Impact Analysis of Covid-19
The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.
Cable management is the installation of cable management systems to secure cables for electrical services in an organization or industry or vehicle. This term is used for products or workmanship. Cable management finds applications in various end-use industries including mining, IT & telecom, healthcare, government, logistics & transportation, residential & government, manufacturing, etc. Products such as raceways, cable trays, and floor ducts are used to support a cable through cabling routes. Cable management further provides end-users with benefits such as labor-saving, cost-saving, increased adaptability, enhanced safety, and low maintenance.
The global Cable Management Systems Market was accounted for US$ 13,924.3 Mn in terms of value in 2019 and is expected to grow at CAGR of 11.8% for the period 2020-2027.
Market Dynamics- Drivers
- High growth of construction industry in BRICS countries is expected to drive growth of the global cable management systems market during the forecast period
Urbanization is directly proportional to the economic development of a country. Rising population and urbanization in Asia Pacific region have increased economic activities there, which in turn, has increased the demand for residential and commercial spaces. Increasing the influx of people in cities has increased the demand for basic infrastructures such as roads, bridges, water, sewage, electricity, telecommunication, and public transport. According to Coherent Market Insights’ analysis, BRICS countries account for an average urbanization rate of about 44.0% as compared to the global average of 50.4%. The urbanization rate of BRICS countries is expected to reach 47.0% by 2015, and about 53% by 2020. Therefore, these factors are expected to drive growth of the global cable management systems market during the forecast period.
- Renewal and upgradation of existing networks is expected to propel the global cable management systems market growth over the forecast period
In many mature countries, electrical grid infrastructures have reached tail-end of their operational lifespan. The average lifespan of transformer rages from 25 to 30 years. The aging equipment is incompatible with the technical and environmental requirements of the current times. Therefore, there is a demand for more efficient products and compatible infrastructure in order to help lessen the impact of pollution on the environment. Furthermore, there has been an expansion of services in resource-based industries, ongoing PCB replacement programs, and new green co-generation initiatives. Such initiatives have necessitated the demand for modernization and renewal of installed grids and bases. Hence, these factors are expected to propel the global cable management systems market growth in the near future.
Asia Pacific held dominant position in the global Cable Management Systems market in 2019, accounting for 28.6% share in terms of value, followed by North America and Europe respectively
Figure 1: Global Cable Management Systems Market Share (%) in terms of Value, By Region, 2019
Cable Management Systems Market - Impact of Coronavirus (Covid-19) Pandemic
The Cable Management Systems are widely used in the construction industry. Owing to the lockdown imposed by countries such as India and Spain, the construction industry is adversely affected. Moreover, delays are created in construction projects due to the imposed lockdown. There is also shortage of skilled workers and raw materials at the construction sites. According the our study, the cost of skilled construction labor is also expected to increase by 10% -20% during the year 2020-21. Owing to this, the overall cost of construction projects is also expected to increase. Thus, the demand for the cable management systems is also expected to reduce, which will adversely hamper the sale of the cable management systems during the forecast period. Due to all the above mentioned factors, the COVID-19 Pandemic is expected to restrain the cable conduit system market growth during the year 2020-21.
Market Dynamics- Restraints
- Price fluctuations of raw materials are expected to restrain growth of global cable management systems market during the forecast period
There some key materials required for manufacturing of cable management systems including aluminum, plastics, steel, and copper. The line charts above and below illustrates monthly volatility rate in the carbon steel and composite steel prices for the past 18 months, respectively. Both types of steel are used in manufacturing cable management products such as cable trays, raceways, floor ducts, conduits, connectors, glands, cable chains and reels, and lugs. Therefore, these factors are expected to restrain growth of the market during the forecast period.
- High market fragmentation at regional levels is expected to hinder the global cable management systems market growth over the forecast period
The global cable management systems market is highly fragmented with presence of both organized and unorganized players in the market. The presence of a large number of local players poses significant threat to global cable management system manufacturers. Therefore, high market fragmentation at regional level hinders the growth of cable management systems globally. Furthermore, regional regulations for manufacturers that differs as per region combined with end users buying patter are expected to hinder the market growth over the forecast period.
Cable Management Systems Market Report Coverage
||Market Size in 2019:
||USD 13,924.3 Mn
|Historical Data for:
||2016 to 2019
||2020 to 2027
|Forecast Period 2020 to 2027 CAGR:
||2027 Value Projection:
||USD 34,077.7 Mn
- North America: U.S., Canada
- Europe: Germany, U.K., Spain, France, Italy, Russia, Rest of Europe
- Asia Pacific: China, India, Japan, Australia, South Korea, ASEAN, Rest of Asia Pacific
- Rest of the World: South Africa, North Africa, Central Africa, Brazil, Argentina, Mexico, Rest of the World
- By Product Type -(Cable Tray, Raceway, Floor Duct and Junction Box, Conduit, Connectors, Glands, Cable Chains and Reels, Lugs and Tools and Others (Cable Tags, Route Markers, etc.))
