Data Center Structured Cabling Market Research Report – Forecast to 2027

Global Data Center Structured Cabling Market Information: By Wire Category (Category 5E, Category 6, Category 6A, Category 7, Others), By Product Type (Copper Wire, Fiber Optic) - Forecast till 2027

ID: MRFR/ICT/4997-CR | September 2018 | Region: Global | 144 pages

Data Center Structured Cabling Market Analysis

Data Center Structured Cabling Market is likely to touch USD 2.97 Billion at an 11% CAGR between 2018- 2023. Data structured cabling offers wiring solutions for enterprises. Data centres have a high demand for such cables and wires. The need for high-speed connectivity is raising the adoption of structured cables. Both the electrical and electronic companies have a wide range of benefits due to these cables. Data management operations are gaining more traction in recent years. To support this service the need for this equipment is essential. The structure cables market involves both the hardware and optic cables. 

The audio-video signals are this enhanced through these cables. Emerging nations have high growth in data centres. Due to this, demand from these nations is sharply growing in the forecast period. Better IT and better communication services are possible through this equipment. Efficient data handling holds high importance in its sector. Storage of data and data handling capacity will improve through these cables. There are various Data Center Structured Cabling Market Segments that lead to high profits. All these are the factors that will contribute more to the overall market growth. 

COVID Analysis 

The covid 19 virus is leading to unprecedented changes in the global markets. Few channels affect operations of data centre structured cabling market. Low production rate is the primary challenge. Due to the spread of the virus, there is low production of data cables across the globe. Few key players in the data centre structured cabling market try their best to carry out market operations.

The product delivery is delayed in many regions. The crucial reason for late deliveries is supply chain disruptions. The import and export restrictions are hard on the market. Delivering cables through shipment is delayed in the market. Further, many IT firms and enterprise operates remotely. To stop the spread of the virus these measures are carried by many organisations. However, these factors are declining demand for the market. As per Data Center Structured Cabling Market Forecast Deployment is low in upcoming years.

Market Dynamics 

  • Crucial Market Drivers 

The growing demand for high-speed connectivity is a crucial driver of the data center structured cabling market. The demand for the data centre structured cabling is high from various segments. Residential, industrial and commercial sectors have massive demand. The requirement for high-speed connectivity is higher. Extracting real-time information and faster transmission is essential in many enterprises. Exceptional management of data will bring high productivity in enterprises. IP protocols have higher adoption of data centre structured cables. The applications such as voice over IP, Ip video conferencing and IP security systems require high connectivity. The high speed and performance of the cables can benefit the industry. 

The rise in internet penetration is another factor leading to high demand. Internet penetration is increasing the need for data centre structured cables. The need for these cables in data centres and network companies are higher. The emerging nations have a high penetration of the internet. The residential and commercial sectors record a massive amount of internet usage. This penetration of the internet will positively impact the cabling market. The rate of new data centres and network companies are rising in many places. All these crucial drivers will ultimately increase Data Center Structured Cabling Market Growth. 

  • The Market Growth Opportunities 

Rising adoption of FTTP and FTTH will lead to higher growth opportunities. These cables are expected to enhance the flow and quality of data. Today, residential and commercial sectors are early adopters of this equipment. Fibre to the home or fibre to the preemies benefits the urban network infrastructures. The need for high-speed data transmission and broadband will lead to more usage of optic fibre. Especially, among It and network companies, this adoption rate is higher. In the next few years, the transition from low speed to high-speed cables is high.

Many enterprises will take a massive decision to adopt high-speed connectivity. The adoption of fibre optics will open new opportunities for the data center structured cabling market. The need to prevent network traffic will create more development opportunities. The fibre optic cables can offer an uninterrupted flow of data. In commercial spaces and residences, low connectivity causes many inconveniences for the users. However, the adoption of fibre structured cables can mitigate this issue. The faster and uninterrupted flow of data will lead to high growth. This feature of the cables will attract new end users to the data center structured cabling market. All these developments will lead to remarkable market expansion. 

  • The Market Restraints 

The emergence of wireless communication is a retaining factor of the data center structured cabling market. Wireless systems are capable to transfer information through radio wave frequency. The information is transferred through the beam to dish technologies. The fibre optics and wireless systems use the same mode of transfer. The wireless systems are more efficient than structured cables. 

