Fires caused roughly 43% of global tree cover loss each year in 2023 to 2025. Utilities are responding with large plans, such as PG&E's USD 16.6 billion undergrounding proposal.
Why this market is moving now
- The 2025 Los Angeles fires became the most expensive wildfire disaster to date, at around USD 53 billion.
- Fires now cause roughly 43% of global tree cover loss a year, up from about 27% before 2023.
- PG&E filed a USD 16.6 billion, ten-year undergrounding plan in September 2026.
- Severe fire seasons hit Canada in 2025, with 5.3 million hectares of tree cover lost.
Key figures
Global figures for this market, with the year each one describes. Use Cite to copy a reference to this page.
| Figure | Value | Year | Cite |
|---|---|---|---|
| The Los Angeles wildfires of January 2025 caused overall losses of around USD 53 billion, including roughly USD 40 billion insured, the most expensive wildfire disaster to date. | 53 USD billion (around) | 2025 | |
| Natural disasters caused about USD 224 billion of losses worldwide in 2025, of which insurers covered around USD 108 billion. | 224 USD billion | 2025 | |
| Fires accounted for roughly 43% of all global tree cover loss each year between 2023 and 2025, up from an average of about 27% a year in 2001 to 2022. | 43 % of global tree cover loss | 2025 | |
| More than 60% of all fire-related tree cover loss between 2001 and 2025 occurred in boreal regions. | 60 % of fire-related tree cover loss (more than) | 2025 | |
| Wildfires caused 5.3 million hectares of tree cover loss in Canada in 2025 and forced more than 80,000 people to evacuate. | 5.3 million hectares | 2025 | |
| PG&E filed a ten-year plan in September 2026 to put 5,000 miles of distribution lines underground over 2028 to 2037 to cut wildfire risk, at an estimated USD 16.6 billion in capital spending. | 16.6 USD billion | 2026 | |
| PG&E's distribution network is about 109,000 circuit miles, of which about 27% was underground at the end of 2025. | 27 % underground | 2025 | |
| PG&E proposed to invest about USD 45.0 billion between 2027 and 2030 in its regulated assets, including wildfire safety work. | 45.0 USD billion | 2027 | |
| Southern California Edison's 2025 rate case authorised about USD 1 billion of capital spending for 2025 to 2028 on targeted undergrounding and 1,653 circuit miles of covered conductor in high fire risk areas. | 1,653 circuit miles of covered conductor | 2025 |
Calculated figures (shares, changes and prices per kilogram) are plain arithmetic on the reported values. Read how we work.
Companies to watch
Pacific Gas and Electric (PG&E)
Proposed a USD 16.6 billion plan to underground 5,000 miles of distribution lines over 2028 to 2037.
Southern California Edison (Edison International)
Authorised about USD 1 billion for targeted undergrounding and 1,653 circuit miles of covered conductor.
What the full report covers
- 01Executive summary
The answer in one page: size, direction and what moves it - 02Market definition and scope
What is in and out of the global market - 03Global market size, 2021 to 2025
Historical series and growth rates - 04Countries and regions
Demand, supply and trade by country and region - 05Outlook to 2031
Base, low and high scenarios with stated assumptions - 06Rules, policy and deadlines
Regulation and programmes that change demand - 07Drivers and barriers
What accelerates or slows adoption, by customer segment - 08Prices, costs and margins
Unit economics where public data allows - 09Competitive landscape
8 to 12 company profiles with recent moves - 10Opportunities and risks
For new entrants, suppliers and investors - 11Method and assumptions
How every figure was built
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Frequently asked questions
How costly are wildfires worldwide?
The 2025 Los Angeles wildfires caused around USD 53 billion of losses, about USD 40 billion insured, the most expensive wildfire disaster to date. All natural disasters caused about USD 224 billion of losses in 2025.
Are wildfires getting worse?
Yes. Fires caused roughly 43% of global tree cover loss each year in 2023 to 2025, up from about 27% a year in 2001 to 2022.
Which regions burn the most?
More than 60% of fire-related tree cover loss between 2001 and 2025 was in boreal regions. Canada lost 5.3 million hectares of tree cover to wildfires in 2025.
How much do utilities spend on wildfire mitigation?
PG&E proposed USD 16.6 billion over ten years to underground 5,000 miles of lines. Southern California Edison was authorised about USD 1 billion for undergrounding and covered conductor.
How much of the power grid is underground?
About 27% of PG&E's 109,000 circuit miles of distribution lines were underground at the end of 2025.
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