The global submarine power cable market to grow at a CAGR of 5.89% during the period 2016-2020.
The report covers the present scenario and the growth prospects of the global submarine power cable market for 2016-2020. In order to arrive at the market size, we have considered the revenue of key vendors operating in the global submarine power cable market. The report considers revenue generated from various end-user industries such as offshore wind power generation, inter-country and island connection, and offshore oil rigs. The revenue generated from the submarine power cable market across regions has been considered for market size calculation.
A trend which is boosting market growth is the rise in the sales of HVDC power cables. The HVDC underground power cable is a viable option for long distance and high-voltage safe power transfer. The European Commission has selected 43 major energy projects to build cross-border infrastructure that can create a potential internal energy market and also enhance energy security. In these projects, high loads of electricity need to be transferred from one European country to another. HVDC cables are expected to become a viable option for such assignments in the coming years.
According to the report, a key driver of market growth is the rise in offshore renewable energy. Rising global demand for renewable energy generation has resulted in considerable increase in the number of offshore wind farms. Submarine power cables play a vital role in transporting the new generated power from these wind farms onshore. These cables facilitate effective integration of renewable energies. This interconnection capacity increases the volume of renewable energy production that a system is capable of integrating under secure conditions.
Further, the report states that one challenge that could hamper market growth is issues faced during the laying of cables.