Networking Cable Market Size, Share | Industry Report [2031]

Report Description

Networking Cable Market Outlook

The global networking cable market size was valued at USD 19,989.5 Million in 2022 and is projected to reach USD 48,387.7 Million by 2031, expanding at a CAGR of 12.1% during the forecast period. Network cables, also known as networking cables, are designed to connect and transfer data and other information between computers, routers, and storage systems.

It functions as a data carrier that allows data to move from one location to another. Networking cables are pieces of networking hardware that allow the connection of one networking device to another device and the share information can be stored or used using printers or scanners.

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Macro-economic Factors

GDP

Gross Domestic Product (GDP) is an indicator used to measure the size and performance of the economy of a country. A country’s GDP rises due to rising industrial production. The expansion of the electronic and electrical industry is one of the major consequences of increasing industrial activities.

Rising demand for submarine cables that use ultra-high-capacity fiber optic undersea cable system is a key aspect driving the growth of the electronic and electrical industry. These systems carry over 97% of intercontinental data traffic because they are more efficient than satellites at transmitting communications.

Subsea cables serve as the Internet's global backbone, connecting people, businesses, and economies all over the world.They facilitate connecting people to the cloud, provide streaming video, and boost efficiency and productivity. Many regions invest in subsea fiber-optic cables to expand broadband capacity for people and businesses in developed and developing economies around the world.

For instance: market players in Asia Pacific made several investments in subsea fiber-optic cables and these investments are expected to add approximately USD 422 billion to the GDP of countries in APAC between 2021 and 2025. Europe invested in the MAREA project, one of the highest-capacity transoceanic cables in the world. According to RTI International, this investment has been contributing about USD 18 billion each year to Europe’s economy since 2019.

R&D Activities

R&D activities in networking cables aim to improve efficiency. For instance, Power over Ethernet (PoE) cables have undergone advancements to deliver both data and power to networked devices, reducing the need for separate power sources. Furthermore, research is ongoing to develop networking cables that can transmit data over longer distances without significant signal degradation.

This includes investigating the use of specialized fibers, such as single-mode fibers, for long-haul communications. Furthermore, investments by key players in R&D activities to develop new technologies in their products and service solutions are expanding the size of the networking business. R&D activities in networking cables are conducted with a focus on two main objectives.

Firstly, as a short- to medium-term goal, manufacturers aim to develop new technologies for the operation and maintenance of optical network facilities and to reduce the maintenance and operation costs of optical access networks. Secondly, as a medium- and long-term goal, players are working on innovative next-generation optical fiber as it is expected that conventional fiber is unable to handle the future's explosive growth in traffic.

Technological Advancements

Advances and innovations in technologies provide significant advantages in networking cables development, design, and efficiency. New optical couplers and optical switches enable a new communication trend, known as all-optical networks (AON). This technology allows data to be transmitted without any electrical processing, allowing for longer transmission distances.

Fiber optics have transformed technology in several countries, however, their impact on others, especially low-economic countries is very limited. Several IT giants are on the verge to expand the innovations of products across the globe. To mention a few, Simba, a new Facebook-led initiative and media platform, aims at connecting the world with an underwater data cable that provides access to new markets while reducing bandwidth costs.

Alphabet Inc., Google's parent company, is also investigating the feasibility of constructing a cable system along Africa's west coast. The proposed Facebook project is likely to connect existing European and Asian data centers.

Advancements in Ethernet cables have also led to the development of Cat 6, Cat 6a, Cat 7, and Cat 8 cables, each offering higher bandwidth and data rates than their predecessors. Furthermore, the development of Multi-Gigabit Ethernet, supporting data rates up to 2.5 Gbps and 5 Gbps, provides faster connectivity without the need for costly infrastructure. These advancements are boosting the market.

Networking Cable Market Dynamics

Major Driver

Rapid Urbanization in Developing Economies

Rapid urbanization in developing economies leads to an increase in data consumption, which drives the overall market. The rising economic activity and the increasing investment in infrastructure and construction further boost the market. Additionally, the massive expansion of service providers in telecom and internet is pushing to accelerate the demand for coaxial cables.

From an economic standpoint, urbanization generally brings about improved productivity, better incomes, education, healthcare, and transport, along with its own set of challenges. As a result, 'smart cities' are required, in which information and communication technologies are integrated to improve operations.

