1 Upstream Raw Material Suppliers of Cable Laying Vessels Market Analysis
The raw material suppliers for cable laying vessels include ArcelorMittal, Nippon Steel, Cleveland-Cliffs for steel, and Glencore, BHP, and Rio Tinto for non-ferrous metals.
Table Upstream Raw Material Suppliers of Cable Laying Vessels with Contact Information
Raw Material | Suppliers | Contact Information |
Steel | ArcelorMittal |
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Nippon Steel |
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Cleveland-Cliffs |
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Non-ferrous metals | Glencore |
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BHP |
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Rio Tinto |
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2 Cable Laying Vessels Production Process Analysis
The production process of a cable laying vessel commences with the preparation of raw materials, which is followed by steel processing. Next, parts assembly involves piecing together the various components of the vessel. After assembly, whole ship welding is conducted to integrate the parts into a single, cohesive structure. The vessel then undergoes cleaning and painting to ensure protection against corrosion and to enhance its durability. The final steps include sea trials to verify the vessel’s seaworthiness and performance, concluding with the delivery of the completed cable laying vessel to the client. This process ensures that the vessel is constructed to meet the rigorous demands of underwater cable installation and maintenance.
Figure Production Process of Cable Laying Vessels
3. Major Downstream Buyers of Cable Laying Vessels Market
The major downstream buyers of cable laying vessels include Orange Marine, Prysmian Group, Nexans, NKT A/S, Van Oord, and KDDI Cableships & Subsea Engineering Inc. (KCS).
Table Major Downstream Buyers of Cable Laying Vessels with Contact Information
Downstream Buyers | Contact Information |
Orange Marine |
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Prysmian Group |
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Nexans |
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NKT A/S |
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Van Oord |
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KDDI Cableships & Subsea Engineering Inc. (KCS) |
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4. Drivers Analysis of Cable Laying Vessels Market
Table Drivers
Item | Description |
Advantages of cable laying vessels and the need to replace aging cables | Cable laying vessels perform a wide range of tasks. These include the installation of cables for offshore wind farms, the installation of fiber optic cables for telecommunication, and cable installations for the oil and gas industry. One of the pivotal advantages of a larger cable-laying vessel is its ability to lay the entire cable in one go, eliminating the need for mid-sea cable splicing, which can be vulnerable points for potential damage. Dynamic positioning systems provide a higher level of safety for offshore wind farm vessels and surrounding facilities and are also suitable for environmentally sensitive waters where many wind farms are located. Being able to provide a high level of safety makes ships more attractive to those with stringent safety requirements. The newly designed cable laying vessel is not only suitable for deep sea operations but also designed for shallow water operations. Aging submarine cables used for power transmission, telecommunications networks, and oil and gas operations require upgrades and repairs, driving the demand for cable laying vessels. The equipment components of the cable are designed to have a specified failure rate over 25 years. Many warranties, licenses, and landing permits also typically expire after 25 years. When a cable is decommissioned, it may remain inactive on the seafloor. Some companies gain access to the cable, pull it up, and recycle it as raw material. To accomplish this task, the ship recycles the decommissioned cable and then relays it along a new path. For example, 464 submarine cables have been built globally, 82 of which reached design by 1998 service life. Over time, the number of submarine cables built in 1999-2003 and 2004-2008 reached 79 and 69 respectively. It is expected that 148 submarine cables will be retired in the next 10 years, creating a critical time window for the layout of new submarine cables. Some estimates put the cost of subsea cable failure for Offshore Wind at more than £500 million in 2020, the average insurance claim worth more than £3 million, and an estimated 30% failure rate in any given year. |
Rising demand for cross-border power grid interconnection | International grid interconnection provides a link between the electricity transmission systems of two or more adjacent countries. Interconnection therefore enables these countries to share power generation resources. To improve the reliability of cross-border grid connections, there is increasing demand for submarine power cables. As developed and developing countries gradually shift towards using the Internet, the global cable laying vessel market has now expanded to North America, Europe, China, and Japan. Europe leads the way in both cable-laying vessel production and cable-laying services. Several telecommunications cables are being laid between Africa and Europe. The world’s longest submarine interconnection cable runs 590 kilometers between the Netherlands and Norway. The UK has four submarine cable interconnectors linking it to France, the Netherlands, Ireland, and Northern Ireland, with several more proposed or under development. The existence of permanent cable connections between European countries increases the UK’s