The wire and cable market is expected to grow at 6% New Electronics strives to bring you all the latest technology news from the Interconnect, Passive...
The wire and cable market is expected to grow at 6%
New Electronics strives to bring you all the latest technology news from the Interconnect, Passives, Wire & Cable sector. Advances in Interconnect, Passives, Wire & Cable electronics are often fast-paced and innovative, so we know that as a design engineer you want to be kept up-to-date with current developments.
Wires and cables market in the world and in India is highly fragmented, with the presence a number of small and medium enterprises. The organized sector manufactures high voltage durable cables, whereas the unorganized sector mainly captures the low voltage market, where products are mainly separated on the basis of the price. The intensifying competition in the industry is expected has put increasing pressures on all of players to maintain their market shares. Additionally, the low level of exports has also hampered the growth of this industry in India. However, the real estate’s boom in the country, promulgated by an incensement in the number of houses being bought and sold contributed positively towards the revenue generation by the cable market. Additionally, the demand for electricity is expected to be rise in future with increasing number of households, together with the sales of transmission and distribution equipments lead to positive inclination in demand for wires and cables & thus revenue generated by the industry. The wires and cables market is presently at its growing stage in our country and is expected to be capturing a significant share in the electrical equipment industry in the upcoming years.
The new technologies and extensive research and development by market players are making this possible to collect more information in order to understand the demand of the market. The overall wires and cables market in India is expected to grow at the CAGR of 18.5% during FY’2016-FY’2020. Development in terms of optical fiber cables, fire-resistant wires and cables is expected to be continued to develop, assisting the transition towards underground wires and cables. Products with superior technologies like broader range application equipment and electricity saving will continue to find a deeper penetration in Indian wires and cables market. The Gross domestic production generated from construction will grow at a CAGR of 6.0% during FY’2016-FY’2020. As a direct outcome of Indian government’s spending on development of infrastructure, the number of roads and highways is expected to increase in the upcoming five years. Furthermore, government’s spending on enhancing the real estate sector would make the pool of consumers of wires and cables grow exponentially, which will be conducive to the revenue generated by wires and cables market in India Wires and Cables Market Outlook.
The India wires and cables market is comprised of various independent manufacturers that specialize in designing, manufacturing of their products.
Technological advancements and product innovations across different segments as well as competitive pressures have been significantly changing the market. Revenues from the wires and cables industry in the India are expected to expand to INR ~ million in FY’2020growing with a CAGR of 18.5% from FY’2016-FY’2020. The market is expected to grow in the coming years with increasing number of innovative product launches by the existing players, focusing on niche uses and convenience such as fire resistant (retardant) wires and cables, optical fiber cables and others etc. With the consumers becoming more perceptive towards value addition, providing products by anticipating the consumer needs in advance and broadening the appeal of the product to suit the variety of needs could prove vital for the growth of this industry in the coming years.
THE MAJOR SEGMENTS DRIVING THE CHANGE
Power Cables led the revenues from the wires and cables market with more than 60% contribution to the total market in fiscal year 2016. In 2016, the major demand of wires and cables product from retail sector. Growth in wires and cables market can also be attributed to the introduction of latest technologies by manufacturers in India and swift expansion of the automated and innovative cost reducing manufacturing technologies, which have significantly improved the throughput of wires and cables products. Power Cables led to the revenues from the wires and cables market in fiscal year 2016. The market has transformed from being a labor intensive to the inclusion of latest technologies.
The distribution segment is comprised of organized players. Polycab wires, Finolex cables, Sterlite technologies are some of the leading players.