February 25, 2014
Large offshore wind installations helping to drive the market, report concludes
The expansion of offshore renewable power generation, particularly large wind power installations, is helping to drive demand for transmission via high-voltage submarine electricity cables. While this is a small and highly specialized industry, it has shown consistent growth over in recent years, even in the face of a global recession, and is expected to continue to do so over the next several years, as well. Click to tweet: According to a recent report from Navigant Research, the worldwide market for high-voltage submarine electricity cables will grow from $1.9 billion in 2014 to more than $5.3 billion in 2023.
“Countries and regions are making commitments to install offshore renewable power generation, link remote landmasses, and interconnect their national grids,” says Bob Lockhart, research director with Navigant Research. “And as cable technology advances, more projects are being proposed that require longer, deeper, and higher-capacity cables.”
Indeed, one impediment to this sector’s growth has been the constricted supply chain for these highly specialized and expensive products. Only a handful of manufacturers were capable of delivering cables at the capacity and lengths required, and they were inundated with project orders. Recently that has changed, according to the report, as new market entrants from other sectors and other regions of the world have begun stepping in to absorb the excess demand, and established manufacturers have spent significant capital upgrading existing plants and opening new facilities to better address the strong demand.
The report, “Submarine Electricity Transmission”, analyzes the global market for high-voltage submarine cables, including cables to connect offshore renewable energy generation, grid interconnectors, and cables to connect remote landmasses. The study provides an analysis of the significant demand drivers for deploying high-voltage submarine cables and the related market issues. Global market forecasts for demand and revenue from high-voltage submarine cables, segmented by world region, project and cable type, technology, and growth scenario, extend through 2023. The report also examines the main technology issues and profiles the key industry players. An Executive Summary of the report is available for free download on the Navigant Research website.
Contact: Richard Martin
* The information contained in this press release concerning the report, “Submarine Electricity Transmission,” is a summary and reflects Navigant Research’s current expectations based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Navigant Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.