How is Proliferation of Data Centers Boosting Demand for Structured Cabling

Evolution of “Power over Ethernet (PoE)” in recent years has provided a feasible powering option for variety of applications, thereby driving developments in the structured cabling market. This has further aided the telecommunication industry in taking a giant leap forward, with fiber cables gaining immense traction and outgrowing copper cables in the structured cabling market.

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Fact.MR’s recent study envisions the structured cabling market to exhibit an impressive 7.1% CAGR between the forecast period 2018 and 2028.

Installation costs of optical cables are over 60% than that of copper cables used for structured cabling. However, scalability, flexibility and higher bandwidth of optical cables have led IT & telecom companies to replace their copper cables with optical variants to enhance their productivity.

Wireless cables have been witnessing majority preference by end-use verticals in the structured cabling market, against the backdrop of complexities involved in fiber termination and cost of converting optical signals to electronic. This is likely to confine growth prospects of the structured cabling market. The study foresees future shifts from copper cables to newer technologies to be slower, in terms of margins rather than systemic. This is mainly because most commercial users employ copper for structured cabling as their primary choice for delivering data.

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Market Segmentation

Solution

• Hardware (Copper Cables, Fiber Cables, Racks and Cabinets, Patch Panels and Cross Connects
• Software Services (Installation & Consultation, Managed Services, Maintenance & Support)

Vertical

• IT & Telecom (Telecom Operators, Data Centers, Others)Commercial
• Industrial (Discrete & Process Manufacturing, Energy & Power, Oil & Gas, Metals & Mining, Others) Residential
• Transportation & Logistics Others

Irreplaceable Role of Backbone Cabling and Horizontal Cabling to Undergird Growth of Structured Cabling Market

Horizontal cabling and backbone cabling have gained paramount importance in the structured cabling market, in light of growing requirements for specific and complicated cabling in computer networks. This need is particularly preeminent in academic and business settings, which have been upholding demand & supply trends of the structured cabling.

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With the advent of Gigabit Ethernet, fiber optic cable has gained popularity as the most appropriate backbone structured cabling solution, in light of fiber cables’ higher bandwidth than their traditional copper counterparts. Both horizontal and backbone cabling play an irreplaceable role in the structured cabling market, with varying specifications imposed on the two with respect to the cabling environment.

North America’s dominance in the structured cabling market is likely to prevail, with revenues envisaged to exceed US$ 6,000 Mn by 2028-end. Evolving telecommunication sector, coupled with increasing number of data centers, particularly in the U.S., will continue to favor growth of the structured cabling market in North America. Structured cabling market in Europe, on the other hand, is foretold by the study to grow at a relatively faster rate than in North America. Upward trend of digitalization, in parallel to widening scope of Big Data and cloud solutions, will continue to pave lucrative opportunities for the structured cabling market in Europe.

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