Renewables momentum continues to drive subsea cable demand growth
Westwood forecast global subsea cable demand will grow at a 6.4% CAGR, with a total of 25,338 km expected to be installed over the forecast period – an overall growth driven by a surge in offshore wind construction. Asia Pacific and Europe will account for 77% of forecast installations, with these regions leading the way in terms of new offshore wind developments and also seeing some renewed project sanctioning in oil and gas.
This update provides cable demand and vessel installation day demand by region and water depth. It also identifies potential oil & gas and offshore wind projects expected to support cable installation activities over the forecast period.
Global Subsea Cable Installation Outlook by Sector, 2012-2021
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Key H2 Report Conclusions
- Global subsea cable demand is forecast to total 25,338 km over the 2017-2021 period.
- Offshore wind cable demand will grow at a 7.9% CAGR, accounting for 63% of forecast demand.
- Significant increase in the proportion of HVDC projects, as distance to shore of wind farms increases over the forecast period.
- The oil & gas sector is starting to emerge from a cyclical downturn, as subsea cable demand is set to grow at a 4.2% CAGR over the 2017-2021 period.
- Global subsea cable installation vessel day demand will total 60,223 vessel days over the forecast period, a 32% increase on the 2012-2016 period.
- Cable-lay demand will account for 60% of vessel day demand, whilst ultra-deepwater activities will account for 58% of flex-lay vessel day demand.
The increase in the number of oil & gas projects passing FID in 2017 compared to the previous 24 months is expected to support subsea cable demand as activity grows in gas rich basins offshore North & East Africa. Furthermore, the reduction in offshore wind construction cost in recent years due to standardization and improved logistics within the sector continues to support growth in investment.
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