Underground High Voltage Cable Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented, By Voltage (100 kV – 250 kV, 251 kV – 400 kV, Above 400 kV), By End-User (Industrial, Utility, Commercial), By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 19.22 Billion
CAGR (2026-2031)	7.77%
Fastest Growing Segment	251 kV – 400 kV
Largest Market	Asia Pacific
Market Size (2031)	USD 30.11 Billion

Market Overview

The Global Underground High Voltage Cable Market will grow from USD 19.22 Billion in 2025 to USD 30.11 Billion by 2031 at a 7.77% CAGR. Underground high voltage cables are insulated conductors designed to transmit electricity beneath the earth's surface, typically at voltages exceeding 66 kilovolts. The market is primarily driven by the accelerating pace of urbanization, which necessitates compact power infrastructure in space-constrained cities, and the critical need for grid resilience against severe weather events. These fundamental drivers, distinct from broader market trends, are reinforced by the global transition to renewable energy, which requires robust interconnections for offshore wind farms and decentralized power sources.

However, a significant challenge impeding market expansion is the substantial capital expenditure required for installation and maintenance compared to overhead lines. This cost factor, compounded by complex permitting processes, often delays projects in price-sensitive regions. Demonstrating the industry's response to growing demand constraints, according to Europacable, in 2024, leading European manufacturers were implementing investment decisions exceeding EUR 4 billion to expand their manufacturing and installation capacities. This data highlights the sector's commitment to overcoming supply-side bottlenecks to support decarbonization goals.

Key Market Drivers

The expansion of offshore wind energy and subsea transmission networks serves as a primary market catalyst. As nations decarbonize, escalating requirements for high-voltage direct current (HVDC) cabling are essential to transport electricity from remote offshore wind farms to onshore grids. This demand is amplified by the need for long-distance subsea interconnections ensuring energy security. Underscoring this trend, according to NKT A/S, November 2024, in the 'Interim Report Q1-Q3 2024', the company reported a high-voltage order backlog of EUR 11.0 billion, reflecting the sustained momentum in large-scale transmission projects driven by the global energy transition.

Modernization and upgrading of aging power grid infrastructure significantly propels the adoption of underground high voltage cables. Utilities are increasingly replacing overhead lines with underground systems to enhance grid reliability, mitigate visual pollution, and secure public acceptance. This structural shift is supported by substantial financial commitments from transmission system operators. For instance, according to Amprion GmbH, April 2024, in a corporate press release, the German operator announced plans to invest approximately EUR 27.5 billion by 2028 to upgrade its transmission grid. Highlighting the industry's response to such demand, according to LS Cable & System, July 2024, in a company announcement, the firm committed to investing USD 681 million to construct a new submarine cable manufacturing facility in the United States.

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Key Market Challenges

The substantial capital expenditure required for installation and maintenance represents a distinct barrier to the expansion of the underground high voltage cable market. Unlike overhead infrastructure, underground cabling involves extensive civil engineering works, including trenching and tunneling, which significantly increases initial project costs. These financial demands are further escalated by the necessity for specialized insulation materials and skilled labor for precise jointing and termination. Consequently, utilities and grid operators often face difficulties in justifying the return on investment for these capital-intensive projects, leading to delays or the cancellation of planned developments in regions with limited funding.

This cost factor creates a measurable disconnect between infrastructure needs and actual deployment. According to Eurelectric, in 2024, the annual investment in European distribution grids stood at approximately EUR 33 billion, a level identified as insufficient to fully support the integration of renewables and grid modernization which relies on advanced cabling. This financial constraint limits the volume of new underground cable projects that can be approved and executed, directly hampering the overall growth trajectory of the market.

Key Market Trends

The deployment of Ultra-High Voltage (UHV) underground systems is reshaping the market as utilities seek to maximize power transfer capacity within limited rights-of-way. This trend is characterized by the adoption of 525 kV DC cable technology, which allows for the creation of high-capacity "super grids" capable of transporting massive electricity loads over long distances with minimal losses. This shift is particularly evident in land-constrained regions where traditional overhead lines face public opposition and permitting challenges. Illustrating this trajectory, according to Sumitomo Electric, July 2025, in a corporate press release, the company commenced the installation of the Corridor A-Nord project in Germany, a 525 kV DC XLPE underground cable system valued at more than EUR 500 million.

