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Structured Cabling Market Overview
The global structured cabling market was valued at $7,669.8 million in 2017 and is projected to advance at a CAGR of 5.5% during the forecast period (2018–2023). Increasing focus of organizations on the optimization of IT infrastructure and growing demand for higher bandwidth are the primary factors driving the market growth. Besides, the emergence of internet of things (IoT) for automation and the need for simplified cable management are propelling the demand for structured cabling across the world.
Based on product, the structured cabling market is categorized into copper cable, fiber cable, copper components, and fiber components. Among these, copper cable held the largest share in the market in 2017 and are expected to dominate the market during the forecast period as well. However, in terms of growth, the market is expected to register higher CAGR in the fiber cable and related components categories, as compared to their copper counterparts, on account of the increasing demand for higher bandwidth and transmission rate.
APAC COPPER COMPONENTS STRUCTURED CABLING MARKET, BY TYPE, $M (2013-2023)
On the basis of wire category, the structured cabling market is categorized into category 5e, category 6, category 6A, and category 7. Among these, category 6 wire contributed the highest revenue in the market in 2017 and is also expected to lead the market during the forecast period. The compatibility of category 6 wires with older systems encourages their wide adoption across the world. During the forecast period, the market for category 6A cables is predicted to register the fastest growth. Factors such as growth in the healthcare industry and increase in the number of data centers in developing countries such as China, India, and Brazil are fueling the demand for category 6A cables.
Based on end use, the structured cabling market is categorized into telecommunication, commercial, government, industrial, and others (residential, education, and defense). Among these, telecommunication is expected to be the leading end-use category by 2023, closely followed by the commercial category. This can be attributed to increasing internet penetration along with the growing demand for high-speed-internet connectivity in developing regions. In terms of growth, the industrial category is expected to register the highest CAGR during the forecast period, owing to the growing focus on industrial automation applications and increasing use of cloud services in the manufacturing sector.
Globally, the Asia-Pacific (APAC) region generated the highest revenue in the structured cabling market, accounting for over 35% share in 2017. It is expected to enjoy a stronghold and contribute around 40% revenue to the global market in 2023. The increasing number of data centers and growing demand for high-speed internet have been spurring the market growth in the region. Besides, China, Japan, and India are expected to play a pivotal role in driving the growth of the APAC structured cabling market in the coming years.
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Structured Cabling Market Dynamics
Rising need for simplified cable management has been observed as a major driver for the structured cabling market. Structured cabling makes cable management simpler, as it can be administered and managed without the involvement of a large staff. It saves cost as well as time of data centers, government agencies, industries, and other organizations. It is a more organized and standardized approach as compared to patch cords. The standardization of connectors, and copper and fiber cabling further simplifies the planning and implementation of the IT network. Thus, the easy management of such systems encourages the adoption of structured cabling among organizations across the world.
High implementation and maintenance costs of structured cabling can be viewed as a key factor hindering the market growth. Due to such high costs, structured cabling is not considered suitable for small server rooms. Since structural cabling is designed with the universality to serve broader infrastructural challenges, the solution does not give scalable outputs when rendered for meeting small-scale needs, including return on investment (RoI) and quality of service (QoS). Thus, the high setup and maintenance costs act as a major factor constraining the growth of the structured cabling market.
Structured Cabling Market Competitive Landscape
Market players are primarily focused on the development of advanced products to meet evolving data needs. For instance, in May 2018, Panduit launched fiber optic cassettes for compatibility with a wide range of network systems, thus eliminating the need to install different cassettes and patch cords for uniform transmitter-to-receiver data transfer. Besides, in March 2018, Corning Incorporated launched RocketRibbon, an extreme-density cable that enables 30% faster installation, as compared to other high-density ribbon cables, for data center and carrier environments. The cable allows the operator to install more capacity in the same duct space to meet the demand for increased bandwidth.
The global structured cabling market is highly competitive owing to the presence of numerous original equipment manufacturers (OEMs) in emerging markets such as Vietnam, Indonesia, China, India, and Brazil. Some of the key companies operating in the market are Schneider Electric SE, ABB Ltd., CommScope Holding Company Inc., Corning Incorporated, Panduit Corp., Nexans S.A., Belden Inc., Furukawa Electric Co. Ltd., Siemon Company, and Legrand Holding S.A.
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