Data Center Wire And Cable Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 34.26 Billion |
| Market Size (2029) | USD 44.78 Billion |
| CAGR (2024 - 2029) | 5.52 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Data Center Wire And Cable Market Analysis
The Data Center Wire And Cable Market size is estimated at USD 34.26 billion in 2024, and is expected to reach USD 44.78 billion by 2029, growing at a CAGR of 5.52% during the forecast period (2024-2029).
- The data center wire and cable market is analyzed to witness significant growth in the coming years. Multiple factors are propelling the rapid growth of the data center wire and cable market. Key drivers include the expanding footprint of data centers, an increasing appetite for high-speed connectivity, a rising demand for energy-efficient cabling solutions, and innovations in cables that enhance transmission capacity and enable real-time data transfers.
- Propelled by a rising population of tech-savvy users, a surge in digital services, and government initiatives promoting greater digital adoption, the global demand for data centers has increased significantly. Additionally, as data volumes grow and the need for faster, more reliable connectivity intensifies, wire and cable components have become even more critical in data centers. These high-quality cables and wires are essential, ensuring seamless communication and efficient power distribution across extensive networks of servers and storage systems.
- Moreover, as enterprises increasingly require digital infrastructure to store vast amounts of data, data center operators are compelled to design data centers with high-density capabilities. To meet these high-density demands, operators must accommodate elevated power draws without requiring major reconfigurations or supplementary power infrastructure. This necessitates using premium, energy-efficient cables that handle load requirements with minimal power loss.
- In addition, given the mission-critical nature of data centers, reliability and resilience take precedence. Any downtime can lead to substantial financial repercussions and tarnished reputations; therefore, it is becoming crucial for data center operators to invest in a robust wire and cabling infrastructure to ensure it endures continuous operation demands. Such factors are positively driving the growth of the data center wire and cable market.
- Beyond their foundational role in data center infrastructure, cables and wires are witnessing transformative trends in the global data center landscape. These shifts are fueled by advancing technologies, evolving industry demands, and an increasing focus on efficiency and sustainability. Further, the advent of fiber optic cables has transformed data center cabling. These cables ensure quicker data transmission across extended distances, offering heightened security and immunity to electromagnetic interference. Additionally, their compact and lightweight nature simplifies installation and management.
Data Center Wire And Cable Market Trends
Hyperscalers are Analyzed to Drive the Growth of the Market
- Hyperscale data centers are vast, centralized facilities custom-built and operated by a single company. Primarily catering to cloud service providers (CSPs) and major internet firms, these centers meet their extensive computing, storage, and networking demands. This significantly requires efficient cabling for hyper-fast speeds and hyper-flexibility in hyperscale data centers worldwide, thus positively influencing the growth of the data center wire and cable market.
- Furthermore, the rapid growth of data centers, particularly hyperscale data centers driven by the growing cloud adoption across businesses, is expected to boost the demand for wires and cables in the hyperscale data centers over the forecast period. For instance, as of March 2024, Cloudscene reported that the United States led the world with 5,381 data centers. Germany followed with 521, and the United Kingdom had 514.
- Furthermore, as data center operators worldwide rapidly expand and unveil new hyperscale facilities, they amplify the growth opportunities for wire and cable vendors. These vendors are poised to meet the demand for efficient and reliable wiring and cabling solutions in hyperscale data centers. For instance, in December 2023, Digital Realty, a global provider of cloud- and carrier-neutral data center, colocation, and interconnection solutions, teamed up with Blackstone Inc. Funds affiliated with Blackstone, spanning Infrastructure, Real Estate, and Tactical Opportunities, have entered into a joint venture with Digital Realty. Together, they plan to develop four hyperscale data center campuses spread across three metropolitan areas on two continents. Once fully developed, these campuses are projected to handle a total IT load of around 500 megawatts (MW).
- Market vendors are seizing the opportunity to introduce new cabling solutions tailored for hyperscalers. For example, in January 2024, Astera Labs, a global player in semiconductor-based connectivity solutions for cloud and AI infrastructure, unveiled its Aries PCIe and CXL Smart Cable Modules(SCM). These modules ensure robust, long-reach copper cabling connectivity for GPUs, CPUs, and memory within disaggregated cloud and AI infrastructures. This latest Active Electrical Cable (AEC) solution, designed for multi-rack GPU clustering, reinforces the company's dominance in high-performance connectivity. This includes their established Aries PCIe/CXL DSP Retimer family, which is pivotal for front-end PCIe fabric and head node computing interconnects.
