Underground DC Electric Cable Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Cable Construction (Single-Core Cables, Multi-Core Cables, Self-Contained Fluid-Filled (SCFF) Cables, Mass Impregnated (MI) Cables, Extruded Cables), By Installation Method (Direct Buried, Trenching, Ducting), By End-User Industry (Utilities, Renewables, Industrials, Commercial, Transportation), By Voltage Rating (High Voltage, Medium Voltage, Low Voltage), By Region, By Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 29.13 Billion
CAGR (2026-2031)	7.81%
Fastest Growing Segment	Medium Voltage
Largest Market	Asia Pacific
Market Size (2031)	USD 45.74 Billion

Market Overview

The Global Underground DC Electric Cable Market will grow from USD 29.13 Billion in 2025 to USD 45.74 Billion by 2031 at a 7.81% CAGR. Underground DC electric cables are specialized insulated transmission mediums designed to transport high-voltage direct current electricity beneath the earth’s surface, offering reduced transmission losses for long-distance power transfer compared to alternating current alternatives. The primary driver supporting market growth is the global imperative to integrate remote renewable energy sources into national grids, alongside a rising demand for cross-border interconnections to enhance energy security. According to the Global Wind Energy Council, in 2024, 8 GW of new offshore wind capacity was grid-connected worldwide, creating a substantial requirement for robust underground and submarine DC cabling infrastructure to transmit this clean energy to onshore demand centers.

However, one significant challenge that could impede market expansion is the high capital investment required for these systems, specifically the substantial costs related to specialized cable manufacturing and the construction of AC-DC converter stations. While underground cables offer distinct aesthetic and operational benefits, their superior expense compared to traditional overhead lines often complicates financial feasibility and delays the final investment decisions necessary for large-scale utility projects.

Key Market Drivers

The Exponential Growth of Offshore Wind Energy Installations serves as a primary catalyst for the underground DC electric cable market. As nations strive to decarbonize, the development of massive wind farms located far from shore necessitates the use of high-voltage direct current (HVDC) subsea and underground land cables to efficiently transport electricity to inland load centers with minimal power loss. This shift toward remote renewable generation is translating into massive capital deployment for grid infrastructure updates and cable procurement. For instance, according to TenneT, in July 2024, the transmission system operator reported a total grid investment of €4.6 billion for the first half of the year, a surge largely attributed to the acceleration of its 2 GW offshore program.

Simultaneously, the Rising Demand for Inter-Regional and Cross-Border Grid Interconnections is amplifying the need for insulated cable systems that can bridge vast distances and stabilize diverse power networks. Underground DC cables are increasingly preferred for these strategic links to bypass the permitting challenges and visual impact associated with overhead lines in densely populated or environmentally sensitive areas. A prominent example of this trend is the construction of major energy highways; according to NeuConnect Interconnector, in November 2024, the project team finalized the first phase of cabling for the £2.4 billion link connecting the UK and German grids. This robust project pipeline is driving significant demand for cable manufacturers, as evidenced when, according to NKT A/S, in February 2025, the company announced a high-voltage order backlog of €10.6 billion at the end of 2024.

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Key Market Challenges

The high capital investment required for specialized cable manufacturing and the construction of AC-DC converter stations constitutes a severe impediment to the Global Underground DC Electric Cable Market. These elevated upfront costs negatively impact the financial viability of long-distance transmission projects, particularly when compared to more economical overhead alternatives. Utility operators and developers often struggle to align these superior expenditures with regulatory budget caps and required rates of return, leading to hesitant investment strategies. Consequently, the financial burden of undergrounding frequently results in significant delays or the cancellation of planned infrastructure upgrades, as the economic justification for such premium assets becomes difficult to establish.

This cost-driven constraint restricts market growth by limiting the technology's application to unavoidable bottleneck areas rather than broader grid deployment. According to the Institution of Engineering and Technology, in 2025, the deployment of underground transmission cabling was reported to be on average 4.5 times more expensive than traditional overhead lines. This magnitude of cost disparity compels grid planners to opt for overhead solutions wherever possible, directly reducing the volume of underground DC cable procurement and hampering the sector’s potential for rapid expansion.

Key Market Trends

The adoption of ±525 kV voltage standards for long-distance underground transmission represents a critical technological evolution, enabling grid operators to maximize power transfer capacity within constrained rights-of-way. By elevating the operating voltage from the traditional 320 kV, utilities can effectively double the transmission capability per cable pair, which is essential for realizing high-capacity energy corridors without significantly expanding the physical footprint of the infrastructure. This shift toward ultra-high-voltage systems is being substantiated by substantial commercial commitments. According to Prysmian S.p.A., October 2025, in the 'Q3 & 9M25 Integrated Results', the company reported securing new orders, including the strategic EGL4 project, with an approximate total value of €3 billion, validating the rapid market scaling and developer confidence in these advanced 525 kV cable systems.

