Product Code: 54319
The global submarine electricity transmission systems market is expected to grow at a CAGR of more than 11% over the period of 2020-2025. Factors such as the wind turbine power generation sector which is witnessing an increasing share of the offshore wind generation capacity, along with the decrease in cost of offshore wind power generation is expected to drive the submarine electricity transmission systems market. Moreover, with the growing oil and gas activity in the offshore sector, which, in turn, leads to growth in offshore infrastructure, submarine cables are begun to be deployed for connecting the onshore power generation grid to the offshore installations. However, high frequency of maintenance and repair work needed to submarine cables are expected to act as a restraint for the market being studied.
- High-Voltage Direct Current (HVDC) cables is expected to witness a significant growth in submarine electricity transmission systems market as HVDC cables are used for power transmission over longer distances and for system interconnection. For transmission purpose, AC is converted to DC through cables, and back to AC at the other end.
- The increasing demand for HVDC cables for offshore oil rigs, renewable energy generation is expected to act as opportunity for submarine electricity transmission systems market over the forecast period.
- Asia-Pacific is expected to be the fastest growing market for the submarine electricity transmission systems, owing to the offshore oil and gas industry being a hot spot, combined with the development of the offshore wind power sector.
Key Market Trends
HVDC System to Witness a Significant Growth
- The submarine transmission of electricity is gaining importance on account of increasing focus on power trading between countries. The HVDC submarine power transmission system is considered as a key technology for the development of future power transmission networks. It is also the only solution available for the transfer of high power across long subsea distances. For these reasons, HVDC lines are preferred for interconnecting offshore wind plants worldwide.
- In HVDC transmission system, the submarine power cables can be less costly, especially on a long link where the capacitance of the cable requires too much additional charging current. Hence, promulgating the transmission systems market during the forecast period.
- In December 2018, Sumitomo Electric Industries Ltd completed the connection of a high-voltage direct current (HVDC) interconnector cable system between the United Kingdom and Belgium, after the high voltage test. This system transmits a voltage of 400 kV, with crosslinked polyethylene (XLPE) insulated DC cable.
- Factors such as increasing number of offshore wind farms along with inter-connections between countries through submarine cables are expected to increase the demand for submarine transmission systems over the forecast period.
Asia-Pacific to Dominate the Market
- Asia-Pacific region is expected to dominate the submarine electricity transmission systems market, with China leading the market followed by ASEAN countries.
- The Chinese government is actively promoting the development of renewable infrastructure, in order to curb pollution, as well as to reduce the share of thermal power in the country's power generation profile. This is likely to drive the development of wind power projects in the country during the forecast period. In the offshore wind market, China installed 1.8 GW in 2018, taking the lead for the first time, followed by the United Kingdom.
- The Indian offshore wind power market is still in its early stages and has a potential of around 60 GW. The potential areas of the country's offshore wind power are located at the coasts of Gujarat and Tamil Nadu. The Ministry of New and Renewable Energy is focusing on offshore wind power development. In early 2019, MNRE announced a draft offshore wind energy policy.
- Japan and ASEAN countries being a group of island nations, has huge installations between the islands for power transmission. Japan, being an island nation, has many suitable locations for offshore wind power generation. The country analyzed that offshore wind turbines can generate five times more electricity than onshore wind turbines.
- Philippines comprises of over 7,500 islands of which 2,000 islands are inhabited. The majority of the ASEAN countries comprises of a cluster of small islands, where the power generation is not possible on each island. This creates a need for the power transmission between the islands, hence driving the market.
The submarine electricity transmission systems market is moderately consolidated. Some of the key players in the market include ABB Ltd., Siemens AG, Prysmian SpA, NKT A/S, and Nexans SA.
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Table of Contents
- 1.1 Scope of the Study
- 1.2 Market Definition
- 1.3 Study Assumptions
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET OVERVIEW
- 4.1 Introduction
- 4.2 Market Size and Demand Forecast in USD billion, till 2025
- 4.3 Recent Trends and Developments
- 4.4 Government Policies and Regulations
- 4.5 Market Dynamics
- 4.5.1 Drivers
- 4.5.2 Restraints
- 4.6 Supply Chain Analysis
- 4.7 Porter's Five Forces Analysis
- 4.7.1 Bargaining Power of Suppliers
- 4.7.2 Bargaining Power of Consumers
- 4.7.3 Threat of New Entrants
- 4.7.4 Threat of Substitutes Products and Services
- 4.7.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION
- 5.1 End-User
- 5.1.1 Offshore Wind Turbines
- 5.1.2 Offshore Oil and Gas Platforms
- 5.1.3 Intercountry and Island Connectors
- 5.2 System Type
- 5.2.1 HVDC System
- 5.2.2 HVAC System
- 5.3 Geography
- 5.3.1 North America
- 5.3.2 Europe
- 5.3.3 Asia-Pacific
- 5.3.4 South America
- 5.3.5 Middle-East and Africa
6 COMPETITIVE LANDSCAPE
- 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
- 6.2 Strategies Adopted by Leading Players
- 6.3 Company Profiles
- 6.3.1 ABB Ltd
- 6.3.2 Sumitomo Electric Industries Ltd
- 6.3.3 Siemens AG
- 6.3.4 LS Cable & System
- 6.3.5 Nexans SA
- 6.3.6 NKT A/S
- 6.3.7 Norddeutsche Seekabelwerke GmbH(NSW)
- 6.3.8 Prysmian SpA
- 6.3.9 Furukawa Electric Co. Ltd
7 MARKET OPPORTUNITIES AND FUTURE TRENDS