Submarine Electricity Transmission Systems Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By System Type (HVDC System, HVAC System), By Application (Offshore Wind Turbine, Offshore Oil & Gas Platform, Intercountry & Island Connectors, Others), By Region, By Competition, 2020-2030F

Market Overview

Global Submarine Electricity Transmission Systems Market was valued at USD 11.4 billion in 2024 and is expected to reach USD 16.0 billion by 2030 with a CAGR of 5.6% through 2030. A primary driver is the expansion of offshore renewable energy projects, especially offshore wind farms, which require reliable underwater cables to transmit power to onshore grids. This trend aligns with global efforts to reduce carbon emissions and transition to cleaner energy sources.

Technological advancements, particularly in high-voltage direct current (HVDC) systems, enhance transmission efficiency and reduce energy losses over long distances, making submarine cables more cost-effective and reliable. Additionally, increasing interconnection of regional power grids through submarine cables promotes energy security and optimizes power resource sharing across borders. Governments worldwide are also fostering market growth through supportive policies, subsidies, and incentives aimed at boosting renewable energy infrastructure. The rising demand for cross-border power transmission further fuels the need for submarine transmission systems, allowing countries to balance electricity supply and demand more effectively. Moreover, emerging economies investing heavily in offshore energy are expanding their submarine cable infrastructure, contributing to market expansion. Collectively, these factors — renewable energy growth, technological progress, grid interconnectivity, policy support, cross-border transmission needs, and emerging market investments — are propelling the global submarine electricity transmission systems market forward.

Key Market Drivers

Expansion of Offshore Renewable Energy Projects

One of the most significant drivers propelling the growth of the global submarine electricity transmission systems market is the rapid expansion of offshore renewable energy projects, especially offshore wind farms. As the global focus intensifies on combating climate change and reducing reliance on fossil fuels, governments and energy companies are increasingly investing in offshore wind, wave, and tidal energy projects. These renewable sources are primarily located far from shore due to environmental, space, and performance considerations. Submarine electricity transmission systems, including high-voltage alternating current (HVAC) and high-voltage direct current (HVDC) cables, are essential infrastructure components for transmitting the power generated offshore to onshore grids. In 2024, Prysmian Group acquired Texas-based Encore Wire for USD4 billion to strengthen its presence in the U.S. market. The company also intends to pursue a dual listing on the New York Stock Exchange along with additional acquisitions to enhance its position in the high-voltage cable industry.

Countries like the UK, Germany, China, and the United States are leading in offshore wind deployment, with large-scale projects being planned or under construction. For instance, the European Union’s Green Deal targets over 300 GW of offshore wind by 2050, which would require a massive expansion in underwater cable systems. Similarly, China's aggressive offshore wind capacity targets under its 14th Five-Year Plan are expected to result in a surge in submarine transmission installations across the Asia-Pacific region. In April 2023, Nexans finalized the acquisition of Finnish cable manufacturer Reka Kaapeli Oy, expanding its expertise across high, medium, and low-voltage cable segments.

Submarine power cables are especially crucial in enabling the long-distance transmission of electricity with minimal losses, which is key for the economic viability of offshore renewable projects. HVDC technology, in particular, is gaining preference for these projects due to its efficiency in transmitting electricity over long distances with lower transmission losses and improved grid stability. 

In addition to supporting energy transition goals, the development of offshore renewable energy projects also offers a solution to increasing land use challenges and urban power demand. Coastal cities with high energy consumption can benefit from renewable energy generated offshore, thus alleviating stress on land-based generation facilities and reducing greenhouse gas emissions.

Furthermore, government support in the form of favorable regulations, feed-in tariffs, and renewable energy targets further incentivizes the development of offshore projects and associated submarine cable infrastructure. Public-private partnerships and international collaborations for renewable energy sharing across borders also drive investment in undersea transmission systems. The global offshore wind energy capacity surpassed 65 GW in 2023, with projections to reach over 250 GW by 2030, driven by strong policy support and technological advancements. Offshore wind alone attracted over $60 billion in global investment in 2023, accounting for a significant share of total renewable energy funding. Offshore renewable energy sources, including wave and tidal power, are in early stages but projected to grow, with the global tidal energy market expected to exceed USD 15 billion by 2035. The International Renewable Energy Agency (IRENA) estimates offshore renewables could supply up to 20% of global electricity demand by 2050 if scaled effectively.

