North America Structured Cabling Market Size

North America Structured Cabling Market Analysis

The North American structured cabling market is expected to register a CAGR of approximately 6.1% over the forecast period. The increasing investment in advanced communication and networking infrastructure, along with the growing investments in data centers, are driving the growth of the structured cabling market in North America.

• Structured cabling is defined as building or campus telecommunications cabling infrastructure. Typically, it consists of several standardized, more minor elements. Structured cabling systems are the most adaptable technology that is constantly being updated, as this technology helps make networking user-friendly and organized. Moreover, the fiber and copper ports deployed offer higher scalability for future growth, which is crucial in a data center and is one of the driving factors for the structured cabling market's growth.
• The structured cabling uses a predefined, standards-based design with predefined connection points and pathways. The cabling used in a structured wiring design is specified by the bandwidth requirements of the system and is tested to ensure proper performance. Although a structured cabling system may take longer to install and have a higher initial cost, the operational cost is ultimately lower, and the system's life cycle will be longer when compared to an unstructured system.
• With the rise of intelligent cities, the number of public and private cloud data centers has been increasing rapidly. The significant increase in internet users and the demand for personal cloud storage are the few driving factors for structured cabling in the North American region. Furthermore, the North American region is among the most critical data center markets, supporting the studied market's growth. For instance, according to CloudScene, the United States will have about 2,701 data centers in 2022.
• The increasing demand is attracting new players to enter the North American market. For instance, in March 2022, Vantage Data Center announced its expansion in Canada with a new campus in Montreal and further expansions to existing sites in Montreal and Quebec City. The company said it would invest an additional CAD 900 million (USD 713 million) in scaling its Canadian operations.
• Similarly, Amazon Web Services (AWS) recently announced an expansion of its infrastructure in Canada. The company will establish a data center region in Calgary that will be available to millions of AWS customers in Canada, including many Alberta-based businesses and public sector organizations.
• However, factors such as the high initial investment required challenge the growth of the studied market. Additionally, the increasing proliferation of wireless equipment and devices is also expected to challenge the growth of the studied market during the forecast period.
• The structured cabling market faced significant delays, particularly in the North American region, where the outbreak of COVID-19 led to the government implementing stringent lockdown measures, resulting in a slowdown in new infrastructure development projects. However, the pandemic has significantly enhanced the adoption rate of digital technologies, which is expected to drive investments in new data centers and IT resources, creating growth opportunities for the studied market.