ID: MRFR/ICT/4997-CR | September 2018 | Region: Global | 144 pages
Data Center Structured Cabling Market is likely to touch UAD 2.97 Billion at an 11.4% CAGR between 2018- 2023, reveals the latest Market Research Future (MRFR) report. The strong market growth is due to the demand for high bandwidth from high-speed connectivity systems and devices.
The COVID-19 pandemic has already cast its shadow on several industries, with the data center structured cabling market being no exception. Data centers during the crisis are experiencing huge surges that are widely supported by the burgeoning demand for binge television watching, remote working, e-learning, and other activities. The market for IT and telecommunications has witnessed positive growth amid all the verticals. The other verticals such as manufacturing, automotive, and construction have been impacted severely owing to the lockdown imposed by the government, thus lowering the need for structured cables. This is due to the fall in sales of cable products and supply chain disruptions. Owing to the lockdown, the construction industry has been affected severely for the shrinking funds for public projects coupled with a postponement in on-going construction projects. For this, the need for structured cabling solutions, especially from new construction projects, is likely to decrease, thus impacting the market growth. Besides, the outbreak has also affected the supply chain of electronic components for OEMs that in turn, causes raw material shortage to manufacture structured cabling solutions. This is likely to slow down market growth.
On the brighter side, companies are leaving no stone unturned to support those in need of connectivity services and cabling during this crisis. For instance, leading worldwide network infrastructure specialist, Siemon has joined the HDBaseT Alliance to educate the integrators regarding the standards-based structural cables along with best practices in the design, testing, and installation of the infrastructure, which allows HDBaseT transmission.
The importance of structured cabling during the on-going crisis cannot be underestimated. After all, it is the lifeline amid remote and office workers. During the outbreak, there has been a growing demand for fiber optic cables to offer better connectivity to people working from home. Even in the healthcare sector, the right network infrastructure became the heartbeat and the fundamental vehicle for transferring data more efficiently and faster, not only within the confines of a hospital but also a multitude of facilities across the world.
Need for High-Speed Connectivity Systems to Bolster Market Growth
The constant need for high-speed networks for residential, industrial, and commercial applications may bolster the structured cabling market growth over the forecast period. The need for information that is real-time needs constant and faster transmission of data. Besides, the structured cabling market trends such as IP, VoIP, IP videoconferencing, and IP-based security systems are boosting the demand for voice, data, and video signal convergence, which is also likely to bolster market growth.
Additional factors adding to the data center structured cabling market size include the growing penetration of smart devices, adoption of cloud-based services for centralizing all resources of an enterprise effectively, propagation of the internet, the popularity of IoT, automation of different processes, increasing investment in communication infrastructure, and growing trend of data center convergence. Besides, the need for lightning-fast net speeds in organizations for seamless data transmission, development of smart cities, supportive reforms and policies, advances in network speeds, and pressing demands for low-latency connections by corporations and homeowners are inducing the need for structured cabling are also adding to the growing demand for structured cabling system.
Need for Energy-Efficient Data Centers to offer Robust Opportunities
The focus to construct energy-efficient data centers that can save business expenses is likely to offer robust opportunities to market players in the upcoming years.
Compatibility Issues to Act as a Market Restraint
The low compatibility of structured cabling with old communication infrastructure may act as a market restraint over the forecast period.
High Cost to Act as a Market Challenge
The high cost of installation and maintenance of fiber optic cables may act as a major challenge for market players in the long run.
Global Data Center Structured Cabling Systems Market, according to the MRFR’s data center structured cabling market research report, has been segmented based on product type and wire category.
Category 6 Segment to Lead Data Center Structure Cabling Market
By wire category, the global data center structured cabling market is segmented into category 7, category 6A, category 6, category 5E, and others. Of these, the category 6 segment will lead the market over the forecast period. It is predicted to touch USD 962.5 million by 2023. These cables function on a wider frequency and also deliver extra data at the same time maintaining data integrity which is adding to the growth of the segment.
Copper Wire Segment to Dominate Data Center Structure Cabling Market
By product type, the global data center structured cabling market is segmented into copper wire and fiber optic. Of these, the copper wire segment will dominate the market over the forecast period. It is predicted to touch USD 2,356.9 million by 2023. Copper cables are widely used in short & medium distance data transmission, while the metal shielding is likely to heighten the defenses of these wires and safeguard them against electromagnetic interference. This is adding to the growth of the segment.
North America to Lead Data Center Structured Cabling Market
By region, the global data center structured cabling market report covers the opportunities and recent trends across Europe, North America, the Asia Pacific (APAC), and Rest of the World. Of these, North America is predicted to lead the market over the forecast period. It is predicted to touch USD 1,152 million by 2023. Increasing penetration of IoT and its adoption among regular consumers and enterprises, adoption of cloud technology, superior technology, and apt infrastructure, a strong presence of established players, and high penetration of data centers and increasing use of cloud-based services in the US, are adding to the global data center structured cabling market growth in the region. Besides, high concentration of telecommunications and manufacturing industries, technological proliferation, rising adoption of fiber optic cables, early adoption of advanced technologies in logistics, transportation, commercial, residential, and government, and high penetration of digital services are also adding market growth.
