June 5, 2007 -- FTM Consulting Inc. reports that, based on its latest research and analysis, the firm is upgrading its forecasted growth of the structured cabling systems (SCS) market to greater than 18% over the next five years. According to the firm, this figure represents the market's highest growth, "post saturation."
The firm notes that, after the market saturated in 1999, market growth in the first years of the present decade was "minimal or nil." The firm further contends that that "some market decreases were observed on a year-to-year basis" due to the economic slowdown and lack of new business construction.
According to FTM, the SCS market is projected to grow from $ 6.8 billion in 2007 to $ 15.9 billion by 2012, growing at a compound average growth rate of 18.6%. The firm says the main reason for its higher growth projection is the emergence of IP subnet applications being added on to the existing enterprise's network. IP applications, such as video over IP for security video camera surveillance systems and VoIP, are expected to foster incremental cabling growth.
The firm's most recent report, "Structured Cabling Systems Market: 2007," segments the market into five primary cabling applications including: LANs; data centers; video over IP; VoIP; and other applications such as wireless.
According to the report, the LAN market is the largest application segment, accounting for 64.4% of the total market. The next largest application segment is VoIP, at a 14.3% share, with data centers close behind with a 12.1% share. The firm notes that, "even through the current marketing hype is centered on data centers as offering an attractive market opportunity," the FTM analysis indicates that VoIP cabling, because of the large quantities of cabling required for the application, surpasses data centers as a larger market opportunity.
The firms says it views data centers "as being connectivity-centric," providing the largest opportunity for apparatus suppliers; while the VoIP application is "cable-centric," providing the larger opportunity for the cable suppliers.
FTM believes that VoIP will be the future "killer" application. The firm says its projections for the 2012 application split can be found in the aforementioned report, which indicates that VoIP will be a future large market opportunity along with data centers. Therefore, the firm expects the SCS market to evolve from the current LAN centric market to a more diverse market, with data centers and VoIP increasingly accounting for a larger share of the marketplace.