India Wire And Cable - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

The India Wire And Cable Market size is estimated at USD 19.44 billion in 2024, and is expected to reach USD 30.11 billion by 2029, growing at a CAGR of 9.14% during the forecast period (2024-2029).

Key Highlights

• The Indian wire and cable market is experiencing significant growth, driven by multiple factors, including growing renewable energy production, increasing reserves in smart grid technology, industrialization, and government initiatives. This sector, vital for electricity distribution and telecommunications, is expanding at an impressive rate and is expected to continue this trajectory in the coming years.
• India is undergoing a massive infrastructure transformation. The Indian government continuously takes various initiatives to provide affordable housing and improved urban infrastructure. For instance, in January 2024, the finance minister of India announced that the government plans to raise the allocation for low-cost housing by more than 15% to USD 12 billion for 2024/25. Such initiatives have led to a substantial increase in the country's demand for wires and cables.
• Further, one of the key drivers that drives the demand for the Indian wire and cable market is the Increasing demand from the renewable power generation sector. Many states in the country are continuously demanding renewable power generation. Hence, the Government of India has started increasing its investments to establish renewable energy sources.
• For instance, the Ministry of New and Renewable Energy has allocated USD 1.68 billion for the Production Linked Incentive Scheme, specifically targeting high-efficiency solar PV modules. By October 2024, an operational manufacturing capacity of 7,400 MW is anticipated, with a further surge to 16,800 MW by April 2025. The remaining 15,400 MW capacity will be completed by April 2026. This integration of renewable energy sources into the existing power grid requires advanced cables that can handle varying loads and ensure efficient power transmission, increasing the adoption of wires and cables.
• Moreover, the telecommunications sector is expanding rapidly in India, driven by increasing smartphone penetration and the rollout of 5G networks. For instance, Bharti Airtel announced that the company has doubled its Airtel 5G Plus and is planning to roll out its 5G services in 20,000 villages across India. It is expected to grow in the coming years.
• The need for high-speed internet and improved connectivity has led to a surge in demand for fiber optic cables and other communication cables. The deployment of 5G technology, in particular, requires significant investments in infrastructure, including a vast network of cables to support the high-speed data transfer and low latency that 5G promises.

India Wire And Cable Market Trends

Growing Demand for Housing Wire in India

• India's housing sector is witnessing a significant increase, propelled by swift urbanization, government policies, and an expanding middle class. With this growth, the demand for housing wire is continuously growing, as it is one of the most important elements in residential electrical setups. This demand directly results from several interlinked factors highlighting the dynamic changes occurring in India's housing and construction industries.
• India is also experiencing a significant trend toward urbanization. The Union Ministry of Housing and Urban Affairs forecasts that India's urban population will surge to 600 million by 2031. This demographic surge is fueling a heightened demand for new housing units, amplifying the need for housing wire. Specifically, 90 m housing wire, known for its adaptability and efficiency in residential setups, has become a staple in the electrical wiring of these new urban dwellings.
• Further, according to the World Bank, India's rising middle class, estimated to grow to 580 million by 2025, significantly contributes to the demand for housing. Higher disposable incomes are leading to an increased demand for quality housing. As per the report by CBRE Group, in 2023, the sales of mid-end houses were the highest at 46%, followed by high-end houses and affordable houses at 27% and 16%, respectively. Such growing real estate sales drive the market for high-quality electrical components.
• Further, companies such as Havels, Polycab, and Anchor are continuously working toward advancements in their electrical wiring segment to provide efficiency and safety of the housing wire. Also, fire-resistant and low-smoke wire innovations are increasingly adopted in Indian houses. Additionally, the development of smart homes, which require robust and reliable wiring systems, further bolsters the demand for high-quality housing wires.
• Also, infrastructure development in Tier-II and Tier-III cities is increasing demand. As these cities grow and upgrade, the need for new residential complexes is surging. This, in turn, is fueling a demand for extensive electrical wiring.

Increasing Use of Wire and Cables in the IT and Telecommunication Segment in India

• India's IT and telecom segment has witnessed a surge in the demand for wires and cables, mainly driven by various factors, including expanding broadband services, the proliferation of smart devices, the implementation of 5G technology, and government initiatives like Digital India. These elements have created a growing demand for wires and cables.
• Further, India has seen an increase in broadband penetration over the last decade. According to the Telecom Regulatory Authority of India (TRAI), the country's broadband subscriber base has grown extensively. For instance, the telecom subscriber rate reached 102.4 million in Uttar Pradesh, followed by Maharastra, Bihar, and Andhra Pradesh with 94.94 million, 94.90 million, and 86.46 million in 2023. This surge is largely due to the rising demand for high-speed internet connections. As the subscriber bases increase, many telecom companies in India have rolled out fiber optic cables.
• For instance, in January 2024, BSNL announced its plan to upgrade its copper network to optical fiber in Ernakulam in the last quarter of 2024 to provide high-speed internet. As a part of this initiative, the company aims to upgrade 1.2 lakh copper connections to fiber cables in Tamil Nadu. Such initiatives by the telecom companies have boosted the demand for cables, driving the growth of cable in the telecom industry.
• Moreover, the proliferation of data centers in India has been a major catalyst in driving the demand for wires and cables. Many IT and telecom companies operating in India are opening new data centers. For instance, in January 2024, a joint venture of Digital Realty Trust, Reliance Industries, and Brookfield Infrastructure Partners announced the launch of a 20 MW greenfield data center, MAA10, in Chennai. Such data centers require many cables, including high-speed fiber optic cables, to ensure efficient and uninterrupted data transmission.

India Wire And Cable Industry Overview

The Indian wire and cable market is highly competitive and has several major players. However, many companies are increasing their market presence by securing new contracts and acquiring other companies. Key players include Finolex Cables Limited, KEI Industries Limited, Syska Led Lights Pvt Ltd, V-Guard Industries Ltd, and Havells India Ltd.

April 2024 - V-Guard unveiled its latest innovation: the 'Arizo' Wires, designed to resist melting and promote eco-safety. By harnessing advanced e-beam technology, these wires eliminate halogens and significantly reduce smoke emissions, improving electrical safety and sustainability. V-Guard's primary goal with this launch is to mitigate the risks of short circuits and fire hazards, ensuring consumers' safety.

March 2024 - Polycab India Limited, a leading electrical solutions provider, unveiled its latest TVC showcasing the Extra Safe Polycab Mmaxima+. The highlight of this release is the launch of the Polycab Mmaxima+ Green wire. Through this initiative, the company aims to provide innovation and customer safety, empowering homeowners to prioritize informed decisions for their household's well-being.

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