Cross-Linked Polyethylene (XLPE) Cables Market Size, Share & Industry Analysis, By Voltage (Low, Medium, and High), By Application (Underground, Overhead, and Submarine), By End-User (Utilities, Oil & Gas, Chemical, Metals & Mining, Infrastructure & Communication, and Others), and Regional Forecast, 2024-2032

The global Cross-Linked Polyethylene (XLPE) cables market size was valued at USD 33.90 billion in 2023. The market is projected to grow from USD 35.84 billion in 2024 to USD 58.66 billion by 2032, exhibiting a CAGR of 6.35% during the forecast period.

XLPE is used to describe cross-linked polyethylene. It shares some of the characteristics of polyethylene, such as chemical and moisture resistance. High-quality thermal insulation is suitable for use under high voltage and temperature conditions. Cross-linked polyethylene is commonly used in the construction of pipes (or pipe systems) as insulation for high-voltage cables, as opposed to Polyvinyl Chloride (PVC) and copper pipes in pipes. Cross-linked polyethylene improves the current of XLPE wire for short circuit and normal load conditions.

For manufacturers, the COVID-19 pandemic had a significant impact as this period was typically a major sales period, especially for the wire and cable segment. As soon as the pandemic hit, the industry activated its business continuity plan, putting team member's safety and health first. Dealers in major cities faced greater challenges as physical movement continued to be limited. To boost demand post-lockdown, the industry expanded its business footprint across tier II and III cities and continued its brand initiatives to enhance trade connectivity.

Cross-Linked Polyethylene (XLPE) Cables Market Trends

Innovations in Material Science and Smart Grid Integration are New Trends in XLPE Cable Market

Cable designs and materials have evolved over the years, with dry extruded cables increasingly replacing wet paper insulated cables. There has been a marked shift from paper and oil insulation systems to synthetic polymer insulation materials, Polyethylene (PE), and cross-linked polyethylene (XLPE). XLPE is preferred as it allows the cable to operate at higher temperatures, increasing its current carrying capacity. It is also easier to handle and maintain. The reduced dielectric loss and higher intrinsic resistance of XLPE are other reasons for its heavy reliance on this material. Paper-insulated cables were previously used for voltages of 154 kV and above for transmission from the power plant to the substation. Although they are still widely used, they are gradually being replaced by Cross-linked Polyethylene (XLPE) cables.

While many types of bulk-impregnated power cables will remain in use for some years to come, XLPE-insulated power cables represent the state-of-the-art in power transmission today. They are installed in both onshore and subsea projects in Alternating Current (AC) and Direct Current (DC). EHT XLPE cables have witnessed a significant growth in deployment over the past few years. Since 2000, more than 200,000 km of high-voltage AC cables and more than 10,000 km of low-voltage AC cables have been installed globally.

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Cross-Linked Polyethylene (XLPE) Cables Market Growth Factors

Growing Number of HVDC & HVAC Projects Globally to Stimulate XLPE Cable Demand

The installation of XLPE cable systems is increasing globally as the economic viability of using XLPE to enhance grid connectivity has been demonstrated. High-voltage cable lines are widely used globally for power transmission over long distances, such as interconnectors between nations and offshore wind farms. The economic viability of using HVDC (High-voltage Direct Current) to enhance grid connectivity, coupled with increasing renewable energy capacity, growth in domestic power trading, and increasing demand for more reliable power supplies, is certain.

One of the factors driving the increase in HVDC deployments is how VSC HVDC technology has evolved and matured over the past two decades. National Grid PLC, based in the U.K., and Elia Transmission Belgium SA, based in Belgium, established a joint venture called NEMO Link Limited and inaugurated the first DC-XLPE interconnector between the two nations to connect electric power using an ever-increasing amount of renewable energy.

In February 2022, Sumitomo Electric Industries Co., Ltd. received a Limited Notice of Commencement (LNTP) from Samsung CandT Corporation for the supply of a High-voltage Direct Current (HVDC) cable to the Abu Dhabi National Oil Company (ADNOC) in UAE. This is the first subsea HVDC network of its kind in the Middle East (approximately 140 km in length) using Sumitomo Electric’s advanced 400 kV DC Cross-linked Polyethylene (XLPE) cable technology. Initial engineering work will begin under this LNTP, followed by a full contract award and financial investment decision in 2022. The project is worth around USD 200 million, and the system is expected to begin operations in 2025.

HVAC has XLPE as duct insulation, which is designed to work in textile and building industries for acoustic & thermal insulation. HVAC cables are commonly utilized as an alternative transmission method in situations where overhead lines are unsuitable, such as in densely populated or protected areas, over bodies of water, or offshore. Insulated with Cross-linked Polyethylene (XLPE), HVAC cables, and similar extruded cables benefit from the advancements in material science. XLPE now boasts high dielectric strength, a low dielectric constant, high insulation resistance, and favorable mechanical properties, making it an outstanding insulation medium for underground power transmission.

