LAN Cable Market - Size, Industry Share, Growth Trends and Forecasts (2023 - 2031)

By Type:

Based on type the market is segmented into Cat5e, Cat6, Cat6a, Cat7, Cat8, and others.

Trends in the Type:

• Older standards like Cat5 are being phased out due to their limited speed and bandwidth capabilities. These cables are rarely used in new installations but may still be found in older networks.
• Cat8 is increasingly becoming the preferred choice for the latest high-speed networking applications, particularly in data centers, where it supports speeds up to 40 Gbps over short distances.

The Cat6 accounted for the largest revenue share in 2023.

• Cat6, short for Category 6, is a type of Ethernet cable designed to support high-speed networking. It is an upgrade from the older Cat5e cables and offers several key improvements in performance and reliability.
• Cat6 cables are capable of supporting speeds up to 1 Gbps (Gigabit Ethernet) over distances up to 100 meters (328 feet). For shorter distances (up to 55 meters or 180 feet), they can handle 10 Gbps speeds.
• In March 2023, Kordz introduced 28AWG Cat6 and Cat6A Cable design and installation with the launch of a new professional, high-performance solution, PRS SlimCat Network Cable System. It supports data rates of 10 Gbps up to 50 meters, offering flexibility and reliability to deliver consistent network connectivity.
• Therefore, the ability of Cat 6 to provide better performance and reliability for modern networking needs, proliferating the LAN cable market trend.

The Cat7 is anticipated to register the fastest CAGR during the forecast period.

• Cat7 cables support high-speed data transmission, capable of up to 10Gbps over a distance of 100 meters.
• It features enhanced shielding with Shielded/Foiled Twisted Pair (S/FTP) construction, reducing interference and crosstalk, which improves signal integrity.
• Additionally, it offers a bandwidth of up to 600MHz, providing ample capacity for modern applications including high-quality video streaming, data centers, and high-speed internet connections.
• Therefore, as per the analysis, the high-speed data transmission capability of the Cat7 cable is anticipated to boost the expansion of the global LAN cable market during the forecast period.

By Cable Type:

Based on cable type the market is bifurcated into shielded twisted pair (STP) and unshielded twisted pair (UTP).

Trends in the Cable Type:

• There is a growing emphasis on environmentally sustainable practices in cable manufacturing. UTP cables are being produced with more eco-friendly materials and processes, aligning with broader sustainability goals.
• STP cables are being integrated into data center infrastructure due to their ability to handle high-speed data transmission and reduce interference. As data centers grow in complexity, the need for STP cables that provide consistent performance is increasing.

The unshielded twisted pair segment accounted for the largest revenue share in 2023.

• Unshielded Twisted Pair (UTP) cables are a type of ethernet cable commonly used in networking to connect devices such as computers, routers, and switches.
• It contains multiple pairs of wires twisted together. Each pair is color-coded and twisted to minimize interference between the pairs and to improve signal integrity.
• Additionally, supports various data transfer rates depending on their category including Cat5e supports up to 1 Gbps, while Cat6 and Cat6a can support speeds up to 10 Gbps.
• For instance, Legrand unveiled UltraMAX, MAX Category 6, and Z-MAX Category 6 products. These Cat 6 UTP cabling solutions enhance data transfer rates and network performance. These cables are engineered for gigabit Ethernet applications, providing a cost-effective alternative for high-speed network installations.
• Hence, unshielded twisted pairs provide high-performance data transmission ethernet cables fueling the LAN cable market growth.

The shield-twisted pair is anticipated to register the fastest CAGR during the forecast period.

• Shielded Twisted Pair (STP) cables are a type of Ethernet cable that includes additional shielding around the twisted pairs of wires.
• It helps to protect against electromagnetic interference (EMI) and radio frequency interference (RFI), ensuring more reliable data transmission in environments with high levels of interference.
• For instance, Amphenol Cables on Demand introduced Amphenol MP-CAT8STPBLK-001 Shielded Twisted Pair Category-8 Cable (CAT8 STP). It is designed to provide optimized network performance enabling 25-40 Gbps with distances up to 30 meters. These cables include advanced shielding technologies to combat electromagnetic and radio frequency interference, ensuring reliable data transmission.
• Hence, according to analysis, the ability of shielded twisted pairs to protect the cable against EMI and RFI to ensure reliable data transmission is fueling the global LAN cable market opportunities.

By Application:

Based on application the market is trifurcated into residential, commercial, and industrial.

Trends in the Application:

• The shift towards more data-intensive online activities including 4K, and 8K video streaming, online gaming, and virtual reality (VR), is driving the need for faster and more reliable LAN connections.
• As businesses continue to mitigate to cloud-based solutions, the need for fast, reliable network connections within commercial spaces is growing, this has led to a trend of upgrading to higher-category cables that support increased data flow, ensuring seamless access to cloud-based applications and services.

