Structured Cabling Market

Structured Cabling Market Outlook (2023 to 2033)

The valuation of the global structured cabling market stands at US$ 11.51 billion in 2023, which is projected to reach US$ 18.94 billion by 2033. Worldwide sales of structured cabling solutions are projected to increase steadily at a CAGR of 5.1% over the next ten years.

Structured cabling serves as a crucial part of modern communication systems. It provides a robust and organized network infrastructure that connects various devices and facilitates seamless data transmission. It forms the backbone upon which our digital world relies, enabling the smooth flow of information across organizations, buildings, and even continents.

Structured cabling is a comprehensive system of standardized cables, connectors, and hardware components, which are meticulously designed and deployed to create a reliable and scalable network infrastructure. By adhering to industry best practices and international standards, structured cabling ensures compatibility, performance, and future-proofing for evolving technology needs.

From office buildings to data centers, structured cabling finds its application across various industries and sectors. It serves as the foundation for voice, data, and video transmission, supporting critical operations, collaborations, and innovations. Whether it's a small business or a large enterprise, structured cabling provides a reliable solution for building a robust network infrastructure.

• At present, the realm of hardware-structured cabling materials and solutions reigns supreme, which is set to expand at a CAGR of 5.2% from 2023 to 2033.

Among the diverse array of solutions available, hardware-structured cabling forms the major part, offering a comprehensive suite of materials and components. From copper and fiber structured cables to patch panels and cross connects, these solutions serve as the backbone of networks across various industries.

Hardware-structured cabling solutions are efficient and provide network infrastructure that caters to the diverse needs of various sectors such as IT and logistics. As the demand for seamless connectivity is growing, hardware-structured cabling is taking the lead in delivering reliable and efficient network infrastructure solutions.

Software and services play a crucial role in structured cabling systems. Offerings such as installation and consultation services, managed services, etc., complement hardware solutions and also provide valuable support and expertise for the maintenance of structured cabling systems. All these aspects enhance the performance and growth of the structured cabling market.

Report Attributes	Details
Structured Cabling Market Size (2023E)	US$ 11.51 Billion
Forecasted Market Value (2033F)	US$ 18.94 Billion
Global Market Growth Rate (2023 to 2033)	5.1% CAGR
United Kingdom Market Growth Rate (2023 to 2033)	3.8% CAGR
United States Market Growth Rate (2023 to 2033)	5.5% CAGR
China Market Value (2033)	US$ 3.43 Billion
India Market Value (2033)	US$ 1.55 Billion
Germany Market Value (2033)	US$ 1.50 Billion
Key Companies Profiled	Corning Incorporated; CommScope Holding Company Inc.; Nexans S.A.; Legrand SA; Datwyler Cabling Solutions AG; Panduit Corp.; The Siemon Company; Schneider Electric SE; ABB Ltd.; Nutmeg Technologies; Superior Essex Inc.; Belden Inc.; Furukwa Electric Co. Ltd.; Hubnetix Corporation; Tri-City Electric Co.

What’s Driving the Popularity of Structured Cabling Solutions?

“High Research Investments in 5G, Edge Computing, & Wireless Technologies”

The structured cabling market is experiencing healthy growth propelled by the escalating demand for high-speed connectivity and the emergence of advanced cabling systems such as 5G and Wi-Fi. The global adoption and investments in 5G and wireless technologies are further contributing to sales of structured cabling solutions.

• Notably, the International Telecommunication Union (ITU) reports that the United States invested approximately US$ 600 billion in wireless technologies in 2020, driven by the increasing adoption of wireless devices and the implementation of 5G networks.

A significant trend in the market is the widespread investment in 5G technologies, edge computing, and cloud computing by enterprises. These advancements cater to growing needs for improved network performance, latency reduction, and enhanced data processing capabilities.

• In July 2022, Lumen Technologies announced plans to invest in edge networking, expanding its presence and developing advanced edge computing solutions in Europe. The company aims to offer low-latency platforms for cloud computing and edge computing, benefiting businesses that require high bandwidth and data-intensive applications.