Rising Installation of Renewable Energy Solutions to Boost Market Growth

The renewable energy industry harnesses solar, wind, hydro, tidal, and biofuels to produce “green” energy. The global grid's energy mix is increasingly moving away from fossil fuels, and major industries are seeking to ensure their sustainability and profitability by building on the landscape and natural resources. They are also adopting energy storage systems to accompany these renewable solutions to provide balanced and optimal grid distribution where and when needed.

Many companies offer solutions that combine knowledge of cable structures with installation and environmental design. These solutions include cables and corresponding cable accessories, as well as logistics expertise and technical support to ensure fast delivery to locations globally.

For instance, in September 2020, Borealis announced a High-Voltage Direct Current (HVDC) power cable compounds based on Borealis “Borlink” technology are used in Cross-linked Polyethylene (XLPE) power cables that qualified for the “German Corridor Project” tender. This large-scale project will transport renewable energy from wind farms off the northern coast of Germany to the southern regions of the country. Borealis “Borlink” is an essential component of XLPE high-voltage power cables, allowing HVDC technology to transmit power over long distances with minimal losses. Additionally, XLPE material has the added benefit of being recyclable.

RESTRAINING FACTORS

Availability of Substitutes to Hamper XLPE Cable Market Growth

Many other types of cables can be used instead of XLPE hampering the Cross-linked Polyethylene (XLPE) cables market growth. High-density Polyethylene (HDPE) and low-density polyethylene (LDPE) have been used up to 400 kV for a long time in France. In polymer markets, polypropylene is the second leading polymer after polyethylene. Polypropylene was produced, at its earliest, in 1951 and commercially since 1954 by Natta, and it exists in numerous stereotypic forms. Atactic (a-PP) has been promoted for specific applications in the past couple of years. I-PP has a higher melting point than s-PP, with around 160 °C, whereas the latter melts at about 130 °C, depending on the type.

Moreover, PVC has a very significant share of the total plastics in the elastomeric wire and cable industry. The telecom sector predominantly uses polyethylene cables, and the power cables, particularly in the lower voltage sector, continue to be dominated by PVC. Cross-linked PE cables are increasingly used for medium and high voltage cables; conventional cross-linked PE and Silane cross-linked systems comprise almost a considerable market share of the cable market.

Cross-Linked Polyethylene (XLPE) Cables Market Segmentation Analysis

By Voltage Analysis

High Voltage has Achieved Market Penetration in All Sectors of Industries Due to Its Efficiency

The market is segmented into low, medium, and high based on voltage. High voltage is the dominating segment in the market. High-voltage Cross-linked Polyethylene (XLPE) cables are essential for efficient and loss-free power transmission over long distances. XLPE's excellent insulation properties make it ideal for withstanding the high voltages involved in power transmission. Many high-voltage lines are laid underground to minimize environmental impact and reduce losses, and cross-linked polyethylene (XLPE) cables are well-suited for this purpose.

For instance, in May 2024, Sumitomo Electric Industries received a contract for the 250 kV cross-linked polyethylene cable construction implemented by Hokkaido Electric Power Network, which is an important part of the Hokuto-Imabetsu HVDC Link Enhancement Project. In this project, another 250 kV DC XLPE cable with a length of approximately 24 km will be installed in the Seikan Tunnel to increase the total transmission capacity of the connecting lines between Hokkaido and Honshu from 0.9 GW to 1.2 GW.

The medium voltage segment is also one of the major segments in the market. These cables are used in various sectors, including industrial, commercial, and residential buildings. Expanding power grids and infrastructure projects drive the demand for medium voltage cables.

By Application Analysis

Overhead Applications are Leading as XLPE Cables are Lighter Weight, have Better Electric Transmission, and Require Less Maintenance

Based on application, the market is segmented into underground, overhead, and submarine. The overhead segment dominates the market share. Due to super-strong insulation, lighter-weight, and less maintenance, among other factors, cross-linked polyethylene is widely used for overhead applications across power transmission, industrial applications, and other uses. The conventional approach of utilizing overhead cables is gaining traction in emerging economies, contributing to the overall expansion of this segment.

In May 2024, a very important document was signed in Tashkent in the field of integration of power systems of Azerbaijan, Kazakhstan, and Uzbekistan. The memorandum implies that the parties intend to explore the possibility of interconnecting their power systems by laying high-voltage cables along the bottom of the Caspian Sea and through the territories of other countries with overhead XLPE cable installation to enable technically and economically optimal trade of green energy produced in Azerbaijan, Kazakhstan, and Uzbekistan. In November 2019, Kazakhstan and Azerbaijan announced the start of the laying of the Trans-Caspian Optical Fiber Cable (TCFO) under the bottom of the Caspian Sea. With the growth in the installation of overhead Cross-linked Polyethylene (XLPE) cables, the market will grow.

