Subsea Power Grid Market

Subsea Power Grid Market Size Analysis

According to a recent survey conducted by ChemView Consulting, the Global Subsea Power Grid Market grew at a CAGR of 9.5% between 2017-2021 and is estimated to be US$ 7,912.3 Mn in 2022. Currently, the market is anticipated to grow at a CAGR of 11.0% and is expected to reach a valuation of US$ 22,466.4 Mn by 2032 end.

Throughout the projected period, the market is anticipated to grow in response to rising demand for dependable and continuous power supply from end-use industries such as industrial, telecom, data centers, maritime, and medical.

Market Dynamic

GROWING DEEPWATER FOSSIL FUEL ESCALATION & INCREASING ACCESSIBILITY TO LOW-COST WIND FARMS WILL BOOST THE SUBSEA POWER GRIND MARKET

The deepwater exploration and development operators are encouraged by extraordinary technological developments, the depletion of fossil fuel sources on land, and offshore operations’ economic feasibility.

Wind turbine technology development over the years has led to a significant drop in wind generation costs. The increase in deepwater exploration for oil and gas operations further fuels the international market for electric grid systems. The degradation of fossil energy deposits situated on land also supports this tendency. In the coming years, producers and other industry participants are likely to benefit from attractive development and expansion prospects due to the enhanced accessibility and simplicity of access to wind turbine technology

LOW-COST  ONSHORE POWER PRODUCTION HAMPERS THE MARKET GROWTH

The cost of generating electricity from wind, geothermal, hydroelectric, and biomass energy facilities is similar or less expensive than generating energy from gas, coal, and petrol engine facilities. Additionally, the cost of power generated by wind and solar energy has diminished, making it more reasonable to generate power using wind and solar resources than other renewable power worldwide. Additionally, the cost of generating electricity in marine production of oil and gas facilities is significantly higher than that of conventional energy sources like gas, coal, and petroleum.

THE READILY AVAILABLE TECHNOLOGY ON OFFSHORE WILL CREATE MORE OPPORTUNITIES FOR THE MARKET

Floating wind generators offer an attractive alternative to the typical offshore turbine array, which can be adapted to only a limited number of localized areas. As a result, floating turbines function considerably less resistance and are built as a single unit. Moreover, since they can be placed in areas that may not have sufficient depth or distance from shore, they can be placed out at sea where there is greater wind strength and, thus, power output.

Offshore wind energy is a new, emerging, and rapidly growing source of renewable energy technology. With government support and encouragement, there has been an incredible rise in offshore wind farm investments in recent years. The oceans have over 80% of the world’s marine waterways, providing significantly more resources than land-based sources like wind farms. This makes the offshore sector appealing for investors looking for a long-term return on their investment with minimal risk of fluctuations.

Market Segments Covered in Report

By Component:

• Cables
• Variable Speed Drives
• Transformers
• Switchgears
• Others (connectors, actuators, sensors, and penetrators)

By Application:

• Captive Generation
• Wind Power
• Others (tidal power, solar power, and diesel & gas based floating power plants)

By Depth:

• Shallow Water
• Deepwater

By Region and Country:

• North America (U.S., Canada)
• Latin America (Brazil, Mexico, Rest of Latin America)
• Europe (Germany, Italy, France, UK, Spain, Netherlands, Norway, Russia, Rest of Europe)
• Asia-Pacific (China, Japan, South Korea, India, Indonesia, Thailand, Vietnam, Australia & New Zealand, Rest of Asia-Pacific)
• Middle East (Saudi Arabia, Turkey, UAE, Rest of Middle East)
• Africa (South Africa, Nigeria, Egypt, Rest of Africa)

Segment-Wise Analysis

Why are speed variable control drives projected to ensure the most growth during the forecast period?

The subsea industry has been experiencing constant growth, particularly regarding deploying Variable Speed Drives (VSD). The speed control drives market is anticipated to be the other subsea industry throughout the projected timeframe. Subsea VSDs can handle various voltage and energy demands, including high-power requirements for devices like boosters, dry and wet gas compressors, injector motors, and lesser-power devices like a submarine and scrubbing impellers.

