U.S. Utility Wires and Cables Market Size, Share & COVID-19 Impact Analysis, By Voltage (Below 1KV, 1KV-15KV, 15KV-100KV, 100KV-250KV, and Above 250KV), By Application (Distribution Line and Transmission Line), and Country Forecast, 2023-2030

The U.S. utility wires and cables market size was worth USD 5.33 billion in 2022 and is projected to grow at a CAGR of 4.12% during the forecast period.

Utility wires and cables are an integral part of the U.S. energy infrastructure for transmitting electricity and enabling efficient distribution across the country. The market is expected to grow due to infrastructure investments, renewable energy integration, grid modernization, and technological advancements. With increasing focus on renewable energy sources such as solar and wind, there is a growing need for efficient transmission and interconnection of these distributed generation facilities to the main grid. Utility wires and cables are capable of handling higher voltages, and transmitting power over longer distances will be required to accommodate this shift.  

The impact of the COVID-19 pandemic on the utility wires and cables market is moderate as it hampered consumption growth in many end-use industries due to supply chain disruptions in raw materials and disruptions in activities due to social distancing norms. It significantly impacted the compressor market due to the shortage of qualified professionals to use the voltage. Due to the closure of production facilities worldwide, the market's revenue also fell.

U.S. Utility Wires and Cables Market Trends

Rapid Urbanization and Industrialization to Favor Market Growth

As more people move to urban areas and industries expand, the demand for electricity and advanced infrastructure grows, driving the need for various wires and cables to support power transmission, telecommunications, and construction activities. According to the United Nations, the U.S. urban population is about 83% in 2022. As urban areas expand, the demand for reliable and efficient power transmission and distribution systems rises. This is expected to drive the demand for utility wires and cables that can effectively handle urban and data centers' increasing power requirements. The rising demand for renewable energy to address climate transformation and decrease dependence on fossil fuels drives investments in power infrastructure. The U.S. has been expanding its renewable energy capacity, including wind and solar power, to meet environmental targets. The ongoing digital transformation and the increasing need for high-speed internet connectivity fuels the demand for telecommunication and the adoption of wire and cable. As the U.S. continues to advance in areas such as 5G deployment and broadband expansion, the demand for fiber optic cables and other high-performance cables is expected to surge.

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U.S. Utility Wires and Cables Market Growth Factors

Growing Renewable Energy Generation to Stimulate the Demand for Utility Wires and Cables Boosting Market Growth

The U.S. is experiencing a growing demand for renewable energy generation as part of its efforts to address climate change, reduce greenhouse gas emissions, and evolve toward a more sustainable energy future. This increasing shift toward renewable energy sources stimulates the U.S. utility wires and cables market as the nation's energy infrastructure undergoes significant changes to accommodate these new power generation technologies. The demand for renewable energy in the U.S. is due to the increasing awareness of the environmental impacts of traditional fossil fuel-based energy sources. As concerns over climate change escalate, there is a strong push from both the public and private sectors to transition to cleaner alternatives.

Wind, solar, geothermal, hydroelectric, and biomass energy are among the vital renewable sources that are gaining popularity. The power grid needs to be expanded and upgraded to harness these energy sources efficiently, driving the growth of the wires and cable market. The U.S. has made developments in the change to renewable energy. At a difficult time when climate change is extensive, 22% of all electricity produced in 2022 came from renewable sources. The U.S. Energy Information Administration also anticipated increasing utility-scale solar power generation by 21.5 GW in 2022 from 15.5 GW in 2021. At the same time, wind power extended a record 17.1 GW.

RESTRAINING FACTORS

Fluctuation in the Raw Material Price to Hinder the Utility Wires and Cables Market Growth

The U.S. utility wires and cables market is subject to fluctuations in raw material prices. It can significantly affect the pace and growth of the industry. The raw materials used in manufacturing utility wires and cables include copper, aluminum, steel, and various polymers. Each of these materials is influenced by different market dynamics, leading to price volatility. Copper is an outstanding conductor of energy and is widely used in various power transmission and distribution applications. However, copper prices are subject to global supply and demand dynamics, geopolitical factors, and currency fluctuations.

