Nexans Bundle
Who are Nexans' Customers?
Nexans, a global leader in electrification, has strategically refined its focus to serve the evolving needs of the energy transition. This transformation, solidified in 2024, positions the company as a 'pure player in electrification,' significantly shaping its customer base and market approach.
Tracing its origins back to 1879, Nexans has evolved from a diversified cable manufacturer to a specialized entity concentrating on critical infrastructure for a greener future. Understanding its customer demographics is key to appreciating its current market strategy.
What is Nexans' Customer Demographics and Target Market?
Nexans' target market is primarily concentrated within the energy sector, focusing on entities driving the global electrification trend. This includes major utility companies responsible for power generation, transmission, and distribution. The company also serves industries heavily involved in renewable energy projects, such as offshore wind farms and solar power installations, requiring specialized high-performance cabling solutions. Furthermore, Nexans caters to the growing demand for electric vehicle charging infrastructure and the modernization of electrical grids. Their customer base is geographically diverse, with a significant presence in Europe, North America, and Asia, reflecting the global nature of energy infrastructure development. The evolving demands of these customers center on reliability, sustainability, and the capacity to handle increasing power loads and new energy sources. Nexans' strategic shift emphasizes providing advanced solutions that support grid modernization, renewable energy integration, and the expansion of electric mobility, as detailed in analyses like the Nexans BCG Matrix.
Who Are Nexans’s Main Customers?
Nexans primarily serves a business-to-business (B2B) clientele, focusing on providing advanced cabling and connectivity solutions across various industrial and infrastructure sectors. The company's customer base is strategically segmented into four core business areas, reflecting its specialization in electrification.
PWR-Transmission Customers
This segment includes major developers and operators of offshore wind farms, subsea interconnections, and land high voltage projects. In 2024, this area saw significant growth, with standard sales reaching €1.287 billion, a robust organic increase of +50.3%. The adjusted backlog stood at €8.1 billion in Q1 2025, indicating substantial multi-year project pipelines extending to 2028.
PWR-Grid Customers
These clients are involved in the renovation and expansion of electrical grids, local infrastructure, smart city development, and the burgeoning e-mobility sector. This segment is crucial for modernizing energy distribution and supporting sustainable urban development.
PWR-Connect Customers
This group comprises clients in telecommunications networks, building and construction (both residential and commercial), and those connecting renewable energy sources like solar and wind farms, as well as data centers. In 2024, PWR-Connect achieved standard sales of €2.073 billion, marking a +1.4% organic growth.
Industry & Solutions Customers
This segment serves Original Equipment Manufacturers (OEMs) across diverse industries including automation, renewables, aerospace, rail, and oil & gas. In 2024, standard sales were €1.701 billion, though this segment experienced a slight organic decrease of -2.5% due to market slowdowns in certain areas like automation.
The company's strategic direction is clearly focused on becoming a 'pure player in electrification,' a strategy reinforced by the divestment of non-core assets. These included its Telecom business in October 2023, followed by Lynxeo and AmerCable in January and June 2025, respectively. This deliberate realignment sharpens the company's focus on high-growth electrification markets and the specific needs of its target audience within these sectors, aligning with its Brief History of Nexans.
Nexans' Strategic Market Focus
Nexans' customer analysis reveals a deliberate shift towards core electrification markets, shedding non-essential business units. This strategic maneuver aims to concentrate resources and expertise on areas with the highest growth potential and demand for advanced cabling solutions.
- Focus on high-voltage transmission and grid modernization
- Expansion in telecommunications and data center connectivity
- Serving renewable energy project infrastructure needs
- Catering to specialized industrial applications within electrification
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What Do Nexans’s Customers Want?
Nexans' business-to-business clientele primarily seeks dependable, high-performance, and sustainable cabling and connectivity solutions. These are crucial for developing complex infrastructure and supporting the ongoing energy transition, with a focus on grid stability and efficient renewable energy integration.
Reliability and Performance
Customers prioritize solutions that ensure the stability and efficiency of critical infrastructure, such as power grids and telecommunication networks.
Sustainability Focus
The environmental footprint of cabling solutions is a significant factor, aligning with customer goals for decarbonization and responsible development.
Long-Term Value and Safety
Purchasing decisions are heavily influenced by the long-term value proposition and adherence to stringent safety and regulatory compliance standards.
Expertise and Tailored Solutions
Clients seek partners offering more than just products, valuing comprehensive, customized solutions and services that leverage digital advancements.
Addressing Infrastructure Challenges
Solutions are sought to overcome challenges like aging infrastructure and the complexities of large-scale international projects.
Digital Integration and Innovation
The demand for electrification drives investment in technologies like artificial intelligence and advanced low-carbon solutions to enhance performance and efficiency.
Customer preferences are shaped by the imperative to meet evolving regulatory landscapes and ambitious decarbonization targets. This drives a demand for innovative solutions that ensure the longevity and robustness of critical assets. Nexans' strategic roadmap, 'Sparking Electrification with Tech Solutions,' unveiled in November 2024, underscores a commitment to integrating advanced technologies, including AI, to meet the specific needs of emerging sectors such as data centers, gigafactories, and electric-vehicle infrastructure. This focus on technological advancement and tailored solutions is central to their Growth Strategy of Nexans, aiming to address key customer pain points and capitalize on market trends like the accelerating demand for electrification.
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Where does Nexans operate?
Nexans operates across 41 countries with a workforce of approximately 28,500 employees, serving a wide array of global markets. While Europe has historically been its largest market, the company's strategic direction towards electrification and the energy transition is actively reshaping its regional focus and growth initiatives.
Global Operational Presence
Nexans has a significant global footprint, active in 41 countries. This extensive reach allows the company to cater to diverse market needs across multiple continents.
Regional Market Dynamics
Europe has traditionally been the largest market, though recent performance shows varied regional strengths. The Near East & Africa and South America regions demonstrated very strong performance in PWR-Connect in 2024.
Strategic Growth and Expansion
The company is actively pursuing M&A opportunities, particularly in the Asia Pacific region, to broaden its market presence. Recent acquisitions in Italy and Spain bolster its European capacity.
Localization and Tailored Solutions
Nexans localizes its approach by establishing new PWR-Grid & Connect regions. This strategy enables more tailored responses to specific market demands and customer needs.
North American Market Rebound
North America, especially Canada, experienced a rebound in the latter half of 2024. This contributed positively to the PWR-Grid segment's performance in H1 2025.
Investment in High-Voltage Capacity
Significant investments, such as doubling high-voltage subsea cable capacity in Norway, underscore a commitment to global electrification projects. These projects often involve offshore wind farms and subsea interconnections worldwide.
Focus on Energy Transition
The company's strategic focus on electrification and the energy transition is a key driver for its evolving regional priorities and growth strategies.
PWR-Connect Segment Performance
In 2024, the PWR-Connect segment, which includes building and telecom cables, showed varied regional performance. While some European residential markets saw lower demand, commercial and infrastructure sectors remained strong.
Strategic Acquisitions
Acquisitions such as La Triveneta Cavi in Italy (June 2024) and Cables RCT in Spain (June 2025) are key to strengthening its position in important European markets.
Tailored Market Solutions
The company's ability to provide complete solutions adapted to unique customer needs in different geographic contexts is a critical element of its success, aligning with its Mission, Vision & Core Values of Nexans.
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How Does Nexans Win & Keep Customers?
Nexans employs a multi-faceted approach to customer acquisition and retention, centering on innovation, strategic expansion, and a strong customer-centric ethos. This strategy is designed to solidify its position as a leader in electrification solutions, ensuring long-term client relationships and market growth.
Innovation and Technological Leadership
Nexans drives customer acquisition through significant investments in innovation, particularly in AI and advanced cable solutions. The company's Digital Lab and 'Innovation Fairs' foster co-creation with clients, addressing future needs and evolving regulations.
Strategic Acquisitions and Capacity Expansion
Acquisitions like La Triveneta Cavi (June 2024) and Cables RCT (June 2025) expand market reach. Capacity expansions, such as the doubled high-voltage subsea cable capacity in Norway (early 2024), cater to high-growth segments like offshore wind.
Customer-Centric Retention Strategies
Retention is bolstered by a customer-centric approach, with dedicated market leaders addressing specific client needs. This focus enhances relationships and ensures tailored solutions for diverse Nexans customer demographics.
Sustainability as a Retention Differentiator
Commitment to sustainability, including ambitious emission reduction targets and increased recycled copper content, serves as a key retention factor. This aligns with growing customer demand for environmentally responsible solutions.
Nexans' strategy to transition from a product-centric to a solutions-oriented approach is crucial for customer retention. By offering comprehensive services beyond cables, such as digital energy management and predictive maintenance, the company builds deeper, more enduring client engagements. This shift is supported by partnerships, like the one with Schneider Electric for digital transformation, and has resulted in a strong adjusted backlog for Power & Renewables Transmission, reaching €8.1 billion in Q1 2025, reflecting significant customer trust and commitment.
Focus on High-Value Solutions
Nexans prioritizes high-value solutions, leveraging innovation and technology to meet evolving customer needs. This includes a strong emphasis on digital integration and advanced materials.
Market Expansion through Acquisitions
Strategic acquisitions are key to expanding market presence and capabilities. Recent acquisitions in Italy and Spain have strengthened the company's European footprint.
Capacity Growth for Key Segments
Capacity expansion, particularly in high-voltage subsea cables, directly addresses surging demand from renewable energy projects. This secures long-term customer relationships.
Enhanced Customer Relationships
Reinforcing market divisions and deploying dedicated leaders fosters closer client relationships. This customer segmentation allows for more tailored service and support.
Commitment to Environmental Goals
Ambitious sustainability targets, including emission reductions and increased recycled material usage, are central to retaining environmentally conscious clients.
Comprehensive Solution Offerings
The move from 'product to solutions' includes after-sales services and digital offerings, deepening customer engagement and value. This holistic approach is key to understanding the Revenue Streams & Business Model of Nexans.
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- What is Brief History of Nexans Company?
- What is Competitive Landscape of Nexans Company?
- What is Growth Strategy and Future Prospects of Nexans Company?
- How Does Nexans Company Work?
- What is Sales and Marketing Strategy of Nexans Company?
- What are Mission Vision & Core Values of Nexans Company?
- Who Owns Nexans Company?
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