- By End-use Industry -(IT & Telecom, Manufacturing, Energy & Utility, Healthcare, Logistics & Transportation, Mining and Others (Residential & Government))
Marco Cable Management, Schneider Electric SE, Maxell Industries LLC, Legrand SA, Kripson Electricals, Thomas & Betts Corporation, Allied Tube & Conduit, Chatsworth Products, Inc., TE Connectivity Ltd., TransDelta International Industries LLC, Hilti Group, Oglaend System Group, Enduro Composites, Inc., and Niedax Group.
- High growth of construction industry in BRICS countries
- Renewal and upgradation of existing networks
|Restraints & Challenges:
- Price fluctuations of raw materials
- Gradual shift towards robotic cable management can present lucrative growth opportunities
Previously, cable management was performed manually by skilled workers. However, with technological developments and rising efficiency and reliability of machine, cable management has increasingly become robotic. Over the past five decades, cable management on robots has been overlooked often. A majority of the experts agree that designers regularly make errors in estimating and solving cable management problems. A group of system integrators categorized cable issues as the primary reason behind downtime, at a conference hosted by the Robotic Industries Association (RIA) These issues range from corkscrewed and tangled cables to complete breaks which lead to revenue losses, downtime, and damaged reputations.
- Research and development activities can provide major business opportunities
Key players operating in the market are focused on research and development activities, in order to enhance the market presence. For instance, in November 2014, Maxell Industries showcased its product offerings in the cable management segment at the BIG 5 SHOW held at the Dubai World Trade Center in the UAE. Furthermore, in October 2014, Allied Tube & Conduit launched BIM models available through SmartBim for electrical metallic tubing (EMT), intermediate metal conduit (IMC), rigid steel conduit, nipples and elbows.
Figure 2: Global Cable Management Systems Market Value (US$ Mn), 2017 - 2027
The global Cable Management Systems market was valued at US$ 13,924.3 Mn in 2019 and is forecast to reach a value of US$ 34,077.7 Mn by 2027 at a CAGR of 11.8% between 2020 and 2027.
- Conventional cable management systems also referred to as cable spaghetti
IT industry needs frequent addition/removal/movement of data cables throughout the life of the installation. The traditional way is to install fixed cables between cabling cabinets or closets. However, this results in cable spaghetti, i.e., entangling of cables. This led to increased failures and thereby system downtime. With the advent of fiber-optic and coaxial cables, there has been rapid digitization in all fields across the globe. This has led to high usage of cables and wiring in infrastructure as well as equipment. Thus, cable management systems have become a must to cope with rapidly evolving technologies. The cable management systems include individual cable management products such as cable tray, raceway, floor duct, and junction box, conduit, connectors, glands (hazardous environmental and industrial use), cable chains and reels, lugs and tools, cable tags, and route markers.
- Profitability trends in the market
The cable management system market has been a highly profitable market over the past decade. Cable management products such as cable tray, raceway, conduit and cable connectors have been highly profitable segments. This is majorly due to extensive infrastructural developments and residential as well as non-residential construction across various sectors. In addition, manufacturing as well as selling of cable management products in regions such as Asia Pacific and RoW during the forecast period 2014 – 2020; and in North America and Europe in the latter part of forecast period (2018 – 2020), are analyzed to be highly profitable opportunities for market players. Capturing and gaining market shares in the highly unorganized markets of Asia Pacific and RoW is further analyzed to be the most profitable opportunity in the global cable management system market.
Value Chain Analysis
The raw materials primarily used in the manufacturing of cable management products include steel, aluminum, iron, copper and plastics. Both, composite steel and carbon steel are considered critical raw materials in manufacturing of cable management products. Most global players have entered into permanent tie-ups with leading raw material suppliers in order to ensure the uninterrupted manufacturing and supply of products. Some major companies supplying steel include ArcelorMittal, Nippon Steel & Sumitomo Metals Corporation, Nucor Corporation, and Hebei Steel Group among others. The key suppliers of copper include Codelco, Freeport-McMoRan Copper & Gold Inc., BHP Billiton Ltd., and Xstrata PLC among others.
Key players operating the global cable management systems market are Marco Cable Management, Schneider Electric SE, Maxell Industries LLC, Legrand SA, Kripson Electricals, Thomas & Betts Corporation, Allied Tube & Conduit, Chatsworth Products, Inc., TE Connectivity Ltd., TransDelta International Industries LLC, Hilti Group, Oglaend System Group, Enduro Composites, Inc., and Niedax Group.
- Major companies in the market are focused on mergers and acquisitions, in order to enhance the market presence. For instance, in May 2017, Atkore International Inc. acquired Marco Cable Management, a U.K.-based designer and manufacturer of wire cable.
- Key companies are involved in product launches, in order to gain a competitive edge in the market. For instance, in October 2017, Chatsworth Products, Inc. launched second-generation EF-Series EuroFrame Cabinet.