Changes in copper prices can directly impact the cost of production for cable manufacturers, leading to price variations in the final transmission systems. The variation in raw material prices can affect investment decisions in the industry. During price fluctuations of raw materials, manufacturers may delay or reconsider expansion plans, leading to a potential slowdown in the U.S. utility wires and cables market growth. The price volatility can impact project timelines in the power sector. Power utilities and infrastructure projects often have long planning and development cycles. Fluctuations in cable prices can disrupt project budgets and timelines, causing delays in executing power transmission and distribution projects.

U.S. Utility Wires and Cables Market Segmentation Analysis

By Voltage Analysis

By voltage, the market is segmented into below 1KV, 1KV-15KV, 15KV-100KV, 100KV-250KV, and above 250KV.

The 100KV-250KV segment holds the highest market share as the utility cables and wires are obtained at higher voltages than other voltage types. The rapidly growing renewables market has played a large role in the high-voltage market in recent years. As more renewable sources of localized electrical generation come online, the demand for high-voltage transmission will grow. Across the U.S., replacing and upgrading the existing transmission infrastructures and adding new capacity for generation and transmission are key drivers for the high voltage market.

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By Application Analysis

By application, the market is segmented into distribution line and transmission line.

The distribution line segment held the highest U.S. utility wires and cables market share in 2022. Distribution refers to the various phases of transmitting electricity over poles and lines from generators to a residential or commercial. Distribution lines transport electrical energy from a substation to the house connection. Distribution lines join parts of the system and are often laid in multiple lines so that electrical power can be switched to meet altering power demands and can be switched between various utilities. Utility wires are majorly used for distribution applications compared to transmission as distribution carries electricity from the transmission system to the consumers. The power distribution units are either underground or over ground. In urban areas, it is underground in common utility ducts; in rural areas.

List of Key Companies in U.S. Utility Wires and Cables Market

In terms of the competitive landscape, the U.S. market depicts the presence of established and emerging and increasing demand for high-speed internet connectivity. Telecom operators are upgrading their networks with cable solutions to provide reliable and high-bandwidth connections to consumers, and businesses have increased investments. Key industry players play a significant role in exploration, development, and production activities. These companies possess advanced cables and grid infrastructure wire technologies for the transmission and distribution of electricity. Some other companies with considerable presence in the U.S. market include Prysmian Group, Nexans, Sumitomo Corporation, Furukawa Electric Co Ltd, LS Cable & System U.S.A., and others.

LIST OF KEY COMPANIES PROFILED:

• Belden Inc. (U.S.)


• Amphenol (U.S.)


• Encore Wire Corp (U.S.)


• Prysmian Group (Italy)


• Southwire Company (U.S.)


• Nexans (France)


• Fujikura Ltd (Japan)


• Sumitomo Corporation (Japan)


• LS Cable & System U.S.A. (South Korea)


• Furukawa Electric Co Ltd (Japan)

KEY INDUSTRY DEVELOPMENTS:

• June 2023: Nexans will be leading technical development with high-voltage cable for aerospace decarbonization in upcoming years. The competence is higher than the previous generation, and this launch is a decisive step toward achieving the carbon-neutral objective in the aerospace industry by the forecast period.


• March 2023: Belden released the industry's first UL-Certified Hybrid Cable for Class 4 circuits, called Fault-Managed Power System (FMPS) Hybrid Cables. These cables are designed to safely support power at higher levels and over longer distances than previous power-limited circuits, which were limited to 100W.


• February 2022: Avangrid Renewables, a subsidiary of AVANGRID Inc., and Prysmian Group entered into a partnership for the development of the offshore wind industry in the U.S. Prysmian Group has acquired a 47-acre parcel at Brayton Point coal plant in Somerset, where they will construct the first facility in Massachusetts for the manufacturing of offshore wind components.

REPORT COVERAGE

The report provides a detailed market analysis and focuses on key aspects such as leading companies, voltage types, and applications. 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 increased wires and cable market growth in recent years. It focuses on key aspects, such as an overview of technological advancements. Additionally, it includes an overview of the reimbursement scenario for industry, the government initiatives with high efficiency in the U.S., key industry developments such as mergers, partnerships, and acquisitions, and the impact of COVID-19 on the market. Besides this, the report also offers insights into the market trends and highlights key industry dynamics.

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