India Structured Cabling Market Outlook to 2030

India Structured Cabling Market Overview

• The India Structured Cabling Market was valued at USD 704 million. The increasing demand for high-speed data transfer, the proliferation of data centres, and the rising adoption of digital transformation initiatives across industries primarily drive this growth.
• The key players in the India Structured Cabling Market include Sterlite Technologies, Finolex Cables, TE Connectivity, Nexans India Pvt. Ltd., and Belden India. These companies have leveraged their advanced technological capabilities and robust distribution networks to develop high-quality structured cabling solutions that meet the growing demand for faster and more efficient data transmission.
• Sterlite Technologies Limited (STL) has secured around Rs 900 crore worth of fiberization orders from private telecom companies in FY24, covering over 15,000 km across 20 states in India. The orders form about 10% of STL's total order book of Rs 9,000-10,000 crore.
• The Western region of India led the Structured Cabling Market in 2023, driven by its rapid industrial growth, expansion of IT hubs, and favourable government policies supporting the digital economy. The region's dominance is also attributed to the growing number of smart city projects and the increasing demand for broadband connectivity.

India Structured Cabling Market Segmentation

The India Structured Cabling Market is segmented by solution type, application type, and region.

• By Solution Type: The market is segmented into hardware, software, and services. In 2023, the hardware segment dominated the market due to the rising demand for high-performance cabling infrastructure in large enterprises and data centers.

• By Application Type: The market is also segmented into data centers, IT and telecom, commercial, and industrial. Data centers held the largest market share in 2023, driven by the rapid growth of cloud computing and the increasing need for efficient data management solutions.

• By Region: The market is segmented into North, South, East, and West. In 2023, the Western region dominated the market, with cities like Mumbai and Pune leading in the deployment of structured cabling solutions, owing to the high concentration of IT firms and data centers.

India Structured Cabling Market Competitive Landscape

• Finolex Cables: Finolex Cables has launched a new range of LAN passive components, including patch cords and faceplates, aimed at enhancing data transmission in high-density environments like data centers and offices. This move aligns with India's digital transformation and the increasing demand for structured cabling solutions amid urbanization and smart city initiatives.
• TE Connectivity: TE Connectivity is set to showcase its innovative copper solutions aimed at enhancing AI systems at DesignCon 2024. The company will present its 224G products and PCIe Gen 6 technologies, addressing signal integrity challenges and demonstrating advanced thermal solutions and smart power connectors to support next-generation data centers and AI applications.

India Structured Cabling Market Analysis

India Structured Cabling Market Growth Drivers:

• Surging Adoption of IoT: India currently has 759 million active internet users, expected to grow to 900 million by 2025. This surge in IoT device integration across sectors necessitates robust structured cabling infrastructure to support seamless communication and efficient data transfer among an increasing number of connected devices.
• Expansion of Data Centers: India is set to see over 45 new data centers developed by 2025, totaling 13 million square feet and 1,015 MW of capacity. This growth in cloud computing and digitalization significantly increases the demand for structured cabling to manage high data traffic effectively.
• Rise of 5G Networks: With the deployment of 5G technology, India is projected to lead global data consumption, reaching 62GB per user monthly by 2028. This dramatic increase in data usage compels telecom operators to upgrade their cabling infrastructure, driving demand for structured cabling solutions.

India Structured Cabling Market Challenges:

• Fluctuations in Raw Material Prices: Fluctuating raw material prices, particularly for copper and fiber optic components, directly impact the production costs of structured cabling solutions. Increased material costs can lead to higher prices for consumers, market volatility, supply chain disruptions, and reduced profit margins for manufacturers, ultimately affecting demand and project implementation in the industry.
• Lack of Skilled Workforce: The structured cabling market in India faces a significant shortage of skilled technicians, with over 50% of industry professionals citing it as a major challenge. Currently, approximately 672,000 technicians are employed, but an additional 250,000 are needed to meet growing demand in the sector.

India Structured Cabling Market Government Initiatives:

• Digital India Campaign: Launched in 2015, the Digital India initiative aims to enhance internet connectivity, with internet penetration reaching 67% and 916.77 million subscribers as of March 2024. The government allocated 14,903 crore for its expansion from 2021 to 2026, promoting digital inclusiveness.
• BharatNet Project: The BharatNet initiative aims to provide high-speed broadband connectivity to rural areas, having connected over 1.5 lakh gram panchayats as of early 2024. The project seeks to connect all 2.5 lakh gram panchayats by 2025, significantly improving digital access in underserved regions.

India Structured Cabling Market Future Market Outlook

The India Structured Cabling Market is expected to grow substantially in the coming years. The market is anticipated to shift towards more advanced and future-proof solutions, with a focus on fiber optic cables and smart building cabling systems.

Future Market Trends:

• Increased Adoption of Fiber Optic Cables: As internet speeds and data traffic continue to grow, fiber optic cables are increasingly favoured over traditional copper cables. The demand for higher bandwidth, driven by high-definition streaming and online gaming, supports this trend, as fiber optics can transmit data faster and more reliably than copper cables.
• Growth of Smart Buildings: The rising focus on smart buildings and IoT applications is indeed driving demand for structured cabling systems. These systems enable seamless connectivity across various devices and platforms, essential for the integration of smart technologies and efficient building management.