May 18, 2024
Cable Laying Vessel Market

The Global Cable Laying Vessel Market Is Driven By Rapid Growth Of Offshore Wind Farms

The cable laying vessel plays a crucial role in the installation of subsea power cables used for offshore energy projects and telecommunication networks. Cable laying vessels are equipped with cable tanks, cable engines and towers to deploy cables on the seafloor with utmost precision. Offshore wind energy in particular has seen exponential growth in recent years owing to supportive government policies promoting cleaner energy sources. Cable laying vessels help wind farm developers effectively transport and install inter-array and export power cables connecting wind turbines to offshore substations and onshore grids. The global cable laying vessel market was valued at US$ 8.5 billion in 2023 and is expected to exhibit a CAGR of 22% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.

The cable laying vessel market has substantial growth opportunities due to increasing investments in offshore wind farms and expansion of global telecom infrastructure. Cable laying operations are an integral part of setting up offshore renewable energy projects and high-speed internet networks. Vessels designed for cable laying enable smooth and cost-effective deployment of power cables and communication cables even in deep waters and difficult terrains. With strong demand for renewable energy sources and fast reliable connectivity, cable laying vessels continue to play a vital role in energy and digital transformation across the world. The global cable laying vessel market is estimated to be valued at US$ 8.5 billion in 2023 and is expected to exhibit a CAGR of 22% over the forecast period 2024 to 2031.

Market key trends:

The offshore wind sector is witnessing significant technological advancements that are increasing energy generation capacities and optimizing cable installation processes. Advanced features such as dynamic positioning systems, larger cables tanks and heavier cable engines are now common on modern cable laying vessels. This allows for efficient transportation and deployment of thicker export power cables needed for ultra-large offshore wind farms. Vessel autonomy is another emerging trend with early prototypes of self-driven cable ships being tested. Autonomous operations can help reduce risks and improve responsiveness of cable laying activities. Furthermore, hybrid powered cable ships are gaining traction to optimize fuel efficiency and reduce environmental footprint of installation works related to offshore energy and telecom grids. These technological upgrades in cable laying vessels are well-aligned with the exponential rise in offshore wind and subsea infrastructure projects globally.

Porter’s Analysis

Threat of new entrants: Low threat as the high capital requirement and expertise required to build and operate cable laying vessels make entry difficult.

Bargaining power of buyers: Moderate bargaining power as major buyers in this market are telecom companies and utility service providers who have the ability to negotiate on price and demand better services.

Bargaining power of suppliers: Low bargaining power as there are few component suppliers for cable laying vessels and switching costs are high.

Threat of new substitutes: Low threat as no direct substitute exist for cable laying vessels which provide niche services like laying of telecom cables and power cables underwater.

Competitive rivalry: High competition due to the presence of major players like Fincantieri, NKT Victoria, Prysmian, Keppel Corporation, etc who compete on the basis of price, delivery time, technical capability, and services.

Key Takeaways

The Global Cable Laying Vessel Market Share is expected to witness high growth over the forecast period.

Regional analysis – The Asia Pacific region accounts for over 35% of the global market share due to the massive ongoing and planned offshore projects for connectivity and power grids in countries like China, Japan, India, and Australia. Countries in this region are expected to strongly invest in developing their offshore infrastructure which will drive the demand for cable laying vessels.

Key players – Key players operating in the cable laying vessel market are Fincantieri, NKT Victoria, Prysmian, Keppel Corporation, Vard, Mccally, Henton, and Huarun. Major players are focusing on developing technologically advanced, cost-effective, and eco-friendly cable laying vessels to expand and consolidate their presence.

*Note:
1.      Source: Coherent Market Insights, Public sources, Desk research
2.      We have leveraged AI tools to mine information and compile it