Asia Pacific Emerges as Fastest Growing Region in Cable Laying Vessel Market
Cable Laying Vessel Market
The cable laying vessel is a highly specialized type of ship that is used for installing telecommunication and power cables on the seabed and between offshore structures. Cable layers typically have a large cable tank or carousel that can hold thousands of tons of cable, along with superstructure and equipment for feeding, burying or jetting cables into the seabed.
These vessels play an essential role in projects related to installation of subsea power cables for offshore wind and oil & gas platforms, undersea communications cables between countries, as well as scientific applications for monitoring ocean conditions and earthquake activity.
The global cable laying vessel market is estimated to be valued at US$ 780 Mn in 2024 and is expected to exhibit a CAGR of 30% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the cable laying vessel market are Aerovironment, Inc., Airbus S.A.S., Alaka'i Technologies, Hes Energy Systems, and Pipistrel D.O.O. The increasing number of offshore renewable projects and rising investments in offshore wind capacity additions are driving the demand for specialized cable installation vessels. Several countries across North America, Europe and Asia Pacific are also expanding their subsea cable networks to meet the surge in bandwidth requirement, thus favoring market growth.
Growing demand in the market The rapid expansion of offshore wind energy around the world has boosted investments in specialized cable laying and installation vessels. As of 2020, over 30 GW of offshore wind capacity has been installed globally, with ambitious targets for further capacity additions in Europe, China and North America. Cable Laying Vessel Market Demand for offshore wind farm connectivity is a major driver for cable layers.
Global expansion of the market
Manufacturers are witnessing increased opportunities from Asia Pacific and Middle East & Africa due to the rising investments in transmission infrastructure to deliver renewable power from coastal regions. Countries like India, South Korea, Taiwan, Saudi Arabia, and UAE have announced large scale investments in offshore wind and are procuring specialized vessels to benefit from opportunities. The widespread application of cables for power transmission as well as telecommunications is supporting the global expansion of the cable laying vessel market.
Market key trends
One of the major trends in the cable laying vessel market is the increasing automation and use of innovative technologies to improve installation efficiency. Vessels are being outfitted with dynamic positioning systems, remote operated vehicles, trenching equipment and sensors to minimize installation time and costs. At the same time, hybrid designs integrating battery packs and fuel cells are gaining traction to reduce environmental impact and fuel costs. These technological advancements are expected to be crucial for high capacity cable installation projects involving depths of over 1,000 meters in the coming years.
Porter’s Analysis
Threat of new entrants: With significant capital requirements and technical expertise needed, the threat of new entrants in the cable laying vessel market is relatively low.
Bargaining power of buyers: Cable laying vessel operators have moderate bargaining power over buyers as customization and technical abilities are core differentiators.
Bargaining power of suppliers: Suppliers of components and materials have moderate bargaining power given differentiated requirements for cable laying vessels.
Threat of new substitutes: There exists a low threat of substitutes given the critical infrastructure services provided by cable laying vessels.
Competitive rivalry: Competition in the cable laying vessel market is high owing to the presence of several global players with large fleets.
Geographical regions: Europe currently accounts for the largest share of the global cable laying vessel market in terms of value, with countries such as Germany, Netherlands and United Kingdom leading the regional market. This is attributed to presence of major offshore wind farms and established offshore oil & gas industry in the region.
Fastest growing region: The Asia Pacific region is expected to grow at the fastest rate in the cable laying vessel market during the forecast period. This is mainly due to rising investments in development of new offshore oilfields and wind farms, along with upgrading of aging submarine cable infrastructure across countries such as China, India and South Korea.
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