According to a recent report published by Allied Market Research, titled, "HDMI Cable Market by Type, Grade and Application: Global Opportunity Analysis and Industry Forecast, 2019-2026", the global HDMI cable market was valued at $2.47 billion in 2018, and is projected to reach $3.87 billion by 2026, registering a CAGR of 4.5% from 2019 to 2026.
HDMI is used for transferring uncompressed large amount of data. It is used for connecting high definition (HD) equipment. It is used to connect large display screens, TV screens or monitor screens. HDMI cables are the connecting components, used in multimedia devices for communication of audio and video signals.
The most commonly used HDMI version is HDMI 2.0a and HDMI 2.0b. The ports are a higher variant of HDMI 2.0, which offers advanced display technology called High Dynamic Range. Further, the announcement of HDMI 2.1 version is expected to foster the HDMI cables market growth due to their high capability of data transfer rate and providence of improved bandwidth in comparison to the currently used versions. HDMI 2.1 provides refresh rates that supports resolutions up to 10K and improved bandwidth up to 48Gbps.
The emergence of media and entertainment industry has resulted in greater penetration of TVs and Cable TV network to the household. The broadcasting channels provide information to the consumer across different region in different languages, which increases the demand for TVs and subscription to cable TV channels. The installation of TV sets and broadcasting cable networks requires HDMI cables. Therefore, the emerging and advancing industry of multimedia and entertainment industry is expected to boost the demand for HDMI cable market size.
HDMI creates a "future-proof" basis for broadcasting ultrahigh definition video and multichannel audio among a wide variety of audio, video, and computer products. For instance, the HDMI 2.0b is mostly used in high definition 4K TVs, HDMI 2.0b builds on HDMI 2.0a, it is designed to support HDR, which improves the contrast between light and dark images for a more realistic picture and supports for Hybrid Log Gamma (HLG). Furthermore, companies such as Sony, LG and others, have announced the use of HDMI 2.1 in the latest launch of their TVs.
In the past few years, the penetration of internet in North America has increased the use of computers and display devices such as display panels, LED monitors, and others, which in turn has augmented the use of HDMI cables to generate output. Advancements in HDMI cables for use in latest display technologies such as 4K, 8K, and others significantly contribute toward the growth of the North America HDMI cable market.
According to a study on growth of the North America e-commerce market by eShopWorld, a company based in Ireland, over 84% of consumers use desktop for shopping online. The use of desktop requires HDMI cables for better data transfer to display content in better quality, which boosts the demand for HDMI cables, thereby accelerating the market growth.
The HDMI cable market growth is driven by several factors such as surge in usage of audio/video devices and increase in demand for 4K UHD televisions. However, high installation cost and limited physical availability for devices, thus restraining the growth of the market. Furthermore, advancement in HDMI cable for higher bandwidth application coupled with display technology and enhancement of multimedia and entertainment industry in emerging economies offers lucrative opportunities for the market to grow.
Key Findings of the Study:
- By type, the standard HDMI Cable segment generated the highest revenue in the market in 2018.
- By grade, the HDMI 2.1 segment generated the highest revenue in the market in 2018.
- By application, the gaming consoles segment generated the highest revenue in the market in 2018.
- By region, Asia-Pacific generated the highest revenue in the market in 2018.
The key HDMI cable market size leaders profiled in the report include Amphenol Corporation, Panasonic Corporation, Koninklijke Philips N.V., Foxconn Technology Group, Sony Corporation, Hitachi Ltd., Molex, LLC, Nordost, Ce-Link, and Kramer Electronics Ltd. These key players adopted several strategies such as new product launch and development, acquisition, partnership & collaboration, and business expansion to increase their HDMI Cable market share.