Research Estimates Over 300 Installed Submarine Cables by 2023
Demand for high-voltage submarine electricity cables is growing steadily, as countries and regions make commitments to offshore renewable power generation, link remote landmasses, and interconnect their national grids. As cable technology advances, more projects are being proposed that require longer, deeper, and higher-capacity cables.
According to a new report from Navigant Research, the number of installed submarine cables will grow from 110 in 2013 to 304 in 2023, according to a conservative forecast. Under a more aggressive scenario, that number could reach 453 by 2023.
“Only a few companies have the capability to construct and install high-voltage submarine cable, and the constricted supply chain for these highly specialized and expensive products has limited the industry’s growth in the past,” says Bob Lockhart, research director with Navigant Research. “The tide has changed, with market entrants from other sectors and other regions of the world beginning to step in to absorb the excess demand.”
While the economic downturn of the past few years has slowed the number of project installations, many governments and organizations remain committed to the types of projects that drive new high-voltage submarine cable installations, according to the report. Offshore wind farms and grid interconnectors remain a focus of the European Union’s 20-20-20 goal. Further, developing nations in Asia Pacific are requiring larger and more complex cables for their grid and island interconnectors, opening up new opportunities for existing companies.
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.
Press Release, November 26, 2013