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.
Coaxial cable or also referred to as coax is a type of electrical cable, comprised of an inner conductor by concentric conducting protection with the two separated by a dielectric material. Coaxial cable is a type of transmission line used to carry high-frequency electric signals with low losses. It typically finds applications in broadband internet networking cables, telephone trunk lines, high-speed computer data busses, connecting radio transmitters, cable television signals, etc. Coaxial cables are cheap and easy to install compared to optical cable networks which encourage CATV and Internet IPTV operators to deploy this technology for distribution of their services.
The North America coaxial cable market is estimated to be valued at US$ 3,881.1 million in 2021 and is expected to exhibit a CAGR of 8.4% over the forecast period (2021-2028).
- Belden Inc. Company has made 8 acquisition and 1 investment in multiple sectors such as Telecom Infrastructure Tech, Cybersecurity, Tech for Film & TV and more. For instance, in February 2018, Belden Inc. acquired Snell Advanced Media (SAM), a company that designed and developed solutions for the media production market including applications for central operations, live production, post production, playout and media management.
- In May 2017, Belden Inc acquired Thinklogical, an innovative manufacturer of secure, high-performance video distribution (VDS) and KVM signal extension and switching systems that allow organizations to more easily access and distribute video-rich data for increased productivity and efficiency.
U.S. held dominant position in the North America coaxial cable market in 2020, accounting for 64.2% share in terms of volume, followed by Canada and Mexico, respectively.
Figure 1. North America Coaxial Cable Market Value (US$ Mn), by Country, 2020
Market Dynamics- Drivers
Growing popularity of interconnected home devices is expected to drive growth of the North America coaxial cable market during the forecast period. Coaxial home network is a standard to distribute high definition videos and high capacity internet throughout the household. According to the Coherent Market Insights’ analysis, over 90% of households in the U.S., share photos, movies, and access the internet by using a coaxial cable network. This trend is expected to continue during the forecast period, owing to continuous advancement in coaxial cable and related equipment to satisfy the high-speed broadband needs of households. Furthermore, rising popularity of home interconnected devices is expected to boost the demand for coaxial cables. Households in the U.S. are increasingly using Blue-Rays, digital video recorders (DVR), gaming consoles, and high definition TV (HDTV) for accessing digital videos with video on demand (VoD), IPTV and OTT technology over the internet. Advanced technology like MoCA makes it possible to connect these devices to high-speed internet more effectively by using coaxial cable.
High growth of telecom and IT expenditure by SMEs is expected to propel the global coaxial cable market growth over the forecast period. North America has over 20 million small and medium-sized service industry enterprises. These companies spending over telecom and IT services were estimated to be in the range of US$ 60 billion to US$ 70 billion per year. These companies are significantly investing in communication and data distribution technologies to obtain a preferred level of customer satisfaction in a competitive environment. As a result of this, Multiple-System-Operators (MSOs) and IPTV providers in this region are shifting their focus towards this revenue potential market.
All three countries i.e. U.S., Canada, and Mexico in North America are investing the noteworthy amounts in rural broadband extension programs. According to planning commission, Canada invested about US$ 225 million in rural broadband and extension plan, for providing high-speed broadband services to rural households. According to this plan, the Government of Canada has provided broadband access to more than 218,000 new broadband connections in the last three years. Currently, over 80% of Canadian households have access to high-speed Internet access.
The new DOCSIS 3.1 specification issued in 2013 is expected to enable cable operators to transfer internet data up to 10 Gbits/s downstream and 1Gibits/s upstream speed. DOCSIS is a standard followed by all cable operators to transfer internet data over cable networks. Products related to DOCSIS 3.1 are expected to come to the market by 2014. This represents a high potential for coaxial cable manufacturers by advancing their products to support such high-speed internet data transfer over cable networks. This new specification is expected to increase the demand for digital coaxial cable to support such high-speed data transmission.
North America Coaxial Cable Market Report Coverage
||Market Size in 2021:
||US$ 3,881.1 Mn
|Historical Data for:
||2017 to 2020
||2021 to 2028
|Forecast Period 2021 to 2028 CAGR:
||2028 Value Projection:
||US$ 6,843.9 Mn
- Region: U.S., Canada, and Mexico
- By Governance Level: Federal, State, Local
- By Department: Police, Fire, Emergency Response
- By Technology: Network Infrastructure ( Communication Networks Technology (TETRA/TEDS, APCO25 (P25), Others), Data Networks Technology (Satellite, Terrestrial)), Wireless Equipment, Communication Devices, Services
Belden Inc., Alpha Wire, General Cable Corporation, L-Com Global Connectivity, LS Cable & System, Southwire, TE Connectivity Ltd, Nexans S.A., Amphenol Corporation, and Coleman Cable Inc
- Growing popularity of interconnected home devices
- High growth of telecom and IT expenditure by SMEs
|Restraints & Challenges:
- High cost of raw materials
- Stiff competition due to emerging substitutes
Key players in the market are focused on mergers and acquisitions, in order to enhance the market presence. For instance, in December 2011, in December 2011, Belden Inc. acquired privately-held PPC Broadband, Inc. to strengthen its position in the broadband industry. Moreover, in December 2012, Carlisle Companies Inc. acquired Belden’s Thermax and Raydex business division. Thermax and Raydex supply coaxial wire and cable for aerospace, military and industrial operations for mission-critical operations. Belden was struggling to generate acceptable profits from this division
Multimedia over Coax (MoCA) technology is the standard to distribute high-definition video and high-capacity Ethernet over existing coaxial cable networks in North America. This trend is expected to continue in the future. Inherent benefits of MoCA technology such as multiple streams HD video transmission, unparalleled user experience, and high-speed net throughputs encourage both operators and consumers to install this technology. MoCA is the universal standard for home entertainment networking which is accepted by all pay-TV segments i.e. cable, IPTV, and satellite.
Figure 2. North America Coaxial Market Share, By End User, 2020
Key Takeaways of the Graph:
- The Internet service providers by end user held dominant position in the market and accounted for 8% share in the North America coaxial cable market in 2020. The segment is expected to reach US$ 1,483.6 million in 2028, owing to increase in requirement for reliable and fast connectivity, which is provided by coaxial cables.
- In 2020, the CATV Companies by end user accounted for the second largest share of 3% in the North America coaxial market and is expected to be valued at US$ 1,333.0 million by 2028. This is owing to factor that the coaxial cable makes it easy to connect devices situated at multiple locations. The demand for this cable are growing at an extremely high rate due rise in better quality of and high frequency signal transmission.
Market Dynamics- Restraint
High cost of raw materials is expected to restrain growth of the North America coaxial cable market during the forecast period. Raw material prices frequently fluctuate, which is a major restraining factor. In the past five years, raw material prices for aluminum, copper, and plastics increased considerably. This has reduced the profits margin for manufacturers. At the end of 2012, copper prices increased by 6% compared to the beginning of the year. Moreover, prices of insulating materials such as polyvinyl chloride (PVC) and fluorinated ethylene-propylene (FEP) have increased in the recent past.
Stiff competition due to emerging substitutes is expected to hamper the North America coaxial cable market growth over the forecast period. There are many substitutes for coaxial cables in the market such as optical fiber networks and wireless technology. These technologies have gained significant popularity among connected mobile devices such as smartphones, tablets, and laptops with internet within homes.
Key players operating in the North America coaxial cable market are Belden Inc., Alpha Wire, General Cable Corporation, L-Com Global Connectivity, LS Cable & System, Southwire, TE Connectivity Ltd, Nexans S.A., Amphenol Corporation, and Coleman Cable Inc.