LONDON--(BUSINESS WIRE)--Technavio market research analysts forecast the global residential cable market to grow at a CAGR of more than 5% during the forecast period, according to their latest report.
The report further segments the global residential cable market by application (power cables and datacom) and by geography (APAC, the Americas, and EMEA). In terms of geography, APAC dominated the market in 2016 with almost 51% of the total market share.
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Technavio analysts highlight the following three market drivers that are contributing to the growth of the global residential cable market:
- Rise in rural electrification
- Growth of construction industry
- Digitization of TV networks in developing countries
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Rise in rural electrification
The process of delivering power to the remote or rural areas of a country is referred to as rural electrification. For any country, the social and economic development rely on expansion of electricity services and electrification. The governments in emerging economies are introducing various programs to improve the condition of electricity in rural areas as electricity services are still in developmental stage in these places. Because of these programs, the market potential for residential cables that find applications in a variety of household applications alongside their use as power cables is likely to grow.
The increase in the number of initiatives taken has led to overall growth in rural electrification across the globe. Developing economies such as India are driving the market for residential cables.
According to Gaurav Mohindru, a lead analyst at Technavio for engineering tools research, “A World Bank-supported program in India has provided electrical power access to low-income rural households that include health clinics, schools, and community centers. The focus of the Indian government is to provide electricity to major rural areas to meet not only the energy demands of people but also to ensure sufficient electricity supply for agriculture purposes.”
Growth of construction industry
The construction industry across the globe is expanding steadily. There are several factors that are contributing to this growth. The construction industry is set to witness an encouraging growth rate in emerging economies such as China and India because of the overall development and high GDP growth in these countries. Owing to ongoing developments in the real estate and infrastructure, India and China witnessed some of the highest growth rates of 7.1% and 6.7% worldwide, respectively.
The demand for residential construction is increasing due to urbanization, industrialization, and rise in disposable income of the people. Rise in population is another factor contributing to the high demand for construction activities. Apart from the investments from private players, governmental efforts to improve transport and residential infrastructure will play a crucial role in supporting the overall growth rate, especially in the emerging economies.
Digitization of TV networks in developing countries
Many developing countries use antennas that connect to a TV using normal insulated pair of wires. This method is only used with unencrypted radio waves that don’t require to be connected to a set-top box to decode the channels. Digital technology that allows channel management according to user preference is replacing this analog technology. Analog networks allow only one-way communication, from the broadcaster to the viewer, and communication experiences signal interferences resulting in audio and video noise in the channels. With increasing digital television networks that have shielded construction, unlike coaxial cables, the issue of such interferences is resolved.
“In 2012, the Indian government passed a law to enforce the digitization of CATV in the country. The use of set-top box was made mandatory for cable TV operators as they deliver high-quality content to the subscribers. Therefore, with the complete phaseout of analog networks in many countries, there is a huge market potential for the growth of coaxial cables in residential premises as they are one of the cheapest means of digital access,” says Gaurav.
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