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Ethernet cable market to reach $1 billion by 2022

Telecommunications Market Research

Fiber-optic cables are swiftly gaining acceptance and their market share is rising as their costs have come down. In spite of the global domination of copper cables, fiber-optic cables are replacing traditional copper cables owing to their several advantages. The demand for these cables is also increasing due to investments in telecommunications and information technology and new developments in countries such as China, Brazil, India, and Western and Eastern European countries. In addition, increased advanced industrial activities in oil & gas industries in Middle East countries would fuel the Ethernet cable market growth in both copper and fiber-optic cable segment globally.

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Ethernet Cable Market report, published by Allied Market Research, forecasts that the global market is expected to garner $1 billion by 2022. Asia-Pacific dominated the market, contributing more than 35% share of the overall market revenue, followed by Europe.

The demand for high speed internet and rise in data center installation activities, primarily in the industrial sector, have fueled the market growth.

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Swift rise in demand for high-speed internet facility, increased application of automation across industries, and reliable performance of Ethernet cables drive the market growth.

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However, high installation cost and limited availability may restrict the market growth. Moreover, it is anticipated that the rise in Power over Ethernet (PoE) coupled with increase in data center installations is anticipated to fuel the global market growth.

The copper cable segment accounted for more than 50% of the overall Ethernet cable market in 2015. High speed and low cost of these cables in industrial applications led this segment to dominate the market.

However, fiber-optic cable segment would grow significantly and is expected to grow at a CAGR of 20.5% during the forecast period. This is due to increase in installation of fiber-optic cables for long distance applications as many renowned companies are launching advanced technology fiber-optic Ethernet cables.

Moreover, China did significant contribution in the Asia-Pacific market in terms of revenue for fiber-optic technology.

Among various geographical regions, Asia-Pacific has contributed the maximum revenue share in 2015 and is expected to maintain its lead further as well. This could be attributed to rise in the internet demand due to rising population and increasing industrial activities.

Moreover, high number of oil & gas industries in the Middle East use Ethernet cables for various applications and this is also expected to support the market growth.

Asia-Pacific is also projected to be the fastest growing region throughout the analysis period as China has the highest demand for fiber-optic cables due to high-speed internet demand and various security reasons. Moreover, enhancement in industrial development and increase in expenditures in emerging markets (such as Latin-America and Middle East) to satisfy the exponentially growing economies in these countries have strengthened the market growth.

Technological advancements for cost-effective and long distance applications in these nations offer a lucrative opportunity for the Ethernet cable market growth.

Key findings of the Ethernet Cable Market:

  • In 2015, copper cables segment led the overall Ethernet cable market revenue, and it is projected to grow at a CAGR of 14.3% during the forecast period.
  • Broadcast application segment is expected to exhibit rapid growth, owing to the rise in media and telecast activities.
  • Currently, Asia-Pacific leads the world Ethernet cable market and it is expected to continue this trend further owing to the swift rise in internet demand from several countries including China, Japan, and India.
  • China leads the overall Asia-Pacific Ethernet cable market with more than one-third of the market share.

The key players in the Ethernet cable market focus on expansion of their business operations in emerging countries with acquisition and expansion as a preferred strategy. The major players profiled in this report include Belden Inc., General Cable Technologies Corporation, Nexans, SAB Brckskes GmbH & Co.

KG, Siemon, Schneider Electric, Anixter Inc., Siemens AG, Hitachi, Ltd., and Prysmian Group.

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