Subsea Power Grid Market

Global Subsea Power Grid Market Size (2024-2032):

The size of the global subsea power grid market was worth USD 9.84 billion in 2023. The global market is anticipated to grow at a CAGR of 10.2% from 2024 to 2032 and be worth USD 23.58 billion by 2032 from USD 10.84 billion in 2024.

Market Scenario

The worldwide market is experiencing decent expansion based on increased energy call and significant investment for offshore oil field development around the world, especially in Africa and the Americas. Africa has the largest market share, followed by Latin America and Europe. On the basis of subsea power grid system components, the industry is led by cables owing to the long-distance connections of the energy-consuming devices on the seabed, making it the biggest end component of the subsea power grid, Firms involved in subsea power grid solutions are growing into developing industries like Africa and Latin America. Technologically innovative and environmentally friendly subsea power grids are the main strategies that help companies maximize revenue, penetrate deeper into an existing market,s and expand into new and emerging markets. Africa has the largest market due to the rapid expansion in offshore oil and gas infrastructure development. Africa represents the largest potential in the subsea power grid systems market, complemented by large investments in offshore field exploration and production-related developments.

Market Drivers

The worldwide market for subsea power grid systems is predicted to register significant expansion, driven by increased oil and gas exploration activities around the world. The increasing depletion of fossil fuel reserves and onshore oil reserves has led to an increase in offshore oil and gas exploration processes, which subsequently increased the call for subsea power grid systems, and it is predicted to drive expansion in the worldwide market in the coming years. Increasing energy call from various economies, especially developing economies around the world, is predicted to boost world market expansion. Technological advances in the electricity and energy sector are also believed to increase the expansion of the world market. In addition, reserves that are already on the verge of depletion need more energy to produce compression and the pumping pressure leads to an increasing call for electrical networks under the sea. In addition, the high call for Submarine power grid systems is promoting the expansion of the global subsea power grid market over the estimated period.

The worldwide market is likely to grow during the foreseen period due to increased oil and gas exploration activities at major offshore sites. A regular power supply is essential to continue operations in these deep-water locations. The depletion of onshore oil and gas reserves has led to the increased exploration of offshore reserves, which has subsequently created a call for subsea power grid systems. The rapid development of subsea infrastructure to meet increased offshore exploration activity has increased the call for electricity in the region and is supposed to drive the subsea power grid system business during the conjecture period.

Market Restraints

A high-risk factor associated with such operations and the technological criticality associated with network systems are determined to slow the expansion of the worldwide market during the estimated period.

Market Opportunities

Various actors have carried out continuous research and development activities in order to reduce production costs. Market players adopt integrated monitoring systems to monitor the reliability of network systems. These factors are predicted to create revenue opportunities for target market players in the coming years. The depletion of conventional fossil fuel reserves has led to an increase in deep-water oil and gas exploration activities around the world. Technologically advanced equipment is employed for oil and gas exploration, and the power requirements for this equipment are also enormous. The subsea power grid industry is predicted to show significant expansion over the next seven years due to the acceleration of oil exploration activities in Latin America and Africa. The development of renewable energy in offshore locations and the energy call of emerging economies such as India and China is escalating day by day, leading to an increase in the production of electricity from new energy sources.

Market Challenges

The loss of energy during transport is one of the main challenges and is also estimated to affect the expansion of the worldwide market for subsea power grid systems in the coming years. Furthermore, the delicate nature of electrical components in network systems also poses a threat to the expansion of the worldwide business.

REPORT COVERAGE

Market Segmentation:

Global Subsea Power Grid Analysis by Offshore Power

• Captive Generation
• Wind Power
• Others

Global Subsea Power Grid Market Analysis By Components

• Cables
• Variable Speed Drivers
• Transformers
• Switchgear
• Others

Cables are the most important components in terms of revenue, generating about half of the revenue. The main source of energy for these subsea power grid systems is captive generation.

Market Regional Analysis:

• North America 
• Europe 
• Asia Pacific
• Latin America 
• Middle East & Africa 

The African market currently dominates the worldwide market for subsea power grid systems and is determined to grow at a substantial expansion rate over the forecast period. The market in the Middle East is also envisioned to grow at a high CAGR during the projected period, due to the expansion of oil and gas exploration activities, coupled with the escalating development of compatible infrastructure in the region. North America is anticipated to experience moderate market expansion, due to the rising attention paid to the exploration of shale reserves in the area. The European market for subsea power grid systems is projected to grow due to increased investment in potential offshore sites such as Norway, as well as escalating government initiatives for power generation from wind energy.

The CSA and MEA regions are predicted to show significant expansion over the foreseen period, driven by increased deep-water oil and gas exploration activity in the regions. Increased energy call in the Asia-Pacific region, along with a large coastal area, is supposed to positively influence a regional call. Despite continued competition from shale producers in the North American region amid current "lower for lower" crude prices, the Middle East and Africa region is determined to see increased offshore development activity. In July 2017, Saudi Aramco announced a $ 300 billion investment in the oil and gas sector over the next decade, in order to counter the depletion of its onshore reserves and maintain its position as the leading oil-producing country. Similarly, Africa is also likely to witness large offshore exploration and production development activities during the outlook period, to meet its growing energy needs, which in turn would complement the call for energy systems from the subnet marine, to ensure a constant power supply.

Impact of COVID-19 on the Subsea Power Grid Market

Electricity call fell to closing levels, with dramatic cuts in services and industry only partially offset by increased residential use. When coronavirus containment was relaxed in Italy and Germany in April, electricity call showed the first signs of recovery. This trend was confirmed in May when more countries (India, France, Spain, and Great Britain) relaxed the blockade measures. In June and July, electricity call corrected for weather remained at 10% and 5%, respectively, below the 2019 level of the same month, in most countries except India, where the recovery was more pronounced. In August, the sustained recovery in electricity cell expansion in EU countries brought them closer to their 2019 levels, although some restrictive measures continued to dampen electricity call in September. In October, electricity call expansion recovered steadily in European countries to 2019 levels, before escalating restrictions were announced again.

Market Key Players:

1. FMC Technologies Inc. (U.S.)
2. ABB Ltd (Switzerland)
3. General Electrics Co. (U.S.)
4. Aker Solutions ASA (Norway)
5. Cameron International Corp (U.S.)
6. Siemens AG (Germany) etc.

Market Recent Developments:

• The firm ABB introduced the world's first subsea power technology system.
• ADNOC is getting into a partnership with ADPower to replace its gas turbine generators at its offshore production industries with different energy sources. ADNOC's offshore facilities will be connected to ADPower's onshore power grid.