The market for subsea power cables is expected to grow at a compound annual rate of more than 4 percent from 2020-2024, driven largely by surging demand for electricity, according to Technavio.
According to the report, 47 percent of the market growth in the forecast period will come from Europe, with Italy, Denmark and Finland being important markets for European subsea power cables.
Europe is the largest subsea power cable market in 2019, and government support and growing concern about wind power will significantly drive growth in the subsea power cable market in the region during the forecast period.
Offshore wind turbines can produce more energy using fewer turbines than conventional ones. As a result, the Asia-Pacific region will enjoy rapid growth during the forecast period. Thanks to heavy investment in offshore wind projects over the past few years, China and India will account for most of the region’s share of the forecast period.
According to the IEA, demand for electricity will rise by 40 per cent by 2024. Similarly, growing environmental concerns will force economies to use renewable energy to generate electricity. As a result, the number of renewable projects such as wind and tidal power projects is increasing in most countries, which in turn will increase the demand for undersea power cables or submarine cables. The growing demand for intercountry and island connections will be one of the main drivers of market growth. Subsea power grid interconnection projects in France – UK, Belgium – UK and Ireland – UK are under construction.
On the other hand, the growing demand for high-voltage direct current (HVDC) power cables will also drive the market growth. These HVDC cables are more and more popular compared with traditional cables because they are safe and reliable and can transmit power over long distances. These factors will drive the global subsea power cable market to grow at a compound annual rate of over 4% over the forecast period.
From the manufacturers’ point of view, Prysman, Nexans, Sumitomo Electric, Lenny Cable, Ankart Cable, Tengura Cable, Guhe Electrician, LS cable will continue to dominate the global subsea power cable market in the forecast period.