|
Forecast Period
|
2024-2028
|
|
Market Size (2022)
|
USD 6.82 Billion
|
|
CAGR (2023-2028)
|
12.79%
|
|
Fastest Growing
Segment
|
High Voltage
|
|
Largest Market
|
Asia Pacific
|
Market Overview
Global Offshore
Wind Power Generation Submarine Power Cable Market has valued at USD 6.82 Billion
in 2022 and is anticipated to project robust growth in the forecast period with
a CAGR of 12.79% through 2028.
Key Market Drivers
Increasing
Offshore Wind Energy Capacity
The increasing offshore wind energy
capacity is a key driver behind the burgeoning global offshore wind power
generation submarine power cable market. This robust growth in offshore wind
capacity is catalyzing a surge in demand for submarine power cables, with
several interrelated factors contributing to this trend. First and foremost,
offshore wind energy capacity is expanding at a rapid pace globally.
Governments and energy companies are investing heavily in offshore wind
projects due to their significant potential for clean, renewable energy
generation. As wind turbines are installed farther from the coastlines and in
deeper waters to harness stronger and more consistent winds, the need for
efficient and reliable submarine power cables becomes paramount. These cables
serve as the vital link between offshore wind turbines and onshore power grids,
enabling the transportation of electricity over long distances.
Furthermore, the escalating demand for
offshore wind energy is closely tied to environmental concerns and the
imperative to reduce greenhouse gas emissions. Governments worldwide are
setting ambitious renewable energy targets as part of their efforts to combat
climate change. Offshore wind power is recognized as a sustainable and
eco-friendly energy source, aligning with these goals. This recognition
translates into strong support from governments and regulatory bodies, which,
in turn, fosters the development of offshore wind farms and their associated
submarine cable networks. Technological advancements have also played a pivotal
role in expanding offshore wind energy capacity. Innovations in wind turbine
design, materials, and installation techniques have boosted the efficiency and
output of offshore wind farms. These advancements have resulted in larger and
more powerful turbines that require more sophisticated submarine power cables
to handle the increased electricity transmission requirements.
Additionally, offshore wind energy
contributes to energy security by diversifying the energy mix and reducing
reliance on fossil fuels. This is especially critical as energy demand continues
to rise globally. Offshore wind farms are seen as a stable and predictable
energy source, enhancing energy security and reliability. In conclusion, the
increasing offshore wind energy capacity is driving the global offshore wind
power generation submarine power cable market by creating a strong demand for
these essential components. As countries continue to invest in offshore wind
projects to meet their renewable energy targets and combat climate change, the
submarine power cable market is poised for sustained growth as a critical
enabler of the offshore wind energy sector.
Government
Support and Policies
Government support and policies play a
pivotal role in driving the growth of the global offshore wind power generation
submarine power cable market. These measures are instrumental in incentivizing,
regulating, and facilitating the expansion of offshore wind energy projects,
which in turn increases the demand for submarine power cables. Here's a
detailed exploration of how government support and policies are shaping this
market, First and foremost, governments worldwide are committed to combating
climate change and reducing greenhouse gas emissions. Offshore wind power is a
key component of their strategies to achieve these goals. To promote the development
of offshore wind energy, governments often establish ambitious renewable energy
targets, which create a strong market pull for submarine power cables as they
are essential for transmitting electricity generated offshore to onshore grids.
Furthermore, governments provide
financial incentives to offshore wind projects. These incentives may include
tax credits, subsidies, feed-in tariffs, or grants, all of which make offshore
wind power generation a financially attractive proposition for developers. As
developers embark on new projects, they require extensive submarine power cable
networks to ensure efficient and reliable transmission of electricity, thereby
driving demand in the submarine cable market.
Regulatory frameworks are crucial for
the offshore wind industry's success. Governments establish clear permitting
processes, environmental standards, and safety regulations that provide
certainty to developers and investors. A streamlined regulatory environment
reduces delays and uncertainties, making it easier to plan and execute offshore
wind projects, including the installation of submarine power cables. In many
regions, governments facilitate grid connections for offshore wind farms by
investing in the necessary onshore and nearshore grid infrastructure. They may
also support the development of offshore transmission networks, further
boosting the demand for submarine power cables.
Additionally, governments promote
research and development in cable technology and offshore wind energy. Funding
for innovation and technology improvement initiatives helps drive advancements
in submarine power cable design, materials, and installation techniques,
enhancing their efficiency and performance. In conclusion, government support
and policies act as catalysts for the global offshore wind power generation
submarine power cable market. By setting ambitious renewable energy targets,
offering financial incentives, establishing regulatory frameworks, investing in
grid infrastructure, and supporting technological innovation, governments
foster an environment in which offshore wind projects can thrive. As the
world's transition to cleaner energy sources accelerates, the submarine power
cable market will continue to benefit from this governmental commitment to
offshore wind power generation.
Technological
Advancements
Technological advancements are a
significant driving force propelling the growth of the global offshore wind
power generation submarine power cable market. These advancements are
transforming the capabilities and efficiency of submarine power cables, making
them a critical component in the expansion of offshore wind energy. Here's an
in-depth exploration of how technological innovations are shaping this market, Higher
Capacity Cables: Technological advancements have enabled the development of
high-capacity submarine power cables that can transmit more electricity over
longer distances. This is crucial for offshore wind farms, as they often need
to transport large amounts of electricity from remote locations to onshore
grids.
Advanced Materials: Innovations in cable
materials have resulted in cables that can withstand the harsh marine
environment, including saltwater corrosion and extreme temperatures. These
materials enhance the durability and lifespan of submarine power cables,
reducing maintenance costs and downtime. HVDC Technology: High-voltage direct
current (HVDC) technology has revolutionized underwater power transmission.
HVDC submarine cables are more efficient for long-distance transmission,
experience lower losses, and are better at connecting offshore wind farms to
onshore grids, especially when the farms are located far from the coast.
Dynamic Cable Monitoring: Technological
advancements have introduced real-time monitoring and diagnostic systems for
submarine power cables. These systems can detect faults, such as cable damage
or overheating, allowing for prompt maintenance and minimizing downtime. They
enhance the reliability and safety of offshore wind energy transmission. Installation
Techniques: Innovations in cable laying and installation techniques have
improved the efficiency and cost-effectiveness of deploying submarine power
cables. State-of-the-art cable laying vessels and remotely operated vehicles
(ROVs) are used to streamline the installation process, reducing project
timelines.
Grid Integration: Advancements in grid
integration technology allow for seamless connection of offshore wind farms to
onshore grids. Smart grid technologies and grid management systems ensure
efficient electricity distribution, making it easier to incorporate offshore
wind energy into the existing energy infrastructure. Repurposing Decommissioned
Cables: Innovations in recycling and repurposing old submarine cables have
environmental and cost-saving benefits. Decommissioned cables can be repurposed
for other uses or recycled, reducing waste and lowering the overall cost of new
cable installations.
Energy Storage Integration: The
integration of energy storage systems with submarine power cables allows for
the efficient storage and dispatch of offshore wind energy, improving grid
stability and flexibility. In conclusion, technological advancements are
revolutionizing the global offshore wind power generation submarine power cable
market. These innovations are making submarine power cables more reliable,
efficient, and cost-effective, which is essential for supporting the rapid
growth of offshore wind energy projects worldwide. As technology continues to
evolve, it will further enhance the role of submarine power cables in
facilitating the transition to clean and sustainable offshore wind energy.
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Key Market Challenges
Environmental
and Regulatory Challenges
Submarine cable installation may
necessitate trenching or plowing the seabed, potentially disrupting marine
habitats and ecosystems. The operation of cable-laying vessels and machinery
can generate underwater noise pollution, adversely affecting marine life,
especially sensitive species like whales and dolphins. Furthermore, the
discharge of drilling fluids and sediments during cable burial can result in
water quality concerns.
Ensuring compliance with a wide array of
national and international regulations is crucial to mitigate environmental
impacts and safeguard marine ecosystems. Achieving regulatory compliance can be
a multifaceted process, involving obtaining permits, conducting environmental
impact assessments, and adhering to stringent operational guidelines.
Navigating the regulatory landscape can be time-consuming and impose
significant costs on cable project developers.
While the global offshore wind power
generation submarine power cable market holds significant potential for growth,
it faces several environmental and regulatory challenges that could potentially
hamper its development. These challenges have the potential to increase costs,
cause delays, and introduce uncertainties into offshore wind projects. Here are
some of the key environmental and regulatory challenges, Environmental Impact
Assessment (EIA): Offshore wind projects often require thorough EIAs to assess
their potential environmental impacts. These assessments can delay project
approvals and increase costs. Concerns include the disruption of marine
ecosystems, impacts on marine species, and potential disturbances to fishing
and shipping activities. Marine Habitat and Wildlife Protection: Offshore wind
farms can affect marine habitats and wildlife, particularly during construction
and maintenance activities. The presence of submarine power cables may
intersect with sensitive areas, posing risks to marine life. Mitigation
measures are required to address these concerns, which can increase project
costs and complexity.
Cable Routing Challenges: Selecting the
optimal route for submarine power cables is a complex process. Avoiding
sensitive habitats, archaeological sites, and existing infrastructure while
ensuring minimal impact on the marine environment is challenging. Environmental
regulations often dictate cable routing decisions, which can lead to suboptimal
solutions. Permitting and Regulatory Hurdles: The permitting process for
offshore wind projects, including submarine cable installation, can be
protracted and complex due to multiple regulatory agencies, environmental
assessments, and public consultations. Delays in obtaining permits can lead to
increased project costs and uncertainties for investors.
International Borders and Jurisdictions:
Offshore wind farms often straddle international borders or are located in
exclusive economic zones. Coordinating regulations and permitting across
jurisdictions can be complicated, adding to project complexity and timelines. Cultural
and Archaeological Considerations: Offshore areas may contain cultural or
archaeological sites, such as shipwrecks or historical artifacts. These sites
must be protected during cable installation, potentially requiring changes in
cable routing and additional costs for archaeological surveys and protections. Grid
Connection Challenges: Connecting offshore wind farms to onshore grids may
involve navigating complex regulatory requirements and grid infrastructure
upgrades. Delays in grid connection can impact project timelines and
profitability.
Public Opposition: Some offshore wind
projects face opposition from local communities and environmental groups due to
perceived negative impacts on scenic views, fishing industries, or tourism.
This can result in legal challenges and delays. While these environmental and
regulatory challenges can hamper the global offshore wind power generation
submarine power cable market, they also present opportunities for industry
stakeholders to develop innovative solutions, advance technologies for
minimizing environmental impacts, and work collaboratively with regulators and
communities to address concerns. Overcoming these challenges is essential for
realizing the potential of offshore wind energy as a clean and sustainable
power source.
Technical
and Engineering Challenges
Submarine power cables must endure harsh
conditions, including corrosive saltwater, temperature fluctuations, and
mechanical stresses caused by currents and tides. These factors can gradually
deteriorate the cable's insulation, leading to electrical faults. Ensuring
long-term cable reliability poses a significant technical challenge.
The installation of submarine power
cables in deep and remote ocean locations presents logistical complexities.
Successful installation requires cable-laying vessels, specialized equipment,
and highly skilled personnel. Additionally, addressing cable faults or damages
can be intricate and expensive, often necessitating the use of specialized
vessels and remotely operated vehicles (ROVs) for underwater repairs.
Constant vigilance is essential to
protect submarine power cables from external threats, such as anchor damage,
fishing activities, or natural events like undersea landslides. Implementing
innovative cable protection measures, including armored sheaths and appropriate
burial depths, is crucial for safeguarding cable infrastructure.
Key Market Trends
One of the key trends observed in the
global submarine power cable market is the growing demand for the integration
of renewable energy sources into the grid. As the world moves towards cleaner
and more sustainable energy systems, there is an increasing requirement to
connect offshore renewable energy installations, such as offshore wind farms
and tidal energy projects, to onshore grids. Submarine power cables play a
crucial role in transmitting electricity generated offshore to population
centers.
The rapid expansion of offshore wind
energy serves as a significant driver for this trend. Numerous countries are
making substantial investments in offshore wind farms located in their coastal
waters. Submarine power cables are essential for connecting the offshore
turbines to onshore substations, enabling the efficient transportation of
wind-generated electricity to the grid.
In addition to wind energy, there is a
growing interest in harnessing tidal and wave energy. These marine energy
sources have the potential to provide a consistent and predictable source of
renewable electricity, particularly in regions with strong tidal currents or
consistent wave patterns. Submarine power cables are vital for transmitting
electricity generated by these sources to onshore facilities.
The trend towards integrating renewable
energy is stimulating the need for enhanced grid infrastructure. Submarine
power cables are becoming integral components of grid modernization efforts,
facilitating the efficient and reliable integration of intermittent renewable
energy sources. As this trend continues, submarine power cables will play a
pivotal role in enabling the transition to a cleaner and more sustainable
energy mix.
Technological
Advancements for Higher Capacity and Efficiency
One notable trend observed in the
industry is the increasing adoption of high-voltage direct current (HVDC)
submarine power cables. HVDC technology offers significant advantages, such as
reduced transmission losses over long distances and the ability to connect
offshore installations to onshore grids even at remote locations. HVDC
submarine cables are particularly well-suited for interconnectors and projects
where high capacity and efficiency are of utmost importance.
Technological advancements have also
revolutionized cable monitoring and maintenance practices. Cutting-edge
real-time monitoring systems and underwater robotic vehicles (ROVs) equipped
with cable inspection capabilities have witnessed remarkable progress. These
sophisticated technologies play a crucial role in promptly detecting and
addressing cable faults and damages, thereby minimizing downtime and enhancing
overall cable reliability.
Segmental Insights
Type Insights
Single Core segment is expected to
dominate the market during the forecast period. A single core submarine power
cable is a type of submarine cable that features a solitary central conductor
within its insulating sheath. This conductor carries the electrical current and
is typically surrounded by multiple layers of insulation, protection, and, in
some cases, armor.
In comparison to multi-core cables,
single core submarine power cables have a simpler design due to their single
conductor configuration. This simplicity facilitates easier manufacturing,
installation, and maintenance processes. Single core submarine power cables
find extensive use in high voltage applications, where a single large conductor
efficiently transmits a substantial amount of electricity. They are commonly
employed in interconnectors, offshore wind farms, and long-distance undersea
transmission projects.
High-voltage direct current (HVDC)
transmission systems, increasingly utilized for long-distance power
transmission, often rely on single core submarine power cables. HVDC technology
enables efficient transmission over extended distances, and a single core cable
is capable of handling the high voltage and current levels required. Single
core cables typically exhibit lower capacitance compared to multi-core cables,
which proves advantageous in high-voltage applications by minimizing losses and
enhancing overall cable performance.
Voltage
Insights
High Voltage segment is expected to
dominate the market during the forecast period. High voltage submarine power
cables play a crucial role in the efficient and reliable transmission of
electrical power over long distances beneath the sea. They are extensively
utilized to connect electrical grids between different countries or regions,
facilitating the exchange of electricity, enhancing energy security, and
supporting the integration of renewable energy sources.
Offshore wind farms are a significant
driver of demand for high voltage submarine power cables as they connect
offshore wind turbines to onshore substations, enabling the transmission of
electricity to the grid. These cables are designed with insulation and
conductor materials that can withstand the stresses associated with high
voltage levels, ensuring safe and reliable transmission of electricity.
Moreover, high voltage transmission reduces electrical losses
during long-distance transmission, resulting in more efficient power delivery,
which is especially critical for transmitting electricity over extended
undersea routes. The design of high voltage submarine power cables is
specifically tailored for efficient long-distance power transmission, making
them ideal for interconnectors, offshore wind farms, and undersea HVDC
transmission projects. The high voltage segment plays a pivotal role in
integrating renewable energy sources such as offshore wind and marine energy into
the grid, enabling the transport of clean energy generated offshore to meet
onshore electricity demand.
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Regional Insights
Asia Pacific emerged as the dominant
player in the Global Offshore Wind Power Generation Submarine Power Cable Market
in 2022. China is leading the way, followed by ASEAN countries. The Chinese
government is actively promoting the development of renewable infrastructure to
combat pollution and reduce reliance on thermal power generation. This
initiative is expected to drive the growth of wind power projects in China
during the forecast period. China took the lead in the offshore wind market by
installing 1.8 GW in 2018, surpassing the United Kingdom.
The Indian offshore wind power market is
still in its early stages, with a potential capacity of around 60 GW. The
coastal regions of Gujarat and Tamil Nadu are identified as potential areas for
offshore wind power in India. The Ministry of New and Renewable Energy (MNRE)
is prioritizing the development of offshore wind power and has announced a
draft offshore wind energy policy.
With Japan and ASEAN countries
consisting of many islands, there is a significant need for power transmission
between these islands. Japan, in particular, has favorable locations for
offshore wind power generation and has recognized that offshore wind turbines
can generate significantly more electricity than onshore wind turbines.
Additionally, land constraints pose
challenges for the future development of onshore wind farms. The Philippines,
with over 7,500 islands, including 2,000 inhabited islands, and other ASEAN
countries with clusters of small islands, face the challenge of power generation
on each individual island. This necessitates the use of submarine power cables
for inter-island power transmission, leading to an increased demand for such
cables.
Recent Developments
- In October 2021, Sumitomo
Electric Ltd announced the successful installation of a submarine cable into
the Stikine Crossing through a collaboration with Southeast Alaska Power
Agency, its subsidiary Sumitomo Electric USA, Inc., and several subcontractors.
- In July 2021, LS Cable &
System unveiled USD140 million investment to enhance its submarine cable
manufacturing capabilities, including the establishment of an additional
factory at its second Donghae Plant.
- In August 2021, LS Cable
& System entered into an agreement to acquire Korea's largest submarine
cable laying barge, aiming to strengthen its involvement in both domestic and
global projects.
Key Market Players
- ABB Ltd.
- Furukawa Electric Co Ltd
- KEI Industries Limited
- LS Cable & System Ltd
- Nexans SA
- Ningbo Orient Wires & Cables Co., Ltd
- NKT A/S
- Prysmian Group
- Sumitomo Electric Industries Limited
- ZTT International Limited
|
By Type
|
By Voltage
|
By Region
|
|
|
- Medium Voltage
- High Voltage
|
- North America
- Europe
- Latin
America
- Middle East &
Africa
- Asia Pacific
|
|
Report
Scope:
In this
report, the Global Offshore Wind Power Generation Submarine Power Cable Market has
been segmented into the following categories, in addition to the industry
trends which have also been detailed below:
- Global Offshore Wind Power
Generation Submarine Power Cable Market, By Type:
- Global Offshore Wind
Power Generation Submarine Power Cable Market, By Voltage:
- Medium Voltage
- High Voltage
- Global Offshore Wind Power
Generation Submarine Power Cable Market, By Region:
- North America
- United States
- Canada
- Mexico
- Asia-Pacific
- China
- India
- Japan
- South Korea
- Indonesia
- Europe
- Germany
- United Kingdom
- France
- Russia
- Spain
- South America
- Middle East & Africa
- Saudi Arabia
- South Africa
- Egypt
- UAE
- Israel
Competitive
Landscape
Company
Profiles: Detailed analysis of the major
companies present in the Global Offshore Wind Power Generation Submarine Power Cable
Market.
Available
Customizations:
Global Offshore
Wind Power Generation Submarine Power Cable Market report with the given market
data, TechSci Research offers customizations according to a company's specific
needs. The following customization options are available for the report:
Company
Information
- Detailed analysis and profiling of
additional market players (up to five).
Global Offshore Wind Power Generation Submarine Power
Cable Market is an upcoming report to be released soon. If you wish an early
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