Submarine Power Cable Market Size 2024-2028

The submarine power cable market size is forecast to increase by USD 5.12 billion at a CAGR of 13.64% between 2024 and 2028. Market growth is driven by several key factors, including the expansion of offshore renewable energy installations, the growing demand for inter-country and island connections, and the overall increase in global energy demand. These factors highlight the shift towards sustainable energy solutions and the need for reliable and efficient energy networks. As the world focuses more on renewable sources, the market for offshore energy installations is expected to witness substantial growth, meeting the rising energy demands while reducing environmental impacts. Additionally, the increasing focus on reducing carbon emissions and transitioning to cleaner energy sources is driving the demand for offshore renewable energy installations. This trend is supported by government initiatives and policies aimed at promoting renewable energy. Moreover, the growing need for energy security and the potential economic benefits associated with offshore energy projects are further contributing to market growth.

Market Forecasting and Size

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Market Dynamics

The offshore oil and gas sector and offshore wind farms are crucial players in the energy industry, with a focus on advancing technologies like floating wind technology and, offshore wind power and  deep-sea wind turbines. These developments are essential for meeting the rising demand for electricity driven by urbanization. However, challenges such as geopolitical and geological instability and the need for renewable infrastructure persist. To address these, stakeholders are implementing innovative solutions like marine wind turbines and underwater power lines made of conductive material. The market is influenced by various factors, including international borders and regulations that govern its operation. The demand for these cables is driven by the need for greater access to electricity and the expansion of renewable energy sources such as wind, wave, and tidal power. Our researchers studied the data for years, with 2023 as the base year and 2024 as the estimated year, and presented the key drivers, trends, and challenges for the market. 

Key Market Driver: Increasing inter-country and island connections

The IEA forecasts that, due to growing environmental concerns, energy demand will increase by 40% and the majority of this will be met from renewable sources. Because of this, the majority of nations are attempting to invest in renewable energy initiatives like tidal and wind energy projects, which will raise the demand for submarine power lines. As a result, in response to the rising demand for energy, the number of generating stations and transmission lines has increased by a massive amount.

However, many countries or islands are not able to generate electricity according to their demand. This will raise the demand for submarine energy cables because it is easy to transfer power from one country to another and vice versa, giving rise to interconnections between islands. This includes international borders, electricity transmission, and underground power lines.  Therefore, with the increase in the number of inter-country and island connection projects, the market is expected to witness significant growth during the forecast period.

Major Market Trends: Increase in sales of HVDC power cables

 A viable alternative to the transmission of submarine power over longer distances is underground high-voltage direct current cables. HVDC power systems are economically viable for long-distance, bulk power delivery. Such projects are aimed at ending energy isolation and removing the factors that hinder the growth of the European internal energy market. 

These renewable power projects are typically set up in places far away from the energy load centers. In such cases, the losses resulting from the transmission of electricity using the AC line are significant, which is why it is expected that HVDC cables would prove useful in this area.  Moreover, the rising number of offshore wind energy projects in Europe will boost the sales of submarine HVDC cables hence driving the growth of the market in focus during the forecast period.

Significant Market Challenge: Volatility in raw material prices of submarine power cables

For submarine power cables, aluminum and copper are the primary materials. This raw material constitutes an important proportion of submarine cable production costs. The cost of aluminum and copper accounts for roughly half of the total production cost incurred in manufacturing these cables.

Moreover, the instability in the cost of raw materials is often recovered by negotiated changes in the price of the final product. However, in such instances, The change in the selling price can lag by a certain time as far as changes in metal prices are concerned. The delay is caused by the time needed for the adaptation of the customer pricing strategy. This will lead to a significant hindrance in the growth of the market in focus during the forecast period.

Market Segmentation

The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as market research and growth and historical data from 2018 - 2022 for the following segments.

• Type Outlook 
  • Single core
  • Multicore
• Application Outlook
  • Offshore wind
  • Island connection and inter-country
  • Offshore oil
  • Others
• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • South America
    • Chile
    • Argentina
    • Brazil

By Type 

The single core segment will account for a major share of the market's growth during the forecast period. Single-core cables emerged as a prominent type in the market in 2022 in terms of revenue. There are many benefits to such cables, which have one conductor covered with a protective sheath. These are helpful for long-distance underwater power transmission due to their flexible design and compact construction.

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The single core segment was valued at USD 2.58 billion in 2018. Single-core cables have greater insulating qualities and fewer transmission losses, ensuring an efficient and consistent power supply. Because they can withstand adverse environmental conditions, such as high pressure and seawater hardness, it's ideal for offshore renewable energy installations and interconnection with global power grids.