Simultaneously, the market is experiencing a decisive shift towards Voltage Source Converter (VSC) optimized cable designs, primarily utilizing extruded cross-linked polyethylene (XLPE) insulation over legacy mass impregnated technologies. This transition is driven by the superior operational flexibility of extruded XLPE, which supports higher conductor temperatures and enables lighter, more resilient cable architectures necessary for complex grid integration and multi-terminal compatibility. The accelerating demand for these specialized components is reflected in the robust financial performance of key manufacturers. According to Nexans, October 2025, in the 'Q3 2025 Financial Information', the Transmission segment recorded a significant organic sales increase of 25% year-on-year, underscoring the aggressive industry migration toward these next-generation VSC-compatible cable solutions.

Segmental Insights

The Medium Voltage segment is identified as the fastest-growing category within the Global Underground DC Electric Cable Market. This accelerated expansion is primarily driven by the extensive integration of renewable energy sources, such as solar and wind, into distribution networks. As urbanization intensifies, utility companies are increasingly utilizing these cables to modernize aging infrastructure and support efficient power delivery in congested areas where overhead lines are not feasible. Additionally, the rapid development of electric vehicle charging infrastructure requires robust medium voltage direct current systems to manage localized energy loads effectively.

Regional Insights

Asia Pacific holds a dominant position in the Global Underground DC Electric Cable Market, driven by rapid industrialization and the escalating demand for reliable power in expanding metropolitan areas. Key economies like China and India are prioritizing grid modernization and renewable energy integration, requiring efficient underground transmission systems to overcome land constraints. Significant infrastructure commitments, such as investments by the State Grid Corporation of China to enhance inter-regional connectivity, heavily support this expansion. This strategic focus on upgrading power networks ensures the region remains the primary hub for underground direct current cable deployment.

Recent Developments

• In December 2024, NKT was awarded two turnkey projects by the Dutch-German transmission system operator TenneT as part of the extensive 2GW Program. The contracts, valued at approximately €1 billion, involve the design, production, and installation of 525 kV HVDC power cable systems for the LanWin7 offshore connection and the NordOstLink onshore project. The NordOstLink specifically requires high-voltage underground cables to transport wind power from the North Sea to the German grid. This award reinforces the company's position in the high-voltage cable market and supports Europe's transition to renewable energy.
• In September 2024, Nexans announced a significant investment of €90 million to upgrade its manufacturing facilities in Belgium and France to meet the rising demand for high-voltage cables. A key component of this initiative involves enhancing the Charleroi plant in Belgium to manufacture 525 kV HVDC onshore cables, which are critical for grid connection projects managed by the transmission system operator TenneT. The investment also includes the installation of a new specialized tower for cable insulation and updates to the manufacturing process, ensuring the company can support large-scale underground and offshore energy infrastructure developments.
• In June 2024, Sumitomo Electric acquired a majority stake in the German cable manufacturer Südkabel to strengthen its capabilities in the European market. This strategic acquisition is directly linked to the award of two major high-voltage direct current cable projects by the German transmission system operator Amprion, specifically Korridor B V49 and a portion of the Rhein-Main-Link. By securing local manufacturing capacity, the company aims to produce 525 kV HVDC underground cables within Germany, thereby facilitating the efficient transport of wind energy and contributing to the country’s climate-neutral energy goals.
• In February 2024, Prysmian finalized three major contracts worth approximately €5 billion with the German transmission system operator Amprion. These agreements encompass the delivery of cable systems for the underground HVDC project DC34, as well as the offshore grid connection systems BalWin1 and BalWin2. The deal represents the largest package in value and cable length ever awarded to the company, involving the supply of around 4,400 kilometers of high-voltage direct current cables. This collaboration is designed to support the transmission of renewable energy generated in the North Sea to consumers in Germany's western and southern regions.

Key Market Players

• ABB Ltd.
• Prysmian Group S.p.A.
• NKT A/S
• Nexans S.A.
• Siemens AG
• Hitachi, Ltd.
• LS Cable & System Ltd.
• Southwire Company
• Sumitomo Electric Industries, Ltd.
• Mitsubishi Electric Corporation

By Cable Construction	By Installation Method	By End-User Industry	By Voltage Rating	By Region
Single-Core Cables Multi-Core Cables Self-Contained Fluid-Filled (SCFF) Cables Mass Impregnated (MI) Cables Extruded Cables	Direct Buried Trenching Ducting	Utilities Renewables Industrials Commercial Transportation	High Voltage Medium Voltage Low Voltage	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Underground DC Electric Cable Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Underground DC Electric Cable Market, By Cable Construction:

• Single-Core Cables
• Multi-Core Cables
• Self-Contained Fluid-Filled (SCFF) Cables
• Mass Impregnated (MI) Cables
• Extruded Cables

• Underground DC Electric Cable Market, By Installation Method:

• Direct Buried
• Trenching
• Ducting

• Underground DC Electric Cable Market, By End-User Industry:

• Utilities
• Renewables
• Industrials
• Commercial
• Transportation

• Underground DC Electric Cable Market, By Voltage Rating:

• High Voltage
• Medium Voltage
• Low Voltage

• Underground DC Electric Cable Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE