vying for market share, showcasing their capabilities in design, manufacturing, and installation of submarine power cables. The strategies employed by these companies often focus on technological innovations, geographic expansion, strategic partnerships, and mergers and acquisitions, all aimed at optimizing cost and enhancing service delivery.
Understanding competitive insights provides key context for stakeholders aiming to navigate the market and capitalize on emerging opportunities while addressing challenges associated with product quality, supply chain management, and regulatory constraints.Prysmian Group holds a prominent position in the US Submarine Power Cable Market, leveraging its robust technological capabilities and extensive product portfolio to meet the demands of various infrastructure projects. The company's commitment to R&D and innovation helps them maintain a competitive edge, as they develop high-performance cable solutions tailored for offshore applications. Prysmian Group is recognized for its ability to deliver customized solutions that cater to specific project requirements, which is a significant strength in this sector.
Furthermore, its established brand reputation, paired with its extensive network of manufacturing facilities and skilled workforce in the US, enables Prysmian Group to efficiently address customer needs while ensuring reliability and quality in cable production.Kinectrics has made a notable impact within the US Submarine Power Cable Market by offering specialized services that encompass testing and consulting for submarine cable systems.
The company's focus on quality assurance and the implementation of advanced testing technologies enable it to support clients throughout the lifecycle of submarine power cables, from design to deployment. Kinectrics' expertise in performance evaluation and condition monitoring is a critical asset, contributing to enhanced reliability and efficiency of submarine cable infrastructure. Additionally, Kinectrics has pursued strategic partnerships and collaborations within the industry to bolster its service offering in the US region. This emphasis on innovation, combined with a customer-centric approach, positions Kinectrics strongly in the market, enabling it to navigate the complexities of submarine power cable projects while adding value to its clientele through comprehensive solutions and insights.
Key Companies in the US Submarine Power Cable Market Include:
US Submarine Power Cable Market Industry Developments
Recent developments in the US Submarine Power Cable Market have been marked by significant investments and advancements in technology. Companies such as Prysmian Group and Nexans have accelerated their construction of high-capacity submarine cable systems to support offshore wind farms and interconnections, responding to the Biden administration's push for clean energy initiatives. In August 2023, Asea Brown Boveri launched a new production facility in the US aimed at boosting cable manufacturing capabilities.
Meanwhile, in July 2023, Siemens announced a partnership with Kinectrics to enhance testing protocols for submarine cables, addressing safety and efficiency. The market has seen robust growth, with valuation estimates improving due to increasing demand for renewable energy sources and infrastructure upgrades. Notable mergers include Mitsubishi Electric's acquisition of a specialized cable manufacturing firm in June 2023, enhancing its position within the sector. These developments reflect a growing awareness of the essential role submarine cables play in the national energy infrastructure, following significant regulatory support from the US government over the past few years, particularly in 2021 with initiatives aiming to boost offshore wind capacity across various states.
US Submarine Power Cable Market Segmentation Insights
Submarine Power Cable Market Type Outlook
Submarine Power Cable Market Core Type Outlook
Submarine Power Cable Market Insulation Type Outlook
Submarine Power Cable Market Voltage Outlook
Submarine Power Cable Market Conductor Material Outlook
Submarine Power Cable Market End-Use Outlook
| Report Attribute/Metric Source: | Details |
| MARKET SIZE 2018 | 1.32(USD Billion) |
| MARKET SIZE 2024 | 1.5(USD Billion) |
| MARKET SIZE 2035 | 5.0(USD Billion) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) | 11.567% (2025 - 2035) |
| REPORT COVERAGE | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| BASE YEAR | 2024 |
| MARKET FORECAST PERIOD | 2025 - 2035 |
| HISTORICAL DATA | 2019 - 2024 |
| MARKET FORECAST UNITS | USD Billion |
| KEY COMPANIES PROFILED | Prysmian Group, Kinectrics, Asea Brown Boveri, Siemens, Furukawa Electric, Hitachi Energy, ZTT, TE Connectivity, LS Cable and System, Nexans, 3M, General Electric, Mitsubishi Electric, Southwire Company |
| SEGMENTS COVERED | Type, Core Type, Insulation Type, Voltage, Conductor Material, End-Use |
| KEY MARKET OPPORTUNITIES | Renewable energy integration projects, Offshore wind farm development, Enhanced inter-state connectivity, Environmental sustainability initiatives, Technological advancements in cable design |
| KEY MARKET DYNAMICS | increasing renewable energy projects, growing offshore wind farms, government regulatory support, technological advancements in cables, investments in underwater infrastructure |
| COUNTRIES COVERED | US |
Frequently Asked Questions (FAQ) :
The expected market size of the US Submarine Power Cable Market in 2024 is 1.5 billion USD.
By 2035, the projected market size for the US Submarine Power Cable Market is estimated to reach 5.0 billion USD.
The expected CAGR for the US Submarine Power Cable Market from 2025 to 2035 is 11.567%.
The AC submarine power cables dominate the market, expected to grow from 0.9 billion USD in 2024 to 3.0 billion USD in 2035.
The market size for DC submarine power cables is projected to reach 2.0 billion USD by 2035.
Key players in the US Submarine Power Cable Market include Prysmian Group, Siemens, and General Electric among others.
Key growth drivers include the increasing demand for renewable energy sources and the expansion of offshore wind farms.
Yes, significant opportunities exist due to advancements in technology and the rising need for efficient energy transmission.
The US Submarine Power Cable Market is primarily driven by coastal states with substantial renewable energy initiatives.
Challenges include high installation costs and environmental concerns related to submarine cable laying.
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