Power Cables Market: Transmission Efficiency, Cable Innovations & Regional Development Projects

According to IMARC Group's latest research publication, global power cables market size reached USD 186.5 Billion in 2025. Looking forward, IMARC Group expects the market to reach USD 289.9 Billion by 2034, exhibiting a growth rate (CAGR) of 4.98% during 2026-2034.

How AI is Reshaping the Future of Power Cables Market

• Predictive Maintenance and Equipment Optimization: AI algorithms analyze sensor data from manufacturing equipment to predict maintenance needs before failures occur. Machine learning systems reduce downtime by 30-40%, preventing unexpected breakdowns in cable production lines while optimizing machinery lifespan and operational efficiency.
• Defect Detection and Quality Control: Computer vision systems powered by AI inspect cable surfaces during production, identifying defects like insulation damage, conductor irregularities, and surface cracks with exceptional accuracy. These automated systems process images at speeds impossible for manual inspection, ensuring only premium cables reach customers.
• Material Selection and Design Innovation: AI analyzes vast datasets to recommend optimal material compositions for enhanced cable performance. Algorithms suggest heat-resistant configurations, flexible structures for specialized applications, and improved insulation thickness, creating cables that withstand extreme environmental and electrical stresses across diverse industries.
• Production Process Optimization: Machine learning monitors real-time manufacturing parameters including temperature, extrusion speed, and cooling rates to maintain consistent quality. AI-driven systems automatically adjust production variables, reducing material waste by identifying process inefficiencies and minimizing scrap rates throughout manufacturing operations.
• Supply Chain Efficiency and Demand Forecasting: AI-powered analytics predict demand patterns by analyzing historical orders, infrastructure projects, and renewable energy installations. Smart forecasting systems help manufacturers align production capacity with market needs, reducing inventory carrying costs while ensuring timely delivery to utilities and contractors.

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Power Cables Industry Overview:

The power cables sector is experiencing unprecedented transformation driven by global electrification and infrastructure modernization initiatives. Grid expansion programs across developing economies are creating massive demand, with the U.S. Infrastructure Investment and Jobs Act allocating USD 65 billion for power grid improvements alone. India's RDSS scheme committed over USD 34 billion through 2026 to strengthen electrical networks. Major manufacturers like Prysmian invested USD 2 billion through 2027 to double submarine cable production capacity, while Nexans committed USD 1.2 billion from 2025-2028 for grid infrastructure. The sector benefits from renewable energy integration requirements, with offshore wind projects demanding specialized high-voltage submarine cables. Urban densification drives underground cabling adoption, replacing overhead lines in major cities worldwide. Vertical integration strategies help manufacturers manage copper and aluminum cost volatility.

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Power Cables Market Trends & Drivers

• Renewable energy integration is fundamentally reshaping cable demand patterns as wind and solar installations require specialized transmission infrastructure. Global renewable power capacity additions nearly doubled by 2027, with offshore wind farms becoming the primary driver. Projects like India's 765 kV line transmitting 3 GW from Khavda to Bhuj demonstrate the scale of transmission needs. The U.S. Department of Energy supports 30 GW offshore wind by 2030 and 15 GW floating offshore wind by 2035, requiring thousands of kilometers of submarine cables. Solar generation in the U.S. jumped 75% to 286 billion kilowatt-hours in 2025, while wind grew 11%, necessitating substantial grid upgrades. European Union's REPowerEU plan accelerates cross-border interconnectors, with France's RTE signing over USD 1 billion in contracts for 5,200 km of underground cables. Companies like Prysmian secured USD 1 billion for Australia's Marinus Link undersea interconnector, operational by 2030.
• Electric vehicle proliferation creates unprecedented electricity demand pressures requiring robust transmission infrastructure upgrades. EV registrations in the U.S. surpassed 3.5 million by September 2024, marking 140% growth since early 2023, while first-quarter 2025 sales reached nearly 300,000 units. This rapid adoption necessitates extensive charging infrastructure buildout, with peak evening charging times creating grid stress points. Grid capacity expansion must precede EV infrastructure to prevent outages and ensure reliable electricity delivery. Advanced conductor development through programs like the U.S. Department of Energy's USD 4.8 million CABLE Prize competition supports innovation in power line technologies capable of tripling existing transmission structure capacity. China leads ultra-HVDC technology deployment, planning over USD 200 billion in transmission line investments. Data center expansion compounds demand, with consumption projected to reach 945 terawatt-hours by 2030, requiring new high-capacity cables supporting 24/7 operations.
• Aging infrastructure replacement drives substantial cable market growth as utilities modernize decades-old transmission networks. The U.S. electricity grid faces challenges from deteriorating infrastructure, with many components exceeding designed operational lifespans. Grid modernization programs prioritize advanced monitoring systems, smart asset integration, and improved resilience against extreme weather events. Government funding mechanisms accelerate replacement cycles, with utilities securing multi-year contracts worth billions for network upgrades. Urbanization pressures force underground cable adoption in dense metropolitan areas, improving aesthetics while reducing storm-related outages. Projects like Telangana's INR 13,500-crore initiative replacing 25,000 km of overhead lines with underground cables demonstrate this shift. European manufacturers benefit from stringent environmental policies driving eco-friendly cable materials adoption, including low-smoke zero-halogen formulations. Supply chain investments by Prysmian, Nexans, and NKT totaling billions enhance production capacity across North America, Europe, and Asia-Pacific markets.

