The Indian wire and cable industry, a crucial artery of the country’s infrastructure and economic growth, is humming with electrifying potential. With a projected CAGR of 14.2% by 2032, reaching an estimated USD 14.6 billion, the industry is poised for a significant surge, fueled by a confluence of factors.
Focusing more on Voltage Segments
- High Voltage: The Indian government’s ambitious “One Nation, One Grid” initiative, along with the integration of renewable energy sources like solar and wind power, is driving demand for HV cables. The Ministry of Power’s plan to invest Rs. 3.03 lakh crore in transmission infrastructure over the next five years further fuels this segment’s growth.
- Low Voltage: The construction boom in India, with affordable housing schemes and infrastructure development projects like Smart Cities Mission, is creating a surge in demand for LV cables. The Pradhan Mantri Awas Yojana (PMAY) alone aims to construct 2.95 crore houses by 2025, highlighting the immense potential of this segment.
Focusing more on Installation Segments
- Overhead Wire: This method involves suspending wires on poles or towers, making it the most common and cost-effective way to distribute electricity over long distances and in rural areas. Demand for this segment is expected to rise due as they are affordable, easy to maintain and have less disruption to land and ecosystems.
- Underground Wire: This method involves burying wires beneath the ground, offering several advantages over overhead installations. Underground wires are less vulnerable to weather damage and vandalism and reduce risk of electrocution hazards. Thus, features like improved reliability and safety tends to drive demand for the underground wire segment.
The overhead wires currently hold the largest market share in the industry, accounting for over 60% of the global wire and cable market. Market growth for this segment across India depends on several factors, such as:
- Growth in Infrastructure: Expansion and modernization of power transmission & distribution networks, driven by government initiatives like DDUGJY and IPDS, require extensive use of overhead lines for rural electrification and grid resilience. Additionally, development of smart city infrastructure relies heavily on overhead cables for street lighting, traffic management systems, and communication networks.
- Industrial and Commercial Development: Increasing construction activities, both residential and commercial, necessitate overhead cables for electrical supply and distribution within buildings and across complexes. On the other hand, growth in various industries, like automobile and steel, creates demand for overhead power lines within factory premises and inter-factory connections.
- Technological Advancements: Adoption of High-Voltage Overhead Line technology allows for efficient transmission of large amounts of power over long distances, creating demand for specialized overhead conductors. Moreover, integration of smart grid technologies into the existing grid infrastructure involves investments in overhead communication and data transmission lines. On the other hand, rising demand for faster internet connectivity, particularly in rural areas, favors the deployment of fiber optic cables on overhead lines.
Thus, the growth of the Indian wire and cable industry presents a promising avenue for the overhead wire market.
