The global cable assembly market is expected to post a CAGR of nearly 7% during the forecast period 2019-2023, according to the latest market research report by Technavio.
Importantly per Technavio, the increased popularity of fiber optics is expected to have a positive impact on the market and contribute to its growth significantly over the forecast period. However, the analyst warns that the overall market’s momentum will decelerate in the coming years because of the decrease in year-over-year growth. The global cable assembly market 2019-2023 research report also analyzes other important trends and market drivers that will affect market growth over 2019-2023.
According to Technavio: "The advent of high-speed cable assemblies is one of the major cable assembly market trends influencing growth. Consistent innovations by the market vendors have led to the emergence of high-speed cable assemblies. Several vendors in the market are offering high-speed cable assemblies for servers, storages, computers, switches, and other data and communication devices. With the increasing adoption of computers and data centers, the demand for such high-speed cable assemblies will increase over the forecast period. This is one of the key trends influencing the growth of the global cable assembly market size...
[Further,] network operators have increased their preference toward optical fibers over copper wires as the former offers faster data transmission, greater bandwidth, and low chances of data loss. They also ensure distortion-free signals with high transmission rates and can withstand harsh exterior environments, ensuring high durability. The emergence of wireless technologies and connected devices have increased data traffic across the world. To support such a high volume of data, network operators are upgrading their existing networks by deploying optical technologies such as fiber optics. These factors are contributing to the growth of the global cable assembly market size over the forecast period."
TechnavioThe new market report segments the global cable assembly market by application (automotive, consumer electronics, telecom and datacom, industrial, aerospace and defense, and other applications), product (application-specific, rectangular, RF, circular, fiber optics, and other products), and geography (APAC, Europe, MEA, North America, and South America).
Technavio states that APAC led the overall market in 2018 with a market share of nearly 51%, followed by Europe, North America, South America, and MEA respectively. "The strong growth of APAC can be attributed to the strong growth of end-user industries such as automotive, consumer electronics, telecom, and manufacturing in the developing countries across the region," notes the analyst.
“APAC provides a large number of growth opportunities for cable manufacturers," said a spokesperson analyst for Technavio, who continued, "The strong presence of automotive OEM manufacturers in countries such as China, India, Japan, and South Korea have increased the demand for cable assemblies in the region. In addition, the increasing adoption of EVs in China and increased focus toward the adoption of EVs by the Indian government will create new growth opportunities for market vendors. Europe is home to leading automobile manufacturers. Automakers in the region are developing energy-efficient vehicles, EVs, and autonomous cars, which is creating a strong demand for cable assemblies. These are some of the key factors fueling the market’s growth over the forecast period.”