A surge in demand for high-speed & low-latency technology and easy installation aspects of connection features offered by networking cable drives the market during the forecast period. For instance, over the last 10 years, urbanization has been most prominent in developing economies, particularly in Asia and Oceania, where the urban rate has increased from 43.3 % in 2011 to 50.0% in 2021.

Major Driver

High Reliability and Low-security Threats Offered by Networking Cable

Networking cables provide a high level of security than wireless networks. A shielded network cable has a single connection to that server or workstation that no other workstation can see; hence, it is more secure than a wireless network. Although several measures including passwords for protected Wi-Fi networks help improve the security of wireless networks, they are never as secure as network cabling systems.

It is easier for criminals to hack wireless data as compared to networking cables. For instance, one of the risk factors in the submarine is the growing volume of data flowing through cables, which encourages third countries to spy on or disrupt traffic. Fiber optic cable is extremely durable and intrinsically safe as it offers no risk of spark hazards since data is transferred via light and not electricity.

Networking cables play a crucial role in critical infrastructure sectors such as energy, transportation, and healthcare. Government and Defense organizations deal with highly sensitive and classified information that requires the utmost security and reliability. Fiber optic cables with advanced encryption and authentication capabilities are often used in these sectors that provide secure connections to prevent data interception and maintain continuous and secure communication.

Furthermore, in the healthcare sector, networking cables are used for transmitting patient data, medical records, and diagnostic images securely and reliably. Fiber optic cables with robust security and low susceptibility to electromagnetic interference are widely used to safeguard sensitive healthcare information. Thus, the growing demand for networking cables from various end-use industries is expected to help the market in gaining significant momentum, which in turn, is expected to boost the market during the forecast period.

Increasing Demand for High-Speed Internet Facilities

The rising demand for high-speed internet is expected to propel the broadband services market forward. Broadband refers to high-speed internet access that is always faster than dial-up connections. The broadband connection uses a networking cable exclusively for data transmission.

For Instance: According to the Organization for Economic Cooperation and Development, a Paris-based international organization, high-speed broadband subscriptions increased by 15% across all 38 OECD (Organization for Economic Cooperation) countries between June 2020 and June 2021. It also claims that 32% of fixed broadband subscriptions in 38 countries are for high-speed broadband.

As a result, rising demand for high-speed broadband services is propelling the expansion of networking cable market growth during the forecast period. With the rising popularity of bandwidth-intensive applications, such as streaming services, online gaming, and cloud computing, there has been a surge in the deployment of internet connections.

To support these high-speed connections, network providers and service providers have been investing in upgrading their infrastructure, including the installation of fiber optic cables and advanced Ethernet technologies such as Cat 6A and Cat8.

Furthermore, with the rising adoption of remote work and online communication tools, video conferencing platforms such as Zoom, Microsoft Teams, and WebEx are experiencing tremendous growth. To ensure smooth and uninterrupted video conferencing experiences, high-speed internet connections are necessary, driving the demand for networking cables that are capable of delivering fast and reliable data transmission.

Energy Efficiency and Environment Sustainability

The increasing awareness of environmental issues and the need to reduce carbon emissions have led to the implementation of green initiatives and regulations by governments and organizations. Many countries have set energy efficiency standards and regulations for various industries, including the networking sector.

This has created a demand for energy-efficient networking cables that consume less power during operation, contributing to reduced energy consumption and environmental impact. For instance, the US has energy efficiency standards for networking cables by the Federal Communications Commission (FCC) and the Environmental Protection Agency (EPA).

These standards aim to reduce energy consumption and promote energy-efficient networking infrastructure.  The European Union (EU) also has energy efficiency regulations for networking cables under the EU’s Energy-related Products Directive (ErP). China has implemented energy efficiency standards through its national standardization agency, the Standardization Administration of China (SAC).

Energy-efficient networking cables not only benefit the environment but also offer cost savings to businesses. Lower power consumption of energy-efficient cables leads to reduced energy bills, making them economically attractive to organizations. As energy costs continue to rise, businesses are increasingly looking for networking solutions that minimize energy usage without compromising performance.

Many companies are embracing sustainability as part of their corporate social responsibility and business strategies. They are seeking environmentally friendly solutions, including networking cables, to align with their sustainability goals. By opting for energy-efficient and eco-friendly sustainable networking cables, organizations can reduce their carbon footprint and demonstrate their commitment to sustainable practices, attracting environmentally conscious customers and stakeholders.

