The Global Market in Terms of Sales of Components for Subsea Power Grid Systems is Projected to Reach US$3.2 Billion by 2020

Rising CAPEX on Subsea Oil & Gas Production Drives the Subsea Power Grid Systems Market, According to a New Report by Global Industry Analysts, Inc.

GIA announces the release of a comprehensive global report on Subsea Power Grid Systems. The global market in terms of sales of components for Subsea Power Grid Systems is projected to reach US$3.2 billion by 2020, driven by rising hardware installations and capital expenditure (CAPEX) in the subsea sector.

Subsea power grids are paving the way for making futuristic subsea factories and subsea power stations a reality. Currently, oil and gas processing power supply equipment are installed on platforms, also known as floaters. Though this configuration reduces step-out distance considerably, the set up requires large volumes of power distribution and transmission cables, and also adversely impacts the marine environment. As a result, the oil and gas industry is working towards the goal of realizing fully-integrated ‘subsea factories’ that will shift complete production and processing equipment from the topside to the seafloor closer to the oil and gas wells, resulting in dramatic improvement in capacity and lifespan of the reservoirs. Subsea factories help in significantly reducing both the ecological impact and human risks associated with offshore drilling operations.

The global subsea sector is expected to witness strong growth in terms of hardware installations and CAPEX through the year 2020, supported by the growing focus on developing deepwater hydrocarbon resources to substitute maturing shallow-water basins. Sophisticated and eco-friendly subsea power grid systems are expected to help exploration and production (E&P) companies to maximize revenues, intensify penetration in existing markets and expand footprint into new or emerging markets.

Given the heavy reliance of the market on the oil and gas sector, the softening of international crude oil prices has triggered a parallel weakening in demand for subsea equipment such as subsea trees beginning from mid-2014. While the short term outlook is ridden with uncertainty, demand for subsea trees is expected to improve significantly in the near term, driven by the strong investment of industry majors such as BP, Petrobras, Shell and Total in subsea operations in the Gulf of Mexico, West Africa, and Brazil. Long term growth in the market is primarily driven by the escalating global demand for primary energy which is driving offshore E&P activity, as well as the increasing number of large and profitable deepwater and ultra deepwater discoveries.

As stated by the new market research report on Subsea Power Grid Systems, Africa represents the largest market worldwide, owing to the development of large scale subsea oil and gas fields in West Africa. Latin America represents the fastest growing market with a CAGR of 18.4% over the analysis period, driven by the development of ultra deepwater fields in Campos and Santos basins.

Key players covered in the report include ABB Ltd., Aker Solutions ASA, BPP-Cables, General Electric Company, Hydro Group PLC, J+S Ltd, JDR, Nexans S.A., Ningbo Orient Wires & Cables Co., Ltd., OneSubsea, Parker Hannifin Corporation, Parker Parflex Division, Prysmian Group, Siemens AG, Schlumberger Limited, and Schneider Electric SE, among others.

The research report titled “Subsea Power Grid Systems: A Global Strategic Business Report” announced by Global Industry Analysts Inc., provides a comprehensive review of market trends, issues, drivers, mergers, acquisitions and other strategic industry activities of global companies. The report provides market estimates and projections for all major geographic markets such as the US, Canada, Europe (UK, Norway, Russia, and Rest of Europe), Asia-Pacific (Australia, India, Malaysia, and Rest of Asia-Pacific), Middle East, Africa (Angola, Nigeria, and Rest of Africa) and Latin America (Brazil, Mexico, and Rest of Latin America).