Dublin, April 18, 2022 (GLOBE NEWSWIRE) -- The "Global Subsea Power Grid System Market by Component (Cables, Variable Speed Drives, Transformers, Switchgears), Application (Captive Generation, Wind Power), Depth (Shallow Water and Deepwater) and Region - Forecast to 2027" report has been added to ResearchAndMarkets.com's offering.
The global subsea power grid system market is expected to grow from an estimated USD 9.1 billion in 2022 to USD 14.8 billion in 2027, at a CAGR of 10.2% during the forecast period. The subsea power grid comprises of several components such as cables, transformers, variable speed drives, switchgears, and others used for various applications such as captive generation, offshore wind power, and other applications.
Favourable government policies for offshore renewable power production, especially using wind energy along with urgent need to reduce carbon emissions and improve grid reliability and efficiency is expected to drive the demand for subsea power grid systems. The potential of tidal energy to meet subsea power requirements and easy access of wind turbine technology to offshore locations are expected to offer lucrative opportunities for the subsea power grid system market during the forecast period.
However, the shortage of technical professionals in subsea industry, low cost of onshore electricity generation, and climatic challenges pertaining to operations of offshore wind farms may act as challenges restraints for the subsea power grid system market.
The wind power segment, by application, is expected to record the highest CAGR from 2022 to 2027
The subsea power grid system market, by application, has been broadly classified into wind power, captive generation, and Others. The others segment includes solar power, tidal power and gas & diesel based floating power plants. The wind power segment is expected to record the highest CAGR from 2022 to 2027. The increase in the use of subsea power cables in long-distance HV power transmission applications propel the growth of the subsea power grid system market for wind power. Medium-voltage subsea power cables are often used to connect offshore wind platforms to distant onshore installations.
However, high-voltage subsea power cables are preferred for offshore wind power farms installed with many turbines. According to China's National Energy Administration (NEA), 16.9 GW of offshore wind power projects were commissioned in 2021 compared to 9.49 GW installed capacity in 2020.
Countries such as the UK, Germany, China, Japan, and Taiwan have plans to invest significantly to expand and develop their regional offshore wind energy industry. These factors are expected to fuel the demand for subsea power grid systems for offshore wind power generation during the forecast period.
Cables are expected to emerge as the largest segment based on component
The subsea power grid system market, on the basis of component, has been segmented into cables, transformers, switchgears, variable speed drives, and others. The others segment includes connectors, actuators, sensors, and penetrators. The cables segment, by component, is expected to dominate the subsea power grid system market during the forecast period. The adoption of subsea power cables has been mainly driven by the HV power transmission and offshore oil & gas industries. Subsea power cables are widely used to link shore-based power grids.
These cables carry power from one country to another, as well as from one offshore platform to another, and transfer power from offshore renewable energy generation plants, which use wind, wave, and tidal energy to generate electricity; regional electrical transmission networks; etc.
Europe: The largest power grid system market in subsea
The subsea power grid system market has been analyzed for 5 regions, namely Asia Pacific, North America, Europe, Middle East & Africa, South America. Europe is expected to dominate the global power grid system market in subsea between 2022-2027, followed by Asia Pacific and North America. Europe and Asia Pacific are the major contributors to the global power grid system market in subsea owing to the strong demand for renewable energy sources and favorable government policies in these regions.
Most countries in Europe are mainly focusing on renewable energy capacity addition. Countries such as Germany, the UK, the Netherlands, and Norway are leading the renewable energy capacity addition. The growth of the subsea power grid system market is supported by the European Wind Initiative (EWI), a wind energy R&D program developed to take the wind industry to the next level in Europe.
Market Dynamics
Drivers
- Increased Deepwater Oil and Gas Exploration Activities due to Depleting Onshore Fossil Fuel Reserves
- Favorable Government Policies for Offshore Renewable Power Production, Especially Using Wind Energy
- Urgent Need to Reduce Carbon Emissions and Improve Grid Reliability and Efficiency
Restraints
- High Operational and Technological Risks
- Greater Energy Losses Witnessed During Long-Distance Power Transmission
Opportunities
- Potential of Tidal Energy to Meet Subsea Power Requirements
- Easy Access of Wind Turbine Technology to Offshore Locations
Challenges
- Shortage of Technical Professionals in Subsea Industry
- Low Cost of Onshore Electricity Generation
- Climatic Challenges Pertaining to Operations of Offshore Wind Farms
Companies Mentioned
- ABB
- Aker Solutions Asa
- Apar Industries Ltd.
- Baker Hughes
- General Electric
- Hitachi Energy
- Ls Cable & System Ltd.
- Nexans
- NKT
- Oceaneering International
- Prysmian Group
- Schlumberger
- Schneider Electric
- Siemens Energy
- Ssg Cable
- Sumitomo Electric Industries, Ltd.
- Te Connectivity
- Technipfmc
- Teledyne Marine
- ZTT
For more information about this report visit https://www.researchandmarkets.com/r/xbeye
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