LONDON, Oct. 11, 2016 /PRNewswire/ -- A new report published by Allied Market Research titled, "Cables and Connectors Market - Global Opportunity Analysis and Industry Forecast, 2014 - 2022", projects that thecables and connectors market is likely to garner revenue of $125.3 billion by 2022, with a CAGR of 11.1% from 2016 to 2022. In the year 2015, Asia-Pacific dominated the cable and connectors market owing to the huge investment in infrastructure, energy, and technology development. Moreover, Asia-Pacific is expected to exhibit the highest growth over the forecast period.
Increasing investments by government to improve connectivity within regions, rising demand for higher bandwidth, heavy investments in military and submarine sectors are expected to drive the growth in globalcables and connectors market. Large number of developments have been undertaken by numerous government organizations of various countries including India, China, and Brazil to improve the network infrastructure of their regions. Such initiatives are increasing the demand for high speed data transmission cables and connectors. Further, growing number of data centers and government investments to increase rural connectivity are anticipated to provide potentially huge market for cables and connectors. However, complex fault detection and troubleshooting process and diversion of investments in wireless communication infrastructure are expected to limit the market growth.
External cables and connectors segment accounted for about 70% of the overall cables and connectors market revenue in 2015, owing to their higher adoption in electronic devices. These cables and connectors include USB cables and connectors, headphone jack, fibre optic cables, VGA cables, Ethernet cables, and data cables which are used to connect internal cables and connectors. This segment is anticipated to grow at the CAGR 10.4% during the forecast period. Based on regions, Asia-Pacific market dominated the external cables and connectors market in 2015 and is expected to continue its dominance throughout the forecast period, exhibiting the highest CAGR 12.1%. This is due to increasing adoption of external cables and connectors in data centers huge investments in infrastructure, energy and technology development in Asia-Pacific region.
CAT5/CAT6 segment of cables and connectors based on product type, is expected to maintain its lead in revenue generation during the forecast period. This segment accounted for the maximum revenue share in 2015 and is expected to grow at a CAGR 10.9% during 2016-2022. This boost in the CAT5/CAT6 segment is due to changing customer preferences, increasing data production rate and higher adoption of CAT6 wires in data transfer. However, USB segment is anticipated to grow at the fastest CAGR 13.3% during the forecast period, owing to increased demand for digital data storage, constant enhancement in memory capacity and emergence of USB 3.0 & 3.1 standards for high speed data transfer.
Among the different industry verticals, commercial industry which includes sectors such as IT & telecom, electronics, and healthcare industries consumes a major share of this market. This segment contributed around 38% of total revenue in 2015 and is expected to dominate the market throughout the forecast period at a CAGR 10.6%. The market is driven by the growth of IT and increased dependence of businesses and institutions on high-performing transmission systems. With the increasing penetration of technologies such as cloud and Internet of Things (IoT), the demand for reliable, high performance and secure data connectivity and transmission has increased. From a growth perspective, oil & gas vertical is expected to grow at the highest CAGR during the forecast period. Theoil & gas industry is a sensitive market and decreasing oil and gas reserves have propelled the demand for oil & gas exploration in newer geographies.
Asia-Pacific is the largest and fastest growing region and is expected to maintain its dominance throughout the forecast period. Asia-Pacific region is emerging with opportunism for the cables and connectors market on account of huge investments in infrastructure development in countries like India and China, focus on energy management and strengthening technological advancements. The region is expected to grow at a CAGR 13.0% during the forecast period. North America ranked second in terms of market share, accounting for around 28.0% of the global market revenue of cables & connectors in 2015.
The commercial industry comprising IT & telecom, electronics, and healthcare industries, is growing rapidly and consumes a major share of this market. With the increasing penetration of technologies such as cloud and Internet of Things (IoT), the demand for reliable, high performance and secure data connectivity and transmission has increased in Asian countries, such as, China, Japan, Singapore, and India, who were the prominent revenue contributors in 2015. These countries are likely to dominate the market during the analysis period due to cheap labor, low manufacturing cost, and large population, states Bhawna Kohli, Manager Research at AMR.
Asia-Pacific is anticipated to dominate the globalcables and connectors market during forecast period as governments of emerging markets are taking initiatives towards connectivity within countries; and due to rising demand for high speed cables and connectors in various end user industries. LAMEA is also projected to be one of lucrative markets, exhibiting the second highest CAGR after Asia-Pacific. In this region, external cables and connectors segment accounted for around 70% of total market revenue in 2015. The Middle East region generated the highest revenue in LAMEA cables and connectors market in 2015; and is expected to dominate the market throughout the analysis period.
Key Findings of Cables and Connectors Market:
Commercial industry vertical which includes sub segments such as IT, telecom & networking, healthcare, business/office and electronics, is estimated to consume major market over the analysis period.
In 2015, external cables and connectors segment led the overall cables and connectors market revenue, and is projected to grow at a CAGR 10.4% during the forecast period.
CAT5/CAT6 cables segment is expected to consume largest share of cables and connectors market due to evolving networking types and demands for high speed and safe connectivity.
Asia-Pacific would lead the market, accounting for over 40% of the market revenue by 2022.
The report outlines the competitive scenario of the globalcables & connectors market, providing a comprehensive study of the key strategies adopted by major companies. Key market players profiled in the report are Amphenol Corporation, Molex Inc., Fujitsu Ltd., TE Connectivity Limited, Prysmian S.P.A., 3M Company, Nexans, Huawei Technologies Co. Ltd., Alcatel-Lucent (Nokia Corporation), and Axon Cable S.A.S.
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