US Cable Market Size and Forecast by Cable Type, Conductor Material, Insulation Type, Voltage Range, Installation, and Application: 2019-2033

US Cable Market Outlook

The US cable market is projected to expand at CAGR of 6.7% during the forecast period, backed by explosive growth in AI workloads, renewable energy deployments, EV infrastructure, and the nation’s largest-ever push toward grid modernization. As per the David Gomes, Manager – Semiconductor, this growth is not just quantitative — it reflects a fundamental shift in how power and data infrastructure is being re-engineered for resilience, bandwidth, and sustainability. Rising capital investments, backed by federal stimulus and private-sector innovation, are turning cable manufacturing and deployment into a high-stakes strategic pillar of the country’s digital and clean energy transition.

The evolution of AI-centric data centers has redefined cable design and integration. Hyperscale operators like Microsoft, Amazon Web Services (AWS), and Google are deploying next-generation copper and fiber cable systems that can handle hundreds of megawatts per site. In 2025 alone, Microsoft will allocate over $80 billion in AI data centers, much of which includes investment in high-bandwidth active optical cables (AOCs), power distribution cables with higher ampacity, and low-loss interconnects. These facilities, often exceeding 500 MW of peak demand, require custom cable assemblies that integrate seamlessly with liquid cooling systems and GPU-intensive architectures. Leading suppliers such as Southwire, General Cable (Prysmian), and Belden are developing solutions with tighter bend radii, flame resistance, and electromagnetic interference shielding to meet these new hyperscale standards.

The EV revolution is another cable-intensive transformation. Under the Inflation Reduction Act (IRA) and Infrastructure Investment and Jobs Act (IIJA), over $208 billion in investments have poured into battery and EV manufacturing projects, including gigafactories that demand specialized power and signal cables across assembly lines and energy storage systems. Automakers like Ford, Tesla, Hyundai, and Rivian have begun localizing EV cable supply chains, particularly for high-voltage charging systems and thermal management harnesses. These require thermoset and XLPE (cross-linked polyethylene) insulation to meet stringent UL and NEC standards. Furthermore, public EV charging infrastructure — including ultra-fast DC stations — has expanded to over 170,000 units in 2024, creating demand for weather-resistant, tamper-proof cable enclosures and underground conduit solutions.

Grid modernization is equally cable-centric. The US electric grid must double its transmission capacity and increase interregional connections five-fold by 2035 to align with clean energy goals. Utilities like Avangrid, Duke Energy, and NextEra are investing in high-temperature superconducting cables, dynamic line rating systems, and fiber-integrated transmission lines to address both energy and data resilience. Avangrid alone has committed over $20 billion to modernization, impacting cabling from substation to rooftop. Companies like Nexans and Southwire are delivering underground and submarine cable systems for offshore wind farms in New York, Massachusetts, and California, using corrosion-resistant alloys and modular cable trenching solutions. The US Energy Information Administration expects solar power generation to grow by 31% in 2025, surpassing hydropower for the first time. Cables that can handle variable voltages and bi-directional flow are now essential in both urban and rural grid deployments.

Fiber optic deployment is accelerating as part of the Biden Administration’s $42 billion Broadband Equity Access and Deployment (BEAD) initiative. Rural electrification and fiber-to-the-home (FTTH) rollouts require ruggedized, flame-retardant optical fiber cables suitable for overhead, buried, and conduit environments. In states like Texas, Georgia, and Ohio, contractors are reporting cable demand outpacing supply by 20% due to fast-tracked broadband builds.

Cable manufacturers are also facing sustainability scrutiny. Copper mining and energy-intensive production processes are under pressure to decarbonize. US-based manufacturers are now integrating recycled copper and adopting closed-loop water cooling in cable extrusion plants to align with ESG benchmarks. Belden’s Missouri facility, for instance, achieved a 38% energy reduction by switching to a solar-thermal hybrid line, setting a precedent for green manufacturing practices. This shift is being reinforced by institutional investors, who increasingly demand carbon accounting disclosures in procurement documentation. UL-listed LSZH (Low Smoke Zero Halogen) cables and halogen-free flame-retardant jacketing are now becoming the de facto standards for federal and public infrastructure bids.

However, the US cable industry still contends with global supply chain vulnerabilities. With over 30% of cable-grade aluminum and copper still imported, price volatility remains a risk. Trade disputes with China have caused spikes in raw material costs, prompting the Department of Commerce to review anti-dumping duties and incentivize domestic smelting. Meanwhile, the lack of skilled labor for high-voltage installation has created regional backlogs in cable deployment, particularly in Tier 2 and 3 cities. Initiatives like the Grid Resilience & Innovation Partnerships (GRIP) Program are providing federal grants to upskill the labor force and build capacity across underserved regions.

Yet, the opportunity landscape remains immense. Modular nuclear microgrids, smart building automation, and electric aviation are emerging verticals poised to add $9–12 billion in additional cable demand by 2030. NASA’s electrified aircraft propulsion projects and DoD microgrid installations in Hawaii and Alaska already utilize specialized aerospace-grade power and data cables. As per David Gomes, cable manufacturers that align with evolving UL and NEMA specifications, digitize their supply chains, and invest in flexible production lines will be best positioned to lead the next decade of infrastructure.

Authors: David Gomes (Manager – Semiconductor)

*Research Methodology: This report is based on DataCube’s proprietary 3-stage forecasting model, combining primary research, secondary data triangulation, and expert validation. [Learn more]

US Cable Market Scope