Submarine Power Cable Market Trends

Growth Drivers

• Increasing offshore renewable energy projects: In June 2025, the Global Wind Energy Council (GWEC) projected that offshore wind installations would continue to expand steadily between 2025 and 2027, surpassing the 30 GW milestone by 2030 and exceeding 55 GW by 2034. Additionally, the share of new offshore power installations is expected to reach 25%. Similarly, according to the Ministry of New and Renewable Energy (MNRE), more than 75 GW of offshore wind energy projects had been completed across 18 countries by December 2023, notably in China, the UK, Germany, the Netherlands, and Denmark. The continuous rollout of such large-scale offshore renewable energy projects is anticipated to drive sustained demand for submarine power cables used in electricity transmission between offshore farms and onshore grids.
• Expanding power transmission networks: As countries invest in cross-border and inter-regional grid interconnections, submarine power cables become essential for transmitting electricity efficiently across seas and between islands and mainland grids. These networks enable the integration of offshore renewable energy sources such as wind and tidal power into national power systems, ensuring grid stability and energy security. Furthermore, the electrification of remote and coastal regions, coupled with increasing investments in high-voltage direct current (HVDC) and high-voltage alternating current (HVAC) transmission systems, is accelerating the deployment of advanced submarine cable technologies. Overall, the expansion of power transmission networks supports a resilient, interconnected global energy landscape, directly fueling growth in the market.
• HVDC and insulation innovations: The development of High Voltage Direct Current HVDC systems and innovations in electrical insulation is fueling the market growth, allowing the submarine cables to cover longer distances, manage high voltage, and reduce transmission loss. Losses in electric power transmission and distribution stood at 6% in 2023, significantly influencing the need for the development of HVDCs and advanced insulation methods. Governments across the globe are supporting the integration of HVDC and insulation solutions in power transmission. In April 2025, Hitachi Energy unveiled its plan to deliver a 950 km HVDC connection to Fatehpur, Uttar Pradesh, from the renewable energy zone in Bhadla, Rajasthan, in India.

Challenges

• The need for a large investment: Submarine power cable projects require significant upfront investments, creating substantial financial barriers for new entrants. These high costs often enable established players to dominate the market and capture the majority of the revenue share, leading to increased market concentration. The expenses primarily stem from complex cable manufacturing, the need for specialized vessels, installation equipment, and technical expertise. Moreover, the rising global cost of raw materials and fiber optic cable production has intensified financial pressures, further challenging both new and existing companies in maintaining profitability and competitiveness within the market.
• Seabed disturbances and human activity-induced cable fault: Seabed disturbances are significant environmental impacts influenced by the global submarine power cable industry. The process of the installation disrupts the marine habitats, affecting marine life and hampering seabed ecosystems. This creates a gap in the environmental sustainability of the market. Human activities, including fishing, often cause faults in the submarine power cables. In February 2025, the International Cable Protection Committee revealed that around 30% of damage to submarine cables is caused by dragged anchors. Such incidents often result in power outages and heightened operational costs for key market players.