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Cable assemblies are products that comprises a number of cables integrated together to transfer electrical signals between two or more electronic devices or components. Cable assemblies find wide applications in various industries such as automotive, consumer electronics, telecommunication, medical applications, and others. They are used to transmit data, power, signals and offers advantages like durable, high speed transmission, noise-free transmission. The global demand for cable assemblies is driven by the increasing adoption of 5G technologies which require high bandwidth communication solutions.
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 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The increasing deployment of 5G infrastructure across major economies is one of the major trends driving the growth of the cable assembly market. 5G networks require high speed data transfer which necessitates the use of advanced cable assemblies that can support higher bandwidths. Moreover, 5G technology enables internet of things (IoT) which connects various devices. This raises the demand for various cables and cable assemblies that can efficiently transfer data between numerous connected devices. Manufacturers are thus focused on developing lightweight and high performance cable assemblies integrated with superior shielding that can efficiently meet the requirements of 5G and support growth in IoT connected devices.
Key players
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. Owing to the consolidated nature of the market, top players account for majority of the market share. Companies focus on expanding their product portfolios and market reach through acquisitions and partnerships.
SWOT Analysis
Strength: The cable assembly market has significant demand from major end-use industries like automotive, healthcare, telecom, aerospace and defense. There is availability of high-quality raw materials required for manufacturing cable assemblies.
Weakness: Volatility in raw material prices can impact the profit margins of cable assembly manufacturers. Requirement of large capital investments and dependence on limited suppliers.
Opportunity: Growing demand for higher bandwidth and improved connectivity from 5G rollout and increasing adoption of Internet of Things (IoT) devices present new growth opportunities. Emerging economies offer tremendous growth potential.
Threats: Intense competition among manufacturers impacts pricing and margins. Shift towards wireless connectivity poses a threat to market demand.
Key Takeaways
The global Cable Assembly Market is expected to witness high growth over the forecast period of 2023 to 2030. 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 2023 to 2030.
The Asia Pacific region currently dominates the cable assembly market and is expected to witness the fastest growth over the forecast period. Countries like China, Japan, South Korea and India offer a huge growth potential owing to rapid industrialization and presence of major electronics manufacturing hubs. North America and Europe are also significant markets for cable assemblies due to established automotive and telecom sectors.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
