Underground High Voltage Cable Market Size, Market Share, Application Analysis, Regional Outlook, Growth Trends, Key Players, Competitive Strategies and Forecasts, 2024 To 2032

The underground high-voltage cable market, crucial for efficient power transmission and distribution, has shown significant growth due to the rising demand for reliable and secure electricity infrastructure. The market is expected to grow at a CAGR of 6.2% during the forecast period of 2024 to 2032, driven by several factors, including the need for modernizing aging electrical grids, the push towards renewable energy sources, and the increasing urbanization which necessitates underground installations to minimize visual and environmental impacts. The market's segmentation reveals diverse trends, with the greater than 220 kV voltage range leading in revenue, while the 110 kV to 220 kV segment is expected to grow the fastest.

HVAC cables dominated in revenue in 2023, but HVDC technology is poised for rapid growth due to its efficiency in long-distance power transmission. Geographically, the Asia-Pacific region led in revenue, while Europe is expected to experience the highest growth rate. Competitive dynamics are marked by key players such as Prysmian Group, Nexans, and General Cable, who are driving innovation and expansion. Overall, the underground high-voltage cable market is well-positioned for continued growth, supported by technological advancements and increasing investments in power infrastructure.

Key Market Drivers

Aging Infrastructure and Urbanization

The need to upgrade aging electrical infrastructure and accommodate urbanization is a significant driver for the underground high-voltage cable market. Many regions around the world are grappling with outdated power grids that are prone to failures and inefficiencies. The replacement and upgrading of these aging systems are essential to ensure reliable and efficient power delivery.

Urban areas, in particular, face challenges related to space and aesthetics, making underground cables a preferred solution to avoid the visual clutter and land use issues associated with overhead lines. The integration of underground cables helps mitigate the impact of severe weather conditions and reduces maintenance costs associated with overhead systems.

According to the International Energy Agency (IEA), significant investments are required globally to modernize power infrastructure to support growing energy demands and integrate renewable energy sources. In addition, urban areas are expanding rapidly, increasing the demand for underground power solutions to accommodate new developments without disrupting existing infrastructure. This trend is evident in major cities across North America, Europe, and Asia-Pacific, where municipalities and utility companies are increasingly investing in underground cable projects to meet the dual demands of infrastructure modernization and urban development.

Growing Focus on Renewable Energy Integration

The transition towards renewable energy sources is driving the demand for underground high-voltage cables. Renewable energy projects, such as wind farms, solar parks, and hydroelectric plants, require robust and efficient transmission infrastructure to connect generated power to the grid. Underground cables are particularly valuable in this context as they offer a reliable solution for transmitting high-voltage power from renewable energy sites to consumption areas, often spanning long distances. This integration is crucial for achieving energy security and sustainability goals set by governments and international organizations.

According to the International Renewable Energy Agency (IRENA), renewable energy capacity is expected to grow significantly, necessitating the expansion of grid infrastructure to handle increased power flows. Additionally, underground cables reduce transmission losses and protect environmental factors, making them suitable for connecting renewable energy sources to the grid. As countries invest heavily in renewable energy projects, the demand for underground high-voltage cables to facilitate these connections is expected to rise, contributing to market growth throughout the forecast period.

Technological Advancements and Cost Reductions

Technological advancements in cable design and manufacturing are driving the underground high-voltage cable market by improving performance and reducing costs. Innovations such as enhanced insulation materials, improved conductor designs, and advanced cable laying techniques have significantly increased the efficiency and reliability of underground cables.

These advancements have also led to reduced production costs, making underground cables more competitive compared to traditional overhead lines. For example, the development of high-performance cross-linked polyethylene (XLPE) insulation has enhanced the thermal and electrical properties of cables, allowing for higher voltage ratings and longer service life.

The introduction of advanced installation techniques, such as horizontal directional drilling and trenchless technology, has minimized the disruption and cost associated with cable installation. According to industry experts, the continuous research and development efforts by leading cable manufacturers have resulted in more cost-effective solutions for underground power transmission.

