Power Grid System Market: Current Analysis and Forecast (2021-2027)

The power grid system market demand is increasing at propelling rate over the years and is expected to witness influential growth during the forecasted period as well. Factors that are attracting the market size of the power grid system are increasing government initiatives for offshore renewable power generation along with pressing urgency to reduce carbon emissions and improve grid reliability and efficiency is expected to propel the demand for subsea power grid systems market. In addition, the shortage of fossil fuel as a source of energy and rapidly expanding global warming are the major factors driving the development of the global power grid market.

In addition, expanding government allocation and private investment market players for power grid systems are other factors driving the growth of the power grid market. However, the shortage of technical professionals in the subsea industry, low cost of onshore electricity generation, and climatic challenges pertaining to operations of offshore wind farms are restraining the subsea power grid system market.

The global Power grid system market is expected to register a CAGR of around 10 % throughout 2021-2027. Power grids are connected distribution networks that transfer electricity from power plants to consumers. Offshore power grids generate electricity by collecting renewable sources of energy, especially wind energy. Offshore and subsea industries act as parent markets of the subsea power grid system market. Factors such as a rapid increase in capital spending on the subsea, clearly depict the growth of the subsea sector globally. In addition, subsea equipment like boosters, compressors, etc., requires a power supply for multiple subsea exploration processes, and this is provided by subsea power grid systems, in order to have efficient subsea operations.

However, a major factor hampering the growth of the global power grid system market is the long-term initial investment. The development of offshore power grid systems is expected to create opportunities for major market players to distribute electricity to various consumers where electricity production prices are comparatively higher escalating the market size of a power grid system.

FMC Technologies Inc, ABB Ltd, Aker Solutions ASA, Cameron International Corp, Siemens, General Electric, Honeywell Elster, Schneider Electric, Wipro, IBM are some of the key players in the market. Several M&As along with partnerships have been undertaken by these players to facilitate customers with hi-tech and innovative products/technologies.

Insights Presented in the Report

"Amongst components, cables accounted for the majority share in the market in 2020"

Based on the component, the power grid system market is classified into cables, variable speed drives, transformers, switchgear, and others. The cable segment caters to extensive market share in the power grid system market. The adoption of subsea power cables has been mainly driven by the HV power transmission and offshore oil & gas industries. Also, subsea power cables are widely used to link shore-based power grids. Hence, accentuating the market size of the power grid system market.

"Amongst application, captive generation are expected to witness highest CAGR during the forecast period"

Based on application, the power grid system market is segmented into captive generation, wind power, and others. The captive generation segment acquired a considerable market share in the power grid system market. As captive power generation is a crucial turn in power sourcing for industries, it ensures electricity when the grid is unable to provide a consistent supply.

"Based on depth, deep-water segment expected to witness extensive CAGR during the forecast period"

Based on depth, the power grid system market is bifurcated into shallow water, and deep-water. The deep-water segment caters to a considerable share of the power grid system market and is expected to witness high growth during the forecasted period. The depletion of shallow water reserves (maturing shallow water basins) has made E&P companies shift their focus on deep-water areas.

"Europe to witness significant growth during the forecast period"

Europe is expected to hold a significant market share in the forecast period owing to the strong demand for renewable energy sources and favorable government policies in these regions. Moreover, countries such as Norway, the UK, and the Netherlands are witnessing heightened construction of offshore wind farms due to stringent energy efficiency mandates, and the strong focus of most European countries on utilizing renewable energy sources for power generation propels European market growth.

Moreover, increasing need to comply with climate change regulations and policies coupled with surging E&P activities in Norwegian North Sea is accentuating the market size of the power grid system across Europe. For instance: In January 2022, EU invests over € 1 billion in energy infrastructure in support of the Green Deal.

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• The study includes market sizing and forecasting analysis validated by authenticated key industry experts.

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• Deep dive regional level analysis of the industry.

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