Wednesday, 31 May 2017

Expansion of Information Technology Sector Prompts Cable Management Systems Manufacturers to Intensify R&D Activities

The advent of fiber-optic and coaxial cables has brought in rapid digitization across the world, leading to high utilization of wiring and cables in infrastructure as well as equipment. The humongous growth of information technology and the increasing number of enterprises and institutions that employ high-performance cabling has fueled the demand for advanced cable management systems for data and communication applications, finds a new study by Transparency Market Research. As a result, manufacturers of these systems are focusing aggressively on introducing new products and systems that are capable of adapting to these varying demands.

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According to TMR, an upsurge in the adoption of communication technology is imminent in the near future. Market participants will need to increase research and development activities to cope up with rapidly evolving technologies. At the forefront of this market are Schneider Electric SE, Thomas & Betts Corp., Legrand SA, HellermannTyton Group Plc., Cooper Wiring Devices, and TE Connectivity Ltd.

Expansion in BRICS Construction Industry Fuels Demand for Cable Management Systems

Currently, BRICS countries are witnessing rapid urbanization due to their rising economy. The construction industries in these nations are exhibiting considerable growth, specifically in the residential and commercial sectors. Brazil has recently allotted US$300 bn for the modernization of its ports, power plants, and road networks while, in India, a budget of around US$500 bn has been allocated to be spent on a number of infrastructure projects.

All these developments are likely to increase the need for wiring and cabling in these economies, thereby fueling the demand for cable management systems significantly. Additionally, the growing demand for energy and the continually increasing investments in infrastructure across the world are projected to add significantly to cable management systems’ consumption over the forecast period.

Most Attractive Opportunities to Arise in Asia Pacific

According to TMR, the opportunity that the global market for cable management systems holds, is likely to grow from a value of US$14.7 bn in 2015 to US$33.9 bn by 2024, expanding at a CAGR of 9.80% between 2016 and 2024. North America has been a prime contributor to the revenue generated in this market over the last few years. Experts suggest this trend will remain continuous over the forecast period. However, in the coming years, Asia Pacific is anticipated to offer most attractive opportunities for cable management systems manufacturers on account of accelerating rate of urbanization in the region.

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Cable trays are expected to remain the highest demanded products in this market over the forecast period. In 2015, this segment holds a share of approximately 14% in the overall revenue. Metallic cable management systems, which accounted for a share of more than 60% in the overall consumption in 2015, will continue to lead the market with majority share during the forecast period.

The construction industry accounts for the majority of the consumption of cable management systems across the world. The residential segment in the construction industry is emerging as the largest consumer of these systems due to the upswing in the demand from urban residential areas.

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