Restraints

Fluctuating Cost of Raw Materials

The high price fluctuation of raw materials is expected to limit the market growth during the forecast period. The prices of major raw materials such as aluminum, copper, and plastic are subject to market fluctuations influenced by factors such as supply and demand dynamics, global economic conditions, and geopolitical events. When the prices of these raw materials rise, it directly impacts the cost of manufacturing networking cables.

This can lead to increased production costs for cable manufacturers, ultimately affecting the pricing and profitability of networking cables in the market. The prices of insulating materials such as polyvinyl chloride (PVC) and fluorinated ethylene-propylene (FEP) have increased substantially in the recent past. The cost of these raw materials is affected by availability, demand, purity, and ease of procurement.

Other factors related to the material itself, including how difficult it is to extract from the earth and prepare as well as its overall purity, are also influential. The price of networking cables also fluctuates based on the cost of raw and engineered materials used to manufacture cable wire.

Optical fibers, made primarily of silica or glass, are another key material in the production of fiber optic cables. While the prices of optical fibers have generally decreased over time due to technological advancements and increased production capacity, fluctuations in the cost of raw materials used in fiber production can still impact the market.

For instance, if there are supply chain disruptions or increases in the cost of manufacturing components such as dopants or coating materials, it can contribute to price fluctuations and impact the availability and pricing of fiber optic cables.

Fluctuations in raw material prices can also create challenges for cable manufacturers in maintaining competitive pricing. If the cost of raw materials rises significantly, manufacturers may face difficulties in absorbing the cost increase without affecting profit margins. These factors are restraining the growth of the networking cables market.

Opportunity

Rise in Demand for Networking Cable from the Industrial Sector

Coaxial and micro-coaxial cables are widely used in the aerospace and defense industries as these cables are used to connect critical electronic components in aircraft. Since aircraft are equipped with a variety of radio communication equipment, the isolation of radio signals is critical for the proper operation of this equipment.

Coaxial cables play an important role in separating electronic communication equipment from radio signals to minimize any interference in the signals. The increased demand for mobile devices with next-generation wireless internet access is expected to drive the construction and demand for mobile towers, stations, and related equipment. The presence of large size of consumers of coaxial cables is creating lucrative opportunities for market players.

Increased Government Spending for Establishing Smart Cities

Increased government spending on smart city projects has boosted the demand for networking cables in recent years. Coaxial cables are used for local and inter-local area network connectivity, as well as network transfer over the Internet. With the increased use of coaxial cables, the total volume of cable production has significantly increased over the years.

Favorable government policies and initiatives to support coaxial cable manufacturers in the form of tax rebates and infrastructure is projected to fuel the overall market in the coming years. Governments of developed countries are working on smart city plans to digitize the commercial and industrial sectors, thus strengthening the market globally. These initiatives generate opportunities for cable manufacturers to supply high-speed, reliable, and secure networking cables to support digital infrastructure.

Scope of Networking Cable Market Report

The report on the global Networking Cable Market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

 Networking Cable Market Segment Insights

The global networking cable market is segmented on the basis of type, application, and region.

Types Segment Analysis

In terms of Type, Networking Cable Market is segmented into coaxial cable, twisted pair, and optical fiber cable. The optical fiber cable segment is expected to dominate the market in 2022, due to its rising demand in the media and entertainment sector.

Furthermore, the use of optical fiber cables has increased in the past 10 years due to technological development along with high speed and capacity. These cables are widely used for transferring information on high-definition TVs.

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Application Segment Analysis

On the basis of application, the Networking Cable market is segmented into household and commercial. The commercial segment is expected to hold a substantial share of the market during the forecast, as networking cables are majorly used in various commercial areas for transmitting data seamlessly.

Rapidly increasing usage of networking cable in transmission lines inside the base station transceiver station (BGS) equipment and in long-distance telecommunication systems or cellular networks in commercial areas are projected to fuel the segment in the coming years.

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Regional Analysis

Based on regions, the Networking Cable Market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. The market in Asia Pacific is growing at a rapid pace during the forecast. The high growth of telecom and IT expenditure is expected to drive the market in the region.

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Key Benefits for Industry Participants & Stakeholders

• In-depth Analysis of the global Networking Cable Market
• Historical, Current, and Projected Market Size in terms of Value and Volume
• Potential & Niche Segments and Regions Exhibiting Promising Growth Covered
• Industry Drivers, Restraints, and Opportunities Covered in the Study
• Recent Industry Trends and Developments
• Competitive Landscape & Strategies of Key Players
• Neutral Perspective on Global Networking Cable Market