More Than 1,100 New Submarine Electricity Cable Systems Are Planned From 2012 to 2020, Requiring a Major Expansion of Supply Channels, According to Pike Research
BOULDER, Colo.--(BUSINESS WIRE)-- The small and highly specialized high-voltage submarine cable market is expected to see significant growth in the coming years. National governments and regional organizations are accelerating efforts to build offshore renewable power generation facilities, link remote landmasses, and interconnect their national grids. According to a recent report from Pike Research, a part of Navigant's Energy Practice, more than 1,100 new submarine electricity cable systems are planned from 2012 to 2020.
This level of growth will be impossible to realize, however, without a major expansion of supply channels, the report concludes.
"The high-voltage submarine market faces significant challenges moving forward," says senior research director Bob Gohn. "The current supply chain is only capable of fulfilling about half of the planned cables over the next five years. The submarine cable manufacturing market has steep barriers to entry, and is unlikely to grow by leaps and bounds in the coming five years. Thus, nearly all aspects of the existing market are likely to face delays, increased costs, and other difficulties."
Faced with these realities, submarine transmission project developers are beginning their conversations with cable suppliers early in the planning stages, according to the report. Cables that do not get their place in the production line will face increased costs that could easily push projects over budget. Additional market players, or increased capacity from existing players, would allow the submarine power cable industry to come significantly closer to meeting the high demand in their extremely specialized market.
The report, "Submarine Electricity Transmission", provides a comprehensive analysis of the worldwide market opportunity for submarine high-voltage DC and AC power cable projects, including an assessment of demand drivers and supply chain dynamics, both now and in the years ahead. The study features in-depth profiles of more than 25 key industry players and case studies of more than 30 notable high-voltage submarine cable projects. Market forecasts are provided for submarine cable projects through 2020, segmented by world region and including three different growth scenarios. An Executive Summary of the report is available for free download on the Pike Research website.
About Pike Research
Pike Research, which joined Navigant's global Energy Practice on July 1, 2012, provides in-depth analysis of global clean technology markets. The team's research methodology combines supply-side industry analysis, end-user primary research and demand assessment, and deep examination of technology trends to provide a comprehensive view of the Smart Energy, Smart Utilities, Smart Transportation, Smart Industry, and Smart Buildings sectors. Additional information about Pike Research can be found at www.navigant.com/pikeresearch.
Navigant (NYS: NCI) is a specialized, global expert services firm dedicated to assisting clients in creating and protecting value in the face of critical business risks and opportunities. Through senior level engagement with clients, Navigant professionals combine technical expertise in Disputes and Investigations, Economics, Financial Advisory and Management Consulting, with business pragmatism in the highly regulated Construction, Energy, Financial Services and Healthcare industries to support clients in addressing their most critical business needs. More information about Navigant can be found at www.navigant.com.
* The information contained in this press release concerning the report, "Submarine Electricity Transmission," is a summary and reflects Pike Research's current expectations based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report's conclusions and the methodologies used to create the report. Neither Pike Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.
KEYWORDS: United States North America Colorado
The article More Than 1,100 New Submarine Electricity Cable Systems Are Planned From 2012 to 2020, Requiring a Major Expansion of Supply Channels, According to Pike Research originally appeared on Fool.com.
Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.