High-Voltage Cables and Grid Modernization: Reshaping the Underground Power Transmission Market (2026-2032)
For utility executives, infrastructure investors, and energy policymakers navigating the accelerating energy transition, the strategic challenge is clear: how to deliver reliable, resilient power to densely populated urban centers while overcoming the physical, aesthetic, and safety limitations of traditional overhead transmission. As a senior industry analyst with over 30 years of experience across engineering, economics, and global energy infrastructure markets, I have synthesized the latest intelligence to provide a professional roadmap for this critical sector. The foundational data and segmentation for this strategic overview are drawn exclusively from QYResearch, a trusted global market research publisher since 2007.
Global Leading Market Research Publisher QYResearch announces the release of its latest report “Underground Power Cables – Global Market Share and Ranking, Overall Sales and Demand Forecast 2026-2032”. Based on current situation and impact historical analysis (2021-2025) and forecast calculations (2026-2032), this report provides a comprehensive analysis of the global Underground Power Cables market, including market size, share, demand, industry development status, and forecasts for the next few years.
Underground cables are used for power applications where it is impractical, difficult, or dangerous to use overhead lines. They are widely deployed in densely populated urban areas, industrial complexes, and for last-mile connectivity from overhead distribution networks to consumer premises—applications where reliability, safety, and spatial efficiency are paramount .
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Market Scale and Technology Segmentation
The global underground power cables market is experiencing robust growth driven by urbanization, grid modernization, and renewable energy integration. According to complementary industry analysis, the broader underground wires and cables market was valued at approximately US$32.87 billion in 2024, with projections reaching US$58.49 billion by 2032, reflecting a strong growth trajectory . QYResearch’s focused analysis on high-voltage segments indicates that the global land high-voltage underground cable market alone is projected to grow from US$74.5 billion in 2025 to US$101.85 billion by 2032, registering a compound annual growth rate (CAGR) of 4.9% during the 2026-2032 forecast period .
The QYResearch report segments the market by voltage class, capturing the distinct engineering requirements and application domains:
- Low Voltage Cables (up to 1 kV): Serving residential connections, commercial buildings, and low-power industrial applications
- Medium Voltage Cables (1 kV to 36 kV): Deployed in distribution networks, industrial facilities, and urban secondary networks
- High Voltage Cables (above 36 kV): Critical for bulk power transmission, grid interconnections, and renewable energy integration
Material innovation remains central to market evolution. Cross-linked polyethylene (XLPE) has emerged as the dominant insulation technology for medium and high-voltage applications, offering superior thermal performance, reduced dielectric losses, and enhanced reliability compared to traditional oil-filled cables . For ultra-high voltage applications, advanced systems such as gas-insulated lines (GIL) and high-voltage direct current (HVDC) cables are gaining traction, particularly for long-distance transmission and submarine interconnections .
Key Market Characteristics: Infrastructure, Technology, and Policy Drivers
Drawing from QYResearch’s foundational data and the latest official news from utility announcements, regulatory filings, and major infrastructure projects, several defining characteristics of the underground power cables market emerge:
1. Urbanization and the Smart Infrastructure Imperative
The migration of power distribution from overhead to underground systems has become a hallmark of modern urban development. Cities worldwide are recognizing that underground cabling addresses multiple urban challenges simultaneously: eliminating visual clutter from overhead wires, reducing storm-related outages, enhancing public safety, and freeing valuable airspace for trees, buildings, and transportation .
A compelling example comes from Delhi, India, where Chief Minister Rekha Gupta inaugurated a ₹8 crore (approximately US$1 million) pilot project in July 2025 to convert overhead electrical wires to an underground distribution network in Shalimar Bagh’s Janta Flats Colony . The project, executed by Tata Power Delhi Distribution Limited, involves removing 5 km of existing overhead lines and installing 10 km of new low-voltage (440V) and 1.2 km of high-voltage (11kV) underground cables. Beyond aesthetic improvements, the initiative aims to deliver 24×7 power supply even during adverse weather, reduce fault-related interruptions, and create a scalable model for citywide transformation backed by a ₹100 crore government allocation .
2. Grid Modernization and Aging Infrastructure Replacement
In mature economies, the imperative is often replacement of aging underground assets rather than new deployment. The Hartford Underground Cable Modernization Project in Connecticut, initiated by Eversource in April 2025 with a US$315.8 million budget, exemplifies this trend. The project replaces approximately 7 miles of fluid-filled cables installed in the 1970s with modern solid dielectric XLPE cables, eliminating environmental risks associated with oil leaks while improving reliability and reducing future maintenance disruptions .
This replacement cycle is widespread across North America and Europe, where underground transmission assets installed during post-war expansion are reaching end-of-life. The transition to XLPE technology not only enhances environmental compliance but also enables higher power transfer capacities within existing underground duct banks—a critical advantage in congested urban corridors where new excavation is prohibitively expensive.
3. High-Voltage Direct Current (HVDC) and Renewable Energy Integration
The most technologically dynamic segment of the underground power cables market involves HVDC transmission systems, which are essential for integrating remote renewable generation and enabling long-distance, low-loss power transfer. Sumitomo Electric’s commencement in August 2025 of a US$546 million, 186-mile 525kV HVDC underground cable system for Germany’s Corridor A-Nord project represents a landmark deployment . This XLPE-insulated HVDC system will connect converter stations in Petkum and Osterath, forming a critical backbone for Germany’s energy transition (Energiewende) by enabling the transmission of offshore wind power from the North Sea to industrial load centers in North Rhine-Westphalia.