Why is the captive-generating segment expected to have the highest revenue during the forecast period?

In 2021, the captive-generating sector market will rule in terms of revenue, with a market share of 40.0%. The subsea captive generating electric grid is a system that acts as a medium for supplying and distributing electricity from various sources in the deep sea, located within 500 meters of the shoreline.

It differs from conventional land-based power distribution systems due to its long-distance transmission and large scale. Based on the expanding use of satellite wells for subsea field advances, the rising number of subsea activities, and the rising amount of Deepwater drilling operations, the need for a captive generating system is continually developing in captive generating applications.

Why is the shallow water segment expected to emerge as the largest market during the forecast period based on depth?

The market in shallow water is anticipated to lead the subsea as major oil and gas exploration, and production activities are performed in shallow waters. The Asia Pacific is likely to lead the market in subsea for the shallow water segment during the review period, followed by the Middle East.

Region-Wise Analysis

The regions analyzed for the market include North America, Europe, Latin America, Asia Pacific, Middle East, and Africa.

• In 2021, the North American market held a sizeable revenue share of 28.9%. North America is expected to hold a significant market share in the forecast period. In this region, governments have taken measures to promote renewable energy and limit emissions of greenhouse gases. North American countries are keen on utilizing renewable sources such as solar and wind, which has significantly increased demand for these sources over the past few years. Furthermore, governments in these regions are taking up incentives regarding offering subsidies for green energy technologies. In the future, these factors are expected to boost the growth of the North American market
• Due to the significant desire for renewable energy sources and the favorable government regulations in these regions, the European region makes up most of the contributors to the worldwide subsea market. Most European nations primarily emphasize the expansion of renewable energy resources. Countries like the UK, Norway, the Netherlands, and Germany are leading the development of renewable energy capacity.

Competition Analysis

By increasing the number of products and services, major corporations are strengthening their position in the market. This has helped market participants provide better consumer services, improve their customer base, and increase revenue. The Power Grid System industry has an increasing demand for this product for its profitable business model.

Some of the key developments that have taken place in the Subsea Power Grid Market include:

• In August 2021, To work together on developing offshore wind energy systems in Poland, General Electric (GE) affiliate Generation Of Renewable Power and PKN ORLEN signed a contract.
• In January 2022, A concession was granted to Nexans under the framework contract to manufacture around 110 kilometers of high-voltage offshore cables by South Fork Winds, a partnership between rested and Eversource. A three-phase 138 kV high-voltage alternating circuit (HVAC) subsea exporting cable and two fiber optic cables would be coupled to transport 132 megawatts of power to Long Island, New York.

A list of some of the key suppliers present in the market are:

• ABB
• Aker Solutions ASA
• Apar Industries
• Baker Hughes
• Deep C
• DEME
• Furukawa Electric Co., Ltd.
• General Electric
• Hitachi Energy
• Intertek Group
• J+S Subsea
• LS Cable & System
• Nexans
• NKT
• Oceaneering International
• Prysmian Group

Report Coverage and Highlights

• Our comprehensive, data-backed, and facts-oriented report provides niche and cross-sectional analysis at global and country levels.
• Assessment of the historical (actual data) and current market size (2017-2021), market projections (2022-2032), and CAGR.
• The market assessment across North America, Europe, East Asia, South Asia & Pacific, Latin America, Middle East, and Africa.
• Competitive tactical intelligence, key strategies adopted by top players, production capacity and company shares analysis, product brand surveys, and export-import analysis
• Pricing analysis to set and benchmark your current or future offerings across each product type helps you understand whether your pricing strategy is aligned with market expectations and can be compared to market disruptions.
• Predictions on critical supply and demand trends and technological expertise needed to address operations scalability.
• Consumer behavior shifts and their implications for players, list of end-users, and their consumption analysis.
• Key drivers, restraints, opportunities, and emerging trends impacting the market growth.
• Value chain analysis (list of manufacturers, distributors, end-users, and average profitability margins).
• Strategic market analysis, recommendations, and future headways on crucial winning strategies.