PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1884034
PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1884034
The global underground wires and cables market is experiencing substantial growth due to urbanization, infrastructure development, and renewable energy integration. The market was valued at USD 32.87 billion in 2024 and is projected to increase to USD 34.90 billion in 2025, eventually reaching USD 58.49 billion by 2032, reflecting a strong growth trajectory driven by urban expansion, smart city initiatives, and the transition toward sustainable energy solutions.
Market Dynamics and Drivers
Rapid urban growth and large-scale infrastructure projects are key drivers for the underground wires and cables market. As cities expand, the need for reliable and efficient power distribution increases, prompting the adoption of underground cables in residential, commercial, and industrial sectors. Underground cables provide safer and more resilient alternatives to overhead lines, reducing risks associated with storms, lightning, falling trees, and accidental contact. Initiatives such as metro system expansions, railway electrification projects, and low-cost housing development have significantly bolstered demand.
Government-led programs also play a pivotal role. For example, India's Saubhagya and DDUGJY schemes promote rural electrification and grid modernization, further fueling market growth. The emergence of smart grids and renewable energy adoption (solar, wind) necessitates advanced underground cable solutions, including medium-voltage smart cables with integrated fiber optics and HVDC systems. These innovations improve reliability and support the efficient transmission of power from renewable sources.
Market Restraints
Despite strong growth, the market faces challenges due to high installation costs. Underground cabling installation can range from four to fourteen times higher than overhead lines depending on voltage and distance. For example, constructing a 69 kV underground transmission line may cost approximately USD 1.5 million per mile, compared to around USD 285,000 per mile for an overhead equivalent. Such costs can hinder rapid deployment, particularly in emerging markets.
Opportunities
Technological advancements, particularly the integration of smart grid technology, offer significant opportunities. Smart grids facilitate real-time monitoring, predictive analytics, and automated control, enabling the efficient management of intermittent renewable energy sources such as solar, wind, hydro, and geothermal. As renewable energy projects and EV infrastructure expand, especially in urban areas, the demand for underground cables continues to rise due to their space efficiency, safety, and reliability.
Market Segmentation
By type, the market is divided into power cables and communication cables. Power cables dominate, largely driven by urban and smart city development, where underground installation reduces visual pollution, maximizes space, and ensures public safety.
By end-user, the market segments include residential, commercial, industrial, and utility sectors. Utilities remain the dominant end-user segment, as underground cables reduce exposure to hazards, making them a preferred solution in densely populated and disaster-prone regions.
Regional Analysis
Europe leads the global market, accounting for 49.34% of the share in 2024, driven by renewable energy initiatives and offshore wind and solar projects. The EU Green Deal and carbon neutrality targets for 2050 are major catalysts for investment in robust underground cabling systems.
North America's growth is fueled by renewable energy projects and smart grid adoption, aligned with the U.S. goal of 100% carbon-free electricity by 2035. Underground cables reduce risks linked to wildfires and downed power lines, supporting safe and reliable energy transmission.
The Asia Pacific region is the fastest-growing market due to rapid urbanization and infrastructure upgrades, while Latin America benefits from smart city development, industrial parks, and renewable energy expansion. In the Middle East & Africa, 5G deployment, fiber optic expansion, and government infrastructure initiatives in countries like Saudi Arabia drive demand.
Competitive Landscape
Leading companies include Prysmian Group (U.S.), Furukawa Electric Co., Ltd. (Japan), Sumitomo Electric Industries (Japan), Ducab (Dubai), Nexans (France), and ABB Group (Switzerland). These players focus on technological innovation, high-voltage and submarine cable solutions, smart grid integration, and strategic investments to strengthen their global presence.
Key developments include Sumitomo Electric's acquisition of Sudkabel in Germany (2024) to produce 525 kV HVDC cables, and Hellenic Cables Americas' new plant in Baltimore (2024) supported by the U.S. Department of Energy. Additionally, RTE's 2024 contract with Prysmian, Nexans, and NKT-SolidAl involves the supply of 5,200 km of underground cables valued at USD 1.16 billion.
Conclusion
With a market size of USD 32.87 billion in 2024, projected to reach USD 34.90 billion in 2025, and anticipated to grow to USD 58.49 billion by 2032, the global underground wires and cables market is poised for strong growth. Driven by urbanization, renewable energy adoption, smart grid technology, and the need for safer, more reliable infrastructure, the sector presents significant opportunities for manufacturers, investors, and policymakers worldwide.
Segmentation By Type
By End-User
By Region