PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1373903
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1373903
Cable laying vessel market size was valued at USD 5,008.6 Million in 2022, expanding at a CAGR of 7.7% from 2023 to 2030.
Cable-laying vessels play an essential role in the installation of undersea cables, which are crucial for transmitting data and electricity across long distances. Moreover, the cable-laying vessel market is witnessing trending growth owing to the expansion of the oil and gas sector and the increasing demand for offshore wind farms. The increasing adoption of renewable energy sources, especially offshore wind farms is one of the key factors of the market.
Cable Laying Vessel Market- Market Dynamics
Expanding offshore renewable energy projects and increasing offshore oil & gas exploration and production are driving market demand
The rapid growth in increasing focus on offshore renewable energy integration and offshore wind farms are major factors fueling the demand for cable-laying vessels. In line with this, these wind farms need extensive cabling infrastructure to connect the turbines to the onshore energy grid. Governments all around the world are encouraging offshore wind projects to reach renewable energy targets. However, the lack of a skilled workforce, logistics challenges, and high costs of cable-laying vessels are major restraining factors likely to hamper the market growth. Furthermore, the rising number of offshore oil and gas projects in deep and ultra-deep waters across the globe is a key driver as these complex projects need subsea cables and umbilicals to link several components. Additionally, aging subsea cables required for telecom networks, power transmission, and oil and gas operations require repairs and upgrades, as a result, such projects will be projected to boost the demand for the cable laying vessel market.
Cable Laying Vessel Market- Key Insights
As per the analysis shared by our research analyst, the global cable laying vessel market is estimated to grow annually at a CAGR of around 7.7% over the forecast period (2023-2030)
The cable laying vessel industry is projected to grow at a significant rate due to the increasing focus on offshore renewable energy integration
Based on vessel type segmentation, cable laying was predicted to show maximum market share in the year 2022
Based on end user segmentation, offshore wind farms was the leading type in 2022
Cable laying vessels are equipped with specialized tools and advanced technology to lay and bury these cables on the seabed, ensuring reliable and efficient transmission of electricity.
The global cable laying vessel market is segmented on the basis of vessel type, capacity, water depth, and end user, and region.
The market is divided into two categories based on vessel type: cable repairing and cable laying. The cable laying segment is likely to maintain its dominance in the market over the forecast period. The segment is attributed to the rising need for trustworthy, high-capacity cable-laying for offshore wind farms as well as oil and gas exploration operations. Cable layers are developed particularly for laying and mending underwater cables with improved equipment and apparatus, such as cable tanks, cable drums, and winches. Additionally, they have flexible positioning systems, which are important for cable laying operations because these systems enable them to maintain their position without the requirement for anchoring. Hence, these elements are projected to boost the segment expansion across the world.
The market is divided into three categories based on end-users: telecom, offshore oil & gas, offshore wind farms, and others. The offshore wind farms segment is likely to possess the largest revenue share. This is attributable to a surge of offshore wind farm production that is occurring internationally to meet the rising demand for renewable energy sources. Cable laying vessels play a crucial role in the construction and maintenance of offshore wind farms by installing the export cables and inter-array that connect the wind turbines to the onshore grid.
Cable Laying Vessel Market- Geographical Insights
The cable laying vessel market is geographically vast and includes North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. The Asia Pacific region is accounted to witness the fastest-growing market. The market demand in the region is projected to be driven by the expanding populations and rising energy consumption in emerging economies. Additionally, the spurring demand for cable-laying vessels in the region is experiencing rapid expansion in the offshore oil and gas sector. Moreover, the North American market is witnessing to expand market steadily over the projected period due to the expansion in the offshore wind energy industry.
Several undersea high-voltage direct current (HVDC) cable network projects are being developed across the world to link offshore wind capacity and enable international power trade. Additionally, the demand for cable-laying vessels is boosted by the requirement for repairs and updates on aging subsea cables utilized for telecom networks, power transmission, and oil & gas. Moreover, market players are expanding their market reach and fostering innovation by adopting numerous strategies such as collaborations between research organizations, academic institutions, and partnerships. For instance, in July 2023, Nexans announced an expansion in its presence in the offshore wind and interconnection market, by adding a third cable-laying vessel to its fleet. This strategic decision will allow the Group to reach the increasing demand for electrification, particularly in the American and European markets.
For instance, in July 2021, Subsea 7 merged its renewables business with Oslo-listed Company OHT to create a "pure-play renewables company" with an offshore wind concentration. The new entity, which will be named Seaway 7, will offer a range of standalone, integrated, or engineering, construction, procurement, and installation providing encompassing foundations, turbines, offshore substations, submarine cables, and heavy transport.