PUBLISHER: Knowledge Sourcing Intelligence | PRODUCT CODE: 1390151
PUBLISHER: Knowledge Sourcing Intelligence | PRODUCT CODE: 1390151
The coaxial cables market is expected to grow at a CAGR of 4.35% from a market size of US$100.639 billion in 2021 to reach US$135.61 billion in 2028.
Coaxial cable is a type of electrical cable characterized by its structure consisting of an inner conductor, a concentric conducting shield, and a dielectric material that serves as insulation between the two. Such cables owing to their high durability and resistance find applicability including broadband internet networking, cable television, telecommunication systems, and video transmission. The rising need for high-speed data transmission is a significant driver fuelling the coaxial cable industry growth thereby expanding the overall coaxial cable market size.
The increasing availability of digital content, coupled with the widespread adoption of high-definition video streaming services, has created a strong demand for efficient and dependable data transmission. Coaxial cables have emerged as a fitting solution to address this need due to their remarkable attributes of high bandwidth capacity and minimal signal loss. These characteristics make coaxial cables exceptionally well-suited for various applications that rely on high-speed data transfer, including cable television networks, broadband internet connections, and video surveillance systems. According to the Organization for Economic Cooperation and Development, fiber broadband subscriptions in OECD countries witnessed a significant 12.3% increase between June 2021 and June 2022.
The increasing deployment of IoT devices, which rely on stable and reliable connectivity, has created a surge in demand for high-quality coaxial cables. These cables provide the necessary bandwidth and signal integrity required for seamless data transmission, making them essential components for the expanding IoT ecosystem. The surge in the adoption of IoT devices coupled with investment to boost transmission infrastructure has bolstered the coaxial cables market growth. The MIIT revealed a five-year plan to foster China's big data industry, projecting its scale to surpass 3 trillion yuan ($471 billion) by 2025 up from over 1 trillion yuan in 2020.
Coaxial cables are extensively used in telecom networks to ensure reliable and high-speed data transmission for voice, data, and video signals, and as the telecom industry continues to expand, driven by increasing internet penetration and the deployment of advanced communication technologies like 5G, the demand for coaxial cables as a connectivity solution escalates. For instance, Bharti Airtel estimates that the Department of Telecom (DoT) will generate approximately Rs 8,312 crore from the recent 5G auctions as revenue for the acquired radio waves in August 2022.
Asia-Pacific region dominates the coaxial cable market due to advancements in infrastructure, a thriving telecom industry, and the growing demand for efficient data transmission in the big data sector. For instance, in February2021, the "PLI Scheme" launched by the Department of Telecom (DoT) aimed to incentivize domestic manufacturing in telecom and networking products, with a total outlay of 12,195 crores. Also, according to the Ministry of Industry and Information Technology, China accounted for a significant 70% of the world's total cellular Internet of Things (IoT) connections, reaching 1.8 billion by December 2022. This dominance highlights China's substantial presence and influence in the IoT industry.
The growing demand for high-speed internet and data-intensive applications has led to a significant shift towards fibre optic technology. Fibre optic cables, with their superior attributes such as higher bandwidth, faster data transmission speeds, and longer transmission distances, are increasingly favored over coaxial cables. This transition towards fibre optics can potentially limit the growth of the coaxial cable market. For instance, in October 2022, STL, a leading digital network integrator, introduced groundbreaking innovations including India's first Multicore fibre and cable, high-capacity solutions for 5G cell sites, Quad-core fibre connectivity in data centers, and exploration of Quantum communication feasibility.