Subsea Power Grid Systems Market Analysis: Growth, Size, Share & Future Trends (2024-2029)
The report covers a comprehensive analysis segmented by Depth Type (Deep-sea Power Supply Systems, Shallow Sea Power Supply Systems), by Products (Cables, Variable Speed Drivers, Transformers, Switchgear, Others), by End User (Production Facilities, Drilling rigs, Floating Production Systems, Offshore Installations in Oil and Gas Industry, Others), by Geography (North America, South America, Asia Pacific, Europe, The Middle East, Africa)
Subsea Power Grid Systems Market Snapshot
Subsea Power Grid Systems Market Overview
The global subsea power grid systems market is estimated to be at $11.38 Bn in 2024 and is anticipated to reach $17.08 Bn in 2029. The global subsea power grid systems market is registering a CAGR of 8.46% during the forecast period 2024-2029.
A subsea power grid system is a network that provides power transmission and distribution solutions underwater, enabling the transfer of electricity for various applications. These systems are crucial for offshore oil and gas exploration, offshore wind energy installations, and underwater cable networks. Subsea control systems are also being developed to manage and distribute power from offshore wind farms. The use of subsea power grid systems in offshore wind energy generation can reduce the need for expensive and complex surface infrastructure, making it a cost-effective and environmentally friendly solution. Additionally, the modular design of subsea power grid systems allows for easy downrating or uprating, making them adaptable to various power requirements.
Subsea power grids utilize components like transformers, switchgear, variable speed drives, and high-voltage direct current (HVDC) transmission systems. They support reliable and efficient power transmission, contributing to advancements in industrial and scientific exploration, renewable energy sharing, and intercontinental power exchange. Additionally, by giving the increasing demand for reliable and efficient power transmission in offshore activities such as oil and gas exploration and offshore wind power generation, the subsea power grid systems market is experiencing significant growth.
Furthermore, technological advances in subsea power grid system technologies, including improved insulation materials, connectors, and high-voltage direct current (HVDC) transmission systems, are increasing the efficiency, reliability, and performance of these systems. Similarly, increasing adoption of renewable energy sources such as offshore wind farms and development of deep offshore fields are also contributing to the expansion of the market. The market scope includes an exclusive and in-depth study of the global subsea power grid systems market segmented by components, power supply, and geography.
​​​Subsea Power Grid Systems Market Coverage
| Historical & Forecast Period | 2018-2029 |
| Base Year | 2023 |
| Forecast Period | 2024-2029 |
| Units | Billion US$ |
| Segments | Type, Products, End User |
| Geographies | North America, South America, Asia Pacific, Europe, the Middle East, Africa |
| Key Vendors | ABB Group, Siemens Energy AG, General Electric Co. Prysmian S.p.A, JDR Cable Systems Ltd. |
Key Geographies of Subsea Power Grid Systems Market, 2023
Porter’s 5 Forces Analysis of Subsea Power Grid Systems Market
Subsea Power Grid Systems Market Trends
The latest technological advancements in subsea power grid systems include the development of subsea variable speed drives (VSDs) to reduce cabling costs and accommodate a wide range of power and voltage demands. Additionally, there is a growing focus on renewable energy sources, particularly offshore wind energy, with the development of larger turbines and higher capacity systems. The integration of subsea phase compensation equipment and the reduction of frequency in AC power transmission are also significant advancements in the subsea power grid system market. Furthermore, there is a growing trend towards local energy harvesting and subsea energy storage to support advanced, all-electric technologies, minimize cost, and reduce the CO2 footprint. Some other trends in sub-sea power grid systems include the increasing demand for reliable and efficient power distribution in offshore installations.
The increase in offshore renewable energy projects such as wind farms and tidal energy, technological advancements in sub-sea power cables, connectors and distribution systems are also fueling the market. The growing adoption of renewable energy sources, particularly offshore wind energy, due to rising energy demand and environmental concerns is also becoming a trend. Technological advancements in wind turbine, such as the development of larger turbines with higher capacity, are also fueling the market. The market scope includes an exclusive study of the global subsea power grid systems market, segmented by components, power supply, and geography.
