Market Trends of Cable Tray Industry
Construction Segment Holds a Major Share
- The construction sector dominates the market, primarily driven by government-funded infrastructure projects that boost construction activities. This surge in construction, in turn, increases the need for cable trays to manage electrical and communication cabling. Additionally, a rising inclination toward integrating IoT devices and smart building technologies enhances energy management, security, maintenance, and occupant comfort. This trend is further propelling the growth of the cable tray market.
- Smart cable trays equipped with IoT sensors ensure real-time monitoring of cable conditions, which helps enhance maintenance and operational efficiency. It can also facilitate automation in the design and installation of cable trays through advanced software tools and robotics.
- In 2023, Zurich claimed the world's smartest city title, attributing its success to robust infrastructure, commitment to sustainability ethos, and an advanced transportation network. The city's initiatives span from smart traffic management and bike-sharing programs to energy-efficient structures. IBM's assessment highlighted Zurich's digital security and public transit expertise. IBM also highlighted Zurich's exceptional citizen engagement with its digital offerings.
- There is growth in sustainable and energy-efficient projects, which necessitates the use of sustainable materials and designs in the cable tray systems. Projects that incorporate renewable energy sources, such as solar panels, require robust cable management to handle additional wiring requirements. For instance, the Indian government, in its Interim Budget for 2024, allocated more than USD 1.38 billion (approximately INR 11,500 crore) to bolster the renewable energy sector and combat carbon emissions. This funding is allocated for Solar Power (Grid), the National Green Hydrogen Mission, and Wind Power (Grid) projects, covering the financial year until March 2025.
- In addition, there is an increase in the construction of modern residential complexes globally, which require comprehensive cable management for internet, television, and smart home systems. Some of the projects involve solar panel installations for electricity purposes. Thus, various cables are required to connect photovoltaic modules, inverters, charge controllers, batteries, etc. Cable trays help with the organization of the cables to prevent tangling and ensure safe installation. For instance, as per the International Energy Association (IEA), the solar renewable electricity capacity is expected to reach 3329.5 gigawatts by 2027 globally.
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Asia-Pacific to Witness Major Growth
- The cable tray market in Asia-Pacific is expected to witness growth in the coming years, primarily driven by a robust construction sector. Rising investments in construction and infrastructure, particularly in nations like China, India, and Southeast Asia, fuel the demand for cable management systems.
- In the Asia-Pacific region, several markets have started building 5G infrastructure. South Korea set the global pace by launching a nationwide 5G network in April 2019. Subsequently, Australia, the Philippines, China, and New Zealand followed it, and every country is expected to improve its network infrastructure, driving the need for structured cabling. According to the Q2 2023 data from GSMA Intelligence, South Korea, China, and Japan emerged as frontrunners in 5G adoption, with China having a 41.1% penetration rate in 5G connections, signifying a higher percentage of 5G connections than the European markets highlighted in this report.
- Moreover, investments in smart city projects across the region are expected to drive the demand for advanced cable tray systems to support smart infrastructure, IoT devices, and communication networks. For instance, Smart City Summit Expo (SCSE) 2025 is scheduled to take place in Taipei, Taiwan. This event marks the largest hybrid smart city tradeshow, featuring a range of IoT and smart city solutions. These initiatives drive the demand for cable trays in the market.
- Asia-Pacific is a hub for manufacturing industries, and the growth of automation, robotics, and Industry 4.0 technologies in factories drives the demand for the cable tray system to support electrical wirings. Cable trays help protect the cable from damage due to environmental factors such as mechanical wear and inference, which is helpful in the safety of automated systems.
- Companies are more focused on safety features. They make investments in cable tray systems to protect cables from fire in critical infrastructure facilities. Thus, there is a need to develop fire-resistant cable trays to ensure safety in data centers and critical infrastructure facilities.
- For instance, in June 2024, Covestro, a materials manufacturer, unveiled its latest innovation, which is the Desmopan FR (Flame Retardant) thermoplastic polyurethane (TPU) series. TPUs have a new application in this series, tailored for premium flame-retardant cable jackets. These jackets are crucial in industries like automotive charging and consumer electronics, where fire safety is a crucial factor.
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