The submarine power cable market is estimated to be valued at USD 17.11 Bn in 2024 and is expected to reach USD 30.28 Bn by 2031, growing at a compound annual growth rate (CAGR) of 8.5% from 2024 to 2031. The submarine power cable market is expected to witness strong growth over the forecast period attributed to increasing investments in expanding and upgrading offshore wind energy installations globally.

Market Driver - Growing Demand for Renewable Energy, Particularly Offshore Wind Farms

As countries around the world aim to reduce carbon emissions and transition towards cleaner sources of energy generation, renewable energy is playing an increasingly important role. One renewable energy source that is seeing significant gains is offshore wind power.

Submarine power cables are essential infrastructure that are used to transfer the vast amounts of renewable electricity generated by offshore wind turbines from their offshore locations to the mainland power networks. Major offshore wind power markets like those in North West Europe and East Asia have been early adopters of the technology. Countries like the UK, Germany, Belgium, Netherlands, Denmark, China, Japan, and South Korea have laid hundreds of kilometers of submarine cables to strengthen their offshore wind power connections.

New markets are also emerging, especially across parts of Southeast Asia, Middle East, and the Americas. As the global momentum behind renewable energy and offshore wind power continues to gather pace, growth in the submarine power cables market is expected to remain robust to support the ballooning offshore networks.

Market Driver - Increasing Inter-country and Island Power Connections to Enhance Grid Reliability

Building power interconnections between countries and island territories have been an important strategy adopted by many regions to improve energy security and create resilient electricity grids. However, laying overhead transmission lines across long stretches of sea can be technically challenging and expensive. That is where underground/undersea power cables have emerged as a preferable solution. Submarine power cables provide a reliable and cost-effective means to connect distant power grids that are separated by large bodies of water. They allow smooth power transfers while creating redundant transmission capacity between networks.

The need to transport high volumes of renewable power over long distances will also support growth. Overall, the promise of leveraging dormant offshore wind and hydro potential through cross-border undersea interconnectivity makes submarine power cables a strategic technology for building stronger and sustainable energy systems worldwide. Their deployment in new terrestrial and offshore interconnector projects will likely gather momentum.

Market Challenge - High Installation and Maintenance Costs Associated with Submarine Cables

One of the key challenges faced by the submarine power cable market is the high installation and maintenance costs associated with underwater cables. Laying cables on the seabed requires specialized installation vessels that can deploy cables at significant depths. These vessels are equipped with complex machinery and equipment to handle cable lengths of over hundreds of kilometers.

Power utilities also need to continuously invest in maintenance activities such as repair and replacement of damaged cables. Adverse weather conditions and human activities continue to pose risks to underwater infrastructure. The high upfront installation costs and long-term maintenance liabilities pose financial constraints for utilities especially in emerging economies and island nations dependent on submarine interconnectors.

Market Opportunity - Technological Advancements Leading to More Efficient and Durable Cables

One of the key opportunities available for the submarine power cable market is the technological advancements leading to development of more efficient and durable cables. Continuous research and development efforts are underway to design cables that can withstand greater mechanical stresses, operate at higher power ratings and remain functional over longer durations.

Materials research and refinement of insulation technologies have enhanced cable performance metrics. Advances such as mass impregnated papers and cross-linked polyethylene insulation have extended operational lives. Dry-mate cable connectors and repair clamps have streamlined maintenance activities.

Adoption of durable, high-capacity cables can help lower per unit costs of transmission over longer distances. When coupled with demand for interconnectivity of offshore renewable assets, technological innovations are expected to support growth of the submarine power cable market.

Strategy 1: Focus on reliability and performance improvement

Players like Prysmian Group and Nexans have consistently focused on improving the reliability and performance of their submarine power cables through extensive research and development.

Strategy 2: Offer comprehensive project execution capabilities

Leading players have built strong in-house capabilities for end-to-end project execution from design to installation to post-installation services. This allows them to take up turnkey projects and address any issues swiftly.

Strategy 3: Pursue strategic mergers and acquisitions

Key players have grown their geographic footprint and technical expertise through strategic M&A moves. In 2017, Prysmian acquired General Cable, making it the world's largest cable player with a significantly expanded presence in North America.

As illustrated above, a relentless focus on technology and quality improvements along with built-out project management skills and targeted M&A have helped Prysmian and Nexans cement their leadership positions in the submarine power cable domain over the past decade.