Digitalization and automation have a significant impact on the subsea power grid system, particularly in the areas of data analysis, decision-making, and cost reduction. The integration of digital technologies, such as machine vision, AI, and neural networks, has improved the efficiency and accuracy of subsea infrastructure monitoring, reducing the need for manual processes and enhancing safety. The use of automation and AI in data analysis has also led to faster decision-making and the optimization of business processes, resulting in significant cost savings and improved quality and safety.
Subsea Power Grid Systems Market Driving Factors
Some of the factors driving the growth of the subsea power grid system market include increasing investment in offshore infrastructure, especially offshore oil and gas exploration activities and expansion of offshore wind farms. The growth of the market is primarily driven by factors such as increasing offshore oil and gas exploration, growing offshore wind energy installations, expansion of underwater cable networks, and government initiatives promoting renewable energy sources. Similarly, technological advancements in subsea power grid system technologies, such as improved insulation materials, connectors and HVDC transmission systems, etc., enhance the efficiency, reliability and performance of these systems, further fueling market growth.
The global focus on renewable energy sources and environmental sustainability, supported by government initiatives and regulations, significantly contributes to the expansion of the market. The market has witnessed significant growth driven by factors such as increasing investment in offshore infrastructure, particularly oil and gas exploration activities and expansion of offshore wind farms. The increasing exploration and production of offshore oil and gas wells, along with the need for more efficient power transmission and distribution solutions, are further fueling the growth of the subsea power grid system market. Additionally, the development of subsea variable speed drives (VSDs) is gaining traction as they help reduce cabling costs and accommodate a wide range of power and voltage demands, making them suitable for various applications in the oil & gas industry.
Subsea Power Grid Systems Market Challenges
Some major challenges facing by the market include high costs, especially for projects with budget constraints or uncertain financial feasibility, technical challenges, and technology to enhance efficiency. The demand for environmentally sustainable and eco-friendly products is increasing and making it a challenge for the market to keep pace with these trends. Some of the technical challenges facing undersea power grid systems include reliability-focused configurations to increase efficiency and reliability, efficient interconnection methods, etc. Similarly, performance in harsh underwater conditions and the development of advanced insulation materials, underwater connectors, and high voltage direct current (HVDC) transmission system are also big challenge.
The challenges in the installation and maintenance of cables in a subsea power grid system lie in ensuring reliability and minimizing failures. Factors like cable design, manufacturing quality, installation precision, and protection against external hazards are critical. Additionally, challenges include selecting suitable materials, managing lay tensions, addressing deepwater deployment issues, and establishing efficient repair procedures like creating Omega loops. Monitoring systems, geophysical surveys, and early warning mechanisms are vital for maintenance.
Subsea Power Grid Systems Market – Key Industry News
- In Sep 2023, India and Saudi Arabia have agreed to build an undersea electricity grid interlink, focusing on renewable power and green hydrogen capacities, aiming to transform their traditional oil buyer-seller relationship into an energy transition partnership.
- In March 2024, Ofgem provisionally approved £3.4 billion in funding for the Eastern Green Link 2 (EGL2), a 2GW subsea and underground electrical cable connecting Scotland and Yorkshire. This project represents a significant investment in electricity transmission infrastructure.
Subsea Power Grid Systems Market Competitive Landscape
The participants in the global subsea power grid systems industry are always developing their strategies to preserve a competitive advantage. Companies primarily use acquisitions, R&D, partnerships, and technological launches. Several important entities in the subsea power grid systems market include ABB Group, Siemens Energy AG, General Electric Co., Prysmian S.p.A, JDR Cable Systems Ltd., and others. There is a mix of established industry leaders and innovative players who are striving to meet growing demand, ensure competitive effectiveness, and develop innovative products and technologies. Key players focus on leveraging opportunities for expansion of manufacturing facilities, R&D investment, infrastructural development and integration across the value chain to meet the market needs. The market is expected to witness significant growth, with cables projected to experience the highest growth due to their use in offshore oil and gas exploration and production activities.