Simultaneously, the expansion of underground export cables for offshore wind is driving significant market activity, necessitating robust onshore connections to integrate renewable energy into national grids. As offshore wind farms move further from the coast and increase in capacity, the demand for high-voltage onshore cable segments to transport power from coastal landing points to inland substations is surging. This sub-segment focuses on high-capacity HVDC interconnectors that ensure grid stability while handling intermittent renewable generation. Highlighting this demand, according to Nexans, March 2025, in a financial information press release, the firm secured a major framework agreement with RTE valued at more than EUR 1 billion to supply HVDC cables for connecting future offshore wind farms to the French transmission network.

Segmental Insights

The 251 kV – 400 kV segment represents the fastest-growing category in the Global Underground High Voltage Cable Market. This substantial expansion is primarily fueled by the increasing demand for efficient bulk power transmission to integrate large-scale renewable energy projects, such as offshore wind farms, into national grids. Additionally, strict zoning regulations and spatial constraints in metropolitan areas are compelling transmission system operators, such as National Grid, to prioritize these high-capacity underground cables over traditional overhead lines. Consequently, utilities are heavily investing in this voltage class to modernize aging infrastructure and ensure reliable long-distance energy delivery.

Regional Insights

Asia Pacific leads the Global Underground High Voltage Cable Market, underpinned by rapid urbanization and industrial expansion in key economies like China and India. The region's growth is fueled by substantial government initiatives to modernize aging electrical grids and integrate renewable energy sources, particularly offshore wind farms. Additionally, densely populated metropolitan areas are shifting toward underground infrastructure to improve power reliability and address land limitations. Major entities such as the State Grid Corporation of China are heavily investing in high-voltage transmission projects to support this surging demand, securing the region's dominant market position.

Recent Developments

• In November 2025, LS Cable & System officially commenced construction on the Donghae-Singhamyeong high-voltage direct current (HVDC) transmission network in South Korea. This project features the world’s first commercial application of a 500 kV HVDC cable capable of operating at 90 degrees Celsius. By increasing the allowable conductor temperature from the standard 70 degrees to 90 degrees, the new cable technology boosts transmission capacity by up to 50%. The company, which is executing the project for the Korea Electric Power Corporation, indicated that this development establishes a new benchmark for underground HVDC transmission efficiency and grid stability.
• In December 2024, NKT was awarded two turnkey high-voltage cable projects by the transmission system operator TenneT, with a combined value of approximately €1 billion. The order included the NordOstLink project, which entails the delivery and installation of a 525 kV XLPE High Voltage Direct Current (HVDC) onshore cable system in Germany. This onshore corridor is designed to facilitate the transport of wind power from the North Sea to the German grid. The company's management stated that these projects would reinforce their position in the HVDC market and support the development of Europe’s renewable energy infrastructure.
• In October 2024, Taihan Cable & Solution signed a contract worth KRW 840 billion ($630 million) with Singapore PowerGrid to supply and install a 400 kV ultra-high voltage underground power grid. This agreement marked a significant export milestone for the company, accounting for approximately 30% of its consolidated revenue from the previous year. Under the full turnkey arrangement, the manufacturer agreed to handle the entire project lifecycle, including the design, production, laying, and testing of the underground infrastructure. The grid upgrade addresses increasing electricity demand in Singapore driven by the expansion of data centers and artificial intelligence facilities.
• In February 2024, Prysmian Group finalized three contracts valued at approximately €5 billion with the German transmission system operator Amprion. These agreements included the delivery of the DC34 underground cable project, alongside two offshore grid connection systems. The company was tasked with supplying around 4,400 kilometers of High Voltage Direct Current (HVDC) cables, which represented the largest package deal in terms of both value and cable length ever awarded to the manufacturer. The DC34 project involves creating a high-capacity underground transmission corridor to transport wind energy generated in the North Sea to consumers in the Rhine-Main region.

Key Market Players

• Prysmian S.p.A
• NKT A/S
• Fujikura Ltd
• Southwire Company, LLC
• Sumitomo Electric Industries Ltd
• Hitachi, Ltd.
• Kerlink SA
• Brugg Kabel AG

By Voltage	By End-User	By Region
100 kV - 250 kV 251 kV - 400 kV Above 400 kV	Industrial Utility Commercial	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

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

• Underground High Voltage Cable Market, By Voltage:

• 100 kV - 250 kV
• 251 kV - 400 kV
• Above 400 kV

• Underground High Voltage Cable Market, By End-User:

• Industrial
• Utility
• Commercial

• Underground High Voltage 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