- Overall, the company enhances its intelligent PCIe/CXL connectivity expertise with these copper cabling solutions, empowering cloud and hyper scaler clients to build resilient and scalable AI infrastructures.
North America is Expected to Hold to Major Market Share
- North American region countries, notably the United States, analyzed to hold a significant market share in the global data center wire and cable market over the forecast period, primarily driven by the presence of major wire and cable market vendors coupled with the growing number of data centers requiring high efficiency and high transmission data cables. In addition, high digitization and ever-evolving technologies in businesses across the region drive the demand for efficient cabling systems in data centers.
- With the ever-increasing volumes of data, proactive planning for future expansion has become paramount in data centers. Key considerations include anticipated network performance, power demands, and the spatial requirements for added servers and switches. By implementing a scalable cabling system, data centers can seamlessly adapt to future growth, ensuring uninterrupted operations. Such developments are bolstering the demand for cable and wires in the country's data centers, which are aligned with the ever-increasing data volume in data centers.
- Furthermore, innovations such as DALL-E 2 and ChatGPT underscore the rapid expansion of AI technologies, reshaping public perceptions and expectations. With AI becoming increasingly embedded across diverse regional sectors, there's a pressing need for the supporting infrastructure to adapt. Today, AI is a crucial catalyst for the expansion of data centers, prompting a reevaluation of infrastructure design and operational strategies in data centers. Such factors are further analyzed to bolster North America's demand for innovative data center wires and cables.
- Foreign vendors are acquiring companies to strengthen their presence in North America's data center wire and cable market. For example, in June 2024, Italian cable firm Prysmian finalized its acquisition of American producer Encore Wire, signaling a significant move into the North American market. Prysmian anticipates benefiting from enhanced cross-selling opportunities and the efficiencies and innovations embedded in Encore Wire's unique production, distribution methods, and service standards.
Data Center Wire And Cable Industry Overview
The data center wire and cable market features a semi-consolidated landscape dominated by numerous global and regional vendors holding substantial market shares. To cater to the rising demands of data centers and expand their market presence, these vendors are introducing innovative wire and cabling solutions. Furthermore, partnerships and acquisitions are actively transforming the competitive dynamics of the data center wire and cable market.
In August 2024, Lumen Technologies inked a deal with Corning Incorporated to secure a significant supply of next-generation optical cables. These fiber-rich cables are set to more than double Lumen’s intercity fiber miles in the U.S., greatly enhancing capacity for major cloud data centers. These centers are racing to keep pace with AI workloads and high-bandwidth applications driven by vast data demands. The swift evolution of generative artificial intelligence necessitates at least a tenfold increase in fiber connections within data centers. Moreover, a strong fiber network is essential for transmitting information between these hubs. Through this agreement, Lumen has locked in 10% of Corning’s global fiber capacity for the next two years.
In January 2024, Panduit, a global player in network and electrical infrastructure solutions, unveiled its next-generation cable management solution: the Wire Basket Cable Tray Routing System. This system is specifically crafted to efficiently route and manage copper data cables, fiber optics, and power cables across data centers, connected buildings, and industrial settings. The Wire Basket boasts an innovative design, enhancing the strength-to-weight ratio over competing products. Additionally, its installation is quicker and simpler, ensuring a cost-effective solution for users.
Data Center Wire And Cable Market Leaders
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Fluke Networks, Inc.
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Belden Inc.
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Panduit Corporation
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Nexans S.A.
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Telehouse International Corporation
*Disclaimer: Major Players sorted in no particular order
Data Center Wire And Cable Market News
- April 2024 - GlobalConnect unveiled its Nordic Digital Infrastructure Project, positioning the Nordics as the next global data center hub. The company's newly established fiber routes are strategically designed to draw significant foreign investments into the Nordic region. This next phase focuses on broadening and fortifying its digital infrastructure. The expansion is a response to the escalating demand for data capacity, spurred partly by the AI boom, and a strategic move to cement the Nordics' status as the partly-optimized optimized global data center hotspot.
- January 2024 - OFS, a frontrunner in fiber optic solutions, unveiled its latest offering: the LaserWave Dual-Band OM4+ Multimode Optical Fiber. This new product is designed to enhance their already industry-leading OM4 and OM5 lines, known for their high bandwidth, attenuation, and geometric performance. The LaserWave Dual-Band OM4+ is a cost-effective, premium fiber specifically optimized for bidirectional (BiDi) applications. This positions it perfectly for the upcoming wave of high-density, low-power multimode links.