Substantial investments in edge computing, cloud computing, and 5G wireless technologies on a global scale present abundant opportunities for key providers of structured cabling solutions. Structured cabling systems are playing a vital role in facilitating better internet connectivity, particularly in the context of 5G networks and edge computing applications. As the investment in these technologies continues to rise worldwide, the demand for structured cabling technologies is increasing, driving market growth and enabling seamless internet connectivity across organizations.

“Mobile Technology Revolution Amplifying Demand for Cabling Solutions”

Governments across the globe are taking initiatives for creating smart cities and the escalating development of broadband infrastructure projects are fueling demand for cabling solutions. These solutions along with associated hardware systems play a vital role in establishing broadband connections and powering the telecommunication industry worldwide. From telephonic services to data transmission and internet broadband connectivity, structured cabling and computer network infrastructure have diverse applications.

• The World Economic Forum Organization has predicted that investment in broadband connectivity is expected to reach an impressive US$ 428 billion by 2030, connecting the world's population to the internet. This surge in connectivity investments is expected to generate significant demand for cabling solutions.

Moreover, the widespread penetration of mobile technologies and the exponential increase in mobile internet adoption have further amplified the demand for these cabling solutions.

• According to a report by GSMA Intelligence in 2021, the global mobile internet-connected population reached a staggering 4.2 billion and is expected to grow rapidly. With rising internet penetration and the expansion of broadband infrastructure for enhanced connectivity, the potential demand for cabling solutions is projected to increase over the next 10 years.

Development of broadband infrastructure and the proliferation of mobile internet are contributing to the ever-increasing demand for reliable and efficient cabling solutions. As technology continues to advance, these solutions serve as the backbone, connecting people and fostering digital transformation across the globe.

What are the Challenges Encountered by Structured Cabling Suppliers?

“Alternatives for Small Server Room Applications Restraining Demand for Structured Cabling Solutions”

Structured cabling, while highly suitable for large-scale industrial and commercial server room applications, may not be the ideal choice for smaller-scale industrial, commercial, and residential server room setups. The comprehensive nature of structured cabling often exceeds the infrastructural requirements of these smaller environments. Additionally, the presence of alternative cabling options specifically tailored for small server room applications acts as a hindrance to market growth.

Alternative cabling options such as rack-level management renders and other specialized cabling solutions offer more viability and efficiency for network applications on a smaller scale. These alternatives cater to the specific needs of modern network setups, inhibiting the widespread adoption of structured cabling in smaller server room environments. While structured cabling remains a robust and reliable solution for larger-scale applications, the market faces limitations in smaller server rooms due to the availability and suitability of alternative cabling options.

Which Market Trends are Expected to Benefit New Structured Cabling Producers?

“Growing Demand for Intelligent Infrastructure By Several Organizations”

The concept of intelligent infrastructure, where devices and systems are interconnected for data sharing and automation, is gaining traction. Start-up companies are capitalizing on this trend by providing structured cabling solutions that support smart buildings, data centers, and other intelligent infrastructure projects.

“Providing Specialized and Innovative Solutions in Various Industries”

Different industries have unique requirements when it comes to structured cabling. New entrants are focusing on specific verticals such as healthcare, education, manufacturing, or hospitality and are developing expertise in delivering tailored cabling solutions for various industries. By aligning their offerings with these trends and providing innovative, specialized, and future-proof solutions, start-ups are expected to gain profits over the forecast period.

Country-wise Analysis

Why are Sales of Structured Cabling Technologies Increasing in the United States?

“Structured Cabling Solutions Empowering Data Center Hubs in the Country”

• The market in the United States is projected to reach US$ 6.68 billion by 2033.

The United States is experiencing a surge in demand for data center services due to the exponential growth of internet users and smart mobile communication devices. This increasing reliance on connected devices coupled with the advent of 5G technology is contributing to the robust expansion of IT and telecom industries in the country.

• The North American region is projected to witness a substantial rise in IoT connections, increasing from 2.3 billion in 2018 to an estimated 5.4 billion by 2025, as reported by Groupe Speciale Mobile Association (GSMA).

