Global Cables and Connector Market to expand at a CAGR of 8.55% by 2030

Introduction

Connecting devices used in various industries to transport signals, data, and power to electronic peripherals are cables and connectors. Multiple sectors, including IT & telecommunications, manufacturing, oil & gas, defense & aerospace, and manufacturing, require cable and connectors to establish a reliable end-to-end connection. Typically, cables and connectors carry electric impulses and electromagnetic waves between two sites. In integrating diverse systems and subsystems, cables, connectors, and cable assemblies play vital roles. It operates in various atmospheric conditions despite harsh physical and chemical exposure.

Market Dynamics

Increased Government Investments and the Demand for Higher Bandwidths Cables and Connectors to Drive the Global Cables and Connector Market

Numerous governments, including those of China, India, and Brazil, have made substantial expenditures on various cables and links to improve connectivity in the region. Through several initiatives, the network infrastructure of numerous government organizations has been enhanced, resulting in an increase in demand for data transmission cables and connections. For instance, the Economic Affairs Division (EAD) claims that in 2018, China invested USD 11.24 million to construct a cross-border fiber optic connection for high-speed international communication. The Indian government started the "BharatNet" project in 2017 to improve connectivity in emerging nations.

Phase 1 of the stated project was concluded before the end of the year at an anticipated cost of USD 1.08 billion. Consequently, more cables and connections are being utilized in several countries. In addition, the telecom industry, cloud applications, TV-on-demand, video services, and online gaming have substantial bandwidth needs. A cable transmission connection offers greater capacity, reliability, agility, and enhanced security than wireless communication. Ethernet technology, for instance, a cable LAN can deliver 100Mpbs of bandwidth, whereas a wireless network can provide no more than 11Mbps.

In addition, underwater wireless transmission is less effective due to low frequency, which prevents transmission rate slowdown and minimizes attenuation (power loss in transmitted signal). For instance, to reduce attenuation from 5.4 DB to 0.4 DB, the frequency must be lowered from 1.8 MHz to 0.01 MHz. Despite being exempt from such constraints, cable communication is faster than wireless transmission since it is not limited. Consequently, the market for cables and connectors is predicted to expand due to the increased demand for faster transmission and expanding bandwidth.

Government Initiatives to Increase Connectivity in Rural Regions to Create Global Cables and Connector Market Opportunities

Developing nations invest significantly in infrastructure to provide internet connectivity to rural and remote locations. For example, in 2017, the Indian government revealed intentions to invest USD 200 billion on a project to lay 600,000 kilometers of fiber cable to connect 2.5 million communities across the country. Across the globe, governments of numerous developing nations are beginning to work on programs similar to this to enhance networking and communication architecture. This potential will tremendously benefit expanding the global cables and connectors industry. It is anticipated that this factor's impact would intensify during the projection period, accelerating market growth.

Regional Insights

The Asia Pacific is predicted to hold the predominant share in the regional market while expanding at a CAGR of 10.61%. The Asia-Pacific region is beginning to offer the potential for the cables and connectors business due to substantial infrastructure, energy, and technology development expenditures. China, the world's second-largest economy, is favored for building industrial facilities, including that of Prysmian, one of the world's largest cable makers. India is implementing multibillion-dollar investment plans in infrastructure, energy, and telecommunications.

One of the initiatives announced in India is “Make in India,” which authorizes up to 50% to 100% FDI in manufacturing, IT, construction, and other industries. This project is profitable due to the dependence of these businesses on the cable connectors industry. The end-user industries for cable and connector goods are well-represented in China, Japan, India, and other countries, allowing for growing possibilities in new markets.

North America is predicted to advance at a CAGR of 6.95% and hold USD 50,611 million. The growth of the North American cables & connectors market is fueled by the implementation of supporting government acts and programs, such as the "Buy American Act" and the "Buy America" program, which encourage the purchase of U.S.-made goods. Additionally, the rise of the consumer electronics market, which is anticipated to fuel the growth of the cables & connectors market, will be driven by the continual release of new electronic devices and declining prices.

In addition, the North American data center market is anticipated to have substantial growth over the next few years due to the increased demand for cloud-based products and services and a rise in commercial outsourcing. To enhance their capacity to produce cables and connectors, leading players in the North American cables and connectors market seek to establish new production facilities in the region. The region's manufacturing sector has also been supported by government agencies. For this reason, the government has enacted several laws and launched programs to help American enterprises in the manufacturing industry.

Key Highlights

• Based on the product, the external cables & connectors section will presumably hold the largest revenue share, growing at a CAGR of 8.1%.
• Based on the installation type, the CAT5/CAT6 section is presumed to hold the largest share, expanding at a CAGR of 7.11%.
• Based on the industry vertical, the commercial section is presumed to hold the largest share, expanding at a CAGR of 7.2%.
• Based on regional analysis, the Asia Pacific is predicted to hold the predominant share in the regional market while expanding at a CAGR of 10.61%.

Competitive Players

1. 3M Company
2. Amphenol Corporation
3. Alcatel-Lucent (Nokia Corporation)
4. Axon Cable SAS.
5. Fujitsu Ltd.
6. Huawei Technologies Co. Ltd.
7. Nexans
8. Prysmian SPA.
9. Sumitomo Electric Wiring Systems, Inc.
10. TE Connectivity Limited

Recent Developments

• In 2022, 3M Company acquired the technology assets of LeanTec.
• In 2022, Alcatel-Lucent Enterprise and Jay Kay Systems Consulting Inc. have partnered to offer cutting-edge and affordable IT solutions to companies across Western Canada. Together, the two enterprises provide a variety of businesses and the public sector with safe and dependable technological solutions.

Segmentation

1. By Product
   1. Internal Cables and Connectors
   2. External Cables and Connectors
   3. HDMI Cable & Connectors
   4. USB Cables & Connectors
   5. VGA Cables & Connectors
   6. DVI Cables & Connectors
   7. CAT5/CAT6 Cables & Connectors
2. By Installation Type
   1. HDMI
   2. USB
   3. VGA
   4. DVI
   5. CAT5/CAT6
   6. Others
3. By Industry Vertical
   1. Military & Defense
   2. Oil & Gas
   3. Commercial
   4. Energy & Power
   5. Automotive
   6. Commercial
   7. Aerospace & Defense
   8. Others