Subsea cable demand will grow at a compound annual growth rate ( CAGR ) of 7% over the 2017-2021 period, with the offshore wind sector driving the market demand, according to this year’s first issue of Douglas-Westwood’s biannual Subsea Cable Tracker report.
Subsea cable demand is estimated to total 24,103km over the forecast period, driven by the offshore wind cable demand that will grow at a 15% CAGR, accounting for 45% of the forecast demand.
Asia-Pacific and Europe will account for a combined 78% of global cable installation over the next five-year period, with a large share of this growth being driven by energy policies focused on reducing greenhouse gas emissions, according to Douglas-Westwood.
Furthermore, due to the growth in offshore wind installation activity, cable-laying will contribute 61% of vessel installation demand. Global subsea cable installation vessel day demand will grow at a 3% CAGR over the forecast period.
However, vessel day demand is expected to fluctuate for both cable-lay and flex-lay vessels. Flex-lay demand will decline at a 4% CAGR over the forecast period, whilst growth of 8% CAGR for cable-lay demand days will be predominantly driven by offshore wind projects.