Cable and Connector Market

Cable and Connector Market Outlook (2024 to 2034)

Revenue in the global cable and connector market size is projected to reach US$ 112.15 billion in 2024. The market has been forecasted to increase to a value of US$ 251.64 billion by the end of 2034, expanding at a CAGR of 8.4% over the next ten years.

Connectors are essential electromechanical components that serve as critical intermediaries in electronic and electrical systems. Their primary function is to establish a secure and reliable connection between various devices, allowing signals, power, and data to be transmitted. Cables and connectors are available in a wide variety of types and configurations, each tailored to a specific application. They are distinguished by their pin arrangements, contact materials, and housing designs, which allows them to effectively bridge connections in different types of electronic and electrical circuits.

Increased investments in smart power transmission and distribution systems, as well as the development of smart grids, are set to drive the cable and connector market forward. Implementation of smart grid technology is meant to meet the increasing need for grid interconnections, resulting in higher investments.

Key Market Growth Drivers

• High demand from automotive, telecommunication, and several other industries is driving global cable and connector market growth.
• Rising government investments & initiatives for improving connectivity and increasing penetration of digitalization and 5G internet are projected to propel demand for cable and connectors.
• Adoption of electrification in the automotive industry is set to fuel sales of cables and connectors.
• Demand for higher bandwidth cables and connectors is continuously increasing. This is a key cable and connector market trend that companies will be able to capitalize on.
• Rising investments in the defense sector are creating lucrative opportunities for manufacturers of cables and connectors.
• Extensive deployment of IoT, big data, and AI technologies is generating substantial demand for cables and connectors worldwide.
• Availability of customized cables and connectors is creating ample revenue-generation opportunities for cable and connector companies.
• Expansion of the oil & gas and energy sectors is also contributing to target market growth.

Report Attribute	Detail
Market Size (2024E)	US$ 112.15 Billion
Projected Market Value (2034F)	US$ 251.64 Billion
Global Market Growth Rate (2024 to 2034)	8.4% CAGR
East Asia Market Share (2024E)	30.7%
North America Market Share (2024E)	25.8%
Sales of HDMI Cables (2034F)	US$ 87.07 Billion
Revenue from Automotive Segment (2024E)	US$ 41.05 Billion
Key Companies Profiled	Amphenol Corp.; Axon Cable; 3M Company; Alcatel-Lucent; Molex Inc.; TE Connectivity Ltd.; Sumitomo Corporation; Huawei Technologies Co. Ltd.; Nexans SA; Prysmian Group; Hirose Electric Co., Ltd.; Corning Incorporated; Huber+Suhner AG; Rosenberger; JAE Electronics, Inc.

Why is Use of Cables and Connectors Increasing Steadily across the Globe?

“Higher Dependability, Agility, and Improved Security of Cables and Connectors”

In the telecom sector, services such as video streaming, cloud apps, online gaming, and on-demand TV demand robust bandwidth. Wired links offer superior bandwidth, reliability, agility, and enhanced security compared to wireless. Moreover, wireless transmissions struggle underwater due to low frequencies used to minimize signal loss and maintain transmission speeds.

Demand for cables and connectors is projected to grow at a noteworthy pace, driven by the increasing need for higher bandwidth and faster transmission speeds. These connectors are significantly slimmer than traditional side-entry models, fitting snugly into PCB cut-outs to sit flush with the board. This innovation in cable and connector technology is expected to fuel global market expansion.

What is the Key Challenge Faced by Manufacturers of Cables and Connectors?

“Fluctuating Costs of Raw Materials”

Essential raw materials required for cable connector production include plastic-based components such as ETFE, PTFE, FEP, and TFE for cable conductors and insulation, PVC pellets, and copper for wiring. Fluctuating costs of these materials add strain to manufacturers' profit margins.

Copper, a fundamental element widely used for its affordability and extensive application in cable connections, is susceptible to price fluctuations influenced by the global economy. Its widespread use across diverse sectors like manufacturing, electronics, power generation, transportation, and construction leads to price volatility, thereby constraining cable and connector market size expansion.

Country-wise Insights

North America is expected to hold a global cable and connector market share of 25.8% in 2024, driven by strong digital infrastructure and the quick adoption of cutting-edge technologies. North America is expected to be a key market for cable and connector companies, driven by rising demand for high-speed internet and data transmission in this region.

In the long term, rising digitalization in the Asia Pacific region is projected to open up new markets for cable and connector manufacturers, with China, Japan, and India predicted to be the top three markets. Increased industrialization, surge in consumer electronics production and sales, and rising automotive production are key drivers for sales of cable and connectors.

Why Does the United States Account for Significant Demand for Cables and Connectors?

“Rapid Digitalization and Increase in Government Initiatives to Improve Connectivity”

Attribute	United States
Market Value (2024E)	US$ 22.63 Billion
Growth Rate (2024 to 2034)	8.3% CAGR
Projected Value (2034F)	US$ 50.02 Billion

The United States is expected to account for 78.2% of the North America market in 2024. Increasing demand for cables and connectors spurred by robust defense and energy sectors is propelling growth in the United States market. Enhanced digitalization and government efforts to boost national connectivity are expected to amplify this demand.

Manufacturers of cables and connectors in the United States are innovating new products to meet consumer needs and leveraging mergers and acquisitions to bolster their market positions.

What Makes China a Highly Lucrative Market for Manufacturers of Cables and Connectors?

