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The cable assembly market size is forecast to increase by USD 81.9 billion at a CAGR of 6.94% between 2023 and 2028. Market growth hinges on several factors, notably the increasing demand for electric vehicles (EVs) as environmental concerns drive a shift towards sustainable transportation solutions. Concurrently, substantial investments in upgrading telecommunication infrastructure support the growing demand for high-speed internet and advanced communication networks. Additionally, the rising popularity of fiber optics, known for their high-speed data transmission capabilities and reliability, further fuels market expansion. These trends underscore a broader movement towards technological advancements and environmental sustainability, shaping the trajectory of the market. As EV adoption continues to rise and telecommunication infrastructure undergoes modernization, the demand for fiber optics is expected to escalate, driving market growth. By capitalizing on these trends and innovating to meet evolving consumer needs, market players can position themselves for sustained success in this dynamic landscape.
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In the market, the interplay between cables or wires and electrical signals forms the backbone of modern connectivity across various industries. From the telecommunications and aerospace sectors to industrial machinery and consumer electronics, reliable wireless technologies and miniaturized cable assemblies drive innovation. Essential components like routers, switches, and servers enable seamless data transmission, while advancements in rectangular cable assemblies and fiber optics assemblies cater to diverse applications. Moreover, with the rise of PCs, laptops, and mobile phones, the demand for efficient signal conditioning and multi-level modulation continues to shape the market landscape. Our researchers studied the data for years, with 2023 as the base year and 2024 as the estimated year, and presented the key drivers, trends, and challenges for the market.
The increasing demand for EVs is the key factor driving market growth. Cable assemblies are used in many onboard systems in vehicles, such as battery and power supply, ignition systems, steering systems, braking systems, interior and exterior lighting, and safety and security. Also, the number of electronic components, such as rear camera systems, navigation systems, and mobile and Bluetooth connections, is also increasing in vehicles. Globally, the automotive industry is growing at a steady pace, which is driven by countries in APAC, while the global EV (electric vehicle) market is growing at a much faster pace.
Further, the growing focus on promoting environmental sustainability and the depletion of fossil fuel reserves has increased the sales of EVs in the last few years. The sales of EVs have rapidly grown over the last ten years, especially in countries such as the US, Germany, China, the UK, and the Netherlands, due to technological advances, which have reduced the cost of batteries and improved the efficiency of EVs. The low prices and the availability of subsidies for EVs will increase their sales during the forecast period.
The growth in data centers will fuel market growth. Globally, the demand for data centers is rising, primarily due to the exponential growth of data volumes generated by enterprises and individual consumers. The generation of massive volumes of data has compelled several companies to build their own data centers or opt for colocation data centers to serve their customers. In addition, the increasing use of cloud computing is driving the demand for data centers.
Additionally, various firms are investing in and launching new data centers. The launch of new data centers, along with investments in future facilities, will create demand for assemblies, as they potentially reduce both cost and power consumption in data centers. The number of data centers is increasing, and hence, cable assembly manufacturers are offering products that can be used in data centers. For instance, TE Connectivity offers the Mini-SAS HD assembly that can be used in data centers. Therefore, the increasing number of data centers will drive the growth of the market.
The availability of counterfeit and grey-market products is a major challenge to the market growth. Over the past decade, several local and global vendors have been offering assemblies. China alone has more than 1,000 manufacturing plants that produce wiring and cable assemblies. These companies offer assemblies of different quality based on the application. End-user industries that focus on producing high-quality products procure high-quality cable assemblies offered by established vendors.
Furthermore, with the increase in the supply of assemblies and low product differentiation, several local vendors manufacture low-quality products that are unbranded or illegally use the brand names of prominent vendors. Low-cost products imported from developing countries can be inferior in quality. The availability of such counterfeit products affects the sales of global vendors and hampers their reputation. Moreover, the common availability of raw materials, the wide variety of products available, huge demand from the aftermarket, and low initial investments have increased the availability of counterfeit products, which is a challenge for the growth of the market.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and forecasting strategies.
Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
3M - The company offers cable assemblies such as industrial camera cable assemblies, MDR and SDR cable assemblies, and molded-on cable assemblies.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market caters to diverse sectors like the telecommunications industry, aerospace industry, and industrial machinery industry, as well as the consumer electronics industry. With an emphasis on the miniaturization of cable assemblies, companies address the demand for compact and efficient solutions. From firewalls to storage systems and application-delivery controllers, reliability is paramount. Innovations in fiber optics assemblies category and Copper PCB traces further enhance performance, offering high-speed data transmission capabilities across various band and applications.
