The wire and cable industry, which achieved consecutive order wins last year, is expected to continue its strong performance this year.

LS Cable & System, Daehan Electric Wire, and others plan to strengthen their presence in advanced markets such as the U.S. and Europe, based on the growing demand driven by electrification. Notably, the increase in demand for subsea cables due to the transition to renewable energy is also highlighted as a key factor contributing to their strong performance.

According to industry sources on the 14th, global subsea cable demand is expected to increase from 6.4 trillion won in 2022 to 29.5 trillion won by 2029. This is attributed to the steady rise in global investments in new power infrastructure.

According to LS Cable & System's analysis of the U.S. subsea cable supply status, local demand for subsea cables is expected to reach 1,160 km by 2030, while the supply is predicted to fall short at less than 750 km. As a result, the industry is optimistic that it can capitalize on the opportunity in the U.S., where demand is high but the local supply chain is lacking.

Moreover, the willingness of President-elect Donald Trump to strengthen domestic manufacturing and the AI industry is also seen as a positive factor for the wire and cable industry. The expansion of AI is expected to lead to increased power consumption in data centers, which, in turn, is anticipated to drive the demand for power grid infrastructure.

In October 2024, the U.S. Department of Energy (DOE) announced that it would invest an additional $2 billion (approximately 2.6 trillion won) into 38 projects across 42 states to protect the power grid from increasing weather-related threats and expand transmission capabilities. Additionally, the DOE revealed plans for a new $1.5 billion (approximately 2.23 trillion won) investment in transmission and distribution networks.

As a result, the wire and cable industry is steadily building up performance by securing large-scale projects. LS Cable & System's order backlog reached 5.7073 trillion won as of the third quarter, marking an approximately 31% increase compared to the same period last year. In December 2024, the company signed a contract for subsea cables worth 4.4 trillion won in the U.S. and also secured a contract for an offshore wind farm project worth approximately 9.037 trillion won, which was tendered by the Dutch utility company TenneT.

Daehan Electric Wire is also increasing its order intake. As of the third quarter, Daehan Electric Wire's order backlog reached 2.3258 trillion won, marking a 43% increase compared to the same period last year. On the 10th, Daehan Electric Wire announced that it would supply a 400 kV (kilovolt) power grid for an aging power grid replacement project in Eastern England, led by global infrastructure group Valpore BT. The contract is worth approximately 1 trillion won. With European countries, including the UK, expanding investments in power infrastructure to meet carbon neutrality goals, Daehan Electric Wire aims to secure continuous business opportunities.

Some are expressing concerns that the supply of raw materials may struggle to keep up with demand. However, industry sources have stated that they are taking stable measures to secure raw materials, and therefore, there is no need to worry about a shortage of materials.

An industry insider stated, "With the expansion of renewable energy generation, electricity demand is increasing, and the industry is optimistic about the outlook for the fourth quarter." They added, "Raw materials such as copper have already been secured for several months in advance, so even with a surge in demand, there is no expected difficulty in securing raw material supplies."

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