Europe to Hold Second-Largest Share in Data Center Structured Cabling Market
In Europe, the global data center structured cabling market is predicted to hold the second-largest share over the forecast period. Favorable initiatives are undertaken by the European government for smart city projects, the emergence of different IoT providers, demand for cloud technologies, the introduction of initiatives to implement automation in different industries, stemming of data centres, the trend of digitalization, presence of eco-friendly data centers, and growing consumer needs are adding to the global data center structured cabling market growth in the region.
The data center structured cabling market is highly fragmented and competitive in nature due to the presence of several top players. They are incorporating several strategies to remain at the forefront, such as mergers and acquisitions, strategic alliances, and collaborations, among others.
January 2021- AGC Black Box has acquired Mobiquest. With this acquisition, the former company will accelerate its worldwide solutions integration momentum in these core practice areas- connected buildings, digital workplace, customer experience, in-building 5G, edge networking, data centers, and cybersecurity.
The report sheds light on the overview of the market along with the market forecast both on a global & regional basis. Thorough research has been performed to highlight the ways through which the market dynamics may impact the market scenario in the present and also in the days to come. Drivers, restraints, opportunities, and trends have been highlighted to thoroughly arm and equip clients, particularly with regards to decision making. The market trends and market opportunities have been segmented categorically into multiple segments, which also comprise geographical segmentation to provide a detailed understanding & proper assessment to customers. The report opens with a detailed market analysis and sheds light on the definition of the market and also the current market trends, value chain, drivers and restraints, pricing analysis, and the taxonomy of the market. Every segment sheds light on an all-inclusive quantitative & qualitative aspect of the market.
By Wire Category
By Product Type
Frequently Asked Questions (FAQ) :
The data center structured cabling market is expected to expand at 11.4% CAGR.
The data center structured cabling market is anticipated to reach a valuation of USD USD 2.97 Bn by 2023.
The market players studied are TE Connectivity Ltd. (Switzerland), Legrand S. (France), Nexans (France), Teknon Corporation (U.S.), Hitachi Cable America Inc. (U.S.), ABB Ltd. (Switzerland), Schneider Electric SE (France), Siemon (U.S.), NKT A/S (Denmark), Superior Essex Inc. (U.S.), Panduit Corp. (U.S.), CommScope Inc. (U.S.), Corning, Inc. (U.S.), Brand-Rex Ltd. (Scotland), Paige Electric Co., L.P. (U.S.), and Belden Inc. (U.S.).
The segments studied on the basis of wire category are 5E, category 6A, category 6, category 7, and others.
The category 6A segment is projected to mark 13.8% CAGR.
The copper wire segment is poised to register 11.7% CAGR.
The fiber wire segment is poised to strike 10.6% CAGR.
Global Data Center Structured Cabling Market – Summary
With industries worldwide stepping into 4.0, telecommunication has emerged as one of the major decisive factors substantiating individual sector’s growth. Structured cabling, consists of a set of cables and connected hardware, sets the ground for the telecommunication by providing necessary infrastructure. Standardized copper cable and fiber optic cables are central components of structured cabling. By proliferating data centers, offices, apartment buildings, and others, the data center structured cabling market has created a network for itself depending on which it is now envisioning further growth. The global data center structured cabling market is expecting an impressive 11.4% CAGR during the forecast period (2018-2023). Market Research Future’s (MRFR) report predicts an almost doubling of the present market value from USD 1.58 billion to USD 2.97 billion by 2023.
The unprecedented growth of the data center structured cabling market can be attributed to the internet proliferation across sectors. Its efficient performance is proportional to the adoption rate of fiber optic cables and other coaxial cables which can boost the market substantially. Furthermore, structured cabling’s ability to limit the rising temperature while providing higher bandwidth can be considered a feather in its cap. It backs up substantially the growing demand for ethernet and the increasing traffic created by use of voice, video, and data infrastructure solutions.
Cloud-service is also gaining momentum. It’s cheap, user-friendly and commercially viable in customer-centric dealings. Operation-wise, it has the edge over the rest as it supports digitization, remote access, centralized control, and easy accessibility. However, its efficiency increases with the integration of the highest quality data center structured cabling. Furthermore, centralizing of an enterprise’s databases and computing resources has emerged as a must-have option which is giving data center structured cabling industry many reasons to deploy with substantial resources.
On the flip side, it comes with high installation and maintenance cost which could deter the market from a steady and impressive growth during the forecast period. But customer’s preference for high-speed internet and better connectivity can help in change the mind of the operators. This choice can make them see the bright side of installing data center structured cablings and steer the market away from initial halts.
Living life with everything at the fingertip has now become the definition of uber-class luxury. Smart cities are the right solution for that, and it is witnessing an unprecedented boost in recent times. Countries, all over the world, are spending substantially on smart cities which has spurred the need for data center structured cabling. By integrating the technology, smart city builders can give their residents access to fine-living, previously unimagined.
