According to the TechNavio of submarine power cable market research Report, 2016-2020, the global submarine power cable market demand annual composite increase rate of about 5.89%. Among them, the fluctuation of raw material price, the increasing demand of High-voltage direct current cable and the increase of research and development are the three emerging trends to promote the steady increase of global submarine power cable demand.

By 2020, the offshore wind power industry is the most important terminal application market for submarine power cables. The investment and construction of the submarine power cable by the energy enterprise is to improve the efficiency of transmission, and finally to guarantee the land power supply.

At the same time, global investment in renewable energy power, including tidal energy, wave energy, offshore wind power will continue to promote the market demand growth.

Raw Material price fluctuation

The main raw materials for the production of power cables are aluminum and copper. The cable itself is the light industry, so raw material price fluctuations on cable manufacturers have a very direct impact. As of December 2015, the cost of raw material prices accounted for nearly 85% of the cost of submarine power cable production.

Among them, the cost of copper and aluminum accounted for about 50% of the total cost of production. As a result, fluctuations in the price of copper and aluminium and other essential raw materials, coupled with fluctuations in fuel and energy costs, have had a significant impact on the cost and revenue of cable manufacturers. To this end, cable manufacturers are trying to negotiate price changes through finished products to reduce the impact of metal price fluctuations.

The report said that by increasing the price of finished products can achieve the goal of increased gross profit margin, to reduce the risk of price fluctuations in raw material prices, but only if the finished product market is in short supply.

High voltage DC Cable sales increase

High Voltage DC underground cable is a feasible choice for long-distance high-voltage power transmission. The European Commission has screened out 43 major energy projects to build cross-border infrastructure to achieve a single energy market and boost regional energy security. In these projects, large amounts of electricity are required to be transported from one European country to another. Therefore, by 2020, the European market will become the main demand for High-voltage DC cable market.

In addition, the quality of light, low loss and other characteristics also makes High-voltage DC cable than AC cable more advantages of choice, especially in the submarine transmission market.

Increased investment in research and development

The report argues that increased investment in research and development is a major reason for the steady growth in demand for the future submarine power cable market. The rapid growth of the offshore wind power market has created more opportunities for research and development. Different energy sources need different types of power cables to achieve stable transmission of electricity.

Therefore, cable manufacturers will continue to increase the investment in new cable technology to achieve Geng long, lower loss of high-voltage power transmission.

Not only that, because the product homogeneity competition is serious, the cable manufacturer unceasingly enlarges the new product research and development, enables the enterprise to remain competitive.

The report also points to the future trend of submarine power cables (including high voltage/UHV cables):

· The wet design transforms to dry insulation, which is advantageous to the ambient condition of cable.

· Low electrical stress changes to high stress;

· Large diameter size to small diameter change;

· The cable quality is lighter;

· Short range to long distance destination distribution.