Interconnection of Regional and Cross-Border Power Grids

The growing need for regional and cross-border power grid interconnections is another crucial driver for the submarine electricity transmission systems market. Countries worldwide are increasingly seeking to improve energy security, grid reliability, and efficiency by establishing electrical interconnections with neighboring nations and offshore energy sources. These interconnections, made possible through submarine power cables, facilitate the sharing of electricity, especially from regions rich in renewable resources to those with high demand or limited generation capacity.

For example, the North Sea Link, a 720-km submarine cable between Norway and the UK, enables the exchange of hydroelectric power and wind energy between the two countries, optimizing grid stability and energy mix diversity. Similar interconnectors, such as the Viking Link (UK–Denmark) and EuroAsia Interconnector (Israel–Cyprus–Greece), are either operational or under construction, highlighting the rising importance of cross-border electricity trade in Europe and beyond.

These submarine cables allow countries to diversify their energy sources, reduce dependence on any single type of power generation, and stabilize prices through import-export flexibility. This is particularly critical in regions with intermittent renewable generation, such as solar and wind, where surplus energy can be exported during peak generation periods and imported during lulls. Submarine interconnectors are thus vital tools for balancing supply and demand across borders in real-time, improving overall grid resilience and reducing blackout risks.

Additionally, the liberalization of energy markets and regional power pool initiatives—such as those by the European Network of Transmission System Operators (ENTSO-E) or ASEAN Power Grid—support the trend toward integrated electricity markets. These initiatives promote the construction of interconnected transmission infrastructure, including submarine systems, to enable competitive, transparent, and efficient energy trading.

The growing electrification of sectors like transportation and industry, combined with increasing digitalization and energy consumption, places additional stress on national grids. Submarine interconnections offer a strategic solution by leveraging geographic diversity in energy generation and consumption, smoothing out demand peaks, and reducing the need for costly domestic infrastructure upgrades.

Moreover, submarine transmission systems are becoming increasingly viable due to advancements in HVDC technology, improved cable durability, and cost reductions in manufacturing and installation. These technological improvements enhance the economic feasibility of long-distance interconnectors, encouraging governments and utilities to invest in transnational energy links.

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Key Market Challenges

High Installation and Maintenance Costs

One of the most significant challenges facing the global submarine electricity transmission systems market is the high cost of installation and maintenance. Submarine power cables are capital-intensive infrastructure projects that require substantial upfront investment. The cost includes not only the manufacturing of specialized high-voltage cables but also the planning, seabed surveys, environmental assessments, engineering, cable laying, and protection operations. These expenditures are considerably higher than land-based transmission systems due to the complexities involved in undersea operations.

Laying submarine cables involves specialized vessels, remote-operated vehicles (ROVs), and advanced marine equipment capable of handling the weight and fragility of high-voltage cables in challenging underwater conditions. Furthermore, cable routes often span hundreds or even thousands of kilometers, adding to the overall expense. Factors such as the depth of the seabed, rocky or uneven terrain, shipping lanes, and environmental sensitivity significantly impact project design and cost. For example, installing cables at great ocean depths or through environmentally protected zones requires additional planning, permissions, and engineering adaptations.

The maintenance of submarine electricity transmission systems poses additional financial and logistical challenges. Underwater cables are exposed to risks such as abrasion from ocean currents, fishing trawlers, anchor drags, marine corrosion, and geological activities like underwater landslides. Detecting faults or damages in submarine cables is complex, requiring specialized fault localization equipment and costly marine operations for retrieval, repair, and redeployment.

The financial risk is particularly high for developing countries and emerging markets, where budgetary constraints limit the ability to fund such capital-heavy projects. This limits the adoption of submarine electricity transmission systems in regions where they might be most needed to connect remote islands or support cross-border power trade.

Moreover, long project timelines—often spanning several years from planning to commissioning—create additional cost risks due to inflation, material price volatility (especially copper and aluminum), and regulatory uncertainties. The involvement of multiple stakeholders, including governments, utilities, marine contractors, and environmental agencies, adds further complexity, potentially delaying project approvals and escalating administrative costs.

In addition, financing such large-scale projects often requires long-term investment from multilateral banks or private equity firms, which may hesitate due to the extended payback periods and project-specific risks. Without financial guarantees or strong policy frameworks, investors may consider the submarine electricity transmission market too volatile or unprofitable.