This report extensively covers market segmentation by product (application-specific, rectangular, RF, circular, and others), application (automotive, consumer electronics, telecom and datacom, industrial, and others), and geography (APAC, North America, Europe, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the market forecasting report includes historic market data from 2018 to 2022.
The market share growth by the application-specific segment will be significant during the forecast period. The demand for application-specific cable assemblies will increase moderately during the forecast period. Application-specific cable assemblies are designed for very specific uses and are custom-made. These assemblies are majorly used in automotive, medical, telecommunication, military and defense, and other industries.
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The application-specific segment showed a gradual increase in market share from USD 42.60 billion in 2017. Application-specific cable assemblies are used in places where normal assemblies cannot be used. For instance, application-specific assemblies are used in defense/military vehicles that are made to suit harsh environments and extreme climatic conditions. The demand for application-specific cable assemblies is expected to increase from the defense sector to cater to the need for custom designs and specific characteristics. The complex design of electric and electronic equipment will also increase the demand for application-specific cable assemblies. However, the introduction of advanced assemblies, which are suitable for multiple applications, will reduce the demand for application-specific assemblies during the forecast period. Furthermore, our report provides a brief analysis of the historical and forecast market share and their segments along with the reasons for growth from 2018 to 2028.
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APAC is estimated to contribute 62% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The cable assembly market in APAC will grow rapidly during the forecast period. Countries such as China, Japan, South Korea, and India will drive the growth of the market in this region. OEMs from industries such as automotive, consumer electronics, telecom, and manufacturing are the major buyers of cable assemblies. These buyers will boost the demand for cable assemblies in this region during the forecast period.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Million" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The market serves a wide array of industries, including the healthcare, automotive, and telecom sectors. It provides solutions ranging from simple cables to complex harnesses, ensuring reliable and efficient electrical connections. With the rise of smart devices and the rapid expansion of the automotive industry, demand for high-density solutions and fiber optic cable assemblies is growing. However, challenges such as fluctuating raw material prices, competition, and supply chain constraints persist. Companies like Smiths Interconnect offer innovative products like the SpaceNXT Q series to address these needs. As 5G networks and digital transformation continue to drive demand, the market sees increased interest in custom cable assemblies, coaxial cable assemblies, and cable management solutions to support evolving networking and telecommunications infrastructure requirements. Additionally, the transition towards electric vehicles fuels demand for power cable assemblies and charging infrastructure, further propelling market growth in the energy distribution sector.
Further, the market is pivotal in both the healthcare and telecom sectors, ensuring reliable electrical connections in medical equipment and healthcare applications, as well as in IoT devices and datacom equipment. However, challenges like price pressure, lead times, and supply chain constraints persist due to factors such as fluctuating raw material prices and manufacturing processes. To address these challenges, the market offers modular cable assemblies and cable protection solutions tailored to specific needs. Moreover, with the increasing internet penetration and demand for Ethernet networking solutions, the market sees growth in cable landing stations and terrestrial and subsea cable networks to support data transfer and high-speed communication. Additionally, the rising adoption of electrical vehicles drives demand for charging infrastructure components like power cords and charging power cables. This underscores the market's significance in supporting various industries and technologies, from automotive to electronics sectors.
Market Scope |
|
Report Coverage |
Details |
Page number |
193 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.94% |
Market growth 2024-2028 |
USD 81.9 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
6.37 |
Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
Performing market contribution |
APAC at 62% |
Key countries |
China, US, Japan, India, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
3M Co., Amphenol Corp., Aptiv Plc, BizLink Holding Inc., Cablecraft Motion Controls LLC, Carlisle Companies Inc., Carrio Cabling Corp., Copartner Tech Corp., Corning Inc., Fischer Connectors Holding SA, Japan Aviation Electronics Industry Ltd., Koch Industries Inc., Minnesota Wire and Cable Co., Nexans SA, NKT AS, Prysmian Spa, RF Industries Ltd., Samtec Inc., Smiths Group Plc, TE Connectivity Ltd., and W. L. Gore and Associates Inc. |
Market dynamics |
Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the market forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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