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Cable assembly refers to interconnection of electronic components or devices using electrical wires or optical fibers enclosed in a cable or in a harness. It is used to connect printed circuit boards, cabinets, equipments, and peripherals together. Cable assemblies are used across diverse industries such as automotive, IT and telecommunication, consumer electronics, industrial, and others. In the automotive industry, cable assemblies are used to connect powertrain components, lighting circuits, and infotainment systems. In the IT and telecommunication sector, cable assemblies enable connectivity and transfer of data and signals in networking equipment, servers, and more.
The global Cable Assembly Market is estimated to be valued at US$ 167.40 Bn in 2023 and is expected to exhibit a CAGR of 6.5% over the forecast period of 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Growing adoption of cable assemblies in the telecommunication industry is expected to drive the cable assembly market growth over the forecast period. With increasing digitization and proliferation of smart devices, data usage has risen exponentially. This has put pressure on telecom operators to improve and enhance their network infrastructure constantly. Cable assemblies play a vital role in networking equipment such as routers, switches, and fiber optic cables that help transfer larger volumes of data efficiently. Moreover, risingdeployment of 5G network infrastructure around the world will further propel the demand for cable assemblies during the forecast period. However, volatility in raw material prices may hamper the market growth.
Segment Analysis
The global cable assembly market is dominated by the rigid type segment. Rigid cable assemblies have protective outer layers that make them durable and resistant to stresses from repeated bending, twisting, and environmental threats. This segment witnesses higher demand from industries such as automotive, military & aerospace, medical, telecom & IT where reliability and safety of connections are of prime importance.
Key players operating in the cable assembly market are Amphenol Corporation, Molex LLC, TE Connectivity Ltd., Belden Inc., Prysmian Group, Carlisle Interconnect Technologies, Nexans SA, L. Gore & Associates Inc., Panduit Corp., Fischer Connectors, JST Manufacturing Co., Ltd., Samtec Inc., L-com Inc., 3M Company, and Smiths Interconnect. Among these, TE Connectivity Ltd. and Amphenol Corporation capture major market share due to their extensive product portfolio and geographic presence across major regions globally.
PEST Analysis
Political: Trade restrictions and tariffs imposed by governments can impact the demand and supply of cable assembly components across borders. Localization policies also impact industry players’ investments.
Economic: Growth in the end-use industries such as automotive, electronics and telecommunications is driving the demand for cable assemblies globally. Recovering economies post-COVID are increasing investments in infrastructure and manufacturing.
Social: Increasing urbanization and digitalization is boosting the demand for high-speed data connectivity and reliable transmission networks. Rapid adoption of connected devices is propelling the need for next-gen cable assemblies.
Technological: Cable assemblies compatible with advanced connectors, faster networking protocols and higher data transfer speeds are gaining prominence. Miniaturization, use of advanced materials and modular designs help achieve reliability, flexibility and improved performance.
From a regional perspective, Asia Pacific holds the largest share currently due to presence of manufacturing powerhouses like China and countries pushing for local production. In Asia Pacific, China dominates owing to its electronics production base and policy support for telecom and networking infrastructure development.
Key Takeaways
The global Cable Assembly Market is expected to witness high growth over the forecast period of 2023 to 2030, driven by expansion in end-use industries. The global cable assembly market is estimated to be valued at US$ 167.40 Bn in 2023 and is expected to exhibit a CAGR of 6.5% over the forecast period of 2023 to 2030.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemicals and materials, defense and aerospace, consumer goods, etc.