Environmental and Regulatory Challenges

Another critical challenge impeding the growth of the submarine electricity transmission systems market is navigating environmental and regulatory constraints. Submarine cable projects often face lengthy and complex approval processes involving multiple environmental impact assessments (EIAs), cross-border regulations, maritime laws, and stakeholder consultations. These hurdles can significantly delay project execution and inflate costs, posing a risk to timely and efficient deployment.

Underwater cable installation impacts marine ecosystems, including seabeds, coral reefs, and sensitive habitats for aquatic species. Environmental regulatory bodies require thorough analysis to ensure that cable routes avoid ecologically sensitive areas or mitigate any potential harm. For instance, the use of cable armoring or burial to reduce external impacts can disturb marine sediments, affecting benthic organisms. Projects in environmentally protected zones or migratory routes often require extensive compliance documentation, delaying approvals and raising the risk of cancellation or rerouting.

Moreover, regulatory fragmentation across different jurisdictions can hinder the development of cross-border submarine electricity transmission lines. A single cable route passing through exclusive economic zones (EEZs) of multiple countries may require separate permits, negotiations, and regulatory alignment. This often results in political complexities, especially when countries have differing energy policies, maritime laws, or geopolitical tensions. These regulatory uncertainties deter foreign investment and complicate multinational project management.

In addition to environmental and cross-border regulations, submarine electricity projects must also comply with laws related to fishing zones, shipping routes, and offshore drilling activities. Any perceived risk to existing maritime activities can lead to opposition from local communities, fisheries, or shipping industries, further complicating stakeholder management. Public opposition, lawsuits, or lack of community consent can delay or derail projects altogether.

Climate-related risks also add an environmental challenge. Rising sea levels, increased storm intensity, and oceanic temperature fluctuations may affect the long-term reliability and design of submarine cable systems. These evolving environmental conditions require continuous adaptation of materials, installation methods, and operational monitoring, which adds to the cost and complexity of maintaining regulatory compliance.

Furthermore, in many developing or resource-constrained nations, the regulatory framework governing submarine power transmission is still underdeveloped or lacks harmonization with international standards. This slows down foreign collaborations, limits technology transfer, and increases the uncertainty of project outcomes.

In summary, environmental and regulatory challenges form a significant barrier to the growth of the global submarine electricity transmission systems market. To address these issues, it is essential for stakeholders to work collaboratively, harmonize cross-border regulations, improve EIA processes, and incorporate sustainable planning and stakeholder engagement practices from the early stages of development.

Key Market Trends

Increasing Adoption of High-Voltage Direct Current (HVDC) Technology

A dominant trend shaping the global submarine electricity transmission systems market is the increasing adoption of High-Voltage Direct Current (HVDC) technology over traditional High-Voltage Alternating Current (HVAC) systems. As the demand for long-distance, high-capacity, and energy-efficient power transmission grows, HVDC systems have emerged as the preferred technology for submarine applications due to their technical and economic advantages.

HVDC cables offer significantly lower energy losses over long distances compared to HVAC systems. This efficiency is critical for intercontinental and remote offshore renewable energy projects, where electricity must travel hundreds or even thousands of kilometers underwater. HVDC systems also provide better controllability and stability in power flows, which is essential for integrating intermittent renewable energy sources like offshore wind or solar into existing power grids.

Moreover, HVDC allows asynchronous interconnection between different power systems, enabling cross-border energy trade between countries operating on different electrical frequencies. This capability is crucial for projects such as the North Sea Wind Power Hub, Viking Link (UK-Denmark), and EuroAsia Interconnector (Israel-Cyprus-Greece)—all of which are based on HVDC submarine transmission.

Technological advancements in HVDC cable design, converter stations, and insulation materials are reducing the cost and complexity of deployment. Innovations such as extruded HVDC cables, compact converter stations, and higher voltage ratings (exceeding 500 kV) are expanding the practical applications of HVDC systems and reducing their footprint, making them viable for deeper and more complex subsea installations.

Leading market players such as Hitachi Energy (formerly Hitachi ABB Power Grids), Siemens Energy, and Nexans are heavily investing in R&D to further enhance HVDC technology, creating efficient and cost-effective solutions for upcoming offshore wind and interconnection projects. Government policies and incentives promoting energy transition and regional grid interconnectivity are also accelerating the deployment of HVDC systems.

