Cable Laying Vessel Market is Estimated to Witness High Growth Owing to Increasing Offshore Wind Power Installation
Cable laying vessels are specialized ships designed to lay cables on the seafloor. They are equipped with sophisticated cable handling systems such as tensioners and armoured pipes for efficient cable laying operations. Cable laying vessels are extensively used for installation of submarine power cables and communication cables. Submarine power cables are deployed to connect offshore wind farms and offshore oil & gas rigs to the onshore grid. Communication cables laid by these vessels form the backbone of the global internet and telecommunications network by connecting continents.
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 Dynamics
Increasing offshore wind power installation is one of the key drivers for the growth of Global Cable Laying Vessel market Size. Offshore wind power is growing rapidly as a renewable source of energy across various parts of the world. Effective installation of underwater power cables is vital for evacuation of huge volumes of power generated by offshore wind farms. Cable laying vessels facilitate efficient and safe deployment of submarine power cables connecting offshore wind farms to the mainland power grids. Moreover, these vessels play a critical role in maintenance and repair activities of existing underwater power cables.
Another driver for the cable laying vessel market is the ongoing expansion of internet penetration and greater usage of data worldwide. This is increasing the demand for higher bandwidth undersea cables to cater to the surge in data consumption. Cable laying vessels are deployed to lay new communication cables connecting different continents and countries to expand and enhance the global internet infrastructure. Rapid technological advancements in the field of submarine communications is also propelling the growth of cable laying vessel market.
SWOT Analysis
Strength: Cable laying vessels allow installation and repair of subsea cables efficiently. They are equipped with advanced technology such as dynamic positioning systems, trenching systems and repair systems to lay cables in deep waters. Cable laying vessels have dedicated storage tanks for handling lubricants and chemicals safely during cable laying operations.
Weakness: High maintenance and operating costs associated with cable laying vessels poses challenges. Adverse weather conditions can disrupt cable laying schedules.
Opportunity: 5G rollout and increasing demand for high-speed internet globally is driving requirement for more subsea cables. Rapid infrastructure development in emerging markets also presents opportunities for cable laying market. Undersea cables enable connectivity for offshore oil & gas fields which is another growth area.
Threats: Slow economic growth can negatively impact investments in subsea cable projects. Disruptive technologies for wireless connectivity pose a long-term threat to demand for physical cables. Stringent environmental regulations for cable laying in sensitive marine areas.
Key Takeaways
The global cable laying vessel market is expected to witness high growth over the forecast period supported by increasing demand for internet and telecommunication services globally. The Asia Pacific region currently dominates the market owing to large subsea cable network and ongoing infrastructure projects in countries like China and India. Countries in the region are also focusing on developing domestic cable manufacturing capabilities.
Regional analysis: The Asia Pacific region is expected to continue being the fastest growing as well as the dominant regional market for cable laying vessels over the forecast period. This is attributed to growing connectivity needs of densely populated countries in the region along with ongoing large infrastructure investments. China dominates the APAC cable laying vessel market with a sizeable domestic fleet to support ambitious undersea cable networks in the region.
Key players: 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, Orient Cable. The market remains fairly consolidated with top manufacturers accounting for a major share.
Get More Insights On This Topic: https://www.trendingwebwire.com/cable-laying-vessel-market-analysis-growth-forecast-outlook-2023-2030/
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