Similarly, the 1.8GW LionLink interconnector project, being developed by TenneT and National Grid Ventures, selected Walberswick, Suffolk, as its preferred UK landfall location in February 2025 . This “hybrid interconnector” will simultaneously link the UK and Dutch electricity grids while connecting a 2GW offshore wind farm in Dutch waters, with all onshore portions buried underground. Such multi-purpose interconnectors represent the future of cross-border energy infrastructure, requiring advanced underground cable systems capable of both high capacity and operational flexibility.
4. Offshore Wind Transmission: The Submarine-to-Underground Interface
The rapid expansion of offshore wind generation creates substantial demand for underground cables at the landfall interface where submarine cables transition to terrestrial networks. Equinor’s Empire Wind 1 project, approved by the New York State Public Service Commission in February 2025, includes approximately 28 km of transmission infrastructure featuring 230kV and 345kV HVAC underground cables connecting the Brooklyn landfall to Con Edison’s Gowanus substation . The US$3 billion project, expected to achieve first power in late 2026, demonstrates the scale and complexity of underground infrastructure required to support the offshore wind buildout along the U.S. Eastern Seaboard.
5. Installation Economics and Technology Challenges
Despite compelling benefits, underground cable deployment faces significant economic hurdles. Installation costs for underground transmission can range from four to fourteen times higher than equivalent overhead lines, depending on voltage, terrain, and urban density. Constructing a 69 kV underground line may cost approximately US$1.5 million per mile, compared to roughly US$285,000 per mile for overhead alternatives . These economics necessitate careful project selection and often require regulatory support or cost socialization mechanisms.
Technical challenges include thermal management, as underground cables in ducts face higher operating temperatures than overhead conductors, limiting current-carrying capacity. Fault location and repair times are substantially longer for underground systems, requiring sophisticated monitoring technologies. Recent innovations include neural network-based partial discharge monitoring systems for extra-high voltage XLPE cable lines, enabling real-time fault detection and automatic discrimination from external noise—critical capabilities for maintaining reliability in long-distance underground transmission .
6. Military and Critical Infrastructure Applications
The QYResearch segmentation identifies military and civil applications as distinct market categories. Military installations increasingly require underground power distribution to ensure operational security, reduce vulnerability to attack or sabotage, and maintain continuity during emergencies. Similarly, critical infrastructure such as hospitals, data centers, and emergency response facilities are mandating underground feeds as part of resilience planning, creating specialized demand for armored and hardened cable constructions.
Competitive Landscape: Global Leaders and Regional Specialists
The underground power cables market features a concentrated group of global technology leaders with vertically integrated capabilities spanning materials science, cable manufacturing, and turnkey installation services. Key players identified in the QYResearch report include Nexans (France), General Cable (now part of Prysmian Group), SEI (Sumitomo Electric Industries, Japan), Southwire (USA), JPS (Japan Power System), Jiangnan Cable (China), Furukawa (Japan), Riyadh Cable (Saudi Arabia), NKT Cables (Denmark), and LS Cable & System (South Korea) .
Recent industry consolidation and strategic investments reflect the capital-intensive nature of the sector. Prysmian Group maintains global leadership following its acquisition of General Cable, while Sumitomo Electric’s strategic acquisition of Germany’s Sudkabel in 2024 strengthens its position in the European HVDC market . Chinese manufacturers including Jiangnan Cable are expanding their presence in emerging markets, leveraging cost advantages while investing in higher-voltage technologies to compete in export markets.
The competitive intensity varies significantly by voltage class and geography. Low-voltage segments exhibit commoditization pressures with numerous regional players, while high-voltage and extra-high-voltage segments remain concentrated among a handful of companies with the engineering expertise, testing facilities, and installation capabilities required for transmission-scale projects.
Strategic Implications for Industry Leaders
For CEOs and Marketing Managers, the strategic imperatives are clear: success requires navigating the technical complexity of HVDC and XLPE technologies, securing positions in high-growth segments driven by renewable integration, and developing the project execution capabilities demanded by large-scale urban and interconnection projects. Partnerships between cable manufacturers, transmission system operators, and installation contractors are increasingly essential, as evidenced by the HOCHTIEF-MURPHY Joint Venture, Taihan, Balfour Beatty, and Linxon collaboration on National Grid’s London Power Tunnels 2 project .
For investors, the QYResearch data provides essential baselines, but must be complemented with real-time intelligence on infrastructure stimulus programs, renewable energy targets, and utility capital expenditure plans. The convergence of grid modernization, offshore wind development, and urban smart infrastructure creates sustained demand across voltage classes and geographies, with the highest margins concentrated in technically demanding HVDC and extra-high-voltage segments.
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For a complete, data-backed understanding of the competitive landscape, technological trajectories, and precise market forecasts that will define the Underground Power Cables market from 2026 to 2032, I strongly recommend engaging with the full QYResearch report. For detailed inquiries or to secure this comprehensive analysis for your strategic planning, please contact QYResearch directly:
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