Furthermore, the modular and scalable nature of HVDC infrastructure supports phased project development, making it attractive for developers seeking flexible investment models and gradual capacity expansion. This is particularly useful in emerging markets where funding and energy demand may grow incrementally.

Expansion of Intercontinental and Regional Power Interconnectors

Another pivotal trend influencing the submarine electricity transmission systems market is the expansion of intercontinental and regional power interconnectors. As global energy systems become more integrated and decentralized, countries are increasingly investing in submarine cables to create cross-border links that enable the exchange of electricity, balance grid loads, and enhance energy security.

Regional interconnectors are gaining prominence in Europe, where initiatives under the European Green Deal and the Ten-Year Network Development Plan (TYNDP) by ENTSO-E aim to create a unified electricity market by linking national grids through submarine and underground cables. These projects allow surplus renewable energy from one country to be exported to another where demand is higher, optimizing resource utilization and reducing the need for fossil fuel-based generation.

For instance, projects like the UK–Norway North Sea Link, BritNed (UK–Netherlands), and Nemo Link (UK–Belgium) exemplify the strategic use of submarine interconnectors to share electricity and stabilize energy prices. The trend is expanding beyond Europe into the Middle East, Asia-Pacific, and Africa. One notable example is the India–Sri Lanka power interconnection project, which is expected to facilitate power trade between the two countries and enhance regional energy cooperation.

These intercontinental power highways also support the development of global renewable energy hubs. For example, North Africa is being explored as a potential exporter of solar power to Europe via undersea cables. Similarly, projects connecting the Middle East to Europe or Southeast Asia to Australia (such as the Sun Cable project linking Australia to Singapore) are gaining traction as technically feasible and economically attractive propositions.

The geopolitical dimension of energy interconnectors is also significant. Submarine cables enhance a country’s energy resilience by diversifying supply sources, lowering dependence on domestic production, and reducing vulnerability to energy shocks. As a result, governments are prioritizing bilateral and multilateral agreements to fund, regulate, and safeguard submarine cable infrastructure.

Technological advancements, including digital monitoring systems, enhanced cable insulation, and real-time fault detection, are making long-distance interconnectors more reliable and manageable. Combined with regulatory harmonization and increased public-private partnerships, these innovations are propelling the feasibility and attractiveness of cross-border submarine transmission systems.

In summary, the global push for energy connectivity through submarine power interconnectors is a key market trend. It supports grid modernization, enables transnational renewable energy trade, and enhances energy resilience. As nations pursue decarbonization and look to maximize renewable energy integration, this trend will remain central to the strategic development of submarine electricity transmission infrastructure.

Segmental Insights

Application Insights

Offshore Wind Turbine segment dominated the Submarine Electricity Transmission Systems Market in 2024 and is projected to maintain its leadership throughout the forecast period, driven by the global shift toward clean and sustainable energy. As countries aim to reduce carbon emissions and meet ambitious renewable energy targets, offshore wind farms have gained significant traction due to their ability to generate large-scale, consistent power. Unlike onshore installations, offshore wind farms are typically located far from the coast in deep waters where wind speeds are higher and more reliable, necessitating robust and efficient submarine electricity transmission systems to transfer the generated power to onshore grids.

The rapid development of offshore wind projects in regions like Europe, Asia-Pacific, and North America has significantly increased the demand for submarine cables. Countries such as the UK, Germany, China, and the U.S. are investing heavily in offshore wind infrastructure, with many projects relying on High-Voltage Direct Current (HVDC) technology for long-distance, high-capacity transmission. These projects often span several kilometers offshore, requiring complex undersea cable networks for interconnection and grid integration. Furthermore, government incentives, favorable regulations, and advancements in turbine and cable technologies have further strengthened this segment’s market share. As offshore wind capacity continues to expand globally, the offshore wind turbine segment will remain a critical growth driver in the submarine electricity transmission systems market, shaping its evolution in the coming years.  

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Regional Insights

Largest Region

North America dominated the Submarine Electricity Transmission Systems Market in 2024 and is anticipated to maintain its leadership throughout the forecast period, primarily driven by growing investments in renewable energy, cross-border power infrastructure, and offshore wind developments. The United States and Canada are at the forefront of adopting submarine electricity transmission systems to enhance grid reliability, support clean energy integration, and ensure stable power supply across regions and borders. A key driver is the rising demand for inter-regional electricity transmission to balance grid loads and minimize energy loss during long-distance transmission. Several large-scale offshore wind projects along the U.S. East Coast—such as those in New York, New Jersey, and Massachusetts—require advanced submarine cable infrastructure to connect offshore energy generation to onshore substations.

