Submarine power cable: Key market research findings
- Increasing demand for power generation boosts growth in the market
- EMEA dominates the market geographically
- Key vendors – ABB, General Cable, Nexans, nkt cables, Prysmian, and Sumitomo
Technavio’s market research analysts predict the global submarine power cable market to grow at a CAGR of around 6% between 2016 and 2020. The recent rise in demand for power generation is the fundamental driving force behind the growth of this market. The increase in the number of countries that have renewable power generation targets and policies is resulting in an increase in renewable power production; thus, augmenting the need for adequate and reliable power transmission that is provided by the smart grid. During 2020, EMEA is likely to continue its market dominance by accounting for a market share of almost 47%. The growth of the market in this region can be accredited to the presence of well-established renewable energy infrastructures in the region.
The new market research report from Technavio presents a breakdown and analysis of the submarine power cable segments based on the end-user.
“Recently, the raw material prices have been undergoing consistent fluctuations. Volatile prices of copper, aluminum, and other necessary raw materials, along with fuel and energy costs, lead to significant volatility in the cost of sales or revenue of cable manufacturers. Vendors are resorting to negotiated price changes in the final product in an attempt to overcome the pricing instability of raw materials,” says Anju Ajaykumar, Lead Analyst, Heavy Industry, Technavio Research.
The offshore wind generation segment accounted for more than 47% of the market and is expected to grow further during the forecast period. Offshore wind resources generate more energy by using fewer turbines than conventional electricity grids. The majority share of the world’s offshore wind power generation capacity is installed off northern Europe. Increase in offshore wind power installations across the globe is expected to boost growth in this segment during the forecast period.
The key vendors in the market include ABB, General Cable, Nexans, nkt cables, Prysmian, and Sumitomo. The market is cost-driven and appears to be mature. Submarine power cable manufacturers constantly compete on the basis of product price and quality, range of products, delivery time, environmental impact of the products, and the ability to meet customer requirements. The degree of vendor competition in the market varies according to the operating segment and product line offered by the vendors. As submarine cable companies have started to focus on increasing their production line efficiency to reduce order backlogs, the market is expected to witness an upsurge in R&D investments in the next four years.
A more detailed analysis is available in the Technavio report, Global Submarine Power Cable Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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