Market Trends of Subsea Power Grid System Industry
This section covers the major market trends shaping the Subsea Power Grid System Market according to our research experts:
Wind Energy to Witness Significant Growth
- As energy demand is rising, major countries and companies across the globe are turning toward the adoption of renewable energy as it can provide clean energy. The adoption of offshore wind energy with advanced technology attracted countries and companies to high investment.
- According to data from the Global Wind Energy Council, China's offshore wind energy capacity was 27.68 GW in 2021, a rise of 16.9 GW compared to the previous year.
- Moreover, in November 2022, In East China, the nation's first 16-megawatt offshore wind turbine rolled off the assembly line. A single unit can fulfill the annual electricity needs of more than 36,000 urban families, and also could create clean electricity at a rate of 66 million kilowatt-hours annually. Thus, with the increasing wind power capacity, the development of projects, and technological improvements in wind turbine technology, wind energy is expected to grow in the forecast period.
- A homegrown resource that supports the United States economic expansion is wind electricity. In 2021, more than 9% of the net energy produced in the nation was produced by wind turbines operating in all 50 states. The U.S. economy gained USD 20 billion from investments in new wind projects that same year.
- With further growth anticipated in the offshore wind energy installed capacity during the forecast period, wind energy is expected to drive the subsea power grid system market.
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Middle-East and Africa to Witness Significant Growth
- The increasing rate of exploration and production of offshore oil wells and thriving investment in oil field developments in deeper waters is the major driving factor for the subsea power grid system market.
- In December 2021, Hitachi Energy was awarded a contract that has a high-voltage, direct current (HVDC-VSC) subsea power transmission system in the Middle East and North Africa (MENA) region. The transfer of cleaner and more effective power from the mainland to power ADNOC's offshore production facilities will be made possible by the HVDC Light technology and MACHTM digital control platform, resulting in a carbon footprint reduction of more than 30%.
- In August 2022, the Hail and Ghasha Gas Development Project announced drilling contracts. The project is the world's largest offshore sour gas development and a crucial component of ADNOC's efforts to make the United Arab Emirates gas self-sufficient. The drilling contract will also increase the demand for subsea power.
- In 2022, the Bul Hanine field renovation (Qatar Petroleum's largest project to be carried out) plans call for an investment of USD 11 billion which is located 120 km east of Qatar's coastline and currently produces with a rate of 40,000 barrels per day. The project is likely to drive the subsea power market in the forecast period.
- The increasing number of offshore projects combined with the increasing share of offshore oil production is expected to drive the need for offshore power supply also.
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