The compound annual growth rate of the global submarine power grid market in 2022-27 will exceed 10%

Markets and Markets, an international market research institution, recently released a report that the global submarine power grid market is expected to reach $9.
1 billion
in 2022.
With the continuous expansion of offshore renewable energy generation, this figure is expected to increase to $14.
8 billion by 2027, with a CAGR of 10.
2%
during the period.

Subsea grid systems play an important role
in offshore power supply networks.
Subsea grids consist of multiple components such as cables, transformers, variable speed drives, switchgear, and other components
used in various applications.
The steady and rapid development of this market continues as oilfield operators explore oil and gas reserves in deep and ultra-deep waters, as well as the expansion of offshore renewable energy, especially offshore wind
.

By component, the submarine grid system market is segmented into cables, transformers, switchgear, variable speed drives, and others
based on component.
During the forecast period, the cable segment is expected to be the most important segment
of the subsea power grid.
The adoption of submarine power cables is mainly driven
by the high-voltage transmission and offshore oil and gas industries.
Submarine power cables are widely used to connect shore-based power grids, including regional grids, offshore platforms, and offshore renewable energy power plants such as wind, wave and tidal power
.

According to the application, the submarine power grid system is mainly divided into wind power, captive power generation, tidal power generation and natural gas floating power plants
.
The captive generation segment accounted for the majority of the market in 2021 and is expected to continue to maintain its dominant position
during the forecast period.
Subsea grid systems provide long-distance subsea linkage development
for energy-intensive oil and gas processing activities under the seabed.
The demand for subsea grid systems for captive power generation applications is increasing due to the increasing number of subsea operations, the increasing use of satellite wells for subsea oil field development, and increasing
deepwater drilling activities.

Based on cable laying depth, the submarine grid system market is segmented into shallow water and deep water
based on depth.
The deep-water subsea power grid is expected to witness the highest CAGR
during the forecast period.
The depletion of shallow water reserves (mature shallow water basins) has led E&P companies to shift their focus to deepwater areas
.
Deepwater activities will continue to be an important route for oil production and, as a result, it will generate significant demand
for the subsea grid system market.

In terms of market segments, namely Asia Pacific, North America, Europe, Middle East & Africa, and South America, Europe will be the largest market
for submarine grid systems during the forecast period.
Offshore wind farm construction is intensifying in countries such as Norway, the United Kingdom, and the Netherlands due to stringent energy efficiency requirements, while the strong focus on utilizing renewable energy generation in most European countries is driving the growth
of the European market.