Structured Cabling Market: Addressing the Challenges of Scalability

Structured Cabling Industry Overview

Valued at $10.46 billion in 2022, the global Structured Cabling Market is projected to grow at a robust compound annual growth rate (CAGR) of 10.7% over the forecast period. Structured cabling systems, comprising essential hardware and cables, form the backbone of telecommunication infrastructure for managing various systems. This infrastructure facilitates the seamless transfer of video, voice, and data signals across communication networks, relying on diverse connecting devices and cables for smooth network operation. The surge in internet users and the widespread adoption of digital services have led to an explosive growth in the volume of sensitive data handled by organizations. Structured cabling systems, by enabling high-speed data transmission, have been instrumental in driving market expansion. The increasing demand for automated business processes, the proliferation of IoT data, a strong focus on time and cost efficiency, and intensifying competition have significantly boosted the need for these systems.

Moreover, structured cabling systems facilitate faster data transmission, empowering businesses to enhance the efficiency of their decision-making processes and ultimately maximize profitability. However, the high cost associated with fiber optic cables, their incompatibility with older communication infrastructure, and the volatility of copper prices pose potential challenges to industry growth.

Detailed Segmentation:

• Product Type Insights

The fiber optic cables segment is estimated to register the highest CAGR over the forecast period. Fiber optics serve as the internet’s backbone, and optical fiber cables serve as the medium for transporting data from one location to another. These cables are used in various verticals, including telecommunication, residential and commercial, government, utilities, aerospace, and private data networks. Increasing demand for high-speed Internet services is expected to be the key growth factor for the fiber optic cables segment. The growing use of new telecommunication technologies, such as 5G mobile and FTTX (Fiber-to-the-X) applications, is also expected to drive the growth of this segment.

• Application Insights

The data center segment is expected to exhibit a high CAGR of over 11.3% from 2023 to 2030. The growth of structured cabling in data centers is due to the increasing use of IoT devices, mobile data, and smart applications. A significant amount of data is generated through digital devices, necessitating more storage, thus driving demand for data centers. This, in turn, increases demand for high data transmission speeds. Data center market competitors are increasing their foothold in previously untapped locations. Consequently, demand for structured cabling systems is anticipated to grow over the forecast period.

• Vertical Insights

The IT and telecommunications segment dominated the market in 2022 with a share of around 35%. Technological innovations in the telecommunications sector, such as the 5G network, require high bandwidth and low latency provided by structured cabling systems. This drives the market over the forecast period.

• Regional Insights

Asia Pacific is expected to emerge as the fastest-growing regional market, with a CAGR of 12.5% over the forecast period. The major factors such as government initiatives to promote advanced infrastructure, digitization, accelerated adoption of smart devices, rising population, and investments in cloud and IoT technologies are expected to contribute to the regional market’s growth. Developing economies such as China and Japan are leading the APAC region. The increasing Internet use in these countries is resulting in a rising number of broadcast activities. This, in turn, is expected to drive the regional market’s growth over the forecast period.

Gather more insights about the market drivers, restraints, and growth of the Structured Cabling Market

Key Companies & Market Share Insights

The market is highly competitive owing to the presence of various prominent players. Players have adopted strategies such as agreements, expansions, collaborations, and joint ventures. They are engaging in developing new products with high speed and improved features to enhance their product portfolio and hold a strong position in the market. For instance, in February 2021, Legrand announced the acquisition of the Champion ONE (C1) family of brands, one of the prominent suppliers for optical networking components and solutions for the data center, enterprise, and telecommunication markets.

In another instance, In September 2021, Nexans SA announced that it had agreed to the acquisition of Centelsa, the manufacturer of premium cable in Latin America active in producing cables for Building and utility applications.

Companies have also obtained approvals from different governments to launch products that can provide high speed and security. Some prominent players in the global structured cabling market include:

• ABB Ltd
• Belden Inc.
• CommScope Holding Company, Inc.
• Corning Incorporated
• Furukawa Electric Co., Ltd.
• Legrand SA
• Nexans
• Schneider Electric
• Siemens AG

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