Global Power Grid System Market in Subsea Overview:
The global power grid system market in subsea is projected to reach USD 14.8 billion by 2027 from an estimated USD 9.1 billion in 2022, at a CAGR of 10.2% during the forecast period. Favorable government policies for offshore renewable power production, especially using wind energy along with urgent need to reduce carbon emissions and improve grid reliability and efficiency is expected to drive the demand for subsea power grid systems. According to industry analysts, new investments worth USD 166 billion are likely to be in offshore wind power projects and USD 1.7 billion in new tax revenue for the US Treasury by 2022 while also supporting 80,000 jobs yearly by 2035. With an increasing number of offshore wind farms and a rising focus on integrating wind-generated energy into electrical power systems, modern control systems are anticipated to be deployed in subsea power grids.
The power grid system market in subsea, on the basis of component, has been segmented into cables, transformers, switchgears, variable speed drives, and others. The others segment includes connectors, actuators, sensors, and penetrators. The cables segment, by component, is expected to dominate the power grid system market in subsea during the forecast period. The adoption of subsea power cables has been mainly driven by the HV power transmission and offshore oil & gas industries. Subsea power cables are widely 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, which use wind, wave, and tidal energy to generate electricity; regional electrical transmission networks; etc.
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The power grid system market in subsea, by application, has been broadly classified into wind power, captive generation, and others. The others segment includes solar power, tidal power and diesel & gas based floating power plants. The captive generation segment held the largest market in 2021. The subsea power grid supplies and distributes power to various components. Subsea power grid systems enable long-distance subsea tie-back developments for energy-intensive oil & gas processing activities on the seafloor. The demand for subsea power grid systems is continuously increasing in captive generation applications owing to the rising number of subsea operations, growing use of satellite wells for subsea field developments, and an increasing number of deepwater drilling activities.
The power grid system market in subsea, by depth, has been segmented into shallow water and deepwater. The deepwater segment of the power grid system market in subsea, by depth, is expected to witness the highest CAGR during the forecast period. The depletion of shallow water reserves (maturing shallow water basins) has made E&P companies shift their focus on deepwater areas. Deepwater activities would continue to be a key avenue for oil production and, thus, it would generate substantial demand for power grid system market in subsea.
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The power grid system market in subsea has been analyzed for 5 regions, namely Asia Pacific, North America, Europe, Middle East & Africa, South America. Europe is expected to lead the market during the forecast period. Europe and Asia Pacific are the major contributors to the global power grid system market in subsea owing to the strong demand for renewable energy sources and favorable government policies in these regions. Most countries in Europe are mainly focusing on renewable energy capacity addition. Countries such as Germany, the UK, the Netherlands, and Norway are leading the renewable energy capacity addition. The growth of the power grid system market in 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.