American Wire Gauge (AWG) is a standardized system used to measure the diameter of electrical wires. The gauge number inversely indicates the wire's size; a smaller gauge number means a thicker wire, while a larger number indicates a thinner wire. This system helps ensure consistency in wire manufacturing and usage across various applications. AWG is commonly used in electrical engineering and construction to determine the appropriate wire size for different electrical loads. Thicker wires can carry more current and are often used for high-power applications, while thinner wires are suitable for lower power needs.