Evolution of “Power over Ethernet (PoE)” in recent years has provided a feasible powering option for variety of applications, thereby driving developments in the structured cabling market. This has further aided the telecommunication industry in taking a giant leap forward, with fiber cables gaining immense traction and outgrowing copper cables in the structured cabling market.
Fact.MR’s recent study envisions the structured cabling market to exhibit an impressive 7.1% CAGR between the forecast period 2018 and 2028. Installation costs of optical cables are over 60% than that of copper cables used for structured cabling. However, scalability, flexibility and higher bandwidth of optical cables have led IT & telecom companies to replace their copper cables with optical variants to enhance their productivity.
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Wireless cables have been witnessing majority preference by end-use verticals in the structured cabling market, against the backdrop of complexities involved in fiber termination and cost of converting optical signals to electronic. This is likely to confine growth prospects of the structured cabling market. The study foresees future shifts from copper cables to newer technologies to be slower, in terms of margins rather than systemic. This is mainly because most commercial users employ copper for structured cabling as their primary choice for delivering data.
With the vital requirement for an adaptable IT, which can quickly respond to industrial transformations and is scalable at the same time, structured cabling is gaining momentum to develop a reliable infrastructure. Structure cabling market is riding on coattails of IT & telecom’s requirements for data centers for acquitting new customers and retaining the existing ones. Preeminence of IT & telecom vertical in the structured cabling market is likely to prevail in the structured cabling market.
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“Structured cabling is becoming an integral component of the IT & telecom industries to rid risks of manual errors apropos of unorganized, multiple cabling infrastructures. Facilitating continuous flow of information, while boosting productivity and driving business success are key attributes of structured cabling that have driven their adoption in the IT and telecom industry. Demand for structured cabling is also fuelled by its aid in reducing power and maintenance cost, which in turn enables latent resources to be put at good use,” says lead research analyst, ICT, at Fact.MR.
Irreplaceable Role of Backbone Cabling and Horizontal Cabling to Undergird Growth of Structured Cabling Market
Horizontal cabling and backbone cabling have gained paramount importance in the structured cabling market, in light of growing requirements for specific and complicated cabling in computer networks. This need is particularly preeminent in academic and business settings, which have been upholding demand & supply trends of the structured cabling.
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With the advent of Gigabit Ethernet, fiber optic cable has gained popularity as the most appropriate backbone structured cabling solution, in light of fiber cables’ higher bandwidth than their traditional copper counterparts. Both horizontal and backbone cabling play an irreplaceable role in the structured cabling market, with varying specifications imposed on the two with respect to the cabling environment.
North America’s dominance in the structured cabling market is likely to prevail, with revenues envisaged to exceed US$ 6,000 Mn by 2028-end. Evolving telecommunication sector, coupled with increasing number of data centers, particularly in the U.S., will continue to favor growth of the structured cabling market in North America. Structured cabling market in Europe, on the other hand, is foretold by the study to grow at a relatively faster rate than in North America. Upward trend of digitalization, in parallel to widening scope of Big Data and cloud solutions, will continue to pave lucrative opportunities for the structured cabling market in Europe.
Structured cabling service providers are incorporating data and video capabilities by leveraging one network for tapping into new markets and providing attractive services. Trending convergence of old and new media is likely to facilitate network operations through appropriate infrastructure, which in turn entails demand for structured cabling for handling comprehensive volume and density of information.