New governmental policies in the United States aim to bolster data center investments, positioning the country as a prominent hub for data traffic. These initiatives are fueling infrastructure investments in data centers across the country, driving the demand for structured cabling solutions.

The convergence of increased data center investment, government initiatives, and the evolving landscape of digital connectivity in the United States fosters a favorable environment for market players.

Why is Germany Holding the Prime Position in the European Market?

“Tech-Savvy Population Complementing Sales Growth of Structured Cabling Solutions”

• Sales of structured cabling technologies in Germany are predicted to increase at a CAGR of 5.8% from 2023 to 2033.

Manufacturers of structured cabling solutions find Germany to be a profitable marketplace in the European region. Over the last ten years, significant market growth has been observed due to the rising number of data centers and developing industrial and commercial sectors.

• 92% of Germans over the age of 10 use the internet regularly and approximately 65.8 million German households use smartphones, according to the Germany Data Centre 2020 research by CBRE.

The German government is making significant investments in the development of 5G infrastructure as well as the digitization of public services. This is anticipated to be one of the key elements influencing Germany's need for structured cabling.

How is Demand for Structured Cabling Solutions Evolving in India?

“IT Outsourcing Revolution Driving Demand for Advanced Networking Solutions”

• The Indian market is projected to reach a valuation of US$ 1.55 billion by 2033.

Several trends such as data center convergence, the rising demand for high-speed connection devices, and the ongoing development of reliable IT and communication infrastructure are driving the market for structured cabling solutions in India.

• According to Nxtra by Airtel, Mumbai is the top city in terms of electricity load with 45% of India's 499 MW total inventory in the data center business. With 12% each, Bengaluru, Pune, and Chennai are not far behind.

India is rapidly emerging as a global hub for IT services outsourcing due to the presence of major companies such as Wipro, TCS, and Infosys. This growth in the IT sector is driving a significant increase in the demand for networking solutions and data centers within the country.

• India's IT and BPM business is projected to reach US$ 19.93 billion by 2025, up from US$ 6.96 billion in the first half of 2021, according to the India Brand Equity Foundation (IBEF).

The Indian government's strong emphasis on digitizing the local economy to compete with developed countries makes the Indian market highly favorable for the growth of the data center industry.

• In November 2022, the Blackstone Group, a global asset management firm, entered the data center business in Asia by investing in two large hyper scale data centers in India. These data centers are planned to have a combined capacity of 600 MW, further illustrating the significant growth potential of the Indian market.

Category-wise Analysis

Why is the IT & Telecommunication Sector Widely Employing Structured Cabling?

“Structured Cabling Promoting Connectivity and Digitalization”

• Currently, the IT & telecommunication industry is developing rapidly. According to Fact.MR, the global telecom industry is experiencing rapid growth, and the demand for structured cabling solutions in this industry is anticipated to expand at a CAGR of 5% through 2033.

The advent of technological innovations, particularly the 5G network, requires structured cabling systems that offer high bandwidth and low latency. Additionally, the increasing investment in cloud infrastructure and data centers is driven by the widespread adoption of digitalization strategies that are further fueling demand for structured cabling in the IT & Telecom sector.

Competitive Landscape

Leading players in the structured cabling market are implementing corporate strategies, including acquisitions, partnerships, mergers, and collaborations to gain higher profits. Moreover, they are actively involved in the development of new products, characterized by high speed and enhanced features to bolster their product portfolio and establish a strong market presence.

• In a collaborative effort, Oracle Labs in Broomfield, Colorado, partnered with CommScope to upgrade its network infrastructure in November 2022. The selection of CommScope's SYSTIMAX copper and fiber-structured cabling systems enabled Oracle Labs to significantly enhance its throughput capacity from 300 gigabytes to an impressive 1.2 terabytes.

Key Segments Covered in Structured Cabling Industry Research

• By Solution :

  • Hardware
  • Software Services

• By Vertical :

  • IT & Telecom
  • Industrial
  • Transportation & Logistics
  • Residential
  • Commercial

• By Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • MEA