Increasing Government Expenditure for the Development of Telecom Infrastructure and Projects Such as National Optical Fiber Network to Drive Telecom Cable Market.
According to the recently published report by TechSci Research, "India Telecom Cable Market Forecast & Opportunities 2019," the telecom cable market in India is forecast to reach USD 354.23 million by 2019. Growing number of telecom subscribers, penetration of smartphones and rising demand for high speed data transmission are the major factors propelling the demand for telecom cables in the country. With increasing data traffic, expansion of telecom infrastructure has become inevitable, thereby spurring the market for telecom cables. In 2013, advanced optical fiber cables that are designed for high speed data transfer dominated the market, holding over 50 percent market share in value terms. The segment is expected to continue dominating through the forecast period due to rising demand for high speed Internet on the go.
The Government of India is planning to connect 250,000 Gram Panchayats in various parts of the country to their respective district blocks for streamlining various sectors including healthcare and education, etc. This is expected to drive the adoption of telecom cables in rural India on the back of rising number of mobile subscribers. Besides, projects like Network for Spectrum (NFS) being implemented by the Indian Army and Indian Navy are also expected fuel the market for telecom cables in the country. In addition, the expected 4G rollout would further propel the demand for telecom cables in the country. Considering these opportunities, telecom operators are also eyeing to expand their penetration level in rural areas over the forecast period.
"Increasing penetration of telecom services in rural India has emerged as the major growth driver for the Indian telecom cable market. Teledensity in India is increasing continuously due to the growing demand for high speed internet services, which cannot be catered by traditional copper cable network. On account of these factors, fiber optics cables market is expected to gain a lion's share in India's telecom cable market," said Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm.