Submarine Power Cable Market: Global Industry Overview and Forecast (2024-2030)

Submarine Power Cable Market Overview:

Electricity generated by marine wind turbines is transmitted to the world by several cable systems buried in the ocean. Therefore, the growing investment of developed and developing countries in offshore wind turbines to generate wind power furthers the demand for underwater power lines, increasing the submarine power cable market.

 

Submarine Power Cable Market report examines the market's growth drivers and segments (Conductive Material, Application, End-User, and Region). Data has been provided by market participants and regions (North America, APAC, Europe, MEA, and South America). This market study takes an in-depth look at all of the significant advancements occurring across all industry sectors. To provide key data analysis for the historical period (2018-2022), statistics, infographics, and presentations are used. The report examines the Submarine Power Cable markets, Drivers, Restraints, Opportunities, and Challenges. This SMR report includes Submarine Power Cable investor recommendations based on a detailed analysis of the current competitive landscape of the Submarine Power Cable market.

 

COVID-19 pandemic on the Submarine Power Cable Market:

The outbreak of COVID-19 reduced the demand for underground power lines by 2020, which marked the lowest number of orders among underwater power producers, resulting in lower production. Declining production costs have negatively impacted cross-sectoral businesses and raw materials retailers across the global underwater power cable industry. Reduced production and performance on all offshore oil and gas and the challenges in developing offshore wind projects have negatively impacted the global market. Other factors, such as strict government regulations regarding the closure of social enterprises, have led to various hardships, such as the shortage of workers worldwide.

 

 

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Submarine Power Cable Market Dynamics:

The major factors driving the Submarine Power Cable market are rising investment in offshore farms, increasing data traffic, and investment by OTT providers to cope with the demand. Underwater cables are widely used for power, communication and internet applications. They are widely used in transferring energy from oil ore, from coastal wind farms to power stations, and in communications between countries and islands. Increasing demand for international grid connectivity is one of the significant factors affecting the demand for low power cables. Underwater communication cables are used for communication between countries. About 97% of global internet traffic relies entirely on submarine cables, and due to increasing internet usage, product demand is set to rise sharply. A growing focus is on joining renewable overseas energy production, and increasing electricity security has further boosted global Submarine Power Cable market growth. These communication cables facilitate faster connectivity and carry large amounts of data worldwide.

 

Submarine power cables carry about 90% of data traffic worldwide. Their total capacity is measured in terabits per second. As a result, they are the most basic OTT cables with communication providers like Google, Amazon, Facebook, Twitter, Microsoft etc. For example, in October 2021, NEC, a Japanese IT company, announced plans to build a sizeable underwater cable with crore fibre optics on Facebook. The submarine power cables are expected to hold a capacity of up to 500mbps between 24 fibre pairs. Many economies consider seawater an essential part of the economy and impose protection laws on threats. For example, the Australian Communications and Media Authority (ACMA) has created safety zones that block activities that could damage these Australian and International connected cables. In addition, it authorizes the installation of new underwater cable projects.

 

Effective systems for the transmission of electricity and the distribution of energy from renewable energy resources, and the increment in the number of coastal wind farms are expected to further the growth of the Submarine Power Cable market. The growing demand for underwater communication cables has encouraged producers to actively participate in installing, operating, developing, and repairing submarine power cables.

 

All of the above factors are expected to catalyze an increase in the worldwide demand for Submarine Power cables during the forecast period. An increase in acceptance of improved technology and a strong need for an improved construction envelope system in the Submarine Power Cable manufacturing sector continue to support market growth in the region.

 

Submarine Power Cable Market Segment Analysis:

By Voltage Type, the high voltage segment is responsible for the highest revenue share of about 66.5% by 2023. High voltage power cables ranging from over 33kV are widely used for power transmission and distribution. Therefore, the ever-increasing demand for HVDC hydroelectric power cables and the growing investment in offshore wind turbines are significant factors driving the segment of high voltage submarine power cables. High voltage cables reduce transmission losses and thus, allow for efficient transmission. The HVDC power system develops at high speeds and allows for the transfer of electricity from significant power sources to a large country. Several companies and development centres support the growth of HVDC energy programs, such as North Seas Countries Offshore Grid Initiative, CIGRE, and others.

 

The medium-voltage power cables have played a significant role and are predicted to grow at an average compound annual growth rate of 5.7% from 2024 to 2030. Increasing demand from overseas and gas performance has been rapidly rising, driving the medium voltage submarine power cable market.

 

 By Component, the submarine power cable market is distinguished from dry plant and wet plant components based on components. A portion of the dry plant products dominates this submarine power cable market segment. By 2023, the share of dry plat products accounted for 73.6% of the submarine power cable market revenue. This is because of cost-cutting and the latest technological advancement in the dry plant cables, as SDM cables come with durability and strength, have aluminium conductors, smart cables: emergency earthquake and tsunami warnings, repeated pumping, underwater virtual networks, artificial intelligence, and machine learning in underwater systems.

 

While the wet plant components accounted for 26.4% of the market and may have registered a rapid growth rate during the given forecast period, a wet plant submarine power cable is present between the beach maintenance holes and the underwater cable system installed between the beach maintenance holes. Submarine power cables, moving scales, OADMs, multipliers, branch units, gain scales, filters, and beach holes are part of the wet plant components.

