Local Area Network (LAN) Cable Market

Local Area Network (LAN) Cable Market Outlook (2023 to 2033)

The global local area network (LAN) cable market is valued at US$ 14.3 billion in 2023 and is forecasted to climb to US$ 51 billion by 2033, increasing at a significant CAGR of 13.5% from 2023 to 2033.

A local area network (LAN) cable is a piece of hardware that joins routers, modems, and switches with peripheral devices such as laptops and computers. Data is sent between devices in a local area network using LAN cables. The most widely used computer network technology for LAN is Ethernet, which is standardized under IEEE 802.3.

The idea of data center convergence, which unifies separate servers, storage systems, and networking devices into an integrated system, is gradually permeating the market for IT infrastructure, which is expected to drive the growth of the LAN cable market during the forecast period. To save operating costs, several businesses have begun to discard dissimilar architectures. Also, it results in enhanced flexibility, increased production, and easier maintenance of the network systems. Single vendor design for converged infrastructure simplifies deployment, strategic planning, and assistance.

Due to the need for fiber optic cabling to link server racks and storage arrays, data convergence is driving the industry. To maintain productivity while managing the network's increased density, it helps to reduce cable paths. For intricate and high-capacity cable management, the use of high-density connectivity items such as patch panels and cabinets assure the system's effective operation.

Ethernet cables are a component of networking systems that make it possible for numerous computers to join a single network and facilitate device connections. A system of wires and connections called Ethernet is a universal standard used to link numerous computers, equipment, and devices together over a single network in an organization.

Networking cables are used to join one network device to another or to connect more than two computers to share a printer, scanner, or other devices. Several classes of cable testers, including optical fiber cables, coaxial cables, and twisted pair cables, are used, depending on the design, protocol, and scale of the network.

• To enhance cable communication options, BELDEN Inc. launched the line extension product q4 in December 2019. The goal was to assist end users in lowering costs and expediting the installation procedure. Whenever a connection needs to be replaced, this product's one-line modular installation enables rapid and affordable repair.

Report Attributes	Details
Local Area Network Cable Market Size (2022)	US$ 12.6 Billion
Estimated Market Value (2023)	US$ 14.3 Billion
Forecasted Market Value (2033)	US$ 51 Billion
Global Market Growth Rate (2023 to 2033)	13.5% CAGR
Asia Pacific Market Growth Rate (2023 to 2033)	16.8% CAGR
Key Companies Profiled	Black Box Corporation Fiberstore Otscable.com Co. Ltd. Infinite Electronics International Inc. Belden Inc. Hitachi Ltd. Nexans Sa Dba Primus Cable

Why are Ethernet LAN Cable Applications Increasing Rapidly?

“Higher Performance of Connected Devices and Easy Installation”

Ethernet LAN cables are defined as an international standard for wires and cables to be linked to various computer devices and machines via one network to interconnect all other computers for various purposes. A widely used and trusted networking technology is Ethernet wire. This is due to the fact that it is simple to install and has several advantages over alternative methods.

By fast data transport, Ethernet cables enhance the performance of connected devices. Computers, routers, modems, and other wired internet-enabled devices can all connect to and transmit broadband signals using Ethernet LAN cables. Ethernet LAN cables are important in India's oil and gas, automotive, industrial, and other industries because they make it simpler to transport data and operate machinery.

“Increasing Usage in Commercial Sector and for Infrastructural Developments”

One of the many factors driving the expansion of the market is the increased need for the construction of data hubs and their extensive usage of them by commercial and governmental organizations. Increasing demand for Ethernet cables and high bandwidth data transport is one aspect that could aid in the market's progress. The market's expansion may also be partially or indirectly attributable to the growing infrastructure and development initiatives.

Other factors that may be directly linked to the expansion of this business are their great durability and lesser security risks when compared to additional interacting approaches such as wi-fi and Bluetooth technologies.

What is Limiting LAN Cable Demand Growth to Some Extent?

“High Installation Cost and Growing Demand for Wireless Devices”

One of the key factors that may impede the growth of the LAN cable market in the current technological period is when 5G is employed in conjunction with isolated LTE. These wires may only be utilized while seated at a solitary fixed location; they cannot be carried around by anyone.

The growing requirement for wireless Ethernet cables that may be transported anywhere the user desires to carry them is another hurdle inhibiting industry expansion. Also, the price of installation for such a cable is crucial which will hamper the market growth over the coming years.

Country-wise Insights

Why is China Leading the Asia Pacific Market for LAN Cables?

