The global offshore High Voltage Alternative Current (HVAC) cables market size was USD XX Billion in 2022 and is likely to reach USD XX Billion by 2031, expanding at a CAGR of XX % during 2023–2031. The market growth is attributed to the growing demand for offshore renewable energy and the subsequent need for efficient transmission mediums to carry the power to the concerned electricity networks.
Offshore high-voltage HVAC cables facilitate the transmission between offshore renewable energy generation systems, such as renewable energy generation plants and electricity distribution networks. The electricity networks deliver power to homes and businesses.
Offshore high voltage stations accumulate the energy generated from solar or wind. It comprises switchboards, transformers, GIS, and switchgear, which produce significant proportions of heat. This heat needs to be dissipated to prevent electrical failures caused by overheating and subsequent loss of electrical energy. Offshore high-voltage HVAC cables minimize heat generation with the help of heat-resistant materials.
HVAC cables are used as a viable transmission medium in scenarios wherein overhead lines are not feasible. These high-voltage cables are mainly used to transmit power from across the sea or river where offshore renewable energy farms are located. Offshore high-voltage HVAC cables require reactive compensation at both cable ends to transmit power over long distances.
Offshore power generation initiatives in Europe play a major role in achieving sustainability goals by reducing carbon footprint. Offshore wind farms are considered to be more productive and efficient than conventional energy grids. High speed of the wind, high consistency, and minimal interference to the flow of the wind on high seas improve the power generation capacity of offshore energy generation installations.
The market report finds that the COVID-19 pandemic moderately affected the market, due to disruptions in supply chain operations caused by the pandemic-induced lockdowns. Logistics services were hampered significantly, due to stringent government regulations and disruptions in the supply of raw materials required to manufacture cables. Moreover, the manufacturing facilities were partially closed, due to government restrictions to curb the spread of the virus.
Offshore High Voltage Alternative Current (HVAC) Cables Market Dynamics
Drivers
Rising adoption of renewable energy resources to achieve carbon neutrality and sustainability goals is expected to drive the market. According to International Energy Agency, global renewable energy generation capacity is likely to reach 550 gigawatts in 2024. Corporates and public institutions are adopting renewable energy resources to meet sustainability goals as specified by the regulators. Offshore high-voltage HVAC cables are required to transmit power from the power generation plants, such as wind or solar energy farms, to electricity distribution networks.
Restraints
Price fluctuations in the raw materials, delays in the execution of power projects, and stringent laws regarding compliance procedures in HVAC cable production are likely to hinder the market. Raw materials required to manufacture HVAC cables are majorly copper and aluminum. Price fluctuations in raw materials directly impact the market.
Opportunities
Technological advancements in the manufacture of offshore high-voltage HVAC cables are likely to create significant growth opportunities in the market. Manufacturers are developing cables that have high durability, low power losses, and improved lifecycle. Improvement in materials science has led to the creation of XLPE (Cross-linked polyethylene) HVAC cables with high insulation resistance, low dielectric constant, high dielectric strength, and good mechanical properties.
Scope of the Offshore High Voltage Alternative Current (HVAC) Cables Market Report
The market report includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Offshore High Voltage Alternative Current (HVAC) Cables Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016–2021
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Forecast Period
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2023–2031
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Segmentation
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Cable Type (Single Core, Mass Impregnated, Extruded, and Others), Voltage Type Voltage Type (0-150 kV, 150-400 kV, and Above 400 kV), and End-user Industry (Oil & Gas, Energy & Power, and Others)
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, Market Trends, and Revenue Forecast
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Key Players Covered in the Report
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NKT A/S; Sumitomo Electric Industries, Ltd.; ElsewedyElectric.com; Power Plus Cables Co. L.L.C.; Prysmian Group; Al Shamali & Waris Trading Company LLC; Sumitomo Electric Industries, Ltd.; ZTT; Hellenic Cables; Brugg Kabel AG; NEXANS; and TFKable
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Offshore High Voltage Alternative Current (HVAC) Cables Market Segment Insights
Cable Type Segment Analysis
Based on cable type, the offshore High Voltage Alternative Current (HVAC) cables market is divided into single core, mass impregnated, extruded, and others. The extruded segment is projected to expand at a significant growth rate during the forecast period. Extruded HVAC are insulated with the cross-linked polyethylene (XLPE), owing to high cost-efficiency and low capacitance. Subsea extruded cables prevent the ingress of seawater with the help of a metallic water barrier. This makes them suitable for power transmission.
