Copper Cable Market Analysis

In-depth Analysis of Copper Cable Market Industry Landscape

Cable broadband, a widely used internet access technology, employs copper lines to transmit data in the form of electrical signals. These copper cables, categorized into coaxial, unshielded twisted pair (UTP), and shielded twisted pair (STP), utilize electrical signals to pass data between networks. UTP, a cost-effective option, is manufactured by twisting copper cables together, reducing signal degradation. Copper cabling generally offers lower production costs per unit of distance, making it a more affordable deployment option.

This cost-effectiveness is further enhanced by the extensive copper networking infrastructure already established in many developed countries, minimizing the need for new cable installation, or significantly reducing the required installation distance. According to the International Telecommunication Union (ITU), an estimated 4.9 billion people, representing 63% of the world's population, were internet users in 2021. This figure reflects a 17% increase since 2019, with approximately 782 million people gaining internet access during that period. Several factors are contributing to the expansion of the copper cable market. The rise of e-commerce for retail products and services, the digitization of healthcare data, e-government initiatives, and the development of media and entertainment content platforms are all driving market growth.

Internet penetration is likely to be positively influenced by various factors, including economic development, IT infrastructure, government and business policies, and the level of urbanization. Globally, social media users are increasing at a rate of 9.9% per year, with the average social media user engaging with 6-7 different social media platforms each month. Online consumer goods purchases surpassed USD 2.4 trillion in 2020, representing a growth of over 25% compared to 2019 levels. India stands out as one of the largest and fastest-growing markets for digital consumers, with 560 million internet subscribers in 2018. This growth is being propelled by both the public and private sectors.

The Indian government has enrolled over 1.2 billion Indians in its biometric digital identity program, Aadhaar, and has brought over 10 million businesses onto a common digital platform through a goods and services tax. The digitization of new sectors, including agriculture, education, energy, financial services, healthcare, logistics, and retail, coupled with the expansion of government services and digitalization in labour markets, is anticipated to drive demand for internet connectivity, consequently boosting the demand for copper cables.