OFS Research, a subsidiary of Douglas-Westwood, a world market research firm, recently released a report on submarine cables. By 2021, the global compound annual growth rate of submarine cables will reach 6.4%.
The report argues that by 2021, the world will also add 25,338 km of submarine cable laying, mainly because of the rapid development of offshore wind will stimulate the submarine cable market demand growth.
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 both regions will account for 77% of the total new addition to the global submarine cable.
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 demand for submarine cables in the oil and gas sector is expected to reach a compound annual growth rate of 4.2%. And the proportion of HVDC projects will continue to increase.
In 2017-2021, the demand for laying submarine cables worldwide will reach 60,223 installation days, an increase of 32% over 2012-2016.
The report revealed that in 2012-2016, the demand for submarine cables around the world has risen by 37%.
OFS analyst Mark Adeosun said: "The increase in investment in offshore wind farm development, especially in Asia Pacific and Europe, will increase the demand for wire and cable in this area. By the end of this century, it is also expected that the development of offshore wind power capacity above 9GW in China will also affect The demand for submarine cables in the area is increasing. "
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 submarine cable demand. 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.
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