Want to know what are the newest trends in the cabling industry? Demakis Technologies have got you covered.
In this article, we’ll shed light on the current and emerging trends in telecommunications.
So if you want to explore what’s going to be HUGE in the years to come, this article is for you.
Here are the 4 most important trends that will shape the telecom industry in the upcoming years:
#1 The Cabling Industry Is Growing
In 2019, the value of the global structured cabling market was $11.4 billion. It’s, however, expected to continue growing.
According to the same global forecast for 2020 to 2025, the market will reach a steady growth rate of 4.3% CAGR. That means it could potentially reach $13.5 billion by 2025.
This market growth is attributed to several reasons. Chief among them is the rise in demand from business and the tech industry for high-speed connectivity devices and systems.
Another reason for the market expansion is the reliance on new technologies on more robust communication infrastructures.
The rising trend of data center convergence to accommodate data mining and analytics and its need for stable wireless telecom systems and fiber optics is fanning this growth, as well.
Finally, like every other industry, it comes down to the recent outbreak of COVID-19.
As the world moves to the New Normal and the remote workplace, more and more businesses are investing heavily in structured cable systems.
This has already caused a positive growth in 2020 – one of the telecom industry trends that will certainly persist in 2021.
#2 The Evolution of Data Centers
Because of these current trends for telecommunications and networks, companies are taking a closer look at their infrastructure.
The demand for high-speed internet connection is causing data centers to evolve each day.
To do this, companies are upgrading their network architecture and investing heavily in structured cabling networks to support the changing needs of data centers.
As a result, this is setting the foundation for businesses to adopt and integrate with new technologies such as 5G, artificial intelligence (AI), and the Internet of Things (IoT).
#3 Category 6 Cables Hold Largest Market Share
Category 6 cable types (Cat-6) are the standard twisted-pair cables used for connectivity with network physical layers, such as the Ethernet.
Cat-6 cables are also compatible with other structured cable networks such as Cat-5, Cat-5e, and Cat-3 standards.
This makes them highly reliable when supporting speeds of up to 10 Gbps, and, thus, very desirable in the information technology and telecommunication industries.
It’s no surprise that Cat-6 cable types are currently holding the largest share of the structured cabling market.
As the telecom industry growth rate rises, it’s also not a shock that this trend will continue to persist in the upcoming years.
#4 APAC registers the highest CAGR
Among all the regional markets, Asia-Pacific (APAC) is expected to dominate the cabling industry in the next five years.
In fact, according to structured cabling news reports, forecasts predict that their CAGR may grow to as much as 6% for the period 2020-2026.
This growth comes down to several factors. Chief among them is the continued urbanization in China, but also the rise in emerging economies such as Japan, South Korea, India, and the Middle East.
The rise in APAC economies is fueling the electrification of previously rural areas and, as a result, raising the demand for high-voltage cables and network connectivity.
The global expansion of large APAC structured cable companies is another driving factor, as corporations like Siemens AG, Nexans SA, and Sumitomo Electric Industries expand their reach beyond Asia.
Over to You
What do you think of these emerging trends in the telecommunication industry?
Are some of them already affecting your business? How?
It may be worth it to upgrade your network cabling infrastructure sooner rather than later.
That’s where we can help you.
Demakis Technologies offers network cabling services that can help you to control costs and raise the performance of your entire internet and telecommunications network.
Please CONTACT US today to get in touch with one of our professionals to find out more about how we can help you make the first step on the journey of better network connectivity.