Submarine Electrical System Market Outlook - 2027
The global submarine electrical system market size is experiencing significant growth and is expected to grow considerably in the next few years. Marine transportation is one of the fastest-growing sectors, owing to the rise in world trade demand for container ships, fighter ships, submarines, and cruise. Power supply requirement in these ships is met by submarine electrical systems that can provide high voltage direct current via power transmission systems, which can use direct current for huge power transmission over long routes. Such submarine electrical power systems allow carrying power between countries via submarine cables to offshore installations, for example, ocean science observatories and oil/gas platforms.
COVID-19 scenario analysis:
- To subdue the spread of COVID–19, respective governments have shutdown day-to-day business operations by implementing a full-scale lockdown. Labor shortages and delays in project completion are a few factors hampering the global submarine electrical system industry resulting in a decline in production.
- The global submarine electrical system market has been significantly impacted by the outbreak. New projects throughout the world have stalled.
- The global factories have struggled to manufacture and assemble new devices as workers have stayed in their homes and even the already available devices in various warehouses cannot be transported due to current rules & regulations, which disrupted the global supply chains.
- The impact of COVID-19 on submarine electrical system market is temporary as just the production and supply chain is stalled. Once the situation improves, production, supply chains, and demand for these products are gradually going to increase.
- This is expected to provide opportunities for companies to think about ways of increasing production, research about technologies, and improve current products.
- Companies take the initiative to introduce a new type of production line where they follow social distancing.
Top impacting factors: Market scenario analysis, trends, drivers, and impact analysis
The global submarine electrical system market is likely to grow in the near future due to the development of overseas power transmission networks. The development of power generation infrastructure results in an increased requirement of power evacuation system. The submarine power system has been in use for more than a century. Earlier, it was broadly used for isolated offshore facilities and lighthouses. Though, in recent times, the usage has become widespread, covering offshore wind, long-distance power transmission, network interconnections, and increased number of islands connected to the mainland grid. Furthermore, the power trading between countries is likely to grow, 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. Therefore, the long-distance power transmission via submarine transmission infrastructure results in economies of scale. Attributed to technological innovation and increasing M&A activities, many regional and local vendors are proposing exact application products for diverse end-users, thereby driving the submarine electrical system market growth. However, new players in the market are finding it firm to contend with international vendors based on innovations in technology, reliability, and quality.
Surge in usage in automotive and industrial applications
The wind turbine power generation sector, which is witnessing an increasing share of the offshore wind generation capacity and decrease in the cost of offshore wind power generation are anticipated to drive the submarine electrical system market. Furthermore, the growing oil & gas activity in the offshore sector leads to growth in offshore infrastructure, where submarine cables are being deployed for connecting the onshore power generation grid to offshore installations. Though, high frequency of maintenance & repair work needed for submarine cables is expected to act as constrain for the submarine electrical system market growth.
HVDC system to hold a significant growth in the market
The submarine transmission of electricity is gaining importance on account of growing focus on power trading between countries. The HVDC submarine power transmission system is considered as a major technology for the development of future power transmission networks. It is also the solitary solution available for the transfer of high power across long subsea distances. For these reasons, HVDC lines are chosen for interconnecting offshore wind plants worldwide. In HVDC transmission system, the submarine power cables can be less costly, particularly on a long link where the capacitance of the cable requires too much additional charging current. Factors, such as rising number of offshore wind farms and inter-connections between countries through submarine cables, are expected to increase the demand for submarine transmission systems over the forecast period.
Key benefits of the report:
- This study presents the analytical depiction of the global submarine electrical system industry along with the current trends and future estimations to determine the imminent investment pockets.
- The report presents information related to key drivers, restraints, and opportunities along with a detailed analysis of the global submarine electrical system market share.
- The current market is quantitatively analyzed to highlight the global submarine electrical system market trends and growth scenario.
- Porter’s five forces analysis illustrates the potency of buyers & suppliers in the market.
- The report provides a detailed submarine electrical system market analysis based on competitive intensity and how the competition will take shape in the coming years.
Questions answered in the submarine electrical system market research report:
- Which are the leading market players active in the market?
- What are the current trends that will influence the market in the next few years?
- What are the driving factors, restraints, and opportunities of the submarine electrical system market?
- What are the projections for the future that would help in taking further strategic steps?
Submarine Electrical System Market Report Highlights
By Industry Vertical
Key Market Players
Lürssen, Athlon Solutions, Kongsberg Gruppen, Louis&kemner, Navantia, General Dynamics Electric Boat Corp., Huntington Ingalls Industries, Siemens AG, Lockheed Martin Corp., ThyssenKrupp Marine Systems