Jun 21, 2023

Global Structured Cabling Market to Grow at 9.03% CAGR from 2022 to 2027

The structured cabling market is expected to experience significant growth, with a projected increase of USD 7,377.88 million during the forecast period from 2022 to 2027, growing at a CAGR of 9.03%. The market is driven by increasing investments in data centers and the growing telecommunication sector.

Advancements in cellular networks, networks, and cloud systems have contributed to the growth of the telecommunication sector. Major telecommunications operators are investing heavily in expanding 4G coverage in populous countries like India. Developed countries like the United States have already deployed 5G connectivity, surpassing APAC in terms of technology. These changes in the telecommunications sector are expected to drive the demand for structured cabling systems.

One major trend in the market is the adoption of cloud computing technology. Enterprises are choosing to invest resources in cloud-based services as they provide cost-effective and strategic solutions. Cloud computing enables companies to access talent and explore business opportunities from anywhere in the world. Industries such as healthcare and life sciences are leveraging cloud-based technologies like artificial intelligence and machine learning for advanced data analytics solutions.

However, the market also faces challenges, particularly volatile raw material prices. Copper and aluminum are the main raw materials in structured cable systems, and fluctuations in their prices can significantly impact suppliers’ costs. Adjustments in final product prices are often made to accommodate these fluctuations.

The structured cabling market is segmented by type (copper cable and fiber optic cables), end-user (data center, telecommunications, industrial, and buildings), and geography (North America, Europe, APAC, South America, the Middle East, and Africa). The copper cable segment currently holds the largest market share due to its effectiveness in short and medium-distance data transmission.

North America is estimated to contribute significantly to the market growth, driven by the dominance of the data center market in the region. The increase in the number of data center facilities has increased the demand for IT infrastructure and associated cabling solutions.

In conclusion, the global structured cabling market is expected to witness substantial growth during the forecast period, fueled by investments in data centers and advancements in the telecommunication sector. The adoption of cloud computing technology is also a significant trend impacting the market. However, volatile raw material prices pose a challenge to market growth.