BSRIA study shows global cabling market recovered in 2016

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The recently published BSRIA market intelligence study shows that the global structured cabling market increased slightly in 2016 after a decline of almost 3% in 2015 due to the effect of the strong US dollar.

Cabling installed in data centres performed better than the LAN market increasing by 1.9% compared to a flat (0.2% growth) LAN segment. The cabling share installed in data centres remained in line with 2014 and 2015 at 20%, with 80% being installed in LAN applications.

Commenting on the report, Lone Hansen, WMI Manager – IT Cable Group, BSRIA, said: “The forecast for 2017 – 2018 is positive with expected market growth of just over 3% each year, followed by a dip in 2019. LAN is expected to grow by almost 3% in 2017 and 2018, which cabling installed in datacentres should increase by 4-5% in 2018 and 2019.

“The commoditisation of cabling with increasing sales of solutions sold by low-cost supplier and distributors’ private labels continued in 2016. The low-cost solutions mainly operate in the Cat 5e and Cat 6 day-to-day and small project segment, but some are increasingly focusing on Cat 6A and fibre products and larger projects.

“Sales of Cat 6A have increased and accounted for 19% of all cabling systems by volume in 2016. The uptake of Cat 6A solutions is highest in Europe and the Middle East, but measured in cabling installed, Europe accounts for 55%, followed by 20% in Asia Pacific, 18% in the Americas and 8% in Middle East. Cat 5e is still very much sold in Asia Pacific with over half of all cables shipped, followed by Americas with a third.

“The share of fibre – primarily fibre connectivity – continue to increase and accounts for 73% of the cabling installed in data centres. Most of the hyperscale data centres are 90–100% fibre and both medium and large data centres is seeing an increase in use of fibre. Singlemode (SM) is increasing, but sales are still low compared to multimode (MM). However, a few hyperscale DCs have specified SM as their main cabling type. Copper cabling is mainly installed in computer rooms and small data centres.”