The booming demand for high bandwidth, owing to the rising penetration of the internet, will help the structured cabling market progress at a CAGR of 3.9% during 2020–2030. The market was valued at $7.4 billion in 2019 and it is projected to generate $9.6 billion revenue by 2030. Enterprises are increasingly modifying their IT infrastructure, due to the extensive usage of bandwidth-intensive applications, such as digital audio and video, internet protocol (IP)-based video conferencing, and voice over internet protocol (VoIP).
Adoption of structured cabling by data centers of various industries and government organizations helps in reducing the overall operational costs, which include costs associated with slow data transfer and other network failures. Furthermore, structured cabling also decreases the requirement for updates and minimizes the overall maintenance cost, as it unifies the IT network for videos, data, and voice. Owing to these advantages, enterprises with huge IT budgets are shifting from conventional cabling to structured cabling.
Currently, companies offering structured cabling solutions are engaging in mergers and acquisitions to provide their services to a wider range of clientele. For instance, in January 2019, Panduit Corp. completed the acquisition of Atlona Inc., a provider of network distribution solutions and audio/visual (AV) systems. As per the acquisition clauses, Panduit would offer an end-to-end AV solution with optimum structured cabling for the residential, commercial, and industrial sectors. Similarly, in October 2019, Legrand North America LLC acquired Connectrac, a provider of cable management solutions for commercial buildings, to offer its solutions to a large number of commercial facilities.
According to PS Intelligence, Asia-Pacific (APAC) led the structured cabling market in the preceding years, and it is also expected to retain its position in the upcoming years. This can be credited to the escalating demand for higher bandwidth in South Korea, China, and Japan, and the accelerating deployment rate of 5G in the region. Furthermore, APAC is also projected to adopt structured cabling solutions at the highest rate in the forthcoming years, due to the soaring number of IT hubs in India, Japan, China, and South Korea; surging data consumption; and booming population in the region.
Thus, the surging need for higher bandwidth and the soaring demand for hassle-free IT infrastructure will augment the adoption of structured cabling products, across the world.