“Rapid Technological Advancements and Rising Internet Usage”

The Asia Pacific region is projected to lead the market in the coming years due to the rising demand from countries such as China, Japan, Australia, Taiwan, and India. The adoption of cutting-edge technology, a rise in digital developments in the professional, domestic, and manufacturing industries, several data hubs, and a rise in demand for high-bandwidth data transmission are predicted to be the key factors driving the market expansion in China.

The number of broadcast activities is increasing as Internet usage increases in the country. The market in China is expected to expand at a CAGR of 16.8% during the forecast period.

Development of the market is anticipated to be aided by crucial elements such as government measures to promote digitalization, sophisticated infrastructure, an aging population, rapid adoption of smart devices, and investments in cloud and IoT technologies.

What Makes the United States an Attractive Market for LAN Cable Manufacturers?

“Technologically Advanced Infrastructure and Rising Demand for Data Centers”

Owing to the region's technologically innovative infrastructure and the construction of new data centers, the market in North America is anticipated to increase at a substantial CAGR of 13.4% over the coming years. Another factor driving the growth of this sector is the rise in demand for quick data transfer, the availability of technologically sophisticated infrastructures, and the establishment of several data hubs to create more jobs.

Rise of the market over the past several years has been primarily driven by the emergence of technologically advanced companies in the LAN cable market, growing use of fiber optic cables, and the expansion of broadcast applications.

Technology improvements in the Ethernet cable business and rising industrial demand for power over Ethernet (PoE) cables are predicted to offer the market tremendous growth potential. These are the main driving forces behind the expansion of the market over the course of the projection period.

Category-wise Insights

Which Type of LAN Cables are Most Widely Used?

“CAT 6 Used for Large Bandwidth Requirements”

The market for local area network cables is expected to grow significantly as a result of the development of several market segments. CAT 6 cables are leading among them and will have a major impact on market growth. These cables are backward-compatible twisted pairs of Ethernet and further network corporal layers, including CAT 5 & CAT 5E cables. Cables outperform all other types in terms of speed, thickness, and bandwidth support.

Although CAT 6 connections are rather long Ethernet cables, they can only support speeds up to 10Gbps and give bandwidth up to 250 MHz for up to 55 meters. In addition, CAT 6 has an additional plastic string core in the midst of the twisted internal wiring, which provides an additional barrier of defense and reduces crosstalk.

What are the Major Applications of LAN Cables in the Commercial Sector?

“Increasing Number of Office Spaces and Digitalization of Commercial Buildings”

The commercial segment is expected to grow more quickly during the forecast period due to the growing number of IT and other offices, buildings, malls, healthcare facilities, and retail establishments, or the digitalization of commercial buildings around the world that used LAN cables to transfer data and control machinery.

LAN cables are frequently utilized in different commercial sites to convey data effortlessly with LAN environments due to better reliability in terms of connectivity, as opposed to older networking techniques.

Competitive Landscape

With the presence of key players in the LAN cable market, companies are participating in the rapid creation of new goods with improved features to strengthen their product portfolio and maintain a dominant position in the market. These players have taken strategies such as expansions, agreements, partnerships, and joint ventures.

The top three manufacturers of LAN cables control a majority of the revenue share in 2023 due to the market's intense competition and concentration. Key market participants are Fujikura Ltd., Nexans, and Belden Inc. To have a competitive edge, market vendors concentrate on growing their clientele.

• The announcement made by Nexans SA in September 2021 that it has entered into an agreement to acquire Centelsa, a premium Latin American cable manufacturer engaged in the production of cables for building and utility purposes. Government approval has also been secured by businesses for the introduction of items that can offer high speed and security.
• February 2019: I-com introduced innovative black & white cat6 and flat cat5e Ethernet cables to address the problem of bending in conventional round cables. These recently introduced cables have moulded RI 45 local area network cable connectors over them and allow uninterrupted transmission in small locations.
• HYPERTE and Black Box formed a distribution agreement in November 2019 to give their dealers and installers access to their customers in the United Kingdom and Ireland. By putting this arrangement into action, black box firms were able to offer technical backing, resources, and expedite delivery. Also, this deal provided a strong value proposal for expansion in the public and commercial sectors globally.

LAN Cables Industry Research Segmentation

• By Type :

  • CAT 6 Cables
  • CAT 6A Cables
  • CAT 7 Cables
  • CAT 5E Cables
  • CAT 5 Cables

• By Application :

  • Industrial
  • Commercial
  • Residential

• By Region :

  • North America
  • Latin America
  • Europe
  • Asia Pacific & China
  • Middle East & Africa