Offshore wind is a linchpin of many countries’ decarbonization strategies. But the electricity generated at sea must reliably reach onshore demand centers. Subsea power cables (including export and inter-array cables) are the essential infrastructure enabling that link. For investors looking to gain exposure to the offshore wind supply chain beyond turbines, cabling is one of the few scalable “picks and shovels” opportunities.
This article profiles the most prominent subsea cable companies, explores market drivers and risks, and provides a forward-looking view for 2025–2030. It aims to help sophisticated retail and professional investors evaluate which names might deliver sustained long-term returns.
Quick Summary
- Subsea power cables (especially HVDC export and inter-array cables) are a critical enabler of offshore wind, forming the backbone of connecting offshore turbines to onshore grids.
- The global submarine cable systems market is expected to grow from ~USD 19.95B in 2025 to ~USD 33.75B by 2030 (CAGR ~11.1 %).
- Leading companies include Prysmian, Nexans, NKT, LS Cable, ZTT Cable, Sumitomo Electric, and specialized players like JDR Cable Systems.
- Key investor considerations: project backlog visibility, technological leadership (HVDC, XLPE, dynamic cables), geographic exposure, capital intensity, and supply chain constraints.
- Risks: permitting and regulatory delays, commodity inflation (copper/aluminum), competition from lower-cost manufacturers (especially in Asia), and integration risks in EPC projects.
Understanding Subsea Power Cables & Key Technologies
What Are Subsea Export & Inter-array Cables?
- Inter-array cables connect individual turbines to an offshore collection platform.
- Export (or “export-to-shore”) cables transmit aggregated power from the offshore platform to onshore substations (often via HVDC).
- Many offshore projects now require HVDC (high-voltage direct current) rather than HVAC, especially beyond ~50–80 km distance or in deep waters, because of lower losses.
- Subsea cables use advanced insulation (e.g. XLPE = cross-linked polyethylene) and must withstand marine hazards, dynamic motion (for floating wind), and long durations of exposure.
Market Size & Growth Trends
- The submarine cable systems market, of which power (not just communications) is a subset, is projected to grow at a compound annual growth rate (CAGR) of ~11.1 % between 2025 and 2030.
- Offshore wind expansion, especially in Europe, Asia, and parts of the U.S., is the principal driver: as more wind farms are sited farther offshore, cable length and complexity increase.
- Historically, cable installations were limited; for example, by 2023 ~5,000 km of subsea HVDC had been installed globally in wind projects, with estimates pointing to ~23,000 km by 2030 and ~56,000 km by 2035.
- There is also increasing interest in hybrid offshore wind + interconnector projects, where a wind farm doubles as a cross-border link.
Top Public and Private Subsea Cable Companies Worth Watching
Below is a table of prominent subsea power cable companies, their public status (if applicable), strengths, and strategic positioning in the offshore wind space.
| Company | Ticker / Status | Region / Base | Key Strengths / Focus | Notes & Differentiators |
|---|---|---|---|---|
| Prysmian Group | BIT:PRY | Italy / Global | Largest cable manufacturer; deep subsea and HVDC capabilities | Leading market share in submarine cables; in 2024 signed collaboration with TechnipFMC for floating offshore wind solutions. |
| Nexans | EPA:NEX | France / Global | Strong focus on offshore wind and interconnectors | After acquisition of ABB’s cable business, has solid HVDC and export cable expertise. |
| NKT A/S | CPH:NKT | Denmark / Europe | Specialized in HVDC, cables for offshore and interconnectors | Increased exposure to wind export cables and power highways. |
| LS Cable & System | (private or listed in Korea) | South Korea / Asia | Expanding global reach in HVDC, competitive Asia cost base | A key name in Asia-Pacific for subsea projects. |
| ZTT Cable | (private / China) | China / Asia | Strong in lower-cost manufacturing, expanding global footprint | ZTT is often listed among top players in the subsea power cable sector. |
| Sumitomo Electric | TYO:5802 | Japan / Asia | High reliability, strong in high-voltage and overseas expansion | Recently selected for the Shetland 2 HVDC subsea link in the UK. |
| JDR Cable Systems | (private) | UK / Europe | Niche specialist focused on offshore energy cable systems | Provides both inter-array and export solutions, especially in UK and North Sea markets. |
Notes on public vs private status:
- Some key players are wholly private or part of conglomerates (e.g., ZTT, JDR).
- For public names, Prysmian, Nexans, NKT, and Sumitomo Electric are the most directly investable.
- Proprietary partnerships and joint ventures (e.g., Prysmian + TechnipFMC) may offer off-balance sheet exposure to cable innovation.
Market Position & Competitive Landscape
Market Share & Leader Positions
- According to industry sources, Prysmian has held ~40% of the submarine cable market (by value) ahead of Nexans (21%) and NKT (14%).
