Market Trends of India Optic Fiber Cable And Accessories Industry
Rising Internet Penetration and 5G Deployment to Drive the Market
- India's rollout of 5G technology is set to significantly boost the optic fiber market. To achieve high data speeds and ultra-low latency, 5G networks depend on a strong and dense fiber optic infrastructure. As telecom operators and infrastructure providers enhance their networks for 5G, there's a clear trend: a surge in investments in optic fiber cables and related accessories.
- For instance, as of April 2024 - India's third-largest service provider, Vodafone Idea, has fulfilled its minimum rollout obligation and is set to introduce 5G services later this year. The company aims to extend its coverage to 40% of its revenue base within the next 24 to 30 months, starting with 5G launches in 17 designated circles (service areas). Additionally, Vodafone Idea plans to bolster its existing 4G network and enhance its capacity.
- The Indian government's initiatives, such as the Digital India program and BharatNet project, are instrumental in driving the growth of the optic fiber market. These programs aim to enhance digital connectivity across the country, particularly in underserved rural areas, by expanding the fiber optic network, which is crucial for achieving the goals of universal broadband access and supporting the 5G rollout.
- According to the Ministry of Communications, as of March 2024, India boasts a total Internet subscriber base of 954.40 million, with 398.35 million subscribers hailing from rural areas. Out of the country's 6.44 lakh villages, 6.12 lakh, or 95.15%, are equipped with 3G/4G mobile connectivity, ensuring they have Internet access. Furthermore, under the Digital India Initiative, the government is actively working to extend connectivity beyond major metros, reaching tier-2 and tier-3 cities, as well as rural and remote regions.
- India's rollout of 5G technology is set to significantly boost the optic fiber market. 5G networks depend on a robust and dense fiber optic infrastructure to achieve high data speeds and ultra-low latency. As reported by the Department of Telecommunications (India), by June 2024, India had deployed approximately 448.7 thousand 5G base transceiver stations. In under two years, this number surged over 24 times. Reliance Jio led the way as the first Indian telecom provider to launch 5G services, soon followed by Bharti Airtel.
Understand The Key Trends Shaping This Market
Download PDF
Telecommunications to Hold a Major Share
- FTTH services, which connect optic fibers directly to homes and businesses, are experiencing significant growth in the telecommunication sector. As a result, there is a rising demand for optic fiber cables and accessories. Telecom companies in India are pushing to meet this demand, aiming to deliver faster and more reliable internet services to consumers.
- In May 2024, GX Group, a manufacturer of fiber-to-the-home (FTTH) equipment, announced plans to establish a new manufacturing facility in India. With an initial investment of INR 100 crore, the facility aims to produce goods for global export, aligning with the Indian government's Atmanirbhar Bharat (Self-Reliant India) initiative.
- As data-heavy applications like video streaming, online gaming, and remote work solutions see rising consumption, the telecommunication sector is experiencing significant growth. This surge underscores the need for robust optic fiber networks, positioning telecommunications as a pivotal driver for the expansion of the Indian optic fiber cable and accessories market.
- Recently, the Indian government prioritized the laying of optic fibre cables. The market for optical fiber cables in India is gaining momentum, expanding into diverse regions across the nation. Furthermore, the rise of the 'Work from Home' culture has allowed the telecom industry to address and fulfill the surging demand for high-quality bandwidth services.
- In an April 2024 survey conducted across India by LocalCircles, around 86% of participants indicated they accessed the internet at home through fiber, broadband, DSL, or fixed-line connections. However, these users commonly faced challenges, including frequent connection disruptions and internet speeds that fell short of promises.
