Market Trends of Europe Structured Cabling Industry
Datacenter to Hold Significant Market Share
- Data centers are both the powerhouses of cloud computing and the connectors of the internet, delivering on the tripartite need for more speed, flexibility, and optimal availability. Two key drivers catalyzing the massive demand increase for data centers in the European region include the need for computing capacity, driven by the large-scale move to working from home for many businesses and institutions, and the associated uptake of digital applications in video calling, telehealth, e-commerce, and e-learning, which cause a surge in need for data capacities.
- Edge computing will play a massive role in the development of future data centers. As more and more people adopt intelligent solutions, not only in companies but also in their homes, the demand for edge computing will continue to boom, as will the need for edge computing devices. This factor and increasing research and development investments in the edge computing sector are expected to positively impact the studied market's growth. For instance, in July 2022, a new cluster of meta-operating systems research and innovation actions received EUR 64 million (about USD 68.08 million) of EU funding to revolutionize edge computing in Europe.
- UK and US investment firms recently collaborated to build a hyperscale data center. Pioneer Point (UK) and Davidson Kempner (US) plan a 450 MW data center campus in Portugal. Two funds will invest up to EUR 3.5 billion (USD 4.21 billion) in the Sine 4.0 project. The new multi-billion-dollar hyperscale data center campus will consist of five 90-MW sea-water-cooled buildings on land near a recently decommissioned coal power plant. The inauguration of the primary building is scheduled for the end of 2023. Sines 4.0 is a large-scale, 1005-green data center that responds instantly to customer needs.
- Furthermore, as the environmental demands placed on data center providers continue to become more restrictive, Increased attention is being focused on full lifecycle impacts, including construction, recycling, and end-of-life. Data center operators are increasingly focusing on adopting innovative solutions and techniques to drive operational efficiency in order to meet sustainability targets. With such trends expected to continue during the forecast period, the studied market is also expected to witness an upward growth trend during the forecast period.
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United Kingdom to Witness Significant Growth
- The rapid proliferation of digital services and the growing number of Internet users have exponentially increased the amount of sensitive data collected by businesses in the United Kingdom. For instance, according to Hootsuite, as of January 2022, the United Kingdom had approximately 67 million internet users in total.
- Due to the growing demand, multiple companies offering cloud services have established extensive data center locations in the country, driving the demand for structured cabling. For instance, according to a recent survey by OpenUK, about 68% of respondents in the United Kingdom use Amazon Web Services (AWS) for their cloud infrastructure, followed by Google (49%), Microsoft Azure (47%), and others.
- The growth of the structured cabling market in the United Kingdom is also accelerating due to the increasing construction of hyperscale data centers to store huge amounts of data in the United Kingdom. For example, in February 2022, NTT said it planned to double the size of its data center in London. This was part of the company's ongoing plans to invest in the UK and help speed up digital transformation and a hybrid IT environment.
- As structured cable systems enable faster data transmission, such trends are expected to support the studied market's growth in the United Kingdom during the forecast period. Furthermore, the increasing focus on cost and time management, the growth of IoT data, and the need for business automation are also significantly contributing to the growth of the demand for the structured cabling market in the country.
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