“High Demand for Automotive Components Such as ADAS and IoT Devices”

Attribute	China
Market Value (2024E)	US$ 17.32 Billion
Growth Rate (2024 to 2034)	9.1% CAGR
Projected Value (2034F)	US$ 41.21 Billion

China is expected to capture half of the East Asia market share in 2024. China is poised to emerge as a major player in the connector industry, fueled by substantial investments from key stakeholders. The market is exhibiting expansion driven by burgeoning manufacturing activities and growing demand for automotive components like ADAS systems and Internet of Things (IoT) devices.

Category-wise Insights

The market for cables and connectors is segmented into HDMI, VGA, USB, and CAT5/CAT6. The HDMI segment is set to hold a market share of 35.4% in 2024. By end use, the market is categorized into automotive, commercial, energy & power, and aerospace & defense, of which the automotive segment is poised to hold a market share of 36.6% in 2024.

Expenditure on military and underwater cables is increasing among various organizations, poised to boost demand for cables and connectors. The growing requirement for easy-to-use and straightforward installation of cables and connectors across sectors such as oil & gas indicates favorable market prospects. Moreover, growing demand for efficient cables and connectors aimed at enhancing refinery operations and improving profitability for oil and gas companies is driving market expansion.

Why are CAT5/CAT6 Cables Most Preferred by Consumers?

“Versatile Capabilities and Varying Bandwidth Specifications of CAT5/CAT6 Cables”

Attribute	CAT5/CAT6
Segment Value (2024E)	US$ 16.6 Billion
Growth Rate (2024 to 2034)	8.2% CAGR
Projected Value (2034F)	US$ 38.25 Billion

Demand for CAT5/CAT6 cables is on the rise due to their versatile capabilities. CAT5 cables support speeds of up to 10/100 Mbps over a 100 MHz bandwidth. In contrast, the newer CAT5e version handles speeds up to 100/1,000 Mbps with a 350 MHz bandwidth. Meanwhile, CAT6 cables can manage up to 1,000 Mbps (1GbE) over a 250 MHz bandwidth.

• Cablesys offers an advanced CAT6 variation that supports 1 GbE at a 500 MHz bandwidth.

Another crucial performance factor is the twist rate: CAT5e cables typically have one and a half to two twists per centimeter, while CAT6 cables are tightly wound with two or more twists per centimeter.

What is Driving Integration of Connectors Such as USB and HDMI in the Automotive Sector?

“Advancements in Automotive Technology and High Demand for Improved Connectivity”

Attribute	Automotive
Segment Value (2024E)	US$ 41.05 Billion
Growth Rate (2024 to 2034)	9% CAGR
Projected Value (2034F)	US$ 93.36 Billion

In recent years, the automotive industry has led the way in integrating connectors and cables like USB and HDMI. As the automotive sector expands and transitions towards electric vehicles, the market for cables and connectors is set to grow. Government initiatives aimed at enhancing connectivity globally and increasing demand from businesses for high-bandwidth networks are projected to further drive market expansion.

Competitive Landscape

Key players in the cable and connector market are focusing on expanding their product portfolios. They are spending rigorously in research and development to develop new innovative products.

• In February 2024, RWE and Smart Wires, a provider of grid-enhancing technologies and services, announced a partnership to investigate the use of new cable circuits to connect offshore wind generation. The companies' memorandum of understanding (MoU) specifically calls for the use of advanced power flow control technology known as SmartValve on long HVAC or HVDC cable circuits to enable offshore generation connections. The collaboration aims to accelerate the process while minimizing the need for additional onshore and offshore grid infrastructure.
• In August 2023, Molex, a leading global connectivity and electronics solutions provider, captured a prestigious IoT Product Award at the recent OFweek 2023 (8th) IoT / AI Conference recently hosted in Shenzhen, China. Molex received the award for Mezz Pro and Mirror Mezz Enhanced high-speed connectors.
• In July 2023, ABB launched the world's first hinged high-voltage connector backshells for heavy-duty electric vehicles. The Harnessflex EVO connector interface improves cable-to-connector stability in high-voltage applications.
• In June 2023, FIT Hon Teng, a subsidiary of HonHai, received the "Red Dot Design Award," also known as the "Oscar of the Design Industry." FIT focused on the hot topic of AI and demonstrated its excellent design capabilities with its innovative 800G high-speed connector under the theme "FITCONN," which won the Design Concept Award. This innovative solution not only meets the specifications and design guidelines of existing data centers but also significantly improves data transmission efficiency.
• Hirose Electric released the IT14 Series, a hermaphroditic board-to-board connector capable of transmitting at speeds of up to 112Gbps PAM4. IT14 served as the licensed second source for "Mirror Mezz," a connector developed by Molex in 2018 for applications including servers, data communications, and telecommunications equipment.
• Molex, a global electronics leader and connectivity innovator, launched its first pluggable module solution for co-packaged optics (CPO) in September 2022. Its new External Laser Source Interconnect System (ELSIS) was a complete system of cage, optical, and electrical connectors with a pluggable module that leveraged proven technology to accelerate hyperscale data center development.

Fact.MR provides detailed information about the price points of leading manufacturers of cables and connectors positioned across the world, sales growth, production capacity, and technological advancements, in this recently updated market report.

Segmentation of Cable and Connector Market Research

• By Type :

  • HDMI
  • VGA
  • USB
  • CAT5/CAT6

• By End Use :

  • Automotive
  • Commercial
  • Energy & Power
  • Aerospace & Defense

• By Region :

  • North America
  • Latin America
  • East Asia
  • South Asia & Pacific
  • Western Europe
  • Eastern Europe
  • Middle East & Africa