The market size of the underwater power grid system exceeds 50 billion yuan! The Asia Pacific region is developing rapidly

With the rapid development of technology, the application of marine clean energy such as wind energy, tidal energy, and solar energy is becoming increasingly widespread, and the development and utilization of marine energy activities are increasing.

The underwater power grid system refers to a power grid system installed underwater, mainly used to connect continents and islands for power transmission. It is an important way for offshore power to be transmitted on land or from land to islands. The underwater power grid is composed of multiple components, such as cables, transformers, variable speed drives, switchgear, connectors, actuators, sensors, penetrators, etc.

The "2022-2026 Global Submarine Power Grid System Industry Deep Market Research and Key Regional Research Report" released by the Xinsijie Industry Research Center shows that in recent years, the capacity of offshore wind power generation has been continuously increasing, and the demand for grid interconnection and off grid island connection has increased. In order to optimize the use of renewable energy (such as offshore wind energy) and promote regional energy interconnection, the demand for underwater power grid systems has been continuously increasing. In addition, The increasing demand for power generation from global offshore oil and gas facilities has further driven the growth of global demand for submarine power grid systems. In 2021, the global submarine power grid system market size exceeded 50 billion yuan, with a growth rate of over 10%.

1. The reduction in onshore fossil fuel reserves and the increase in marine energy development and utilization activities

At present, fossil fuels are the main source of electricity supply, and coal-fired power still occupies a relatively high share globally. In recent years, with the increase of global economic activity, the consumption of terrestrial fossil fuels has been continuously increasing. However, the reserves of fossil fuels are limited and the mining speed is fast, and the overall proven reserves of fossil fuels are showing a downward trend. With the rapid development of technology, the application of marine clean energy such as wind energy, tidal energy, and solar energy is becoming increasingly widespread, and the development and utilization of marine energy activities are increasing. The development and utilization of a large amount of marine energy has driven the rapid development of the global subsea power grid system industry.

2. Cable is the most important subdivision product of the submarine power grid system

There are many components in the submarine power grid system, among which cables are the core components connecting power generation equipment for power transmission. They are widely used to connect the shore based power grid, transmitting electricity from the sea to the mainland, from one country to another, and from one offshore platform to another. The submarine power cables run through the entire process of power transmission and increase with the increase of power transmission distance, Cable is the most important subdivision product of the submarine power grid system, and as the submarine power grid system continues to extend into the open sea, submarine cables have become longer and more valuable.

3. The demand for deep-water subsea power grid systems is growing rapidly

The underwater power grid system market is divided by depth into shallow water underwater power grid systems and deep water underwater power grid systems. The depletion of shallow water reserves (mature shallow water basins) has led exploration and production companies to shift their focus to deepwater areas, and deepwater activities will continue to be an important pathway for oil production, driving a large demand in the subsea power grid system market and resulting in a higher scale growth of the deepwater subsea power grid system market than the shallow water subsea power grid system.

4. Europe holds the largest share, while Asia Pacific grows rapidly

The development of offshore resources in Europe was relatively early, and the research and application of submarine power grid systems were relatively mature. Especially, countries such as Germany, the United Kingdom, the Netherlands, and Norway have some well-known enterprises in the field of submarine power grid systems, leading Europe to become the world's largest submarine power grid system market. In recent years, with the deepening of offshore resource development and energy utilization by countries in the Asia Pacific region such as China, Japan, and India, the size of the underwater power grid system market in the Asia Pacific region has grown significantly higher than that in Europe. The future prospects of the underwater power grid system market in the Asia Pacific region are promising.