Market Research Report
Power Grid System Market Forecasts to 2028 - Global Analysis By Depth (Deepwater, Shallow Water), Component (Transformers, Switchgears, Cables), Application, and By Geography
|Power Grid System Market Forecasts to 2028 - Global Analysis By Depth (Deepwater, Shallow Water), Component (Transformers, Switchgears, Cables), Application, and By Geography|
Published: May 1, 2022
Stratistics Market Research Consulting
Content info: 200+ Pages
Delivery time: 2-3 business days
According to Stratistics MRC, the Global Power Grid System Market is accounted for $8.26 billion in 2021 and is expected to reach $18.48 billion by 2028 growing at a CAGR of 12.2% during the forecast period. Power grid systems in subsea play an important role in the offshore power supply network. The subsea power grid comprises numerous components such as cables, transformers, variable speed drives, switchgear, and others used for various applications.
Increased deepwater oil and gas exploration activities
Advancements in technologies used in deepwater exploration and production activities, depleting onshore fossil fuel reserves, and the commercial feasibility of offshore projects are the factors encouraging E&P operators for deepwater exploration. Moreover, discoveries of offshore oil deposits in many countries signify the future oil production opportunities in offshore fields, thereby creating power grid requirements to transport electricity and supply power to subsea and offshore production facilities.
High operational and technological risks
The high initial investment for commissioning a subsea power grid system and the maintenance costs are very high, restricting new players from entering the market. The cost of installing subsea components depends on factors such as the nature of the seabed, the depth of the site, the number of landings, as well as voltage needs. There are only a handful of players that hold a major share of the global market. The investment required for new subsea power grid systems is significantly higher than upgrading the existing systems.
Easy access of wind turbine technology
As demand for energy is rising, major countries and companies across the globe are turning toward the adoption of renewable energy as it can provide clean energy. The adoption of offshore wind energy with advanced technology attracted countries and companies for high investment. With the advancement in wind turbine capacity, many countries introduced wind turbines. The new turbines will enhance the productivity of offshore wind farms by generating more power.
Low cost of onshore electricity generation
The cost of electricity generation from onshore wind power plants, geothermal and hydropower plants, and biomass power plants is equivalent to or lower than the cost of power generation. Furthermore, the cost of electricity produced by land-based wind turbines and solar PVs has gone down, and it is more economical to generate electricity using solar and wind energy. Additionally, the cost of producing electricity from conventional resources, including coal, gas, and diesel, is quite lower than the power generation within offshore oil and gas production plants. All these factors are likely to negatively impact the offshore market and, subsequently, the power grid system market in subsea.
The cables segment is expected to be the largest during the forecast period
The cables segment is estimated to have a lucrative growth as the adoption of subsea power cables is driven by the HV power transmission and offshore oil & gas industries. Subsea power cables are extensively used to link shore-based power grids. These cables carry power from one country to another, as well as from one offshore platform to another, and transfer power from offshore renewable energy generation plants.
The wind power segment is expected to have the highest CAGR during the forecast period
The wind power segment is anticipated to witness the fastest CAGR growth during the forecast period owing to the increase in the use of subsea power cables in long-distance HV power transmission applications, countries planning to invest significantly to expand and develop their regional offshore wind energy industry.
Region with highest share:
Europe is projected to hold the largest market share during the forecast period due to the strong demand for renewable energy sources and favorable government policies in these regions. The growth of the power grid system market subsea is supported by the European Wind Initiative (EWI), a wind energy R&D program developed to take the wind industry to the next level in Europe.
Region with highest CAGR:
Asia Pacific is projected to have the highest CAGR over the forecast period owing to significant development in offshore fields, increasing demand from the commercial, residential, and industrial sectors in countries, strong demand for renewable energy sources and favorable government policies in these regions.
Key players in the market
Some of the key players profiled in the Power Grid System Market include LS Cable & System, NKT, Sumitomo Electric Industries, Ltd., Aker Solutions ASA, Teledyne Marine, Schlumberger, Prysmian Group, Oceaneering International, SSG Cable, Nexans, TE Connectivity, Intertek, Hitachi Energy, General Electric, DEME, Baker Hughes, TechnipFMC, ABB, and Siemens Energy.
In Feb 2022, Prysmian Group announced that is moving ahead with its project for a new submarine power cable plant in the United States. Prysmian Group and CDC Commercial Development Company announces the signing of the contract for the purchase by Prysmian of the site identified in Brayton Point (Massachusetts). The final acquisition of the site is subject to securing state permits for the construction of the new plant.
In Feb 2022, ABB signed an agreement with OneSubsea to support its subsea multiphase compression system for Shell's Ormen Lange field. According to this agreement, ABB is expected to supply variable-speed drives and subsea transformers to power subsea compressors.
What our report offers:
Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options: