The global offshore high voltage substation 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 is propelled by increasing power consumption and the rising implementation of renewable energy projects.
Offshore substations are used for housing medium-voltage and high-voltage electrical components to transform power. Power is produced by turbines with specially manufactured submarine cables. Wind turbines are used for supplying power at 33kV to 150kV, which is exported to the onshore grid. These substations are directly connected to onshore grids and are usually situated near the electrical transmission line. There has been a steady rise in the number of offshore high voltage substations over recent years, due to the growing energy demand all over the world. For instance,
-
In a report published by the US Department of Energy in May 2022, offshore wind energy projects in the US developed the capacity of generating around 40,083 megawatts (MW) of power over the 35,324 MW that was reported in 2021, registering 13.5% growth.
Offshore substations are of two types, namely, offshore transformation stations and offshore transmission stations. The purpose of offshore transformation substations is to connect the gas and oil facilities to the electrical grid. Offshore transmission substations are used for connecting the onshore electrical grid to the offshore energy production facilities. Companies are proactively working to reduce their carbon footprint, due to the increasing environmental awareness and the pursuit of clean energy. As a result, an increasing number of wind farms are being set up for clean energy, which propels the requirement for offshore high voltage substations.
The market report finds that the COVID-19 pandemic hampered the offshore high voltage substation market. The pandemic considerably restrained the market, owing to the slowdown of supply & demand. Numerous wind energy projects were affected, due to the lack of manpower and goods. Development of wind farms is increasing, creating supportive conditions for the market.
Offshore High Voltage Substation Market Dynamics
Major Drivers
Growing focus of industries on reducing their carbon footprint is anticipated to boost the market. Increase in pollution of natural resources, due to carbon emissions from various industries, has led to the formulation of several government policies and legislations for the protection of the environment.
Manufacturers are turning towards renewable energy sources, such as wind energy, to fulfill their power requirements. Increasing installation of windmills and wind farms boosts the demand for offshore high voltage substations.
Increasing infrastructure development in several developing countries around the world is expected to propel the offshore high voltage substation market. Manufacturing activities in these regions are constantly increasing with the establishment of industries. Clean energy initiatives have enabled these industries to depend on energy produced by offshore wind farms to fulfill their large energy requirements.
Existing Restraints
High cost required to set up wind farms is expected to hinder the market during the forecast period. Establishment of offshore wind farms creates a significant financial strain, including the setup and operation of windmills and issues pertaining to transportation and storage. This dissuades a number of industries from using wind energy for powering their operations. This is potentially off-putting for the growth of offshore high voltage substations, thereby restricting the market growth.
Emerging Opportunities
Increasing support of governments for the adoption of renewable sources of energy is expected to create growth opportunities in the offshore high voltage substation market. Increasing levels of air pollution and environmental problems, such as global warming and the greenhouse effect, have become a concern for governments all around the world. As a result, authorities are encouraging the adoption of renewable energy alternatives such as offshore wind energy farms by facilitating subsidies, low prices, and incentives. This is anticipated to create opportunities for the key players in the offshore high voltage substation market.
Scope of the Offshore High Voltage Substation 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.
|
Attributes
|
Details
|
|
Report Title
|
Offshore High Voltage Substation Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
|
|
Base Year
|
2022
|
|
Historic Data
|
2016–2021
|
|
Forecast Period
|
2023–2031
|
|
Segmentation
|
Type (HVDC and HVAC) and Voltage Type (170 kV, 245 kV, 72.5 kV, 123 kV, 145 kV, 400 kV, and above 400 kV)
|
|
Regional Scope
|
Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
|
|
Report Coverage
|
Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, Market Trends, and Revenue Forecast
|
|
Key Players Covered in the Report
|
Envision Group; Global Energy (Group) Limited; Goldwind Americas; IMPSA; General Electric; LS Cable & System Ltd.; NEXANS; NORDEX SE; Siemens Gamesa Renewable Energy; and Southwire Company, LLC
|
Market Segment Insights
Type Segment Analysis
Based on type, the offshore high voltage substation market is divided into HVDC and HVAC. The HVDC (High Voltage Direct Current) segment is projected to hold a dominant share of the market during the forecast period, due to its lower capacitive losses than the HVAC (High Voltage Alternating Current). HVDC is capable of traveling underwater, underground, and through the air, with considerably less losses in energy. Furthermore, it is ideal for integration with various renewable energy sources, including solar, wind, and hydro energy sources.
Voltage Type Segment Analysis
On the basis of voltage type, the global market is segregated into 170 kV, 245 kV, 72.5 kV, 123 kV, 145 kV, 400 kV, and above 400 kV. The 72.5 kV segment is projected to expand at a high CAGR during the forecast period, as it is used for transformers and switchgear in separable connectors. These components are designed to cope with the saline environment and high shocks, and have specific voltage limitations. Furthermore, the 72.5 kV switchgear technology is highly used in offshore substations and offshore wind turbines, due to its high degree of compatibility.
The 145 kV segment is projected to expand at a high CAGR during the forecast period, owing to its ability to manage the power overload. The double-circuit cables help in securing the power transmission even if the cables are damaged. Moreover, several gas-insulated switchgear operate at this voltage. Growing adoption of wind energy solutions by companies to meet their increasing power requirements is boosting the need for components that are compatible with high voltages.
Regional Outlook
In terms of region, the global offshore high voltage substation market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Rapid development of wind farms in Asia Pacific is projected to drive the market in the region. Various governments in the region are expanding investments in setting up offshore wind farms to harness wind energy and cater to the increasing levels of power consumption, owing to the large population and growing industrial & commercial activities.
The market in North America is expected to register considerable growth, owing to its robust power supply systems and sustainable infrastructure. Rising environmental awareness has led governments in the region to proactively work on developing clean energy alternatives to decrease environmental pollution. Governments are providing attractive financial incentives for the adoption of renewable energy sources by industries for boosting clean energy production.
Segments
The offshore high voltage substation market has been segmented on the basis of
Type
Voltage Type
- 170 kV
- 245 kV
- 72.5 kV
- 123 kV
- 145 kV
- 400 kV
- Above 400 kV
Region
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
- Envision Group
- Global Energy (Group) Limited
- Goldwind Americas
- IMPSA
- General Electric
- LS Cable & System Ltd.
- NEXANS
- NORDEX SE
- Siemens Gamesa Renewable Energy
- Southwire Company, LLC
Competitive Landscape
Key players competing in the global offshore high voltage substation market are Envision Group; Global Energy (Group) Limited; Goldwind Americas; IMPSA; General Electric; LS Cable & System Ltd.; NEXANS; NORDEX SE; Siemens Gamesa Renewable Energy; and Southwire Company, LLC.
These companies adopt several development strategies, including acquisitions, collaborations, product launches, mergers, partnerships, and production expansion to get an edge over the competitors. These companies are making significant investments in research & development, to create components that make the functioning of offshore stations efficient and productive.
For instance,
-
In June 2023, General Electric, one of the largest corporations in the world, announced that the delivery of Hafslund Eco, the latest Rotorpoles for water-cooled 3x 280 MW/300 MVA generators, for implementation at the Aurland 1 hydropower plant located in Norway. This is intended to help in maintaining the efficiency of generators for decades.
-
In April 2023, the North Fabrication division of the prominent market player, Global Energy Group (GEG), conducted its first steel cutting of the J-tube frames. This has been done for the Moray West Offshore Wind Farm (882MW) situated in the Port of Nigg in Scotland.
Request For Customization
Enquiry Before Buying
Speak With Analyst
