INDIA CABLES MARKET

KEY FINDINGS

• The cables market reported 8% CAGR over FY23-24 and it is estimated to clock 12-14% CAGR over FY 24-30 (INR1.2-1.3t).

• Polycab India is a market leader in the cables sector, with a 26% share in the organized market and an ~18% share in the overall market.

• Exports clocked a 16% CAGR over FY17-23; whereas, imports posted an 8% CAGR over the same period. During FY 22-23, exports delivered a 36% CAGR as against 15% CAGR for imports.

• The cables industry constitutes 39% of the electrical industry and forms a crucial part of the construction and infrastructure activities of the government and private players.

• Intensifying focus on infrastructure, strong traction in the real estate sector, an increase in electrification of villages, and rising nuclear families are expected to spur cable industry growth.

• The expansion of telecommunications infrastructure and the increasing use of fiber-optic technology are boosting demand for optical fiber cables.

• There is a growing preference for cables that minimize energy losses during transmission.

• The increasing adoption of smart grid technologies is driving demand for specialized cables.

• The digital transformation of various industries is increasing the demand for data transmission cables.

INDIA CABLES MARKET DYNAMICS

It is reported as, the cables market reported 8% CAGR over FY23-24 and it is estimated to clock 12-14% CAGR over FY 24-30 (INR1.2-1.3t).

Polycab India is a market leader in the cables sector, with a 26% share in the organized market and an ~18% share in the overall market.

Exports clocked a 16% CAGR over FY17-23; whereas, imports posted an 8% CAGR over the same period. During FY 22-23, exports delivered a 36% CAGR as against 15% CAGR for imports.The cables industry constitutes 39% of the electrical industry and forms a crucial part of the construction and infrastructure activities of the government and private players.

A host of factors, most of which are quintessentially linked to the process of infrastructural development, together may create manifold growth in the India cables market:-

• Infrastructure: Investments in this sector, especially concerning roads, railways, and power grids, have been rising and might continue to do so, thereby fueling demand for cables.
• Urbanization: While fast urbanization and industrialization take place, electricity consumption will automatically rises, hence the corresponding power transmission lines and distribution networks increasing.
• Renewable Energy: Cables are also witnessed to see demand arising from the growing interest by governments in renewable sources of energy, such as solar power and wind power.
• Smart Grid Technology: Increasingly, the need to integrate smart grid technology that allows for better management of power also creates a niche for specific cables.
• Government Initiatives: Governments are supporting the cable market through policies and grants for the growth of industries and the setting up of infrastructure facilities.

INDIA CABLES MARKET KEY TRENDS

• Shift towards High Voltage Cables: High voltage cables are in demand to enable the rising power transmission capacity.
• Fire-Resistant and Low-Smoke Cables: Increasing safety concerns have thus favored a preference for such cables.
• Growth in Optical Fiber Cables: Expansion of backbone network infrastructure, along with the growth in fiber-optic technology, is pushing demand for optical fiber cables.
• Energy-Efficient Cables: A growing trend toward those cables that reduce energy loss during transmission.

CHALLENGES IN INDIA CABLES MARKET

• Raw material price fluctuation: Changes in the prices of critical raw materials, like copper and aluminum, would affect the profitability of cable manufacturers.
• Intense competition: With a large number of players, the market becomes pretty competitive, and there are consequent pressures on prices and margins.
• Compliance: The rigid quality standards and regulations bring in complexity that is hence costly for manufacturers to comply with.
• Infrastructure Constraints: Poor infrastructure–like inferior power grids together with poor transportation facilities–make sure that on time cables are delivered at the sites of the projects.
• Technological Changes: It is difficult to stay updated with rapid technological changes in the process of the manufacture and the application of cables
• Environmental Factors: Concern for the environment is increasing due to impact on the production and disposal of cables.
• Lack of Skills: A shortage of skilled labor self-evidently has the consequence of curtailing production with problems of product quality control.

OPPORTUNITIES IN INDIA CABLES MARKET

• Infrastructure Development
• Smart Cities: Increasing the government’s interest in smart cities will increase demand for cables in many linked segments, such as power distribution, communication networks, and transportation systems.
• Rural Electrification: The ongoing programs to push electricity access in rural areas would present an avenue for the large potential market of cables, especially low-voltage cables.
• Transportation: As Metro rail systems, highways, and railway routes continue to develop, long stretches of cable laying for signaling and power supply systems will be required, along with communication systems.
• Industrial Growth
• Manufacturing: The growth of manufacturing industries in areas like automotive, electronics, and pharmaceuticals is going to drive the market demand for industrial cables.
• Data Centers: Proliferation of data centers needs high-performance cables for data transmission and power supplies.
• Renewable Energy
• Solar and Wind Power: As renewable energy sources—like solar and wind power—start being implemented more and more, specialist cables are called for to connect systems into the grid.
• Energy Storage: Cables would be needed to distribute power and interconnect energy storage solutions such as batteries.
• Telecommunications
• 5G deployment: Deployment of 5G will need fast-speed cables to connect their infrastructure and to send data.
• Fiber Optic Cable: Fiber optic cable installation will experience an increase in demand as the need for broadband internet and data services increases.
• Export Opportunities
• Global Markets: India’s cables industry has the potential to expand its exports to global markets, especially in regions with growing infrastructure needs and renewable energy adoption.

INDIA CABLES MARKET SEGMENTATION

By Voltage

• Low Voltage (Up to 1,000 V)
• Medium Voltage (1,000.1 V – 35 kV)
• High Voltage (35.1 kV – 240 kV)
• Extra High Voltage (Above 240 kV)

By Installation

• Overhead
• Underground

By Products

• Fiber Optic Cable
• Coaxial Cable
• Other Cables (Twisted Pair Cable, Non-Metallic and Metallic Sheathed Cable)

By Material

• Copper
• Aluminum
• Glass

By End Users

• Aerospace & Defence
• Building & Construction
• Oil & Gas
• Energy & Power
• IT & Telecommunication
• Others (Manufacturing, Consumer Electronics and Automotive)

INDIA CABLES MARKET KEY PLAYERS

• Polycab India Ltd.
• KEI Industries Ltd.
• Havells India Ltd.
• Finolex Cables Ltd.
• Apar Industries Ltd.

THIS INDIA CABLES MARKET REPORT WILL ANSWER THE FOLLOWING QUESTIONS

1. What is the current size and growth rate of the India Cables Market?
2. What are the major drivers and challenges influencing the market’s growth?
3. What are the key trends shaping the market, such as sustainability and technology?
4. What are the key environmental regulations and standards governing the India Cables Market?
5. What are the emerging trends in the usage of cables impacting the market?
6. What are the latest technological advancements in Cable production?
7. How are the technological advancements impacting the market, in terms of cost, quality, and customization?
8. What are the environmental concerns associated with Cables, and how are manufacturers addressing these concerns?
9. What are the trends in the use of sustainability in Cables?
10. What are the key opportunities and challenges for the India Cables Market in the coming years?
11. How will the market evolve in response to changing usages, technological advancements, and regulatory developments?
12. What are the potential growth areas and emerging markets within the region?

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