As technological improvements continue to drive down costs and enhance cable performance, the adoption of underground high-voltage cables is expected to increase, supporting market growth during the forecast period. The combination of enhanced technology and reduced costs positions underground cables as a viable and attractive option for modernizing power infrastructure.

Market Restraint

High Initial Installation Costs

One significant restraint affecting the underground high-voltage cable market is the high initial installation costs. Underground cables generally require a higher upfront investment compared to overhead lines due to the complex installation process and the need for specialized equipment and materials. The installation of underground cables involves excavating trenches, laying cables, and backfilling, which can be labor-intensive and time-consuming. Additionally, the use of advanced insulation materials and construction techniques contributes to the higher costs of underground cables.

These initial costs can be a deterrent for some utility companies and municipalities, particularly in regions with budget constraints or lower electricity demand. Despite the long-term benefits of reduced maintenance and increased reliability, the higher upfront costs can pose a challenge for the adoption of underground cables. According to industry reports, while the total cost of ownership for underground cables may be lower over their lifespan compared to overhead lines, the initial investment remains a significant consideration for project planning and budgeting. Addressing these cost challenges through technological advancements and cost-effective solutions is crucial for expanding the adoption of underground high-voltage cables and supporting the market's growth.

Market Segmentation by Voltage

In 2023, the segment for voltage greater than 220 kV led the underground high-voltage cable market in terms of revenue. Cables with voltages exceeding 220 kV are used for long-distance and high-capacity power transmission, making them crucial for connecting power plants to the grid and facilitating regional power distribution. The high revenue in this segment reflects the substantial investments in infrastructure projects and the critical role of high-voltage cables in ensuring reliable power transmission over large distances. During the forecast period from 2024 to 2032, the segment for voltages between 110 kV and 220 kV is expected to exhibit the highest compound annual growth rate (CAGR).

This voltage range is commonly used for regional power distribution and connecting substations, which are experiencing increased demand due to expanding urban areas and infrastructure projects. The growing need for efficient power distribution in developing and urbanizing regions is driving the demand for underground cables in this voltage range. Advances in cable technology and reduced costs are further supporting the growth of this segment, as utilities and developers seek cost-effective solutions for medium to high-voltage power transmission. The combination of high revenue in the greater than 220 kV segment and the fastest growth in the 110 kV to 220 kV range reflects the diverse applications and evolving needs in the underground high voltage cable market.

Market Segmentation by Current

In 2023, the HVAC (High Voltage Alternating Current) segment generated the highest revenue in the underground high-voltage cable market. HVAC cables are widely used for standard power transmission and distribution applications, including connecting power plants to the grid and supplying power to large industrial and commercial facilities. The high revenue in this segment is attributed to the extensive use of HVAC technology in existing power infrastructure and ongoing projects. During the forecast period from 2024 to 2032, the HVDC (High Voltage Direct Current) segment is expected to exhibit the highest compound annual growth rate (CAGR).

HVDC technology is increasingly adopted for long-distance and intercontinental power transmission due to its efficiency in transmitting large amounts of power over great distances with lower losses compared to HVAC systems. The growth of HVDC technology is driven by its advantages in integrating renewable energy sources and enhancing grid stability. The expansion of HVDC projects, including underwater and underground HVDC links, is contributing to the segment's rapid growth. The combination of high revenue in the HVAC segment and the highest growth in the HVDC segment highlights the evolving trends and technological advancements in the underground high-voltage cable market.

Geographic Trends

In 2023, the Asia-Pacific region dominated the underground high-voltage cable market in terms of revenue. The region's leadership is driven by rapid urbanization, industrialization, and significant investments in infrastructure development. Countries such as China, India, and Japan have been major contributors to the high revenue in this region, with ongoing projects aimed at modernizing power grids and expanding urban infrastructure. The region's large-scale power generation and distribution projects have driven substantial demand for underground high-voltage cables. During the forecast period from 2024 to 2032, the Europe region is expected to exhibit the highest compound annual growth rate (CAGR).

