Global Submarine Electricity Transmission Systems Market - Growth, Trends, and Forecast (2018 - 2023)
The global submarine electricity transmission systems market is likely to grow in the near future, owing to the development of overseas power transmission networks. The development of new power generation infrastructure results in an increased requirement of power evacuation system. Submarine power transmission has been in use for more than a century. Earlier, it was widely used for isolated offshore facilities, lighthouses, etc. However, in the recent times, the usage has become widespread, covering offshore wind, longer distance power transmission, network interconnections, increased number of islands connected to mainland grid, etc. Moreover, the power trading between countries is likely to increase, which requires the development of electricity transmission systems between the concerned countries. The submarine transmission of DC electricity can be economically more beneficial than overhead transmission, as break even distance is 50 kilometers. Hence, the long distance power transmission via submarine transmission infrastructure results in economies of scale, which is a big boost for their adoption.
Economic Benefits Driving the Market
Submarine power transmission can be economically more beneficial than overhead transmission, on account of reduction in the total cost of system ownership. The power surplus countries are looking for opportunities to sell electricity to countries that are power starved. The power trading between countries results in an optimal usage of power generation facilities, which requires the availability of the most appropriate systems. The submarine power transmission systems can be very handy in power transportation between countries, which is a big boost for their adoption.
North America Accounts for the Largest Share
The North American segment accounts for the largest share in the submarine electricity transmission systems market, owing to the significant development of offshore power and oil & gas projects. The power transmission via submarine cable to offshore oil & gas platform can eliminate the requirement for onsite power generation. The high electricity demand and development of new transmission infrastructure, including submarine electricity transmission system, are likely to proliferate over the forecast period, owing to a surge in the demand for electricity.
The United States to Dominate the Market’s Growth
The United States is anticipated to dominate the growth of the global submarine electricity transmission systems market, on account of widespread development of offshore projects. The developing offshore wind energy projects in the United States are expected to be connected with grid network on the mainland, through submarine electricity transmission system. Moreover, governments and power suppliers are supporting renewable energy sources, such as off-shore wind power.
Key Developments in the Market