Moreover, the region’s strong emphasis on energy security and grid modernization, coupled with supportive regulatory frameworks and government funding, is accelerating the deployment of submarine cable systems. Cross-border electricity interconnection projects between the U.S. and Canada further bolster the region’s dominance by facilitating clean energy trade and ensuring system redundancy. In addition, leading technology providers and cable manufacturers are based in North America, enabling rapid deployment and innovation. As the region continues to pursue aggressive decarbonization targets and invests in offshore energy infrastructure, North America is expected to maintain its leadership in the submarine electricity transmission systems market for the foreseeable future.

Emerging Region

South America is the emerging region in the Submarine Electricity Transmission Systems Market, driven by growing energy demand, increased focus on renewable energy development, and the need for improved regional power connectivity. Countries such as Brazil, Chile, and Argentina are actively exploring submarine electricity transmission to enhance cross-border energy trade and integrate offshore renewable energy sources, particularly offshore wind and hydropower. Brazil, with its vast coastline and strong commitment to energy diversification, is investing in offshore wind development, which requires reliable submarine cable infrastructure to connect remote offshore turbines to the mainland power grid. Similarly, Chile’s ambitious renewable energy goals, along with its geographical isolation of certain regions, make submarine transmission a strategic necessity to ensure stable electricity access across its territory.

Additionally, South America is looking to establish stronger energy ties between countries through interconnection projects that require undersea power links, particularly in the southern cone region. These initiatives are supported by international investments, development bank funding, and favorable government policies aimed at modernizing the region's energy infrastructure. Although the region currently lags behind more developed markets like Europe and North America, its untapped potential, growing renewable projects, and strategic location are positioning it as a key emerging player. As investment and technology adoption increase, South America is expected to play an increasingly important role in the global submarine electricity transmission market.

 Recent Developments

• In November 2024, France nationalized Alcatel Submarine Networks (ASN) by acquiring an 80% stake from Nokia for approximately USD 105 million. This move aims to bolster France’s standing in global telecom infrastructure and secure sovereignty over critical technologies.
• In December 2024, the UK’s National Grid announced plans to invest up to £35 billion (USD 39.47 billion) over the next five years in its transmission operations. This includes allocating over £11 billion (USD 12.47 billion) to maintain and upgrade existing networks and to develop three Accelerated Strategic Transmission Investment projects designed to connect 50 GW of offshore wind capacity by 2030. 
• In April 2025, Rajasthan Part I Power Transmission Limited, a subsidiary of Adani Energy Solutions Ltd. (AESL), awarded a significant contract to a consortium of Hitachi Energy and Bharat Heavy Electricals Limited (BHEL). The consortium will design and deliver high-voltage direct current (HVDC) terminals to facilitate the transmission of renewable energy from Rajasthan’s Bhadla region to the industrial and transport hub in Fatehpur, Uttar Pradesh. This 6-gigawatt (GW), 950-kilometer HVDC link is capable of supplying power to approximately 60 million households across India.

  Key Market Players

• ABB Ltd
• Sumitomo Electric Industries Ltd
• Siemens AG
• LS Cable & System
• Nexans SA
• NKT AS
• Norddeutsche Seekabelwerke GmbH(NSW) 
• Prysmian SpA

Report Scope:

In this report, the Global Submarine Electricity Transmission Systems Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Submarine Electricity Transmission Systems Market, By System Type:

o   HVDC System

o   HVAC System        

• Submarine Electricity Transmission Systems Market, By Application:

o   Offshore Wind Turbine

o   Offshore Oil & Gas Platform

o   Intercountry & Island Connectors

o   Others         

• Submarine Electricity Transmission Systems Market, By Region:

o   North America

§  United States

§  Canada

§  Mexico

o   Europe

§  Germany

§  France

§  United Kingdom

§  Italy

§  Spain

o   Asia Pacific

§  China

§  India

§  Japan

§  South Korea

§  Australia

o   South America

§  Brazil

§  Colombia

§  Argentina

o   Middle East & Africa

§  Saudi Arabia

§  UAE

§  South Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Submarine Electricity Transmission Systems Market.

Available Customizations:

Global Submarine Electricity Transmission Systems Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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