By Sachin Verma
The networking accessories industry is experiencing fast-paced development across the globe, and consequently, it has impacted the Indian market too. According to Fact.MR, the global cable and connector market is worth $10 billion. The ever-growing demand for high-speed internet contributes to the growth of this sector and the total revenue is expected to expand at a high-value CAGR of 13.5% from 2023 to 2033. The world is now progressing digitally which is increasing our dependence on the internet, and contributing to growth in the usage of networking accessories like routers, switches, modems, and other devices.
India’s Journey Towards Self-Sufficiency
The government introduced the National Manufacturing Policy targeted to raise the share of manufacturing in GDP to 25% by 2025. The scenario in the networking accessories industry has transitioned a lot in recent years and continues to do so. Until now, India used to seek support from foreign manufacturers to meet the market demands. According to the data from the Indian government, India imported networking cables worth USD 350 million in the financial year 2022-23. But today, we are well on the path to becoming self-sufficient. The emergence of local manufacturers and significant government support has encouraged domestic production and reduced import dependency.
Challenges in the Sector
The growth rate of the global manufacturing output was 3.9% as of September 2022. However, the industry still needs to encounter and resolve some challenges that hinder its further growth in India. Some of them are obsolete technologies, increased competition, and evolving consumer preferences. Another major challenge for the Indian market in this sector is the climatic variations. Using counterfeit cable accessories limits their effectiveness and adaptability.
These challenges can be converted into opportunities by investing in research and development, adopting the latest technologies, and understanding consumer need closely.
Projected Growth and Flourishing Opportunities
The future of India’s networking accessories industry is extremely promising. With increasing demand for 5G technology and IoT devices, the sector is expected to grow exponentially. ‘Make in India’ is one of the most impactful government initiatives and to flourish in this evolving market, it is significant that businesses adapt to these changing trends and innovate accordingly.
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The accessories are also designed to withstand different weather conditions, they remain intact under extremely high & low temperatures. This major development has helped the industry to expand its relevance in diverse geographical regions dramatically.
Transitioning from 4G to 5G
The networking accessories manufacturing industry saw a major transition from 4G to 5G internet. This transition has provided unprecedented levels of connectivity, superfast broadband, and ultra-reliable communication benefitting the market to a greater extent.
Networking accessories are essential for enhancing digital connectivity and the adoption of emerging technologies like AI, the Internet of Things (IoT), autonomous vehicles, machine learning, augmented reality/virtual reality (AR/VR), and more. It is also the key to ensuring these technologies’ efficiency, productivity, and competitiveness.
A survey found that 70% of enterprises in India intend to make the highest investment in 5G compared to other emerging technologies. While it facilitates the upgrade in internet speed, it also revolutionised the AI sector equally. It is poised to benefit immensely from this transition in India.
For example, it increased the demand for advanced networking devices in different domains, such as healthcare, education, agriculture, etc. It scaled connectivity, expanded the availability and use of this technology in remote areas too.
In conclusion, the growth of India’s networking accessories industry is not just a boon but a game-changer for the entire economy, paving the way for a more connected and technologically advanced future.
(The author is the founder of Fedus. Views expressed are personal and not necessarily those of financialexpress.com)