The cable manufacturing industry’s market size in India during 2019-2020 was around 48,000 crore rupees. The share of LV cables was 35%, control & instrumentation 10%, HV & EHV 18%, rubber 3% and light-duty cables 34%. The
size of the global cable market during the same period was around 230 billion dollars. By 2021, it is expected to grow by 14%.
India is a growing economy. Hundreds of cities and townships are coming up. They are all potential markets. Until a few years ago, most of the cable industry’s business came from the unorganized sector, which, though massive, is not structured. With a big boost to development and the government’s drive to
electrify every nook and corner of the country, this industry has immense potential. Though India’s per capita consumption of cables are low compared to the developed countries, this should be seen as an opportunity rather than a drawback. It means there is more scope for growth and hence, more scope for manufacturing and selling electric cables.
Even in the industrial sector, there is greater demand for smart systems and Internet of Things (IoT) devices that require efficient cables.
Listed below are some opportunities that the cable industry can tap into to grow manifold:
The per capita electricity consumption in India is 1181 kW compared to 3000 kW globally. Even a small country like South Korea has 10,618 kW per capita consumption. The usage of electrical appliances, rapid industrialization, and automation is ushering in a new era that will require more electricity. Also, by 2030, India’s population is projected to reach 1.5-1.6 billion. As per the latest studies from the Institute of Energy, Economic, and Financial Analysis, India’s GDP will double in the next ten years. With growing urbanization, there is enormous potential for the cable industry.
The Indian government is creating massive incentives for global investors to come to India and invest. The cable industry hasn’t been left untouched by this initiative. Foreign investors look at India as a potential market for EHV cables and are investing heavily in technology transfer and setting up new manufacturing plants. In collaboration with Indian manufacturers, they’re producing extra-high-voltage cables of up to 400 kV.
According to the Electronics and Electrical Manufacturers Association, the Indian manufacturers themselves are developing indigenous expertise in HV cables’ technology. Coupled with international partnerships, this in itself is going to create a boom for Indian cable manufacturers.
T&D losses are remarkably high in India compared to other countries. For example, compared to the world average of 8.64%, India’s T&D losses amount to 20.65%. In South Korea, they are just 3.65%. The government is pulling all punches to bring these numbers down, and significant investments are being made in this sector. The government is also committed to providing a 24 x 7 power supply to different parts of the country. These efforts are going to require high-quality cables.
The government of India is committed to generating 450 GW of renewable energy by 2030 and 175 GW by 2022. Most of these projects are being built from scratch, and hence, there is a great demand for high-quality wires.
The government of India has kickstarted multiple schemes to electrify 100% of households. Some of these schemes are; The Deen Dayal Upadhyay Gram Jyoti Yojana, the Pradhan Mantri Sahaj Bijli Har Ghar Yojana, the Integrated Power Development Scheme as well as the Ujwal Discom Development Scheme. Additionally, every village in the country is to be electrified. All these mega projects need cables of various dimensions and capacities.
The government is making a big push into building more than 100 Smart cities. Large-scale infrastructural investments are being made. Millions of people will be moving into these cities and townships, requiring transportation and electrification of unprecedented scales. This is an excellent opportunity for cable manufacturers.
As more and more people start using electric vehicles, there will be an increased demand for vehicle charging outlets just like we have petrol pumps now. The charging infrastructure will require millions of kilometres of cables.
Modernization and up-gradation drives are going on in almost all industries. Many traditional industries operated with manpower are transitioning into heavy duty machines and automated processes powered by IoT devices. These are generating heavy demands for good quality cables that can withstand the rigors of these transformational changes.
Not just renewable energy, the government is also making a significant shift towards nuclear energy and increasing the capacities of conventional energy sources. By 2027, the government aims to increase its thermal power generation
capacity from 231 GW to 309 GW. Similarly, right now, 6.78 GW of power is being generated through nuclear reactors, and the government aims to add 4.8 GW in the current year. This is another growth opportunity for the wire and cable Industry.
The Indian railway plans to electrify 38,000 km rail routes in the next five years—presenting another big window of opportunity for wire and cable manufacturers.
Although Indian manufacturers have been exporting to the US, Europe, and other countries, with countries and governments becoming wary of China in the wake of the pandemic, major world players are increasingly looking towards India to meet their great electric cable demands. This is an excellent opportunity for Indian wire and cable manufacturers to make a mark in the international market through quality products.
As they say, small drops fill up the ocean. Even employees working from home are contributing to increasing the demand for wires and cables as they use more devices, gadgets, and electrical appliances.
India’s cable industry is booming, with a 48,000 crore rupee market in 2019-2020 and huge growth potential from electrification, smart cities, and electric vehicles. The chipping machine from Cable Measurement Solutions helps manufacturers meet this demand by cutting cables precisely for projects. As India pushes for more power use and exports, this tool supports a bright future for the industry.
Helping clients solve complex dimensional measurement challenges with a range of robust measuring systems.
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