The installation of this system is cost-efficiency and effortless. These benefits of the wireless systems market can overpower data centre structured cabling. However, in certain applications, both these technologies are equally efficient. The alternatives available for structured cables are a crucial restraint. This restraint of the data center structured cabling market can decline the adoption rate. 

  • The Market Challenges 

Renovating old infrastructure is a challenging factor of the data center structured cabling market. To access high-speed connectivity old cable infrastructure needs renovation. By changing the infrastructure into reliable, safe, high speed and uninterrupted data are attainable. The older premises of cable are different.

They do not match with the current space required for structured cables. The complexities in installing structured cabling are a market hindrance. Renovating old infrastructure can lead to high expenditure. Deploying new structured cabling is complex. The time and energy required for these procedures are high. These market challenges can impede the growth rate. 

  • Cumulative Growth Analysis 

As per Data Center Structured Cabling Market Analysis growth is stable. The product segment of the market is witnessing high demand among the end-users.

The products such as software and services can help to establish network infrastructure. Residential IT and communication sectors have a massive demand for the products. Further, growing demand for high-speed internet connectivity leads to high market growth.

Demand from the IT and telecommunication market will be high in upcoming years. However, the emergence of wireless communication and renovation of old infrastructure is a challenge. Still, with higher growth opportunities growth rate is substantial. 

  • Value Chain Analysis 

North America is a leading region in the data centre structured cabling market. Growing demand for IP based communication is driving demand. The intelligent transport market has high scope for these cables.

Also, need for high-speed internet in homes improve global demand? The presence of top Data Center Structured Cabling Business players leads to growth. The key players of the data center structured cabling market will take initiatives for new developments. US and Canada are top investors of the data centre structured cabling market. The rising investments from these regions will contribute to higher growth. 

Segment Overview 

By Solution Type 

  • Rack cabinets 

  • Cables 

  • Cable assemblies 

  • Patches 

  • Cross connects 

  • Cable assemblies 

By Services 

  • Installation 

  • Maintenance 

  • Support 

  • Consultation 

By Cable Type 

  • Category 6 A 

  • Category 6 E 

  • Category 6 

By Vertical 

  • Transportation 

  • Industrial 

  • Residential 

  • Government education 

  • IT 

Competitive Landscape 

The data centre structured cabling market competition is intense. The rate of local players in the market is high. It is leading to price competition among global and local players.

 The key players are taking initiatives to reduce issues in the market. Easy installation, consultation and support services are increased. Also, market expansion, acquisition and partnerships are a key part of the competitive landscape. 

Regional Analysis 

The data centre structured cabling market is fragmented into Asia Pacific, Europe and North America. North America is dominating with Data Center Structured Cabling Market Share. It is a region that has plenty of IT industries and communication markets. The need for ultimate speed connectivity is driving demand in this region. It is a region that has demand from various verticals for structured cables.

In recent years, the transportation industry has had a high demand for the product. The Asia Pacific is another crucial regional player in the market. The growth rate is rapid in Asia pacific. India and Japan are two key contributors in this region. Europe is another potential region for more growth. Many internet companies are shifting from traditional cables to fibre optics. All these factors contribute to the high growth of the Global Data Center Structured Cabling Market. 

The key players of the data centre structured cabling market are 

  1. R&M

  2. Nexans S.A.

  3. Furukawa Electric Co

  4. Legrand 

  5. Belden, Inc

  6. Schneider Electric

  7. CommScope

  8. Panduit Corp

  9. Corning Inc

  • Siemon

Recent Developments 

  1. The key players are launching cost-effective open cables solutions for end-users. The new value of vertical cable launch will happen in many regions. 

  1. Fibre optic technology production will rise in many regions. These new launches will lead to optimum cable performance. 

Report Overview 

  1. Market Overview Highlights 

  2. Analysis Based Upon COVID 19

  3. Explanation Upon The Market Dynamics

  4. Value Chain Analysis

  5. Market Segmentation Overview

  6. The Regional Analysis

  7. Competitive Landscape Analysis

  8. Recent Developments

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Frequently Asked Questions (FAQ) :

The data center structured cabling market is expected to expand at 11% 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.

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.