K-Cable Enters Supercycle: LS Cable & Daehan Wire Combined Backlog Tops $6.8 Billion

The domestic wire and cable industry is being assessed as having entered a supercycle, driven by the convergence of three structural tailwinds: AI infrastructure expansion, the transition to renewable energy, and aging power grid replacement.

LS Cable & System, the top player in the wire and cable sector, posted record-high results in 2025 with revenue of $5.1B and operating income of $190M. Its order backlog reached an all-time high of $5.2B. Second-ranked Daehan Electric Wire recorded an order backlog of $2.5B, approximately 3.5 times its 2020 level. The combined order backlog of both companies has surpassed $6.8B, with some forecasts projecting combined revenue of up to $8.1B in 2026.

AI Data Centers Directly Driving Demand for Extra-High Voltage Cables

The first growth driver is power demand from AI data centers. The rapid surge in electricity consumption at individual AI data centers is directly lifting demand for extra-high voltage cables. Extra-high voltage cables connecting data centers to the power grid and from the grid to substations represent a core, high-margin product category for wire and cable companies.

The global wire and cable market is expected to grow at a CAGR of 5.5%, from $219.2B in 2025 to $374.5B in 2035. The special demand for power grid infrastructure is expanding beyond the Middle East to North America, Europe, and Southeast Asia.

Submarine Cable Market Forecast to Grow at 30% CAGR Through 2032

The second driver is submarine cable demand stemming from the expansion of offshore wind power. The offshore wind cable market in Asia (excluding China) is projected to grow at a CAGR of 29.5%, from approximately $475M in 2025 to approximately $3.0B in 2032. Domestic players collectively hold approximately 73% market share.

LS Cable & System secured a submarine cable project worth approximately $41M in Malaysia in early 2026. Daehan Electric Wire completed certification for its 525kV HVDC cable and has also committed to investing in a second manufacturing facility for 640kV-class submarine cables.

30% Surge in Copper Prices Lifting Revenue per Unit

The third driver is the rise in copper prices, the key raw material. Spot copper prices on the LME have surged more than 30% over the past year, pushing up the average selling price for wire and cable companies. Because these companies operate under a structure that passes copper price fluctuations through to product pricing, rising copper prices translate directly into revenue growth.

However, this is a double-edged sword. A sharp drop in copper prices would conversely become a factor depressing average selling prices. The lag between large-scale overseas infrastructure contract awards and actual revenue recognition also constitutes a risk factor. The aggressive low-price competition from Chinese manufacturers and U.S. tariff policy may also introduce variables into the strategy of expanding exports to North America.

Some segments of the industry are cautiously optimistic that the current structural boom could extend through 2040. The projected output for South Korea's electrical industry in 2026 stands at $32.0B, representing a 1.5% increase year-over-year.