For this issue, I have decided to write about the foreseeable future of the structured cabling industry. Where we now and what are the projections for the next 5-10 years? Entering 2012, the Structured Cabling Industry in the US is approximately $5 Billion. Let’s take a quick look back at some projections that have been forecasted for our industry.
World Market for Structured Cabling Reaches $7 Billion
May 1, 2000 12:00 PM, By EC&M Staff
A report published in 2008 had this prediction
Worldwide Structured Cabling Systems Market Will Hit $29.1 billion by 2013, says New Report.
This report published in 2008 shows the Global Structured Cabling market at $15.3 Billion dollars with a prediction that it would double by 2013. This is an annual growth rate of 20%. There are now current predictions that state that the Structured Cabling industry will continue to grow at a rate of 15-20% per year for the foreseeable future. If that holds true then by 2020 the Global market for SCS solutions should be around $60 Billion and the US market about $28 Billion.
Traditionally, the US has been the dominant player in the use of Structured Cabling. Here is a chart from 2000 when the Global market for SCS solutions was a mere $7 billion.
At that time, nearly half of all structured cabling was done in the US. Today, the trend is the ROW (rest of the world) share is growing. Here is a chart from 2008. What it represents is that the total market share for the US shrank to 33% of the world market.
The trend is that there is growing demand in the rest of the world for SCS solutions. What that means is that more than ever, the US market is competing with the Global market for the materials that go into these products. We will continue to see higher and higher copper prices as well as cost increases in PVC, PE, FEP and other ingredients that go into manufacturing these cables. In all likelihood, 2009 was the bottom for cable prices so anticipate these products will continue to increase in cost. On a positive note, this growth represents major opportunities for those who will think beyond the borders of the US. There is tremendous worldwide demand for knowledgeable SCS professionals.
What we are experiencing in our industry is staggering historic growth. While there may be a few blips along the way, the next decade will continue to be one of phenomenal growth and opportunity. What is causing all this growth? The simple answer is IP Convergence. We have been talking about converged networks since the late 80’s but it really is only now gaining traction. SCS solution have become the cabling that handles all voice, data, DAS for Wireless, Building automation, CCTV, Security, Access Control and any other special systems in a building via a IP base protocol. We will see rapid adoption of this technology and the cabling types need to support these networks. Let’s save that discussion for next time
- posted by, Tom McAllister, RITP- National Sales Manager,