Data Center Wire And Cable Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Assessment of the impact of key macroeconomic trends
4.3 Industry Value Chain Analysis
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Robust data center expansion across the globe
5.1.2 Growth of High-Performance Computing (HPC) applications
5.1.3 Growing demand for High-Speed Connectivity
5.2 Market Restraints
5.2.1 Intense activities for heat management
5.2.2 Installation and maintenance challenges
5.3 Government initiatives and guidelines for the industry
5.4 Analysis of pricing models and pricing worldwide of cables and wires, 2024
6. ANALYSIS OF DATA CENTER CONSTRUCTION ACTIVITY WORLDWIDE
6.1 Current construction hotspots, based on planned IT load capacity additions
6.2 Coverage on the growth of hyperscale Datacenters
6.3 Analysis of major DC Construction vendors at a regional level
7. MARKET SEGMENTATION
7.1 By Offering Type
7.1.1 Optical Fiber Cables
7.1.2 Copper Cables
7.1.3 Power Cables
7.1.4 Other Cables (Grounding Cables, Sensor Cables, Control Cables, etc.)
7.2 Data Center Type
7.2.1 Enterprise
7.2.2 Colocation
7.2.3 Hyperscalers
7.3 By Geography***
7.3.1 North America
7.3.2 Europe
7.3.3 Asia
7.3.4 Australia and New Zealand
7.3.5 Latin America
7.3.6 Middle East and Africa
8. COMPETITIVE LANDSCAPE
8.1 Company Profiles*
8.1.1 Fluke Networks Inc.
8.1.2 Belden Inc.
8.1.3 Panduit Corporation
8.1.4 Nexans SA
8.1.5 Telehouse International Corporation
8.1.6 Service Wire Company
8.1.7 CommScope Holding Company Inc.
8.1.8 Prysmian SpA
8.1.9 Hubbell
8.1.10 Leviton Manufacturing Co. Inc.
9. INVESTMENT ANALYSIS
10. FUTURE OUTLOOK OF THE MARKET
Data Center Wire And Cable Industry Segmentation
The data center wire and cable market study tracks the revenue gathered through the sale of fiber cable installations and accessories deployed in various data center facilities across the globe. The cable network consists of power cables, ground cables, and data transmission cables. Considering the material, these cables are either copper or fiber optics cables.
The data center wire and cable market is segmented by offering type (optical fiber cables, copper cables, power cables, other cables), by data center type (enterprise, colocation, hyperscalers), by region (North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa). The market sizes and forecasts are provided in terms of value in (USD) for all the above segments.
| By Offering Type | |
| Optical Fiber Cables | |
| Copper Cables | |
| Power Cables | |
| Other Cables (Grounding Cables, Sensor Cables, Control Cables, etc.) |
| Data Center Type | |
| Enterprise | |
| Colocation | |
| Hyperscalers |
| By Geography*** | |
| North America | |
| Europe | |
| Asia | |
| Australia and New Zealand | |
| Latin America | |
| Middle East and Africa |
Data Center Wire And Cable Market Research FAQs
How big is the Data Center Wire And Cable Market?
The Data Center Wire And Cable Market size is expected to reach USD 34.26 billion in 2024 and grow at a CAGR of 5.52% to reach USD 44.78 billion by 2029.
What is the current Data Center Wire And Cable Market size?
In 2024, the Data Center Wire And Cable Market size is expected to reach USD 34.26 billion.
Who are the key players in Data Center Wire And Cable Market?
Fluke Networks, Inc., Belden Inc., Panduit Corporation, Nexans S.A. and Telehouse International Corporation are the major companies operating in the Data Center Wire And Cable Market.
Which is the fastest growing region in Data Center Wire And Cable Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Data Center Wire And Cable Market?
In 2024, the North America accounts for the largest market share in Data Center Wire And Cable Market.
What years does this Data Center Wire And Cable Market cover, and what was the market size in 2023?
In 2023, the Data Center Wire And Cable Market size was estimated at USD 32.37 billion. The report covers the Data Center Wire And Cable Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Data Center Wire And Cable Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Data Center Wire And Cable Industry Report
Statistics for the 2024 Data Center Wire And Cable market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Data Center Wire And Cable analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
