Subsea Power Grid System Market - Growth, Trends, and Forecasts (2023-2028)

Subsea Power Grid System Market is poised to grow at a CAGR of 8% during the forecast period.

COVID-19 moderately impacted the market in 2020. Currently. The market has reached pre-pandemic levels.

Key Highlights

• With depleting onshore hydrocarbon reserves, the petroleum market is shifting towards offshore exploration, which will create considerable market demand in the forecast period. With advancements in renewable energy in the offshore environment, the market is expected to grow in the near future.
• On the other hand, with declining investments in the oil and gas market in 2020, and the COVID-19 pandemic, the demand for the offshore power grid is likely to be restrained in the forecast period.
• An increase in offshore oil and gas exploration projects, especially deepwater projects, is estimated to create massive opportunities in the untapped areas for the subsea power grid system market.
• Middle-East and Africa is expected to witness significant growth owing to the offshore oil and gas activities and plans to develop offshore wind energy.

Subsea Power Grid System Market Trends

Wind Energy to Witness Significant Growth

• As energy demand 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 to high investment.
• According to data from the Global Wind Energy Council, China's offshore wind energy capacity was 27.68 GW in 2021, a rise of 16.9 GW compared to the previous year.
• Moreover, in November 2022, In East China, the nation's first 16-megawatt offshore wind turbine rolled off the assembly line. A single unit can fulfill the annual electricity needs of more than 36,000 urban families, and also could create clean electricity at a rate of 66 million kilowatt-hours annually. Thus, with the increasing wind power capacity, the development of projects, and technological improvements in wind turbine technology, wind energy is expected to grow in the forecast period.
• A homegrown resource that supports the United States economic expansion is wind electricity. In 2021, more than 9% of the net energy produced in the nation was produced by wind turbines operating in all 50 states. The U.S. economy gained USD 20 billion from investments in new wind projects that same year.
• With further growth anticipated in the offshore wind energy installed capacity during the forecast period, wind energy is expected to drive the subsea power grid system market.

Middle-East and Africa to Witness Significant Growth

• The increasing rate of exploration and production of offshore oil wells and thriving investment in oil field developments in deeper waters is the major driving factor for the subsea power grid system market.
• In December 2021, Hitachi Energy was awarded a contract that has a high-voltage, direct current (HVDC-VSC) subsea power transmission system in the Middle East and North Africa (MENA) region. The transfer of cleaner and more effective power from the mainland to power ADNOC's offshore production facilities will be made possible by the HVDC Light technology and MACHTM digital control platform, resulting in a carbon footprint reduction of more than 30%.
• In August 2022, the Hail and Ghasha Gas Development Project announced drilling contracts. The project is the world's largest offshore sour gas development and a crucial component of ADNOC's efforts to make the United Arab Emirates gas self-sufficient. The drilling contract will also increase the demand for subsea power.
• In 2022, the Bul Hanine field renovation (Qatar Petroleum's largest project to be carried out) plans call for an investment of USD 11 billion which is located 120 km east of Qatar's coastline and currently produces with a rate of 40,000 barrels per day. The project is likely to drive the subsea power market in the forecast period.
• The increasing number of offshore projects combined with the increasing share of offshore oil production is expected to drive the need for offshore power supply also.

Subsea Power Grid System Market Competitor Analysis

The Subsea Power Grid System Market is moderately consolidated. Some of the major companies (not in a particular order) include Aker Solutions ASA, ABB Ltd, General Electric Company, Siemens Gamesa Renewable Energy S.A, and MHI Vestas Offshore Wind A/S.

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• The market estimate (ME) sheet in Excel format
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