The global structured cabling marke t is exhibiting a robust growth over the next few years. A research report by Transparency Market Research (TMR) says that the market stood at US$7.1 bn in 2014.
Analysts at TMR expect it to rise at a CAGR of 7.10% between 2015 and 2021 and reach US$11.4 bn by the end of 2021. As per the findings of the report, the rising demand for higher bandwidth in the global arena is the key factor, driving the worldwide market for structured cabling.
The worldwide structured cabling market is analyzed on the basis of the types of solutions available and their application. Based on solution type, the market is broadly segmented into hardware, software, and services and these solutions mainly serve for residential, commercial, industrial, government, and transportation purposes.
Hardware to Remain Leading Market Segment
The hardware segment leads the global structured cabling solutions market at present. In 2014, it accounted for 89% of the overall market. Analysts expect this segment to maintain its position in the coming years.
Fiber cable, copper cable, racks and cabinets, patch panels and cross connects are the major components of the hardware segment of the global structured cabling market. Among these, the demand for copper cable is the highest.
In 2014, the copper cable segment held over 59.6% of the overall market. The cost efficiency of copper cables, supported by their longer lifespan, is the main factor behind their soaring demand. Additionally, the cost of maintenance for these cables is very less owing to which, the segment is likely to witness a steady growth in the coming years.
The fiber cable market, on the other hand, is projected to report the highest CAGR of 8.0% during the period from 2015 to 2021. The compactness of fiber cable is boosting its popularity among consumers.
Asia Pacific to Report Fastest Growth
Regionally, the global structured cabling market is spread across North America, Europe, Asia Pacific, and the Rest of the World. North America, among all the regional markets for structured cabling, led the global structured cabling market until recently. It accounted for a share of 38.8% in the overall market in 2014.
The presence of a large number of data centers and the high penetration of the Internet have accelerated the demand for advanced structured cabling infrastructure, required to provide higher bandwidth in this region. This significantly aided the growth of the North America structured cabling market.
On the other hand, the Asia Pacific structured cabling market is projected to exhibit the fastest CAGR at 7.90% between 2015 and 2021. The rapid rise as well as the expansion of data centers and the infrastructure for IT & communication is the key reason behind the development of this regional market. The decrement in the cost required to setup the structured cabling infrastructure is propelling this market in Asia Pacific.