Cable laying vessels are specialized ships used to lay cables on the seafloor for offshore power cables, communication cables and inter-array cables in wind farms. They have key features like dynamic positioning systems, cable engines and ploughs or trenchers that help in quick and precise cable laying.
The global Cable Laying Vessel Market is estimated to be valued at US$ 5.16 Bn in 2023 and is expected to exhibit a CAGR of 7.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The increasing deployment of offshore wind power projects is driving the demand for cable laying vessels. Offshore wind energy provides a large untapped potential for power generation and countries are increasingly promoting it as a renewable energy source. For instance, over 40 GW of new offshore wind capacity was added globally between 2020 to 2022. The deployment of extensive networks of underwater power cables is crucial for harvesting wind energy from offshore farms and transporting it to onshore grids. This is fueling the need for specialized cable laying vessels, thereby propelling the cable laying vessel market growth.
SWOT Analysis
Strength: Cable laying vessels help in efficient and cost-effective deep water installation of power cables. They offer specialized equipment and technologies for deep water cable laying works.
Weakness: High initial investment costs associated with cable laying vessels make them unsuitable for small and medium capacity power cable projects. Dependence on weather conditions also affects project timelines.
Opportunity: Rapid growth in offshore wind energy installations in Europe and Asia is driving demand for specialized cable laying vessels. Rising investments in intercontinental and domestic power grid connectivity offer new opportunities.
Threats: Slowdown in global capital investments can negatively impact demand growth. Changes in government policies and regulations regarding offshore infrastructure works pose challenges.
Key Takeaways
The Global Cable Laying Vessel market Size is expected to witness high growth over the forecast period of 2023 to 2030. Europe currently dominates the market with the highest regional market share owing to significant investments and ongoing projects in offshore wind farms across countries such as the UK, Germany, Belgium and the Netherlands. Germany accounted for the largest market in Europe trailed by the UK and the Netherlands in 2023.
Key players operating in the cable laying vessel market are Nexans, Prysmian Group, NKT, LS Cable & System, ZTT, TF Kable, Fujikura, JDR Cable Systems, Apar Industries, Tratos, Hengtong Group, Sumitomo Electric Industries, KEI Industries, Taihan Electric Wire, Universal Cables Ltd, Sterlite Technologies, RPG Cables, Hitachi Metals, Zhongtian Technology Submarine Cable, and Orient Cable.
The rapid growth of offshore wind installations in Europe and Asia Pacific is a major factor driving the demand for cable laying vessels in the region. Germany led the offshore wind market in Europe. Countries such as Taiwan, South Korea, and China have also increased investments in offshore wind projects, thus positively impacting the cable laying vessel market in Asia Pacific. The growing need for inter-country connectivity through submarine power cables to strengthen transmission networks is also expected to boost demand over the coming years.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it