Technology

Digital TV, growing telecom major drivers of coaxial cable growth in A-Pac: Study

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MUMBAI: The global coaxial cables market is mature owing to the use of coaxial cables in industries for a long time and the slow or stagnant product innovation.

Coaxial cables are used for supplying television channels and providing Internet access and telephony services to homes and offices. They are also used for connecting equipment in mobile telecommunication stations and antennas.

Technavio’s latest report on the global coaxial cables market provides an analysis of the most important trends expected to impact the market outlook from 2017-2021.

Countries like the US, Germany, France, Japan, and China are the biggest existing markets for coaxial cables, with developing countries in APAC and MEA contributing the highest toward market growth. Regions like the US already have a large network of coaxial cables connecting almost all the CATV (community antenna television, commonly known as "cable TV") subscribers. The driver for these cables in developed regions is the growth of broadband cable Internet users, while the major driver in developing nations (including India) is the adoption of digital television and the rapidly growing telecommunication sector.

The top three emerging trends driving the global coaxial cables market according to Technavio heavy industry research analysts are: Growing investment in the aerospace sector Expanding infrastructure and construction growth Increase in global defense spending

Growing investment in the aerospace sector: The aerospace and defense sector is a major user of coaxial and micro-coaxial cables. These are used to provide interconnection between essential electronic components in aircraft. Since aircraft have several radio communication equipment, isolation of the radio signals is critical for the smooth functioning of this equipment, which makes coaxial cables play a major role in electronic communication. These factors are likely to boost the global coaxial cables market in the coming years and drive its demand even higher.

“Major aircraft manufacturers such as Airbus and Boeing are looking to increase production to meet the delays caused in aircraft deliveries. The commercial aircraft sector is likely to witness robust growth in aircraft demand, especially for smaller and medium-sized aircraft from domestic carriers as industry profits rise,” says Anju Ajay Kumar, a lead analyst at Technavio for research on engineering tools.

Expanding infrastructure and construction growth: The rising economic activity and rapid urbanization will be driving the growth in new infrastructure and construction. To support the growing demand from various demographics segments, services like telecom and Internet access are necessary. Expansion in these sectors will directly impact the demand for coaxial cables.

“China, Vietnam, and India will be spending a significant share of their GDP on average in infrastructure development. The fastest growing economy in the region, Vietnam, will need to invest hundreds of billions in infrastructure development to match up with its neighboring countries. The surge in demand for mobile devices equipped with next-generation wireless Internet access is likely to spur the construction and demand of mobile towers, stations, and related equipment, which are large consumers of coaxial cables,” adds Anju.

Increase in global defense spending: The rising economic activity and rapid urbanization will be driving the growth in new infrastructure and construction. To support the growing demand from various demographics segments, services like telecom and Internet access are necessary.

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