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 infrastructureâlike inferior power grids together with poor transportation facilitiesâmake 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 sourcesâlike solar and wind powerâstart 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
By Products
- Fiber Optic Cable
- Coaxial Cable
- Other Cables (Twisted Pair Cable, Non-Metallic and Metallic Sheathed Cable)
By Material
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
- What is the current size and growth rate of the India Cables Market?
- What are the major drivers and challenges influencing the market's growth?
- What are the key trends shaping the market, such as sustainability and technology?
- What are the key environmental regulations and standards governing the India Cables Market?
- What are the emerging trends in the usage of cables impacting the market?
- What are the latest technological advancements in Cable production?
- How are the technological advancements impacting the market, in terms of cost, quality, and customization?
- What are the environmental concerns associated with Cables, and how are manufacturers addressing these concerns?
- What are the trends in the use of sustainability in Cables?
- What are the key opportunities and challenges for the India Cables Market in the coming years?
- How will the market evolve in response to changing usages, technological advancements, and regulatory developments?
- What are the potential growth areas and emerging markets within the region?
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