The global submarine power cable market is forecasted to grow to USD 16.56 Billion by 2023, at a Compound annual growth rate of 15.32%. The subsea industry is driven by factors such as new capacity additions in the offshore wind industry and increasing demand for inter-country & island connections. The continuous growth in demand from the offshore oil & gas sector is expected to boost the demand for submarine power cables.
The increasing demand for HVDC connections presents a great opportunity for the submarine power cables market because of significant investments being made in it. The high cost and complexity of installation and repairs of deepwater cable links have inadvertently affected the demand for submarine power cables. repairs of submarine power cables usually require huge outlays spent toward the reinstatement and re-deployment process. Thus, these physical and monetary challenges continue to keep demand low, especially in the aftermath of the covid-19 pandemic The single-core segment of the submarine power cable market is estimated to keep leading the sector.
The single-core segment is also projected to grow at the fastest rate during the forecast period (before 2023) as it results in easier and more economical deployment. In Europe, the demand for single-core submarine power cables is from the offshore wind sector, a rapidly growing industry - this is likely to boost the overall single-core market. Based on end-user needs, the offshore wind power generation segment has accounted for the largest market size since 2017.
The submarine power export cables play a vital role in connecting the offshore wind farms to the mainland. Additionally, inter-array submarine power cables are used to connect offshore wind turbines to the offshore substation and to connect adjacent offshore turbines. Technology advancements and falling offshore wind costs are expected to drive the offshore wind power generation segment of the market by the end-user. Unsurprisingly, the European market is expected to lead the global submarine power cables market by 2023. The market size in this region can be attributed to the booming offshore wind industry, of which submarine power cables are major components.
The United Kingdom and Germany are the key markets for submarine power cables in Europe. The growing demand for inter-country connections coupled with the demand from the offshore oil & gas sector is expected to drive the market in Europe. Some of the biggest players in the submarine power cable space include Prysmian (Italy), Nexans (France), NKT (Denmark), General Cable (US), and Sumitomo (Japan). The following footage gives a brief overview of their recent work: