Global Submarine Power Cable Market
Submarine Power Cable Market size is evaluated at USD 13.04 Billion in 2024 and is poised to cross USD 42.8 Billion by the end of 2037, expanding at more than 9.63% CAGR during the forecast period i.e., between 2025-2037. In the year 2025, the industry size of submarine power cable is estimated at USD 14.2 Billion.
This growth of the market is set to be encouraged by the surging installation of offshore wind turbines. As per the prediction of the Department of Energy, in 2023, the total capacity of offshore wind energy across the globe reached 59,009 MW from close to 292 operating projects and approximately 11,900 operating wind turbines. Therefore, the revenue for the submarine power cable market is expected to increase.
Growth Drivers
Challenges
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
9.63% |
|
Base Year Market Size (2024) |
USD 13.04 Billion |
|
Forecast Year Market Size (2037) |
USD 42.8 Billion |
|
Regional Scope |
|
End User (Off-Shore Wind Power Generation, Inter Country & Island Connection, Offshore Oil & Gas)
Off-shore wind power generation segment in the submarine power cable market is estimated to reach USD 18.11Billion by the end of 2037 up from a revenue of USD 5.31 billion in the year 2024. This growth of the segment is poised to be encourage by rising demand for electricity. As per the estimation of IEA, demand for electricity across the globe is anticipated to grow at a faster rate during the next three years, rising by an average of 3.4% yearly through 2026. Hence, this is predicted to influence renewable energy growth further driving the segment growth.
Submarine power cables for offshore wind farms are constructed to meet specific requirements, typically with high voltages. These cables are composed of copper or aluminum wires, which were selected for their electrical conductivity and cost. Insulation that includes XLPE or EPR protects and strengthens the wires, whereas lead wraps or steel wire shields serve as protective layers.
These cables have been developed to resist water ingress and corrosion, which is critical for their durability in hostile marine conditions. Versatility in design enables adaptation to changing seabed conditions during installation. Furthermore, these wires are critical conduits for transferring renewable energy from wind farms located offshore to onshore grids, helping to further worldwide efforts towards sustainable energy generation.
Conductor Material (Copper, Aluminum)
In submarine power cable market, copper segment is set to cross USD 30 Billion by 2037. Copper is frequently used as a conductor material in underwater power cables because of its high electrical conductivity, corrosion resistance, and mechanical strength. Its powerful conductivity enables effective power transfer over long distances with minimum loss.
Copper's intrinsic immunity to corrosion makes it perfect for marine conditions where moisture and saltwater are present. Further, with the growing production of copper, the market is expanding. According to the predictions made by USGS, till now, over 700 million metric tons of copper are predicted to be manufactured around the world.
Core Type (Single Core Cable, Multi Core Cable)
The single core cable segment is anticipated to capture the highest submarine power cable market revenue by the end of 2037. Single-core cables comprise a single conductor wrapped by layers of insulation and protective sheathing. Single-core underwater power cables possess a streamlined structure, having a single conductor covered by layers of insulation, metallic protection, and protective sheathing.
Additionally, single-core submarine power cables have concentric protection and are utilized in AC systems with three independent cables, each carrying one phase of electric current. An additional fourth cable serves as a backup to replace any damaged primary cables, ensuring continuous power transmission in the event of damage, such as from ship anchors. Hence, all these advantages are predicted to expand the segment growth further encouraging a rise in the submarine power cable market.
Our in-depth analysis of the submarine power cable market includes the following segments:
|
Core Type |
|
|
Voltage |
|
|
Conductor Material |
|
|
End User |
|
European Market Statistics
Europe region in submarine power cable market revenue is expected to cross USD 13.65 Billion by the end of 2037, the highest as compared to the year 2024 when revenue is poised to be USD 4.04 billion. The major factor to encourage market expansion in this region is growing investment in offshore projects. It is estimated that Europe needs about USD 434 billion in investment in offshore wind grids in order to meet targets. Therefore, the spending on submarine power cables is also expected to rise.
The UK market for Submarine power cable is estimated to generate the highest revenue of USD 3.12 billion by the end of 2037. This growth is anticipated to be encourage by the growing number of key players.
Furthermore, on account of the growing net zero initiative which is driving demand for clean energy the market in Germany is also predicted to have notable growth over the forecast period.
Also, along with these two major nations, the market in France for submarine power cables is forecasted to observe growth over the forecast period. This is anticipated to be on account of the growing demand for interrupted power supply.
APEJ Market Analysis
In submarine power cable market, Asia Pacific excluding Japan region is expected to showcase around 10.23% growth rate till 2036. This is poised to be dominated by growing urban population. For instance, as per UNICEF, the population of cities in Asia is growing notably reaching close to 55 percent of the by 2030. This is further boosting the electricity demand hence influencing the submarine power cable market.
In this region, the market in China for submarine power cables is projected to gather the highest revenue of USD 3.46 billion by the end of 2037. The main element driving the market growth in this region is the growing subsidies offered by the government to adopt more renewable energy.
Moreover, the Indian market for submarine power cable is also set to rise owing to the growing focus on importing renewable energy.
Another major nation is South Korea which is predicted to observe growth in the market on account of rising investment in cross-border interconnection projects.
The submarine power cable market is expected to observe significant growth due to the key players across the globe who are continuously working on strategies to make their products stand out in the competition. Some of the them include:
Author Credits: Dhruv Bhatia
Copyright © 2024 Research Nester. All Rights Reserved
FREE Sample Copy includes market overview, growth trends, statistical charts & tables, forecast estimates, and much more.
Have questions before ordering this report?