Cables and Connector Market Outlook - 2027
The global Cables and Connector Market size was valued at $86.14 billion in 2019 and is projected to reach $160.93 billion by 2027, growing at a CAGR of 8.3% from 2020 to 2027. Cable & connectors is one of the key elements used by various industries to transfer data and to provide high-end connectivity among the end points. In addition, cable & connectors are used in diverse industries such as oil & gas, defense & aerospace, manufacturing, automotive, and IT & telecommunication for having a reliable end to end connection.
Rise in government initiatives to improve connectivity within the country and surge in demand for higher bandwidth network by different industries drive the growth of the market. In addition, increase in investment in defense & submarine cables by various organizations fuel the growth of the cables and connector market. Furthermore, complex fault detection and removal process of errors hamper the market growth. Moreover, rise in data centers across the globe and surge in government initiatives to increase connectivity in rural areas of the developing economies are expected to provide lucrative opportunities for the market.
The commercial segment is expected to garner a significant share during the forecast period. Developments in the IT sector and increased dependence of businesses and institutions on high-performing transmission systems drive the growth of the Cables and Connector Market. However, the oil & gas segment is expected to grow at the highest rate during the forecast period, owing to greater flexibility provided by the cables & connectors and rise in need for providing uninterrupted connectivity drive the growth of the market in this segment.
Region wise, the Cables and Connector Market was dominated by Asia-Pacific in 2019 and is expected to retain its position during the forecast period. The major factors that drive the growth of the market in this region huge investment in infrastructure, energy, and technology development and surge in government support in the developing countries of Asia-Pacific. However, LAMEA is also expected to witness significant growth rate during the forecast period owing to the rising demand for faster and modern data communication cables from the IT & telecom sector in the middle east countries.
The report focuses on the growth prospects, restraints, and trends of the global Cables and Connector Market analysis. The study provides Porter’s five forces analysis to understand the impact of various factors such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers on the global Cables and Connector Market.
The cables and connector market is segmented into product type, installation type, industry vertical, and region. By product type, it is bifurcated into internal cables & connectors and external cables & connectors. By installation type, it is classified into HDMI, USB, VGA, DVI, CAT5/CAT6, and others. By industry vertical, the market is divided into automotive, commercial, oil & gas, energy & power, aerospace & defense and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
By Product Type
External Cabels and Connectors is projected as one of the most lucrative segments.
The key players profiled in the cables and connector market analysis include 3M Company, Amphenol Corporation, Alcatel-Lucent (Nokia Corporation), Axon Cable S.A.S., Fujitsu Ltd., Huawei Technologies Co. Ltd., Nexans, Prysmian S.P.A., Sumitomo Electric Wiring Systems, Inc. and TE Connectivity Limited. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.
By Installation Type
USB Cables & Connector would exhibit the highest CAGR of 11.4% during 2020-2027.
Top impacting factors
Increase in investment by government to improve connectivity within regions
Governments of various countries including China, India, and Brazil have heavily invested in different types of cables and connectors to improve connectivity within a region. Several developments have been undertaken by numerous government organizations to improve the network infrastructure of their regions, thereby increasing the demand for data transmission cables and connectors. For instance, according to Economic Affairs Division (EAD), China invested $11.24 million in 2018 for establishing cross-border optic fiber cable for high-speed international connection. In 2017, the Indian Government initiated a project “BharatNet,” which is expected to be completed by end of 2017 at an estimated cost of $1.08 billion to improve connectivity in the emerging countries. This has increased the usage of cables and connectors across different countries.
By Industry Vertical
Commercial is projected as one of the most lucrative segments.
Surge in demand for higher bandwidth cables & connectors among different industries
There is a significant demand for high bandwidth in the telecom industry, cloud applications, TV-on-demand, video services, and online gaming. Wired transmission connection offers greater bandwidth, enhanced reliability & agility, and improved security in comparison to wireless communication. For instance, wired LAN offers 100Mpbs bandwidth using Ethernet technology, whereas the maximum bandwidth offered by wireless network is about 11Mbps. Moreover, wireless transmission is lower in underwater operations, due to the use of low frequency to keep the attenuation (power loss in transmitted signal) minimum and prevent slowdown of transmission rate. For instance, if attenuation has to be reduced from 5.4 DB to 0.4 DB, the frequency needs to be reduced from 1.8 MHz to 0.01 MHz. However, wired communication is totally exempted from any such limitations; hence, it is a faster medium as compared to wireless transmission. Thus, increase in demand for higher bandwidth and rise in need of faster transmission are expected to drive the growth of the cables and connector market in future.
Asia-Pacific would exhibit the highest CAGR of 10.4% during 2020-2027.
Key Benefits for Stakeholders
The study provides an in-depth analysis of the global Cables and Connector Market forecast along with the current & future trends to elucidate the imminent investment pockets.
Information about key drivers, restraints, and opportunities and their impact analysis on the global Cables and Connector Market size is provided in the report.
Porter’s five forces analysis illustrates the potency of the buyers and suppliers operating in the Cables and Connector industry.
The quantitative analysis of the market from 2020 to 2027 is provided to determine the market potential.
Cables and Connector Market Report Highlights
By Product Type
By Industry Vertical
Key Market Players
PRYSMIAN S.P.A., Sumitomo Electric Wiring Systems, Inc, FUJITSU LIMITED, ALCATEL-LUCENT (Acquired by NOKIA COPORATION), HUAWEI TECHNOLOGIES CO. LTD, NEXANS, 3M, TE CONNECTIVITY LIMITED, AXON CABLE S.A.S., AMPHENOL CORPORATION
The adoption of cables & connectors has increased in industrial networks as these industries are more prone to harsh physical and environmental conditions and require high quality cables & connectors for communication. They require properly designed network to deliver productivity, efficiency, and reliability continuously. Cables and connectors play an important role in delivering continuous connectivity and withstand the harshest environments. Cables such as fiber optics provides the most reliable and secure mode for transporting signals from one place to another. Security application is the major adopter of fiber optics and best choice for the transport of security signals.
According to CXOs of leading companies, increase in economic strength of developing nations such as China and India, is expected to provide lucrative opportunities for the market growth. Asia-Pacific is expected to dominate the market during the forecast period. Moreover, emerging countries in Asia-Pacific and Latin America are projected to offer significant growth opportunities during the forecast period. The global players focus toward product development and increase their geographical presence, owing to growth in competition among local vendors, in terms of features, quality, and price. In addition, these players are adopting various business strategies to enhance their product offerings and strengthen their foothold in the market. For instance, in June 2019, Nexans introduced new Asset Electrical, a strategic asset management solution for DSOs. The solution allows to find the balance between network performance, capital or operating expenditures, and risk factors (including financial, regulatory, security, and environmental aspects).