Market Trends of North America Structured Cabling Industry
This section covers the major market trends shaping the North America Structured Cabling Market according to our research experts:
Data Center to Hold Significant Market Share
- A data center is a facility that centralizes an organization's shared IT operations and equipment to store, process, and disseminate data and applications. Because they house an organization's most critical and proprietary assets, data centers are vital to the continuity of daily operations. Data centers support almost all computation, data storage, and network and business applications for the enterprise.
- The ramping up of the digital economy fueled by emerging technologies and ever-increasing data has been placing enormous demands on data center infrastructure. Data centers need more capacity to support remote IT capabilities quickly, more e-commerce, increased video streaming and gaming, and a greater need for applications like telemedicine, distance learning, and online collaboration, encouraging the vendors to invest more in data centers. As of January 2022, according to Cloudscene, there were about 2,701 data centers in the United States.
- The emerging Internet of Things/Industrial Internet of Things (IoT/IIoT) and 5G-enabled technologies like self-driving cars, virtual and augmented reality, artificial intelligence (AI), machine-to-machine (M2M) communication, and advanced data analytics are already fueling data center expansion. For instance, in April 2022, Google announced and investment of USD 9.5 billion on new Google data centers and offices in 2022 with the unveiling of a new USD 750 million data center in Nebraska. These investments are majorly focused on expanding the company's footprint in southern and western regions of the country.
- Similarly, in May 2022, Amazon Web Services (AWS) announced their plan to spend almost USD 12 billion on five new data centers in Morrow County near Oregon, United States. The cloud hosting division of the company said that the investment would more than double the size of its operations in the relatively rural region. According to the company, each new data center costs around USD 2.37 billion, with about USD 280 million being earmarked for the land and buildings. Such investment in the data centers is expected to attract various companies' investments to develop structural cabling in the market.
- A similar trend has been observed in Canada as well, wherein the growing adoption of cloud services and increasing penetration of digital technologies are significantly driving the demand for storage spaces, creating a favorable market scenario for the growth of the studied market.
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United States to Witness Significant Growth
- The massive growth of Internet users and smart mobile communication devices is driving strong demand for data center services in the United States. The emergence of 5G and the increasing acceptance of connected devices are also expected to support the growth of the data center industry in the country. For instance, according to the GSMA, the number of IoT connections in North America is expected to grow from 2.3 billion in 2018 to 5.4 billion in 2025. With the US expected to remain a major shareholder, such trends will create opportunities in the market under consideration.
- New government policies in the United States aim to increase data center investment as part of an effort to make the country a data traffic hub.Such trends are driving data center infrastructure investment in the United States, which in turn is driving the demand for structured cabling in the country. For instance, the Data Center Optimization Initiative (DCOI) is designed to improve data center optimization in the Federal Government and look after the data center requirements of the Federal Government.
- The rapid developments in the information technology sector, combined with drivers like mass consumption of products, urbanization, a surge in mobile usage, and a tech-hungry young population, also positively impact economic growth in the United States. For instance, according to the Bureau of Labor Statistics, there were almost 840,000 businesses in the country, with a significant number of businesses in the United States using cloud services. Such trends create a favorable market scenario for the studied market.
- Smart city initiatives are also driving demand for the structured cabling market. For instance, in October 2022, Honeywell announced that it was engaging with five U.S. cities to provide in-kind support to accelerate progress on their smart city strategic planning. The cities are Cleveland, Louisville, Ky., Kansas City, Mo., San Diego, and Waterloo, Iowa. Similarly, in December 2021, Caliber, based in Scottsdale, AZ, and United Cities North America (UCNA), created and built sustainable and net-zero (smart) cities and communities, thus driving the demand for structured cabling.
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