The Submarine Cable Market is experiencing a surge in demand for submarine power cables driven by the rapid development of the U.S. offshore wind industry. The Biden administration has set a target of 30 GW of offshore wind capacity by 2030, with projects approved along the East Coast from Massachusetts to North Carolina, as well as in the Gulf of Mexico and off the West Coast (California, Oregon, Washington). Each offshore wind farm requires two types of submarine cables: array cables that connect individual turbines within the farm (typically 66 kV AC, 3-conductor, XLPE-insulated, steel-wire-armored (SWA) or copper-wire-armored (CWA)), and export cables that transmit power from the offshore substation to the onshore grid (typically 220-525 kV AC or ±320-525 kV DC, single-core or three-core, XLPE-insulated, steel- or copper-wire-armored, fiber-optic composite). These cables must operate at high voltages (66 kV for array cables, 220-525 kV for export cables) and withstand harsh marine environments (saltwater corrosion, wave action, tidal currents, temperature extremes, ice scouring, fishing gear impacts, anchor drags, seismic events, submarine landslides, turbidity currents). Major offshore wind projects include Vineyard Wind 1 (MA, 800 MW, 62 turbines, 132 kV export cables, 66 kV array cables), South Fork Wind (NY, 130 MW, 12 turbines, 138 kV export cables), Coastal Virginia Offshore Wind (VA, 2.6 GW, 176 turbines, 220 kV export cables), Ocean Wind 1 (NJ, 1.1 GW, 98 turbines, 220 kV export cables), Empire Wind 1 & 2 (NY, 2.1 GW, 147 turbines, 220 kV export cables, 66 kV array cables), Beacon Wind (NY/MA, 1.2 GW, 84 turbines), Sunrise Wind (NY, 924 MW, 84 turbines), Revolution Wind (RI/CT, 704 MW, 65 turbines), SouthCoast Wind (MA, 1.2 GW, 147 turbines), New England Wind (MA, 800 MW, 62 turbines), Kitty Hawk (NC, 800 MW, 66 turbines), Skipjack (MD, 966 MW, 80 turbines), Marwin (VA, 1 GW, 77 turbines), and Dominion Energy's CVOW (VA, 2.6 GW, 176 turbines).
According to recent data, the U.S. Submarine Cable Market recorded a volume of 21 thousand kilometer in 2024 and is estimated to reach a volume of 46 thousand kilometer by 2033 with a CAGR of 9.4% during the forecast period. Submarine power cables are expected to account for over 50% of new cable kilometers installed in the U.S. by 2033, up from approximately 30% today. The build-out of offshore wind requires massive investments in cable manufacturing capacity, with European cable manufacturers (NKT, Prysmian, Nexans, LS Cable & System, Sumitomo Electric, Furukawa Electric, Fujikura, J-Power Systems, Hitachi Cable, Mitsubishi Cable, Toshiba, Sumitomo, Furukawa, Fujikura) expanding U.S. production facilities to meet demand. NKT has announced a $150 million expansion of its Charleston, SC facility. Prysmian has invested $200 million in its Brayton Point, MA facility (formerly a coal-fired power plant) for submarine power cable production. Nexans has expanded its Claremont, NC facility. LS Cable & System has partnered with local utilities to establish manufacturing. The U.S. offshore wind industry's supply chain requirements include specialized cable-laying vessels (Nexans' Aurora, Prysmian's Leonardo da Vinci, NKT's Victoria, Van Oord's Nexus, DEME's Living Stone, Boskalis's Bokalift, Jan De Nul's Willem de Vlamingh, Seaway 7's Seaway Phoenix, Subsea 7's Seven Atlantic, DeepOcean's Maersk Launcher) capable of handling large-diameter, heavy submarine cables (typically 200-500 tons per kilometer, requiring vessels with dynamic positioning (DP2, DP3), carousel capacity (5,000-10,000 tons), tensioners (50-200 tons), ploughs (for burial 1-5 meters below seabed), ROVs (work-class inspection and trenching), and cable lay equipment (linear cable engines, chutes, overboarding chutes). The limited availability of specialized cable-laying vessels (only 3-5 suitable for U.S. waters) has led to vessel shortages and higher day rates ($50,000-150,000 per day). For offshore wind developers and utility planners, understanding cable rating (ampacity, thermal backfill, burial depth), AC vs. HVDC selection (AC for distances up to 80 km, HVDC for longer distances due to lower losses), and installation methodologies (simultaneous lay and burial, pre-lay grapnel run, post-lay burial, jet trenching, mechanical trenching, rock placement, concrete mattress placement, grout bag placement) is essential for project planning.