Leading Companies Operating in the Global Power Cables Industry:

• Prysmian S.p.A
• Belden Inc.
• Encore Wire Corporation
• Finolex Cables Ltd.
• Fujikura Ltd.
• Furukawa Electric Co., Ltd.
• HENGTONG GROUP CO., LTD.
• KEI Industries Limited
• LS Cable & System Ltd.
• Leoni AG
• Nexans
• NKT A/S
• Southwire Company, LLC
• Sumitomo Electric Industries, Ltd.
• TPC Wire & Cable Corp.

Power Cables Market Report Segmentation:

By Installation:

• Overhead
• Underground
• Submarine Cables

Overhead leads the market with around 45.6% of market share in 2024, driven by cost-effective deployment for long-distance transmission and ease of maintenance accessibility.

By Voltage:

• High
• Medium
• Low

Low voltage leads the market with around 43.7% of market share in 2024, serving residential, commercial, and small industrial applications with affordable solutions for basic power distribution needs.

By End-Use Sector:

• Power
• Oil & Gas
• Chemical
• Manufacturing
• Metals & Mining
• Infrastructure
• Transportation
• Others

Power leads the market with around 40.0% of market share in 2024, driven by electricity generation, transmission, and distribution infrastructure investments supporting renewable energy integration and grid modernization initiatives.

By Material:

• Copper
• Aluminum

Aluminum dominates the market in 2024, offering cost-effectiveness and lightweight properties ideal for long-distance transmission, while supporting sustainability goals through superior recyclability and reduced environmental impact.

Regional Insights:

• North America (United States, Canada)
• Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, Others)
• Europe (Germany, France, United Kingdom, Italy, Spain, Russia, Others)
• Latin America (Brazil, Mexico, Others)
• Middle East and Africa

Asia Pacific exhibits a clear dominance in the power cables market, holding over 43.8% market share in 2024, fueled by rapid urbanization, massive infrastructure investments, and renewable energy expansion across China, India, and Southeast Asia.

Recent News and Developments in Power Cables Market

• October 2025: Prysmian Group secured a contract worth up to EUR 460 million to design and implement a submarine HVDC cable system for the Italy-Tunisia electrical interconnection project (ELMED). The project features a preliminary activation phase jointly released by Italy's Terna SpA and Tunisia's Société Tunisienne de l'Électricité et du Gaz.
• September 2025: Xlinks announced the Sila Atlantik project through its subsidiary Xlinks Germany GmbH, supported by German energy companies E.ON and Uniper. The initiative aims to transmit Morocco's solar and wind energy directly to German consumers via an innovative underwater cable network.
• August 2025: Telangana government unveiled a INR 13,500-crore plan to replace 25,000 km of overhead power lines with underground cables across Greater Hyderabad and Bharat Future City. The project, led by TGSPDCL, will improve safety, reduce monsoon outages, and lower maintenance expenses using horizontal drilling techniques.
• July 2025: Chief Minister Rekha Gupta launched a pilot project costing Rs 8 crore to relocate overhead power lines underground at BH Block, Janta Flats Colony, Shalimar Bagh. The initiative, expected to complete within three months, will eliminate cable clutter in the densely populated colony.
• June 2025: Sumitomo Electric Industries began implementing its 525kV XLPE HVDC underground cable system for Germany's Corridor A-Nord project. This milestone supports Germany's Energy Transition strategy, integrating renewable energy into the High-Voltage Network while substantially reducing carbon emissions.

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