Voltage Type Segment Analysis
On the basis of voltage type, the market is segregated into voltage type 0-150 kv, 150-400 kv, and above 400 kv. The 0-150 kV segment is projected to expand at a considerable CAGR during the forecast period, due to its applications in the oil & gas industry. Wind and solar farms use 72.5 kV voltage range to benefit from the reduction in the cost of energy of up to 1.5%.
The above 400 kV segment is anticipated to hold a key share of the market in the coming years, owing to its applications in the oil & gas industry, due to low power losses and high electric power transmission capacity of HVAC cables. Submarine cables provide long-distance power transmission at high power levels connecting power grids and electrified oil & gas platforms.
End-user Segment Analysis
Based on end-user industry, the offshore High Voltage Alternative Current (HVAC) cables market is segmented into oil & gas, energy & power, and others. The energy & power segment is expected to register robust growth during the forecast period, owing to the requirement for highly efficient transmission mediums to transmit offshore renewable energy to electricity distribution networks. World Economic Forum has speculated that renewable capacity is likely to meet 35% of global power generation by 2025. Offshore high-voltage HVAC cables are used to transmit power with minimal power losses across long distances.
Regional Outlook
In terms of region, the global offshore high voltage HVAC cables market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is expected to dominate the market during the forecast period, owing to the rising adoption of renewable energy resources to achieve sustainability goals and supportive government policies. According to the U.S. Energy Information Administration, solar capacity is expected to rise to 6% of total power generation capacity by 2024 while wind capacity is likely to increase to 12% by 2024. This shift in energy policy is likely to fuel the market in the region.
The market in Asia Pacific is anticipated to expand at a significant growth rate, due to increasing favorable government policies that promote the adoption of clean energy resources for achieving sustainability objectives in a commercial and industrial ecosystem. Clean energy investments in the region are likely to fuel the market.
Segments
The offshore high voltage HVAC cables market has been segmented on the basis of
Cable Type
- Single Core
- Mass Impregnated
- Extruded
- Others
Voltage Type
- 0-150 kV
- 150-400 kV
- Above 400 kV
End-user Industry
- Oil & Gas
- Energy & Power
- Others
Region
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
- NKT A/S
- Sumitomo Electric Industries, Ltd.
- ElsewedyElectric.com
- Power Plus Cables Co. L.L.C.
- Prysmian Group
- Al Shamali & Waris Trading Company LLC
- Sumitomo Electric Industries, Ltd.
- ZTT
- Hellenic Cables
- Brugg Kabel AG
- NEXANS
- TFKable
Competitive Landscape
Key players competing in the global offshore high voltage HVAC cables market are NKT A/S; Sumitomo Electric Industries, Ltd.; ElsewedyElectric.com; Power Plus Cables Co. L.L.C.; Prysmian Group; Al Shamali & Waris Trading Company LLC; Sumitomo Electric Industries, Ltd.; ZTT; Hellenic Cables; Brugg Kabel AG; NEXANS; and TFKable.
These companies adopted various development strategies, including mergers, acquisitions, partnerships, collaboration, product launches, and production expansion to expand their consumer base globally. For instance,
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On June 6, 2023, NKT, a key high-end cable provider announced that it has finalized the power cable contract for the Baltic Power Offshore Wind Park. The project consists of the design and production of approximately 130 km of 230 kV offshore high-voltage HVAC cables.
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