Analysis of three factors of submarine power cable demand growth
According to the submarine power cable market research report released by Technavio, 2016-
In 2020, the annual compound growth rate of global submarine power cable market demand was about 5. 5%. 89%.
Among them, the price fluctuation of raw materials, the increase in demand for HVDC cables and the increase in R & D investment are the three emerging trends that promote the steady increase in demand for global submarine power cables.
By 2020, offshore wind power industry will be the most important terminal application market for submarine power cables.
Energy enterprises increase their investment and construction in submarine power cables in order to further improve the effectiveness of transmission and ultimately ensure the supply of land power.
At the same time, global investment in renewable energy power will increase, including tidal energy, wave energy and offshore wind power, which will continue to promote the growth of market demand.
The price of raw materials fluctuates. The main raw materials used to produce power cables are aluminum and copper.
The cable itself is a light industry of heavy industry, so the impact of raw material price fluctuations on cable manufacturers is very direct.
As of December 2015, the price cost of raw materials accounted for nearly 85% of the production cost of submarine power cables.
Among them, the cost of copper and aluminum accounts for about 50% of the total production cost.
Therefore, the price fluctuation of copper, aluminum and other necessary raw materials, coupled with the price fluctuation of fuel and energy costs, has a great impact on the sales cost and income of cable manufacturers.
To this end, cable manufacturers try to negotiate price changes through finished products to reduce the impact of metal price fluctuations.
The report believes that the purpose of increasing the gross profit margin can be achieved by increasing the selling price of finished products, so as to reduce the risk of fluctuations in the price cost of raw materials, but only if the supply of finished products exceeds demand.
Sales of HVDC cables have increased, and HVDC underground cables are a feasible choice for long-distance high-voltage power transmission.
The European Commission has selected 43 major energy projects to build cross-border infrastructure to achieve a single energy market and improve regional energy security.
In these projects, a large amount of electricity is needed to be transported from one European country to another.
Therefore, by 2020, the European market will become the main demand market for HVDC cables.
In addition, the characteristics of light weight and low loss also make high voltage DC cable a more advantageous choice than AC cable, especially in the submarine transmission market.
The report on the increase of R & D investment believes that the increase of R & D investment is a major reason to promote the steady growth of demand in the future submarine power cable market.
The rapid growth of offshore wind power market has created more opportunities for research and development.
Different alternative energy resources need different types of power cables to realize stable transmission of power.
Therefore, cable manufacturers will continuously increase their investment in new cable technologies to realize high-voltage power transmission with long distance and lower loss.
Not only that, because the product homogenization competition is serious, cable manufacturers continue to increase the research and development of new products, in order to make the enterprise to maintain competitiveness.
The report also pointed out that the future development trend of submarine power cables (Including high voltage/ultra high voltage cable)
: Wet design changes to dry insulation, which is beneficial to the peripheral environmental conditions of cables; · Transition from low electrical stress to high stress; · Large diameter size changes to small diameter; · Lighter cable quality; · Short-range delivery to long-distance destinations.