Needs such as high application performance and reduction in installation and operational cost have given rise to hyperscale, hybrid and micro data center setups. These have started to become an integral part of several industries and in the process, is helping in the expansion of the data center structured cabling market.
By wire category, the data center structured cabling market can be segmented into category 5E, category 6, category 6A, category 7, and others. Projected market value of USD 962.5 million sets the category 6 as the segment leader. However, category 6A is predicted to have the highest CAGR of 13.8% during the forecast period and can scale USD 429.4 million valuation during the review period.
By product type, the data center structured cabling market includes copper wire and fiber optics wire. Copper wire is far ahead with a considerable margin and expects to reach a market valuation of USD 2,356.9 million with the highest CAGR of 11.7% during the forecast period. Meanwhile, fiber optics wire would register a significant growth rate of 10.6% to scale a valuation of USD 616.7 million.
Region-specific analysis of the data center structured cabling market includes North America, Asia Pacific (APAC), Europe, Middle East & Africa (MEA), and Latin America (LATAM).
Superior infrastructure and the integration of latest technologies have given North America the upper hand over the global market. Currently, the region is dominating the global market with USD 1,025.3 million market valuation, and with a robust 10.4% CAGR it can scale a valuation of USD 1,152 million.
Europe comes next in terms of market valuation. With a present valuation of USD 748.1 million, the market is ensuring further growth by investing in research and development (R&D). However, the APAC is about to register the maximum CAGR of 13.2% during the forecast period. The region has several emerging economies such as India, China, and South Korea who are investing substantially for better infrastructure. The regional market would reach a market valuation of USD 814.2 million during the review period.
The data center structured cabling market, of late, is witnessing several strategical implementations such as investments, mergers, collaborations, acquisitions, and others that could prove beneficial for the future market scenario. For instance, Legrand is investing USD 290 million in R & D and have acquired Milestone AV Technologies. CommScope, on the other hand, has partnered with Fluke Networks to provide better fiber optics cabling.
Key market influencers with significant contribution to the data center structured cabling market are Legrand SA, TE Connectivity Ltd, Corning, Inc., Belden, Inc., ABB Ltd., Schneider Electric SE, Nexans, Teknon Corporation, Siemon, Brand-Rex Ltd., CommScope Inc., Superior Essex Inc., NKT A/S, Paige Electric Co., L.P., Hitachi Cable America Inc., and others.
Rise in Internet Penetration and Increasing Adoption of cloud services is driving the Data Center Structured Cabling Market Creating a Highly Competitive Landscape
The growth of the market vendors is dependent on various market conditions and rapid industry developments. Thus, they focus on geographical expansion and improving their aftermarket services. The major companies competing in the market are ABB Ltd., Schneider Electric, TE Connectivity, Hitachi, Corning NY. The competition is based on Internet bandwidth, quality, application, efficiency, and aftermarket service.
They primarily focus on designing efficient data center structured cabling with affordable prices. Although the international players are dominating the market, regional and foreign players with small market shares also have a considerable presence. The international players are expected to strengthen their presence worldwide through acquisitions and partnerships during the forecast period. It has also been projected that improvement of the global economic scenario combined with the increasing number of data centers in the emerging economies, is fueling the market growth.
ABB Ltd. held a market share of 20% in 2016. As a part of company development, ABB Ltd believes in driving growth through expansion of high-quality value-added solutions and services. In October 2016, ABB launched stage 3 of its next level strategy to unlock additional value for shareholders and customers.
Schneider Electric SE is another prominent player that held 18% market share in 2016. The company manufactures different types of cables such as coaxial cables, fiber optics, structured cabling system, and interface cables. Its structured cabling system comprises a wide range of products such as category 6 UTP, category 5e, category 6a, and others. Schneider partnered with Al Gurg Oman to enable the latter to offer wiring devices, lighting control, structured cabling, cable management and LV components including MCBs, MCCBs, ACBs, contactors and DBs. Schneider Electric also acquired leading brands like Merlin Gerin, Sqaure D, Telemechanique, Luminous, Himel, APC, Pelco, Clipsal and GET to offer solutions to various energy related challenges.
TE Connectivity held a 5% market share in 2016. The company produces a wide range of cables & wires, cable assemblies, and other products. In 2011, TE Connectivity (formerly Tyco Electronics) led the overall Indian structured cabling system (SCS) market in the first quarter with a market share of 32.2%. It has recently launched its next generation of charging cables and inlets for hybrid and electric vehicles. The new charging cables are specifically designed to meet the requirements of international charging standard IEC 61851-1/-22. TE Connectivity’s latest generation of AMP+ charging components enables significantly faster charging of hybrid and electric vehicles.
The vendors develop high Internet bandwidth cables in an attempt to stay abreast of the emerging technologies that could affect the continuing competitiveness of their service in the market. The competitive environment in the market is likely to intensify further due to rise in the number of local and regional structured cable manufacturers, increasing number of data centers, growing need to centralize the enterprises’ databases and computing resources, and increasing investment in smart city initiatives.