The industrial segment accounted for the largest revenue share of 47.29% in 2023 and is anticipated to register the fastest CAGR during the forecast period.

• The industrial sector heavily relies on automation and real-time data exchange, which requires robust cables that handle high-speed and reliable connections in demanding environments.
• This setting often involves exposure to extreme temperatures, electromagnetic interference, and mechanical stress, necessitating durable cables to maintain the performance.
• Moreover, the expansion of industrial automation and the integration of Industrial Internet of Things (IIoT) technologies drive the need for reliable, high-speed, and interference-resistant networking solutions.
• In August 2021, Belden launched its LAN cable Product portfolio which includes Belden DataTuff Cat 6A High Flex Industrial Ethernet Cables, OSDP Access Control Cables, Category 6A 10GXW53 F/UTP Cables to deliver reliable, robust performance for high-movement applications in harsh environmental conditions.
• Consequently, analysis shows that durable ethernet cables in industrial applications are driving the LAN cable market.

By End-User:

Based on end users the market is segmented into IT & telecom, data centers, healthcare, government, retail, and others.

Trends in the End-User:

• The rapid adoption of telemedicine and remote healthcare services is fueling the need for reliable and high-speed network infrastructure in healthcare facilities. This trend is pivotal to ensuring seamless communication between healthcare providers and patients in remote diagnostics and treatment.
• The expansion of e-government services, where citizens interact with government services online to enhance network infrastructure. This requires cables that support high-speed and secure data transmission across government offices and public facilities.

The data center segment accounted for the largest revenue share in the year 2023 and is anticipated to register the fastest CAGR during the forecast period.

• The explosive trend in data traffic, driven by the increasing adoption of cloud computing, big data analytics, and the proliferation of IoT devices, has made data centers the leading consumers of high-performance cables.
• With the increasing need for high-speed data transfer and storage, data centers are adopting cables to ensure reliable and high-performance communication.
• Additionally, data centers handle large volumes of data and support high-speed applications, STP cables are essential for ensuring reliable performance and minimizing signal loss over long distances.
• In August 2021, Legrand launched a Data Center Solution with Infinium Quantum Fiber System which is a cabling solution. These cables are part of Legrand's broader effort to provide high-performance, reliable networking infrastructure tailored for modern data centers. It offers higher efficiency, flexibility, and scalability to cater to data center needs.
• Overall the high-performance requirements and complex network infrastructure of data centers are boosting the LAN cable market

Regional Analysis:

The regions covered are North America, Europe, Asia Pacific, the Middle East and Africa, and Latin America.

Asia Pacific region was valued at USD 4,620.35 Million in 2023. Moreover, it is projected to grow by USD 5,179.95 Million in 2024 and reach over USD 13,191.93 Million by 2031. Out of this, China accounted for the maximum revenue share of 30.1%. The Asia-Pacific region is experiencing rapid growth in the LAN cable market, driven by the region's burgeoning IT and telecom sectors. Countries like China, India, and Japan are at the forefront of this growth, with significant investments in network infrastructure, data centers, and smart city projects. The increasing demand for high-speed internet and the expansion of 5G networks are key factors boosting the LAN cable market.

• In March 2023, OVHcloud launched its data center in India as a part of the Asia Pacific Expansion. This aimed at providing reliable, high-performance, and sustainable cloud solutions to cater to the needs of the data center.

North America is estimated to reach over USD 11,768.59 Million by 2031 from a value of USD 4,229.85 Million in 2023 and is projected to grow by USD 4,731.84 Million in 2024. According to the LAN cable market analysis, North America is a leading region in the LAN cable market, driven by its advanced technology infrastructure and high demand for robust networking solutions. The growth is largely fueled by ongoing investments in data centers, the expansion of high-speed internet services, and the rollout of 5G networks. Additionally, the region's focus on innovation and digital transformation ensures a strong industry for these cables, particularly in enterprise settings, residential applications, and telecom networks. Moreover, the presence of major tech companies and stringent industry standards further support the high need for various types of cables, including Cat6 and Cat6a.

• For instance, Black Box, a leading company from the US expanded its Cat6A cable range. This expansion offers GigaTrue 3 Lockable CAT6A 650-MHz Patch Cable, and GigaTrue CAT6A 650-MHz UTP Bulk Cable, designed to support high-speed networking.

In Europe, as per the analysis, the LAN cable market is influenced by the region's emphasis on digital infrastructure and smart technology integration. The expansion of data centers, advancements in telecom networks, and the adoption of high-speed internet services drive the need for these cables.

In Latin America, the Middle East, and Africa, the LAN cable market is emerging due to increasing infrastructure development and investments in connectivity solutions. The expansion of telecom networks, data centers, and residential broadband services are key drivers of the need for these cables.