The global cables and connector market size was valued at USD 1,06,266 million in 2021. It is expected to reach USD 222363 million by 2030, growing at a CAGR of 8.55% during the forecast period (2022-2030).
Cables and connectors are connecting devices used in a variety of industries to transmit signals, data, and power to electronic peripherals. To have a reliable end-to-end connection, cable and connectors are also utilized in various sectors, including IT & telecommunication, manufacturing, oil & gas, defense & aerospace, and manufacturing. Electric signals and electromagnetic waves are primarily transmitted between two endpoints through cables and connectors. In the integration process of various systems and subsystems, cables, connectors, and cable assemblies play crucial roles. It functions in multiple atmospheric settings despite exposure to extreme physical and chemical environments.
The market is expanding due to rising government measures to enhance connectivity across the nation and increasing industry demand for higher bandwidth networks. Various companies' increased investments in undersea cables and defense contribute to the industry's expansion. A complex process for error elimination and fault identification slows market expansion. Additionally, the cables and connector market is anticipated to benefit from an increase in the number of data centers worldwide and a surge in government programs to improve connectivity in rural parts of developing economies.
Governments from several nations, notably China, India, and Brazil, have significantly invested in cables and connections to enhance regional connectivity. The network infrastructure of many government institutions has been improved through several initiatives, which have raised the demand for data transmission cables and connections. For instance, the Economic Affairs Division (EAD) reports that in 2018, China invested USD 11.24 million to build cross-border optic fiber cable for high-speed international connectivity. The Indian government launched the “BharatNet” project to boost connectivity in rising nations in 2017.
Phase 1 of the said project was finished by the year's end at an estimated cost of USD 1.08 billion. As a result, more cables and connections are being used in many nations. The telecom sector, cloud applications, TV-on-demand, video services, and online gaming have high bandwidth requirements. A wired transmission connection provides more bandwidth, higher dependability and agility, and improved security than wireless communication. For instance, utilizing Ethernet technology, a wired LAN may provide 100Mpbs of bandwidth, whereas a wireless network can only offer 11Mbps of bandwidth at most.
Wireless transmission is less efficient during underwater operations due to low-frequency usage, which prevents transmission rate slowdown and minimizes attenuation (power loss in transmitted signal). For instance, frequency reduction from 1.8 MHz to 0.01 MHz is required if attenuation needs to be decreased from 5.4 DB to 0.4 DB. Although exempt from such restrictions, cable communication is faster than wireless transmission since it is not constrained in any way. The market for cables and connectors is thus anticipated to grow due to the rising requirement for quicker communication and increasing bandwidth demand.
Faults in transmission cables utilized for longer-distance communications are challenging to locate and fix. Underwater earthquakes in the oceans are the primary cause of these faults. One of the world's most significant optical undersea cables, SEA-ME-WE 3, which connects South East Asia, the Middle East, and Western Europe, was broken in a few locations in 2017 due to underwater activity.
Due to the traffic being completely blocked between Perth, Australia, and Singapore, there was a drop in internet connectivity throughout Australia. These problems must be found and fixed for the market to expand. Due to faster data transmission and more bandwidth, wired connections are nevertheless preferred to wireless ones for communication.
Developing countries invest significantly in infrastructure to provide rural and distant areas with internet access. For instance, the Indian government revealed plans to invest USD 200 billion on a project in 2017 that would install 600,000 km of fiber cable to connect 2,500,000 localities all across the country. Around the world, governments of many poor countries are starting to work on initiatives similar to this one to improve the architecture of networking and communication. The global cable and connectors market development will benefit greatly from this potential. During the forecast period, it is anticipated that this factor's effect will get more pronounced, propelling market expansion.
The global cables and connector market is bifurcated based on the product, installation type, industry vertical, and region.
Per the product, the segments are internal cables & connectors and external cables & connectors.
The external cables & connectors section will presumably hold the largest revenue share, growing at a CAGR of 8.1%. Internal cables and connections are connected to external devices or systems using external cables and connectors. The market is expanding as more end-user industries adopt linked and autonomous systems. Additionally, it is projected that increased data center deployment across the globe, increased network bandwidth demand, and the advent of smart cities and factories would drive the need for highly dependable and effective external cables and connectors. Furthermore, due to the demand for highly reliable and long-lasting external cables and connections from industrial verticals, waterproof and weatherproof external cables are gaining ground among numerous electronic applications.
