Structured Cabling Market by Product (Copper Cable [STP, FTP, UTP], Fiber Cable [MM Fiber, SM Fiber], Copper Components [Copper Outlets, Copper Patch Panel Ports, Copper Patch Cords], Fiber Components [Fiber Patch Panel Ports, Fiber Outlets, Fiber Patch Cords]), by Wire Category (Category 6, Category 5e, Category 6A, Category 7), by Application (Data Center, LAN), by End Use (Telecommunications, Commercial, Government, Industrial), by Geography (U.S., Canada, France, U.K., Germany, Sweden, Austria, Switzerland, Spain, Poland, Netherlands, Russia, Italy, China, Japan, South Korea, India, Brazil) – Global Market Size, Share, Development, Growth, and Demand Forecast, 2013–2023

Structured Cabling Market Overview

The global structured cabling market was valued at $7669.8 million in 2017 and is forecasted to witness a CAGR of 5.5% during 2018–2023. Advancements in information technology (IT) are positively impacting the growth of the market. Business enterprises are increasingly focusing on IT infrastructure optimization with the adoption of more efficient solutions, such as structured cabling. Besides, reduction in the IT maintenance costs is one of the major focus areas for organizations.

APAC COPPER COMPONENTS STRUCTURED CABLING MARKET, BY TYPE, $M (2013-2023)

Based on product type, the structured cabling market is categorized into copper cable, fiber cable, copper components, and fiber components. Copper cables that are commonly used in structured cabling include unshielded twisted pair (UTP), shielded twisted pair (STP), and foil screened twisted pair (FTP). Together, copper cable and components held a larger revenue share in the structured cabling market in 2017, accounting for more than 60%. However, during the forecast period, the market for fiber cable and components will witness higher CAGR. Growing demand for increased bandwidth, low attenuation, high security, and reliable networks is expected to drive the demand for fiber cable and components in the coming years.

On the basis of application, the structured cabling market is classified into data center and local area network (LAN). The LAN category accounted for a larger revenue share in the market in 2017. During the forecast period, the data center category is expected to witness higher CAGR in the market. A data center is a repository of computer systems and associated components. Rising maintenance costs of traditional unstructured cabled data centers and high carbon emissions and power consumption are expected to push the demand for structured cabling data centers in the coming years.

Based on the end use, the structured cabling market is categorized into telecommunications, commercial, government, industrial, and others, where “others” include residential, education, and defense. The telecommunication sector was the largest end user of structured cabling in 2017, with a revenue share of about 28%. This can be majorly attributed to the development of new technologies, expansion of communication infrastructure, and growing demand for high-speed telecommunication services, globally.

Geographically, Asia-Pacific (APAC) held the largest revenue share in the structured cabling market in 2017, with a contribution of about 36%, followed by North America. The U.S. was the largest revenue contributor to the North American structured cabling market in 2017. During 2013–2023, copper cable is expected to contribute the largest revenue to the North American market. Besides, during the forecast period, the global market is expected to register the fastest growth in the APAC region, owing to the ongoing development and expansion of data centers and communication infrastructure in the region.

Structured Cabling Market Dynamics

Trend

Globally, IT organizations are implementing cost-effective measures for the judicious usage of available resources. Structured cabling is costlier than traditional cabling; however, the former reduces operational costs significantly, which include costs associated with slow data transfer and other network failures. According to the International Engineering Consortium standards, network systems installed in open offices can help reduce the cabling maintenance cost considerably, as compared to traditional methods. Structured cabling unifies the IT network for data, voice, and video, which, consequently, reduces update requirements and lowers the maintenance cost. This factor attracts large business enterprises, which intend to cut down the extra charges incurred due to conventional cabling.

Drivers

The structured cabling market is mainly driven by factors such as increasing demand for bandwidth, need for simpler cabling management structure, and emergence of internet of things (IoT). Structured cabling allows higher bandwidth, which is required for the smooth operation of businesses using cloud computing. Thus, business organizations are modifying their IT infrastructure owing to the increasing usage of bandwidth-intensive applications, such as voice over IP, IP-based videoconferencing, and digital audio and video. Since structured cabling helps establish more efficient IT infrastructure, it is witnessing increased demand from sectors requiring high bandwidth.

Restraint

The key factor impeding the growth of the structured cabling market is volatility in copper prices. Copper is one of the major raw materials used in structured cabling, as it allows electric signals to transfer from one connector to the other. Thus, the volatile price of copper impacts the growth of the structured cabling market.

Opportunity

Developing countries of APAC, Latin America, and Africa are providing lucrative opportunities to the players in the structured cabling market. The increasing number of data centers and the growing demand for high-speed internet networks have been spurring the market growth in these regions. Hence, countries such as China, India, and Brazil are expected to play a pivotal role in the growth of the global structured cabling market in the coming years.

Structured Cabling Market Competitive Landscape

The global structured cabling market is moderately competitive, with the presence of key players such as CommScope, TE Connectivity, and Schneider Electric. Some other companies operating in the market are Corning Inc., Panduit Corp., ABB Ltd., Nexans, Belden, and Furukawa Electric.