Europe Submarine Power Cable Market Growth and Outlook
Market Overview
The Europe submarine power cable market is projected to grow from US$ 4,830.38 million in 2021 to US$ 7,268.67 million by 2028, representing a CAGR of 6.0% during the forecast period. This growth is primarily driven by increasing investments in offshore wind energy projects, requiring extensive submarine power cable infrastructure for efficient energy transmission.
Key Growth Drivers
1. Surge in Offshore Wind Energy Investments
The increasing focus on renewable energy has led to substantial investments in offshore wind farms. Electricity generated by offshore wind turbines is transmitted to land via submarine power cables, making them an essential component of renewable energy infrastructure. Key investment highlights include:
- UK’s Offshore Wind Expansion: In 2021, the British government announced that GRI Renewables Industries and Siemens Gamesa invested over US$ 360.70 million (£260 million) in offshore wind manufacturing facilities in Northeast England.
- European Offshore Wind Investments: According to WindEurope, in 2020, the European offshore wind sector attracted approximately US$ 31.7 billion (€26 billion) in investments. These funds are expected to support 7.1 GW of offshore wind capacity over the next few years.
- Government & Private Sector Contributions: The UK government, in August 2021, committed US$ 360 million (£260 million) towards next-generation wind turbine development, aiming to expand offshore wind manufacturing across the Humber region.
Such large-scale investments underscore the critical role of submarine power cables in enabling offshore wind energy transmission, thereby driving market growth.
Regional Market Analysis
The Europe submarine power cable market is segmented into key countries, including France, Germany, Italy, the UK, Russia, and the Rest of Europe. Europe leads in offshore wind energy generation and consumption, with an extensive network of bottom-fixed and floating wind farms.
Offshore Wind Capacity and Infrastructure Growth
- In 2019, Europe installed a record 3.6 GW of offshore wind capacity, necessitating significant infrastructure investments.
- The European governments’ National Energy and Climate Plans target 111 GW of offshore wind capacity by 2030, requiring a near tripling of annual installation rates.
- In 2020, Europe added 2.9 GW of offshore wind capacity, with 356 new turbines connected across nine wind farms.
- As of 2020, Europe’s total offshore wind capacity reached 25 GW, spanning 5,402 grid-connected turbines across 12 countries.
- In the same year, US$ 30.08 billion was invested in new offshore wind assets to fund an additional 7.1 GW of capacity.
These advancements highlight Europe’s commitment to expanding offshore wind energy, which in turn boosts demand for submarine power cables.
Strategic Insights for Industry Players
Understanding strategic dynamics within the submarine power cable market is crucial for stakeholders, including investors, manufacturers, and policymakers. Key strategic insights include:
- Market Differentiation: Identifying untapped segments and developing unique value propositions to gain a competitive edge.
- Data-Driven Decision Making: Leveraging analytics to anticipate market shifts and align business strategies accordingly.
𝐃𝐨𝐰𝐧𝐥𝐨𝐚𝐝 𝐏𝐃𝐅 𝐁𝐫𝐨𝐜𝐡𝐮𝐫𝐞 – https://www.businessmarketinsights.com/sample/BMIRE00028097 - Future Growth Opportunities: Positioning investments and infrastructure developments to meet long-term energy transition goals in the European region.
By integrating these insights, stakeholders can make informed decisions to enhance profitability and establish a strong foothold in this evolving market.
Business Market Insights is a market research platform that provides subscription service for industry and company reports. Our research team has extensive professional expertise in domains such as Electronics & Semiconductor; Aerospace & Défense; Automotive & Transportation; Energy & Power; Healthcare; Manufacturing & Construction; Food & Beverages; Chemicals & Materials; and Technology, Media, & Telecommunications Author’s Bio:
Akshay
Senior Market Research Expert at Business Market Insights