 

By End-User, the offshore wind turbine share had a significant share of revenue estimated at 45% of the total submarine power cable market by 2023. Increased investment in offshore wind turbines and underground power lines to divert long-distance energy from these plants are significant factors for the ever-growing submarine power cable market size. The market share of oil and gas on the coast is expected to grow at a significant annual growth rate of 4.9% from 2024 to 2030. Increased deep water mining and underwater operations are predicted to drive the market from 2024 to 2030. Some of the developing countries in South America, the Middle East, and Africa are developing new oil and gas investments overseas, contributing to submarine power cable market growth.

 

 

Submarine Power Cable Market Regional Insights:

Asia Pacific region is expected to have the largest market share of almost 38% of the total market by 2023. The region has the highest acquisition and distribution of wind farms in the region, among which China holds the leading position. According to the IEEFA, China is expected to have 4.6GW1 of offshore wind turbine capacity by 2018. It installed 1.8GW of marine air capacity in 2018 alone, 40% of the total 4.5GW added worldwide during the year. In January 2019, China approved 24 coastal wind power projects along the coast of Jiangsu Province with a capacity of 6.7GW and an investment injection of USD 18 billion. China's significant resources, including China Energy Group, China General Nuclear Power Corp., China Huaneng Group, and State Power Investment Corp., support these offshore wind projects.

 

In addition, in April 2023, Facebook received $ 5.7 billion from Reliance Jio (India), which is expected to increase the demand for underground cable in the region. The Asia Pacific region is rapidly becoming a significant investment centre for underwater cable infrastructure. The main contributors to this are Google, Microsoft, and Facebook. For example, Google has already invested in an existing underwater cable in Asia. Also, in 2023 Google invested in a new underground cable system to connect Japan and Australia via Guam.

 

The market in the South American region is expected to grow at the second-highest annual growth rate of 5.6% during the forecast period, 2024 to 2030, due to increased investment in wind farms and inter-country and island connections. Also, several underwater cable projects began to work in 2021; For example, in June 2021, Google announced plans to create Firmina, an open underwater cable that is expected to link the US East Coast to Las Toninas, Argentina, where it resides. There in Brazil and Uruguay. With the new connection, the company hopes to improve internet connectivity for South American subscribers while also strengthening its existing cable investment in the region.

 

The objective of this report is to present an in-depth analysis of the Submarine Power Cable Market to industry stakeholders. The report provides the recent trends in the Submarine Power Cable Market and how these factors is expected to impact new business investment and market enhancement during the forecast period. The report also provides an understanding of the potential of the Submarine Power Cable Market and the competitive structure of the market by analyzing market leaders, market fans, and regional players.

 

The quality and quantity data provided in the Submarine Power Cable Market report assist the readers to understand which market Conductive Materials, regions are expected to grow in value, market factors, and key opportunity areas, which is expected to impact industry growth and predictable market growth concerning time. The report includes the competitive status of key competitors in the industry and their recent developments in the Submarine Power Cable Market. The report also provides a comprehensive set of factors such as company size, market share, market growth, revenue, production capacity, and profits of key players in the Submarine Power Cable Market.

 

 

The report provides Porter's Five Force Model, which helps in designing the business strategies in the market. The report helps in identifying how many rivals are existing, who they are, and how their product quality is in the Market. The report also analyses if the Submarine Power Cable Market is easy for a new player to gain an edge in the market, do they come and go in the market regularly if the market is dominated by a few players, etc.

 

The report also includes a PESTEL Analysis, which aids in the development of company strategies. Political factors that help in analyzing how much a government can impact the Market. Economic variables assist in the calculating economic performance drivers that can affect the Market. Analyzing the impact of the overall environment and the impact of environmental concerns on the Submarine Power Cable Market is aided by legal factors.

 

Submarine Power Cable Market Scope:

Submarine Power Cable Market
Market Size in 2023	USD 9.19 Bn.
Market Size in 2030	USD 14.19 Bn.
CAGR (2024-2030)	6.4%
Historic Data	2018-2022
Base Year	2023
Forecast Period	2024-2030
Segment Scope	by Voltage High Voltage Medium Voltage
	by Component Dry plant component Wet plant component
	By End-User Offshore Wind Power Generation Inter Country and Island Connection Offshore Oil and Gas
Regional Scope	North America- United States, Canada, and Mexico Europe – UK, France, Germany, Italy, Spain, Sweden, Austria, and Rest of Europe Asia Pacific – China, India, Japan, South Korea, Australia, ASEAN, Rest of APAC Middle East and Africa - South Africa, GCC, Egypt, Nigeria, Rest of the Middle East and Africa South America – Brazil, Argentina, Rest of South America

 

Submarine Power Cable Market Key Players:

1. Crunchbase Company (Netherlands)
2. Prysmian (Italy)
3. Nexans (France)
4. NKT (Denmark)
5. General Cable (US)
6. Furukawa Electric (Japan)
7. Sumitomo Electric (Japan)
8. KEI Industries (India)
9. LS Cable & System (South Korea)
10. ZTT (China)
11. TFKable Group (JDR Cables) (Poland)
12. Hydro Group (UK)
13. Hengtong Marine Cable system (China)
14. Americor Electronics (US)
15. Supreme Cables (US)