Europe's commitment to energy transition, grid modernization, and integration of renewable energy sources is fueling the demand for underground cables. The European Union's regulatory frameworks and funding initiatives support the expansion of underground cable infrastructure as part of the broader energy transition goals. The combination of high revenue in the Asia-Pacific region and the fastest growth in Europe reflects the diverse regional dynamics and strategic priorities influencing the underground high-voltage cable market.

Competitive Trends

The underground high-voltage cable market is characterized by competition among key players who focus on technological innovation, strategic partnerships, and global expansion. In 2023, major companies such as Prysmian Group, Nexans, General Cable, alfanar Group, Brugg Kabel AG, Ducab, Power Plus Cables Co. L.L.C., Furukawa Electric Co., Ltd., Hellenic Cables, Iljin Electric, Jeddah Cables, LS Cable & System Ltd., NKT A/S, Riyadh Cable, Southwire Company, LLC, Sumitomo Electric Industries, Ltd., Taihan Cable & Solution Co., Ltd., TF Kable, Tratos, and ZTT were prominent in the market.

These companies have established a strong market presence through extensive product portfolios, advanced technologies, and significant investments in research and development. Prysmian Group, for instance, is known for its comprehensive range of high-voltage cable solutions and its commitment to innovation in cable technology. Nexans has been actively involved in expanding its underground cable offerings and exploring new markets to enhance its global footprint. General Cable, now part of Prysmian, contributed to the market with its diverse cable solutions and established industry expertise.

Competitive strategies in the market include mergers and acquisitions, as demonstrated by Prysmian's acquisition of General Cable, to strengthen market position and broaden product offerings. These companies are also focusing on developing advanced cable technologies, such as high-performance insulation materials and enhanced installation techniques, to meet the evolving demands of the power transmission industry. The competitive landscape is shaped by a combination of technological advancements, strategic partnerships, and regional expansion efforts, positioning key players for continued success in the underground high-voltage cable market during the forecast period from 2024 to 2032.

Historical & Forecast Period

This study report represents an analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.

The current report comprises quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends & technological analysis, case studies, strategic conclusions and recommendations and other key market insights.

Research Methodology

The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. The key data points that enable the estimation of Underground High Voltage Cable market are as follows:

• Research and development budgets of manufacturers and government spending
• Revenues of key companies in the market segment
• Number of end users & consumption volume, price, and value.
• Geographical revenues generate by countries considered in the report

Micro and macro environment factors that are currently influencing the Underground High Voltage Cable market and their expected impact during the forecast period.

Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top-down and bottom-up approach for validation of market estimation assures logical, methodical, and mathematical consistency of the quantitative data.

Market Segmentation

Voltage

• < 110 kV

Voltage

• < 110 kV
• 110 kV - 220 kV
• > 220 kV

Current

• HVAC
• HVDC 110 kV - 220 kV
• > 220 kV

Current

• HVAC
• HVDC

Region Segment (2022 - 2032; US$ Million)

• North America
  • U.S.
  • Canada
  • Rest of North America
• UK and European Union
  • UK
  • Germany
  • Spain
  • Italy
  • France
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • South Korea
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East and Africa
  • GCC
  • Africa
  • Rest of Middle East and Africa

Key questions answered in this report

• What are the key micro and macro environmental factors that are impacting the growth of Underground High Voltage Cable market?
• What are the key investment pockets concerning product segments and geographies currently and during the forecast period?
• Estimated forecast and market projections up to 2032.
• Which segment accounts for the fastest CAGR during the forecast period?
• Which market segment holds a larger market share and why?
• Are low and middle-income economies investing in the Underground High Voltage Cable market?
• Which is the largest regional market for Underground High Voltage Cable market?
• What are the market trends and dynamics in emerging markets such as Asia Pacific, Latin America, and Middle East & Africa?
• Which are the key trends driving Underground High Voltage Cable market growth?
• Who are the key competitors and what are their key strategies to enhance their market presence in the Underground High Voltage Cable market worldwide?

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