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Sep 8, 2020 1:00 PM ET

Structured Cabling market size set to grow at a CAGR of 9% during the forecast period 2020-2025




iCrowd Newswire - Sep 8, 2020

Structured Cabling market size is set to grow at a CAGR of 9% during the forecast period 2020-2025 and projected to reach $20.15 billion by 2025. The increase in demand for high-speed connectivity devices & systems due to the acceptance of data center convergence is boosting the growth of the structured cabling infrastructure. Additionally, the enlargement in telecommunications infrastructure is set to drive the structured cabling application growth, as the campus cabling infrastructure plays a prominent role in the same. Moreover, the developments within thermoelectric modules are contributing to the expansion of the global structured cabling market size.
Vertical – Segment Analysis
Presently, the residential & commercial held the largest share in the structured cabling market size in 2018. Structured cabling is playing a vital role in the communication system today. And these cabling products are a part of the physical infrastructure that assist the organizations to implement efficient business operations and also to extend the communication network. The structured cabling products aid the transmission of voice & data smoothly to connect the end-users, especially in the residential sector. Devices such as cables, patch panels, patch cords, communication outlets, cable assemblies, and racks & cabinets.  The integration of all these devices in a residential building is empowering the need for structured cabling.
Product Type – Segment Analysis
Currently, copper cable occupied a major share in the global structured cabling market and is projected to grow at a notable CAGR during the forecast period as well. Whereas, the fiber optic cables and their components are anticipated to grow at a highest CAGR during 2020-2025 when compared to the copper counterparts. This is mainly to meet the rise in the demand for higher transmission rate and as well as bandwidth.
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Geography – Segment Analysis
North America’s structured cabling market share dominated the global structured cabling market, accounts for more than 33%, followed by Europe and APAC. It is majorly due to the increasing count of internet users in the technologically updated nations such as the U.S. The rise in the number of investment to upgrade the mega and hyper-scale data centers is driving the necessity of structured cabling in this region. In addition to this, the growth in the adoption of IoT and cloud-related technologies are augmenting the revenue of North America’s structured cabling market. The APAC region is set to grow with the fastest CAGR during the forecast period. This is because of the growth in the telecom sector that demands high-speed data transmission.
Drivers – Structured Cabling Industry Outlook
  • The increase in the adoption rate of the cables at varied end-use verticals is attributing the growth of the structured cabling market
The incessant developments in the healthcare industry coupled with the upsurge in the number of data centers in eminent nations which include China, Brazil, and India are burgeoning the demand for cables, especially category 6A. Besides, the penetration of logistics, warehousing, retail spaces, E-commerce, optical communication products, and hypermarkets is witnessing the growth of the structured cabling market. Furthermore, the application of automation and cloud services in the manufacturing sector is also boosting up the use of structured cabling.
  • The telecommunication sector occupied a dominating share in the structured cabling market revenue
The increment in the penetration rates of the internet stimulating the demand for high-speed-internet connectivity in both developed and developing regions. The rise in the customer demand for the improved networking & communication services is amplifying the installation of the fiber optic cables by the telecom companies. It is also leading to the development of more flexible cabling infrastructure which assists in the enhancement of video, computer, telephone, and several IP-based communication systems. The combination of IT devices with efficient cabling infrastructure allows the telecom operators to efficiently perform the business operations using adequate power load & energy ratings.
Challenges – Structured Cabling Industry
  • Cost factor is primarily hindering the growth of the structured cabling market
The high cost associated with the fiber optic cables is hampering the growth of the structured cabling market. Moreover, the fluctuations in the cable’s raw material prices are restraining the structured cabling growth, globally. The prevalence of trendy virtualization is also playing a key role in diminishing the structured cabling revenue.

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Market Landscape
Acquisitions, product launches, and R&D activities are key strategies adopted by players in the structured cabling market. In 2018, the market of the structured cabling has been consolidated by the top ten players accounting for 50% of the share. Belden Inc, Commscope Holding Company, Inc., Corning Incorporated, Furukawa Electric Co, Ltd., General Cable Technology Corporation, Legrand, Nexans SA, Schneider Electric SE, Siemon, and Panduit Corporation are the structured cabling top 10 companies.
Acquisition/Product Launch
  • In May 2018, the Panduit Corporation has announced the launch of fiber optic cassettes. They are compatible with varied network systems and eliminates the necessity to install different cassettes and patch cords for uniform transmitter-to-receiver data transfer.
  • In March 2018, RocketRibbon has been launched by the Corning Incorporated. It is a cable with an extreme-density that is capable to enable the installation at a fastness of 30%. Thus, this cable is preferred to other high-density ribbon cables, especially for data center atmospheres, as it allows the operator to install more capacity in the same duct space and fulfill the increasing demand for improved bandwidth.
Key Takeaways
  • North America held a larger share in the structured cabling market owing to the increasing demand for network interface devices in the U.S., which in turn, raising the necessity of structured cabling.
  • The growing acceptance of cabling infrastructure in residential and commercial applications is likely to aid in the market growth of the structured cabling.
  • An increase in the adoption of copper cables will increase the market demand for the structured cabling market in the near future. On the other hand, the growing popularity of fiber optics cable is creating a significant number of opportunities for the structured cabling market during the forecast period.
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