security of supply and provides countries on both sides of the interconnection with the opportunity to benefit from low-cost energy supplies available in different energy markets throughout the year. Taking into account the importance of connectivity to strengthen supply security and the need to facilitate cross-border trade, taking into account cost aspects and the potential for commercial exchanges, the European Commission proposes to extend the current 10% connectivity target to 15% by 2030. Rising demand for cross-border interconnected power grids is driving demand for submarine cables. The demand for submarine power cables can be linked to the demand for cable laying vessels, as these vessels are designed for the installation, maintenance, and decommissioning of submarine cables. Hence, increasing installation of subsea cables and increasing demand for cross-border interconnected power grids are expected to drive the cable laying vessel market. |
Growing demand for high-speed internet and data services and growing investment in telecom infrastructure | Growing demand for streaming services, online gaming and other data-intensive activities is driving the need for faster internet connections. Demand for cable-laying vessels capable of installing high-capacity submarine cables is increasing due to the need for faster and more reliable connections. The huge demand for submarine cables for high-speed broadband and mobile connectivity under the sea is driving the growth of the cable laying vessel market. Additionally, significant investments by telecommunications companies in installing submarine cables to meet the growing demand for improved and faster underwater communications are also attracting investments in the cable-laying vessel market. The telecommunications industry has expanded significantly across the globe. Due to the expansion of global communications, especially the Internet, the demand for underwater communications cables has increased significantly. Telecommunications companies are investing heavily in the installation of undersea cables due to the growing demand for better and faster internet and phone capacity around the world. |
Rapid growth in demand for offshore wind farms | Another important factor driving the expansion of the cable laying vessel market is the growing demand for offshore wind power projects. Governments around the world have introduced incentives and subsidies to encourage the development of offshore wind power projects. Demand for communications cables is increasing as countries look to reduce their reliance on fossil fuels and meet renewable energy targets. This has driven the need for specialized vessels to lay the necessary cables for these projects. The growing demand for offshore wind energy in various places has escalated the need for undersea power cables to connect cross-border grids to improve reliability. The economic advantages of offshore wind technology enable the development of higher and smoother offshore wind resources for large-scale energy projects in densely populated coastal areas, making it an important complement to low-carbon technologies and creating ample opportunities for the cable-laying vessel market. Chance. Therefore, rising investment in renewable energy production, including communication cables, is expected to create lucrative opportunities for the cable-laying vessel market. |
5. Opportunities Analysis of Cable Laying Vessels Market
Table Opportunities
Item | Description |
Advances in design and production technology | Growing demand for larger and more complex cable installations is driving the trend towards increased capacity of cable laying vessels. State-of-the-art vessels can significantly increase laying capacity while reducing the number and duration of operations. HVDC cables minimize transmission losses over hundreds of kilometers. This has led to the development of cable ships capable of handling complex multi-terminal HVDC transmission networks. Shore-side cable installation is increasingly used as this method provides greater control over cable laying and minimizes vessel downtime. Leading companies are developing advanced traction systems. In addition, downstream customers have increased their chartering of cable-laying vessels designed to work in icy waters. Combining advanced robotics with remotely operated vehicles is a major trend in the cable laying vessel market. These technologies increase the efficiency and precision of cable laying and maintenance operations in challenging underwater environments. Digital cable laying vessels are equipped with advanced sensors and monitoring systems that can collect data on various operating parameters. The use of data analytics enables operators to optimize vessel performance, predict maintenance needs, and ensure efficient cable laying operations. |
Environmental sustainability | Sustainable practices are not only environmentally responsible but also meet customer expectations and regulatory standards. As industries around the world strive to minimize their impact on the environment, cable laying vessel operators are increasing their research and development efforts to develop vessels that can reduce their carbon footprint during operations and while in port. This includes adopting energy-efficient propulsion systems, investing in hybrid or electric vessels, and taking steps to reduce emissions and minimize the ecological footprint of cable laying operations. The environmentally friendly cable-laying vessel uses biofuels and has built-in flexibility to be powered by e-fuels, high-performance and low-emission synthetic fuels. Manufacturers in the cable laying vessel market should conduct early design reviews across all disciplines to address stability, strength, and safety issues. |
