OFS Research, a subsidiary of Douglas-Westwood, a world market research firm, has released a report on submarine cables that the demand for submarine cables will reach a CAGR of 6.4% by 2021.
The report argues that by 2021, there will be an additional 25,338 km of submarine cable laying around the world, mainly due to the rapid growth of offshore wind power to stimulate demand growth in the submarine cable market.
Among them, the Asia Pacific region and Europe will lead the global offshore wind power and offshore oil industry. Therefore, by 2021, the demand for submarine cables in these two regions will account for 77% of the total newly added submarine cables in the world.
According to the report, by 2021, the demand for submarine cables in the offshore market will reach a compound annual growth rate of 7.9%, accounting for 63% of the total demand. The annual compound growth rate of demand for submarine cables in the oil and gas field is estimated to be 4.2%. It is worth noting that the proportion of HVDC projects will continue to increase.
2017-2021, the global demand for submarine cable laying ship will reach 60,223 installation days, an increase of 32% over 2012-2016.
The report revealed that in 2012-2016, the global demand for submarine cables has risen by 37%.
OFS analyst Mark Adeosun said that "the increase in investment in offshore wind farm development, especially in Asia Pacific and Europe, will increase the demand for cables in this area. By the end of this century, plans to develop offshore wind capacity in China of more than 9GW will also affect this Regional demand for submarine cables increases. "
The number of oil and gas projects through FID in 2017 has increased over the past 24 months, especially in natural gas-rich basins in North Africa and East Africa and is expected to support an increase in demand for submarine cables. In addition, the decline in the cost of offshore wind power construction in recent years has continued to support investment growth due to standardization and improved logistics in the industry.