Multicore cables have emerged as an essential type of submarine power cable in the recent decade. These cables are made up of several insulated cores that are bunched together under a protective sheath and are intended to deliver electrical power over considerable distances underwater. High voltage and current electrical transmission are possible with cores that are commonly made from copper or aluminum. The electricity distribution is good and there's flexibility in terms of meeting the various requirements with a Multicore setup. Multi-core submarine power cables are essential for providing dependable and sustainable energy transmission over long distances beneath the oceans across the world owing to their capacity to manage high power levels and resist severe marine environments.

By Application 

Based on application, the market has been segmented into offshore wind, island connection and inter-country, offshore oil, and others. The offshore wind segment will account for the largest share of this segment. Compared to conventional turbines, coastal wind turbines can offer more energy with a lower number of turbines. It has been set by the European countries to ensure that renewables account for more than 20 % of their energy needs by 2030. In order to achieve that aim, in 2021 all of the countries cooperated on installing and operating a huge number of undersea wind turbines. China and India, due to the huge amount of investment in offshore wind power plants over recent years, are expected to represent a large share of Asia Pacific. Hence, the demand for submarine power cable from the offshore segment is expected to increase and hence, drive the growth of the market in focus during the forecast period.

In the island connection and inter-country segment, according to the International Energy Agency (IEA), close to 1.2 billion people lack access to electricity, of which more than 95% living without electricity are from sub-Saharan Africa and developing Asia. The supply of electricity is expected to increase as a result of the provision of access to these populations that are not served. The Indian government has set a higher priority for wind and solar energy sources to meet increasing electricity demand.  In addition, there are even programs in Africa to create a mini-grid using only renewable sources of energy. Imports of power and more demand for submarine cables are projected to be driven by an increase in electricity consumption. The major interconnection of islands is expected to happen in Southeast Asia. Owing to such factors, the demand is expected to increase from the island connection and inter-country application segment, hence, driving the growth of the market in focus during the forecast period.

Regional Analysis

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Europe is estimated to contribute 44% to the growth during the forecast year.  Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. The market in Europe witnessed steady growth in 2022. Countries such as the UK, Belgium, Denmark, and the Netherlands, are anticipated to contribute significantly to the market in focus in Europe. Countries in Europe have been increasingly installing wind turbines of greater height and diameter to increase their energy production. This is further expected to drive the adoption of offshore wind turbines.

According to the Global Wind Energy Council (GWEC),  In 2021, China, the UK, Germany, and the Netherlands were among the largest offshore wind markets in the world. Although Denmark, by 2021, had the third highest market share in the global wind energy sector, China surpassed Denmark and became the third-largest country in the global offshore wind market in 2021. Thus, government support and the growing focus on wind energy are projected to drive the submarine power cable market in Europe during the forecast period.

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, market growth analysis, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

ABB Ltd. - The company offers submarine power cables namely XLPE Submarine Cable Systems.

We also have detailed analyses of the market’s competitive landscape and offer information on key companies, including:

ABB Ltd., Eland Cables Ltd., Europacable, Fujikura Co. Ltd., Furukawa Electric Co. Ltd., HELUKABEL Romania Srl, Hengtong Group Co. Ltd., Hydro Group, Jiangsu Zhongtian Technology Co Ltd, KEI Industries Ltd., Leoni AG, LS Cable and System Ltd., Nexans SA, NKT AS, Parker Hannifin Corp., Prysmian Spa, Southwire Co. LLC, Subsea 7 SA, Sumitomo Electric Industries Ltd., and The Okonite Co. 

Technavio market forecast the an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.  

Market Analyst Overview

The market is undergoing significant developments driven by the increasing adoption of intermittent renewable sources and the demand for efficient transmission solutions and submarine fiber cables. High Voltage Direct Current (HVDC) technology is playing a crucial role in enabling long-distance power transmission with minimal losses. Notable players like Reka Kaapeli Oy are contributing to the market's growth through green innovation and the development of cables that support carbon neutrality goals. The market is witnessing a surge in offshore wind and wave & tidal power projects, leading to a higher demand for underwater cables capable of transmitting terabytes per second of data. Segmentation of the market includes factors such as electrical conductor material like cross-linked polyethylene (XLPE) and ethylene propylene rubber (EPR), highlighting the importance of materials in enhancing cable performance through subsea sensors. With the expansion of international grid connectivity, the submarine power cable market is poised for further growth, especially in regions like the Scottish Highlands, where renewable energy targets are driving investments in infrastructure.

The market is witnessing significant growth due to the increasing demand for inter-country & island power connections and the expansion of offshore wind power generation and offshore oil & gas projects. The market is driven by factors such as global data traffic and the need for safe and efficient power transmission solutions in safety zones. Segmentation of the market includes factors like high-voltage direct current (HVDC) cables and medium-voltage power cables, highlighting the importance of different voltage segments.

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What are the Key Data Covered in this Submarine Power Cable Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the submarine power cable market between 2024 and 2028
• Precise estimation of the market growth and trends and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Market growth and forecasting across Europe, APAC, North America, Middle East and Africa, and South America
• A thorough market analysis and report of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market  companies

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