Insights, By Core Type: Reliability and Cost-Effectiveness drive Single Core Cable's Dominance

Single core cables contribute 63.5% share in the submarine power cable market in terms of core type due to their inherent reliability and cost-effectiveness. These cables have a single conductor surrounded by insulation, which makes the cable structure compact and durable even in challenging underwater conditions like high pressure and corrosion.

Moreover, single core cables offer significant cost savings during manufacturing as well as installation due to their simple concentric layout. Only one conductor needs to be insulated and protected unlike multi-core cables with multiple conductors. This brings down raw material requirements and production time substantially.

Single core cables present fewer complications during maintenance and repair works too. Identifying and isolating faults is straightforward given the single conductor. Replacing or rejointing damaged sections is also less complex technically and financially than multi-core alternatives. Hence, the reliability and economy attributes continue to support single core cables' dominance in the submarine power cable market.

Insights, By Voltage Type: High-capacity Needs Drive Demand for High Voltage Cables

Within the segment of voltage types, high voltage cables account for 46.2% share of the submarine power cable market. This is largely attributed to the higher power transmission capacities required to be handled by modern submarine networks.

With increasing distances to be covered underwater and exponentially rising energy demands of coastal cities, there is a need for cables that can handle bulk power volumes in a single circuit. Only high voltage cables rated at and above 220kV level (usually up to 500kV) are technically capable of transmitting power outputs exceeding 600-1500MW per circuit.

With rapid depletion of fossil fuels and growing thrust on large scale renewable integration, there is a massive upcoming demand for multi-regional and offshore wind energy evacuation networks as well. High voltage XLPE and MI cables specialized for such bulk bi-directional power flows continue to be the technology of choice, thus driving forward their dominance in the submarine power cable market.

Insights, By Conductor Material: Superior Conductivity Drives Preference for Copper-based Cables

The segment of submarine power cable market based on conductor material is dominated by copper owing to its inherent conductivity advantages. Copper is considered the preferred option especially for long distance and high-capacity networks. Its electrical conductivity of 5.96×107 S/m is nearly twice that of aluminum at 3.54×107 S/m. This allows copper cables to transmit equivalent power outputs with lower core cross sectional areas as compared to aluminum.

Superior conductivity directly helps downsize copper cores and enhances cable loading capacities. Thinner cores in turn provide higher energy densities and lower heights for burial. This permits installation of more circuits per route with the same protection cover thickness.

In addition, copper does not face issues like anodizing encountered in aluminum and remains stable over long operational duration without much deterioration in conductivity. Stable performance over design life of 25-30 years is a critical reliability factor for assets as expensive as submarine networks.

• The increasing collaboration between energy companies and cable manufacturers to develop specialized submarine cables for deeper and more challenging offshore environments.
• Regulatory bodies emphasizing the need for sustainable and environmentally friendly cable systems to minimize ecological impacts.
• Offshore wind power generation is expected to account for majority of the demand in the submarine power cable market by 2031.
• Technological innovations are projected to reduce installation costs by up to 15% over the next decade, significantly driving trends in the submarine power cable market.

The major players operating in the submarine power cable market include Prysmian Group, Nexans S.A., NKT A/S, Sumitomo Electric Industries, Ltd., ZTT Group, Furukawa Electric Co., Ltd., LS Cable & System Ltd., Hengtong Marine Cable Systems, General Cable Corporation, ABB Ltd., Prysmian Group, Jiangsu Zhongtian Technology Co., Ltd., Southwire Company, LLC, and J-Power Systems Corporation.

• In August 2023, Sumitomo Electric Industries announced plans to build a new power cable manufacturing facility in Scotland. The factory is intended to produce high-voltage subsea cables used in offshore wind farms and grid connections. This move is part of Sumitomo Electric's strategy to support the growing renewable energy sector, particularly in Europe.
• In April 2023, Nexans, a global leader in advanced cable and optical fiber solutions, acquired Reka Cables, a Finnish cable manufacturer. This acquisition was strategically implemented to strengthen Nexans' position in the Nordic submarine power cable market.

• By Core Type
  • Single Core Cable
  • Multi-Core Cable
• By Voltage
  • High Voltage
  • Medium Voltage
  • Extra High Voltage
• By Conductor Material
  • Copper
  • Aluminum
• By End Use
  • Offshore Wind
  • Inter-Country & Island Connection
  • Offshore Oil & Gas