- Nexans has higher proportional revenue exposure to offshore wind (e.g. 14%) and interconnectors.
- NKT, after acquiring ABB’s HV cable business, has boosted its involvement in export cable projects.
Strategic Moves & Partnerships
- The Prysmian–TechnipFMC collaboration aims to develop complete “water column to seabed to surface” cable solutions for floating offshore wind.
- Asian companies (e.g., Hengtong, Orient Cable) are increasingly winning offshore wind cable contracts in Europe and Korea.
- Sumitomo’s bid for the Shetland subsea HVDC cable is a notable push by an Asian name into a high-visibility UK project.
Key Investment Considerations
Order Backlog & Project Visibility
- Cable manufacturing is capital-intensive and capacity-limited; as a result, credible companies often have multi-year backlogs, which help revenue visibility.
- For offshore wind projects, developers typically commit early, enabling cable makers to lock in forward orders.
Technological Differentiation
- Leadership in HVDC, dynamic motion cables (for floating wind), fatigue resistance, and XLPE developments can command premium margins.
- Capability to deliver EPCI (Engineering, Procurement, Construction, Installation) solutions (versus just manufacturing) can enhance value capture but also increases execution risks.
Geographic & Currency Exposure
- Many offshore wind markets are in Europe, Asia, and increasingly the U.S. Companies with diversified global exposure may better mitigate regional slowdowns.
- Exposure to local currencies (e.g., euro, SEK, yen, KRW) introduces FX risk—especially for companies with cost bases in Asia serving European projects.
Cost Pressures & Supply Chain Risk
- Raw materials (copper, aluminum, insulations) are subject to price volatility.
- Cable factory capacity growth is slow (due to high capex and long lead times), creating a supply-side bottleneck.
- Shipping, marine installation, and vessel costs (for laying and trenching) also affect effective margins.
Execution & Permitting Risk
- Large subsea cable projects are subject to long permitting cycles, environmental reviews, and potential delays.
- Integration with other components (converter stations, junctions) can introduce coordination risks.
Outlook & Catalysts (2025–2030)
- Europe: Continued acceleration of offshore wind, especially in North Sea, Baltic, and Mediterranean zones. Projects like EGL (Eastern Green Link) in the UK will drive demand.
- Floating Wind: For deeper waters where fixed foundations aren’t viable, floating designs will require dynamic cable systems, which favor players investing in R&D (e.g. Prysmian + TechnipFMC).
- U.S. & Asia: Grid upgrades and transmission build-outs under policies like Inflation Reduction Act may spur more offshore development and require robust subsea linkages.
- Interconnectors + Hybrid Projects: Some offshore wind farms will double as cross-border links, increasing cable length and system complexity.
- Consolidation and vertical integration: Expect more M&A or collaborations as cable makers seek to own more of the value chain (installation, maintenance, converters).
From an investor perspective, names with strong backlogs, global footprint, technical edge in HVDC/dynamic cables, and prudent balance-sheet discipline are most likely to deliver sustained returns.
Risks & Red Flags
- Overcapacity & margin squeeze from aggressive competition, especially from low-cost Asian manufacturers.
- Delayed project starts or cancellations due to regulatory, environmental, or permitting challenges.
- Commodity cost inflation, which may erode margin if not hedged properly.
- Execution risks in turnkey or EPC contracts (cost overruns, integration issues).
- Concentration risk: If a large share of revenues comes from a few flagship projects, delays or contract cancellations could impair financials.
What to Watch in 2025 & 2026
- Announcements of large offshore wind projects and their cable procurement availability windows.
- Major contracts awarded to Prysmian, Nexans, Sumitomo, or NKT as leading indicators.
- Progress reports from floating wind pilot projects and their cable integrity performance.
- Expansion of cable factory capacity or new facility announcements.
- Movements in raw material pricing and shipping cost dynamics.
- Government / regulatory support (e.g. subsidies, grid build-out plans) in major offshore wind regions.
FAQ
Q: Why are subsea power cables critical to offshore wind?
Subsea power cables connect offshore turbines and platforms to onshore grids, enabling the transfer of electricity generated at sea to demand centers. They are indispensable for both inter-array and export transmission.
Q: Which are the top subsea cable companies for offshore wind in 2025?
Notable names include Prysmian (BIT:PRY), Nexans (EPA:NEX), NKT (CPH:NKT), LS Cable & System, ZTT Cable, Sumitomo Electric, and specialized players such as JDR Cable Systems.
Q: What key risks do investors face in subsea cable companies?
Major risks include permitting delays, commodity price inflation, execution risk in EPC work, competition pressure from low-cost manufacturers, and project concentration.
Q: How can investors get diversified exposure to subsea cable sector?
Because few pure subsea cable ETFs exist, many investors gain indirect exposure via clean energy or infrastructure ETFs with holdings in cable manufacturers, or by selecting leading public names like Prysmian or Nexans.