The submarine segment is also one of the major segments in the market. It is a significant and growing market for Cross-linked Polyethylene (XLPE) cables, particularly with the increasing focus on offshore renewable energy. Submarine cables are essential for connecting power grids between different countries, enabling the exchange of electricity and enhancing grid stability.

By End-User Analysis

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Government Initiatives to Implement Renewable Energy Usage for Various Energy Projects are Leading Utilities Segment

By end-user, the market is divided into utilities, oil & gas, chemical, metals & mining, infrastructure & communication, and others. In 2023, the utilities segment held the largest Cross-linked Polyethylene (XLPE) cables market share. Government initiatives to increase electricity generation through wind and solar power plants are rising, expanding the demand for utilities. Utilities are accountable for the generation, transmission, and distribution of electricity, making them the primary users of Cross-linked Polyethylene (XLPE) cables for both underground and overhead networks. Utilities prioritize cable reliability and performance to ensure uninterrupted power supply, making XLPE a preferred choice due to its superior properties.

For example, in June 2023, the Chinese government announced plans to double its capacity and produce 1,200 GW of wind and solar power by 2025. Here is one of the major renewable energy projects being implemented globally: Pinnapuram Integrated Renewable Energy Project: The project involves the construction of a 5,230 MW integrated renewable energy development project in Andhra Pradesh, India, with a total investment of ~USD 2 billion. Construction began in Q2 2022 and is expected to be completed in Q4 2025.

The infrastructure and communication sector is a significant user, especially for data centers and telecommunication networks, however it does not outweigh the overall consumption by utilities and industry. The primary consumers of XLPE cables are utilities—for power transmission and distribution, industry—for various industrial applications, and construction—for building infrastructure.

REGIONAL INSIGHTS

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Based on region, the global market is studied across North America, Asia Pacific, Europe, Latin America, and the Middle East & Africa. Asia Pacific is the leading region in terms of market growth. India and China are experiencing speedy economic growth, leading to increased demand for power and infrastructure. The hasty pace of urbanization in the region is driving the need for expanded power grids and distribution networks. Supportive government policies and infrastructure development plans are boosting the XLPE cable market.

In July 2021, the Punjab Power Development Authority (PEDA) issued a Notice Inviting Tender (NIT) for the supply, design, testing, installation, and commissioning of an 11 kV Cross-linked Polyethylene (XLPE) transmission line for a 1,000 kW solar project at Jogging Park in Bathinda. According to the NIT, the solar energy generated can be used for stationary applications. The additional power can be fed into the grid as per the state’s net metering policy. AC Distribution Boxes (ACDBs) have been installed at the project site near the inverters. The power at these points will be 415 V. From this point onwards, ACDBs scope of work commences and includes the installation of 700 m long XLPE HT cables, transformers and foundations, HT panels, earthing, bipolar structures. Along with these it will also include all necessary on-site civil engineering works and essential interconnection with the existing HV system, where the cable will be laid underground.

North America is also one of the dominant regions in the market. The aging infrastructure in many North American regions necessitates grid modernization and upgrades, driving the demand for XLPE cables to enhance reliability and efficiency. The aggregate penetration of renewable energy sources, such as solar and wind, requires advanced cable solutions, including XLPE, to accommodate fluctuating power generation. In October 2023, Prysmian supplied 134 km of 220 kV submarine power cables with extruded XLPE insulation for the Vineyard Wind 1 project. Prysmian has completed the cable installation for the 806 MW Vineyard Wind 1 wind farm off the coast of Massachusetts, USA.

The U.K. is one of the major countries in Europe that cross-links the polyethylene market with leading applications in renewable energy industries. For instance, in September 2023, Offshore construction officially began at RWE’s 1.4 gigawatt (GW) Sofia offshore wind farm to install vital submarine cable infrastructure from the UK’s northeast coast to the Dogger Bank wind farm in the central North Sea. Sofia, an offshore wind farm, will feature a single offshore conversion platform, with electricity produced transported to ‘landing’ 220 km from Redcar, Teesside. By the end of 2024, it will have laid four ±320 kV XLPE insulated HVDC marine export cables, totaling 440 km in length, plus associated communications cables. Onshore construction has been underway on Teesside since June 2021 to build the project’s onshore converter station and cable corridor.

Latin America has observed the significant installation of different power generation technologies to serve the needs of different commercial and industrial operations. Different sectors involving heavy-duty operations have attracted substantial investments, generating the demand for Cross-linked Polyethylene (XLPE) cables. Stakeholders increasingly turn to underground and subsea cables to overcome challenges linked to grid interconnectivity and expansion throughout Latin America.

