In 2016, the global offshore wind power market demand for submarine power cables exceeded 2.1 billion U.S. dollars, accounting for 47% of the total market. Offshore wind turbines generate more electricity than traditional turbines.
Regionally, more than 80% of offshore wind turbines are installed in Europe. European countries plan to achieve more than 20% of renewable energy by 2030. To achieve this goal, all European countries are developing the offshore wind market through cooperation. For example, Germany, Spain, Italy and the United Kingdom are spending heavily to build offshore wind farms.
On the other hand, in recent years, the Asia-Pacific region represented by China and India is increasing its investment in offshore wind power. It is estimated that the combined annual growth rate of demand for submarine power cables in Asia-Pacific region will exceed 6% by 2021, The global average.
Cross-sea connections, especially those between islands or between countries, are mainly achieved through submarine power cables. In 2016, the proportion of cross-harbor grid connections to the entire market exceeded 37%.
According to the International Energy Agency data, in sub-Saharan Africa and developing Asia, the number of people without electricity exceeds 1 billion. In order to realize the electricity supply in these areas, the demand for submarine power cables will continue to expand. For example, the Indian government has taken a plan to meet the growing demand for electricity, especially expanding the amount of electricity generated from renewable sources. In Africa, the benefits of a stable power supply in the off-grid areas are also being achieved through microgrid systems powered by renewable energy.
Gaurav, principal researcher at Technavio, said: "The increase in electricity demand is expected to promote electricity imports, which will result in an increase in demand for submarine power cables." Affordable and stable electricity is essential for life and commerce. "In developing island countries and regions, Submarine power cables will be an important means of improving the supply of weak electricity. "
In 2016, offshore oil demand for submarine power cables accounted for about 10% of the total market. The depletion of onshore reserves has forced companies to focus on finding new reserves in remote areas or the sea, which has been driving offshore drilling services. Drilling offshore requires more time than onshore drilling, which also leads to long-term contracts for drilling rigs. The shift to offshore drilling and ultra-deep drilling has added complexity to the overall process, stimulating the market's demand for submarine power cables.