The submarine power cable market is estimated to hike from around $1500 million in 2018 to $3 billion by 2025, according to a 2019 Global Market Insights, Inc. report. Rapid development of offshore oil and gas platforms coupled with growing installation of offshore wind turbines will boost the overall market share.
Europe submarine power cable market, in 2018 surpassed USD 2.5 billion. The industry is determined by rapid enhancements toward an efficient transmission infrastructure favored by rising electricity consumption across emerging regions.
Ongoing fund flow from government and private participants positively influenced by strict regulatory schemes to develop an energy efficient environment will complement the submarine power cable market dynamics. Furthermore, rising intercountry transmission infrastructure for subsea power supply has infused a favorable business outlook.
Increasing peak load demand across the globe has been imposing serious concerns in reference to security of supply & grid stability. Rising investments to create a sustainable electrical network along with favorable regulatory reforms toward the integration of renewable grid systems will stimulate the submarine power cable market growth.
Long distance power transmission, minimal line losses coupled with effective high voltage power supply are some of the key factors favoring the installation of single core wires. Although, poor heat dissipation and high initial installation cost may hamper the product deployment. However, overall operational cost, ability to bear harsh weather conditions and flexible product specifications will energize the submarine power cable market.
High demand across offshore developments along with low installation cost have favored the deployment of medium voltage (MV) lines. Although, these incur high maintenance cost and transmission losses when compared to high voltage lines. However, rising dependency on renewable generation technologies in line with government initiatives & reforms towards energy efficiency will augment the market demand.