The internal cables & connectors section will hold the second-largest share. The electronic system or product has internal cables and connectors. The leading players have been able to lower and manage the overall cost of the finished electronic product and make them accessible at competitive prices thanks to ongoing investments in novel technology. Due to this, businesses may reach out to customers in the low-, middle-, and high-income groups. Government initiatives and plans to advance digitization and promote eco-friendly electric products like electric vehicles are expected to fuel market expansion and create new opportunities for critical global cables & connectors players.
Per the installation type, the segments are HDMI, USB, VGA, DVI, CAT5/CAT6, and others.
The CAT5/CAT6 section is presumed to hold the largest share, expanding at a CAGR of 7.11%. Network wire requirements include CAT5 and CAT6. They are extensively utilized to support telephone and computer network traffic. Recent years have seen significant technological advancements in CAT5/CAT6 because of shifting consumer preferences. The requirement for more processing capacity has increased due to the expanded creation of data. By 2020, the data output rate is anticipated to have multiplied 44 times. As a result, there is a steady rise in the demand for cables and connections of the CAT5/CAT6 variety.
The USB section will hold the second-largest share. All digital devices employ the widely used Universal Serial Bus (USB) interface. Many different interface connectors can quickly adapt to the wide variety and various physical sizes depending on the uses. The market for USB cables is expanding due to rising demand for digital data storage and the introduction of USB 3.0 and 3.1 specifications for high-speed data transport. Additionally, the industry is increasing due to ongoing memory capacity improvements and rising consumer demand for safe and customized USB devices.
Per the industry vertical, the segments are automotive, commercial, oil & gas, energy & power, aerospace & defense, and others.
The commercial section is presumed to hold the largest share, expanding at a CAGR of 7.2%. Due to their advantages in safety, fault detection, and customization, cables are necessary for healthcare electronic equipment. The IT sector's components are essential, including data centers, cables, and connections. Because there are more IT enterprises, data centers are used more frequently. Increased use of modern equipment like cameras, cell phones, and other gadgets that require constant, high-quality data transfer and resolution drive the market's expansion.
The automotive section will presumably hold the second-largest share. The industry is growing due to rising internet usage, technology automation, and high demand for high bandwidth connectivity. The need for high performance and dependability in the automotive industry is another factor driving the cable and connectors market's expansion. The sector is predicted to experience profitable growth due to rising demand for advanced driver assistance systems and in-car infotainment. Applications for cables and connectors include automobile radars, motion detection, and back cameras for vehicles.
The region-wise segmentation of the global cables and connector market includes North America, Europe, Asia-Pacific, and LAMEA.
The Asia Pacific is estimated to have the predominant share in the regional market while expanding at a CAGR of 10.61%. Due to significant investments in infrastructure, energy, and technology development, the Asia-Pacific area is beginning to offer prospects for the cables and connectors industry. China, the second-largest economy in the world, is favored for the construction of industrial facilities, including Prysmian, one of the biggest cable manufacturers globally. India is launching multibillion-dollar investment initiatives in telecommunications, energy, and infrastructure.
The “Make in India” initiative, which permits up to 50%-100% FDI for manufacturing, IT, construction, and other industries, is one of the initiatives launched in India. Given the cable connectors market's dependence on these industries, this initiative is advantageous. There is expansion potential for cable and connector products in new markets thanks to the end-user sectors for those products, which are well-represented in China, Japan, India, and other nations.
North America is predicted to advance at a CAGR of 6.95% and hold USD 50,611 million. The development of the North American cables & connectors market is fueled by the adoption of supportive governmental acts and programs, such as the “Buy American Act” and the “Buy America” program, respectively, to encourage the purchase of U.S.-made goods. Additionally, the growth of the consumer electronics market, which is expected to fuel the development of the cables & connectors market, is likely to be driven by the ongoing release of new electronic products and falling prices.
In addition, the North American data center market is expected to have considerable expansion over the coming years due to the rising demand for cloud-based products and services and an increase in business outsourcing. Leading players in the North American cables and connectors market tend to open new manufacturing facilities in the area to increase their ability to produce cables and connectors. Governmental agencies have also taken steps to support the region's manufacturing sector. For this reason, the government has passed several laws and started programs that assist American businesses engaged in the manufacturing industry.
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