Subsea Power Grid Systems Market Company Share Analysis, 2023 (%)
Subsea Power Grid Systems Market – Key Companies
Reason to Buy from us
Table of Contents
| 1. Introduction |
|---|
| 1.1. Research Methodology |
| 1.2. Scope of the Study |
| 2. Market Overview / Executive Summary |
| 2.1. Global Subsea Power Grid Systems Market (2018 – 2022) |
| 2.2. Global Subsea Power Grid Systems Market (2023 – 2029) |
| 3. Market Segmentation |
| 3.1. Global Subsea Power Grid Systems Market by Depth Type |
| 3.1.1. Deep-sea Power Supply Systems |
| 3.1.2. Shallow Sea Power Supply Systems |
| 3.2. Global Subsea Power Grid Systems Market by Products |
| 3.2.1. Cables |
| 3.2.2. Variable Speed Drivers |
| 3.2.3. Transformers |
| 3.2.4. Switchgear |
| 3.2.5. Others |
| 3.4. Global Subsea Power Grid Systems Market by End User |
| 3.4.1. Production facilities |
| 3.4.2. Drilling rigs |
| 3.4.3. Floating production systems |
| 3.4.4. Offshore installations in oil and gas industry |
| 3.4.5. Others |
| 4. Regional Segmentation |
| 4.1. North America |
| 4.1.1. The U.S |
| 4.1.2. Canada |
| 4.1.3. Mexico |
| 4.2. South America |
| 4.2.1. Brazil |
| 4.2.2. Argentina |
| 4.2.3. Colombia |
| 4.2.4. Chile |
| 4.2.5. Rest of South America |
| 4.3. Asia Pacific |
| 4.3.1. China |
| 4.3.2. India |
| 4.3.3. Japan |
| 4.3.4. South Korea |
| 4.3.5. Rest of Asia Pacific |
| 4.4. Europe |
| 4.4.1. UK |
| 4.4.2. Germany |
| 4.4.3. Italy |
| 4.4.4. France |
| 4.4.5. Spain |
| 4.4.6. Rest of Europe |
| 4.5. The Middle East |
| 4.5.1. Turkey |
| 4.5.2. UAE |
| 4.5.3. Saudi Arabia |
| 4.5.4. Rest of the Middle East |
| 4.6. Africa |
| 4.6.1. Egypt |
| 4.6.2. South Africa |
| 4.6.3. Rest of Africa |
| 5. Value Chain Analysis of the Global Subsea Power Grid Systems Market |
| 6. Porter Five Forces Analysis |
| 6.1. Threats of New Entrants |
| 6.2. Threats of Substitutes |
| 6.3. Bargaining Power of Buyers |
| 6.4. Bargaining Power of Suppliers |
| 6.5. Competition in the Industry |
| 7. Trends, Drivers and Challenges Analysis |
| 7.1. Market Trends |
| 7.1.1. Market Trend 1 |
| 7.1.2. Market Trend 2 |
| 7.1.3. Market Trend 3 |
| 7.1.4. Market Trend 4 |
| 7.1.5. Market Trend 5 |
| 7.2. Market Drivers |
| 7.2.1. Market Driver 1 |
| 7.2.2. Market Driver 2 |
| 7.2.3. Market Driver 3 |
| 7.2.4. Market Driver 4 |
| 7.2.5. Market Driver 5 |
| 7.3. Market Challenges |
| 7.3.1. Market Challenge 1 |
| 7.3.2. Market Challenge 2 |
| 7.3.3. Market Challenge 3 |
| 7.3.4. Market Challenge 4 |
| 7.3.5. Market Challenge 5 |
| 8. Regulatory Landscape |
| 9. Competitive Landscape |
| 9.1. ABB Group |
| 9.2. Siemens Energy AG |
| 9.3. General Electric Co. |
| 9.4. Prysmian S.p.A |
| 9.5. JDR Cable Systems Ltd. |
| 9.6. Company 6 |
| 9.7. Company 7 |
| 9.8. Company 8 |
| 9.9. Company 9 |
| 9.10. Company 10 |
Subsea Power Grid Systems Market – Frequently Asked Questions (FAQs)
What is the current size of the global subsea power grid systems market?
The market size for the global subsea power grid systems market in 2024 is $11.38 Bn.
Who are the major vendors in the global subsea power grid systems market?
The major vendors in the global subsea power grid systems market are ABB Group, Siemens Energy AG, General Electric Co., Prysmian S.p.A, JDR Cable Systems Ltd.
Which segments are covered under the global subsea power grid systems market segments analysis?
This report offers in-depth insights into each depth type, products, end user.