Innovation in the cable industry has a much wider scope, from cable inventory management to condition assessment and observation of electrical systems in large-scale power grids and residential applications all over the Middle East. Moreover, according to Advanced Electronics Company, the Middle East & Africa are massive potential markets for power grid development and modernization. The Saudi Arabian government anticipates an inflow worth USD 50 billion of investment in wind and solar projects in Saudi Arabia as smart energy technologies take shape through Vision 2030.

Key Industry Players

Prysmian Group is Leading Owing to its Expertise in Product Diversification

The Prysmian Group manufactures underground and submarine cables and systems for power transmission and distribution, as well as medium and low-voltage cables for the construction and infrastructure sectors. It also offers optical fibers, copper cables, and connectivity systems for voice, video, and data transmission for the telecommunications sector.

• In October 2023, Prysmian won a contract worth approximately USD 225 million in 2021 with the Egyptian Electricity Transmission Company (EETC) and the Saudi Electricity Company (SEC) for a project that will enable the interchange of up to 3,000 MW of electricity. The scope includes the design, supply, installation, and commissioning of approximately 127.5 km of HVDC ±500 kV MI monopole submarine cables, 43.5 km of 66 kV XLPE monopole submarine cables and twin-wire jackets, and 61 km of MINISUB submarine fiber optic cables for telecommunications and Distributed Temperature Sensor (DTS) monitoring.

Some of the other key players in the market are NKT A/S, Nexans, and Sumitomo Electric Industries. Sumitomo Electric Industries, Ltd. is an international corporation that produces a diverse array of goods, such as cables, electronic equipment, and automotive components. In 2000, the company oversaw the creation of the world's first long-distance AC High Voltage XLPE Cable system (500kV), and in 2019, the company successfully implemented the world's inaugural DC High Voltage XLPE Cable system (400kV) in the UK-Belgium Link (NEMO Link Project).

List of Top Cross-Linked Polyethylene (XLPE) Cables Companies:

• Prysmian Group (Italy)


• NKT A/S (Denmark)


• Southwire Company LLC (U.S.)


• Nexans (France)


• Sumitomo Electric Industries (Japan)


• LS Cable & System (South Korea)


• JENUIN Cable (China)


• Dynamic Cables (India)


• Remee Products Corporation (U.S.)


• Zhejiang Wanma Cable Co., Ltd. (China)

KEY INDUSTRY DEVELOPMENTS:

• June 2024: NKT acquired SolidAl, a Portugal-based power cable company, from Njord Partners. This acquisition added medium- and high-voltage capacity to meet the growing demand for grid upgrades and renewable energy projects across Europe. The acquisition is anticipated to improve NKT’s competitiveness of product offerings and geographical reach across new and existing markets.


• May 2024: Prysmian Group, in a joint venture with Asso.subsea, a specialist in underwater installations, signed a contract worth approximately USD 33 million with RTE, the Electricity Transmission Network, to develop a submarine energy export cable system for the Gruissan floating offshore wind farm, located in the south of France. Prysmian Group will be responsible for the design, supply, termination, testing, and commissioning of a 66 kV three-core EPR insulated submarine export cable with a total length of 25 km and another 66 kV EPR insulated underwater dynamic cable of approximately 1 km connecting the shore to the floating substation. The group will also supply an additional 3 km of 66 kV XLPE insulated ground cable.


• March 2024: Nexans won the first contract under a framework agreement with German-Dutch energy group TenneT. This is an EPCI program for High Voltage Direct Current (HVDC) cables for the BalWin3 and LanWin4 grid connection systems, which will export 4 GW of offshore wind power from the North Sea to Wilhelmshaven, northern Germany. Nexans will supply new 525 kV XLPE HVDC cable technology and deploy a completely new four-bundle cable laying method for construction vessels.


• October 2023: Prysmian PowerLink s.r.l., a subsidiary of the Prysmian Group, was awarded new contracts worth a total of approximately 1.1 billion euros by 50Hertz, the German transport network operator. As part of 50Hertz's tender for the "Long-Term EPCI Contract for HVDC Cables", Prysmian has been awarded 2 contracts, which include EPCI contracts for the underperforming offshore projects NOR-11-1 and the terrestrial DC31 as well as for Lot 7.


• July 2023: NKT Cables got a bidding target for the supply of power cable systems for two HVDC transmission lines for Scottish SSEN Transmission for the signing of a framework agreement. NKT is appointed to provide 525 kV XLPE high voltage direct current power cable systems for the Western Isles and Spittle Peterhead offshore HVDC transmission links.

REPORT COVERAGE

The report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product types, and leading applications of the product. Besides, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that contributed to the growth of the market in recent years.

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