How Has Structured Cabling Systems Increased the Expansion Rate of the Telecom Sector

In the post-globalization period, the rate of expansion of industrialization and urbanization has increased exponentially. Moreover, the pace of digitalization has also surged as many countries have started launching 5G services to provide Internet services to their citizens. At the same time, many telecom companies and public authorities are investing heavily in enhancing their communication infrastructure. The demand for structured cabling systems has grown immensely due to these factors.

Structured cabling solutions refer to electrical wiring infrastructure wherein multiple smaller electrical cables and other elements such as optical fibers, patch panels, etc., are installed as one unit. Typically, these systems are made of six components, viz., entrance facilities, equipment rooms, backbone cabling, telecommunication enclosures, horizontal cabling, and work area. The simplified installation processes and cost-effective layouts associated with these solutions have increased their preference in the past few years. Moreover, since standardized equipment is used in establishing the infrastructure, the identification of faults and the addressing of issues have become quite easier.

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Increased usage of fiber optic cables strengthening the foothold of the sector

The increased demand for fast-speed communication and Internet services has popularized fiber optic cables. Compared to traditional Cat 5 and Cat 6 cables, these wires have much faster data transmission capabilities. Furthermore, the bandwidth offered by fiber cables is much larger which reduces the latency and signal degradation, thereby improving the quality of voice communication. In the post-pandemic period, many developed and developing countries have launched 5G services in their jurisdictions to improve connectivity and provide digital services to people living in remote areas.

In such a scenario, fiber optic coils become an ideal component of structured cabling systems as these wires can be easily integrated with modular patch panels along with media converters. Additionally, since the reliability and flexibility offered by these cables are much higher, companies opt for these wires to cover large distances seamlessly. Several enterprises have even launched sustainable cables to reduce the carbon footprint of the telecommunication sector. In May 2023, Prysmian Group, a leading energy and telecom company, announced the launch of Ecoslim™, an eco-friendly fiber-optic system. Made from up to 90% recycled plastic, these coils are 25% thinner in diameter, thereby offering high-quality data transmission performance.

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Emergence of Power over Ethernet (PoE) technology creating new investment opportunities

According to a report published by Allied Market Research, the structured cabling market is predicted to gather a revenue of $20.88 billion by 2030 and rise at a CAGR of 7.4% from 2021 to 2030. The technological advancements in telecommunication and cabling systems are one major factor contributing to the growth of the landscape. In the past few years, Power over Ethernet (PoE) has emerged as an innovative networking solution that involves delivering data and electrical power over a single Ethernet cable. The main utility of this state-of-the-art technology is that it provides centralized power management features, thus helping in power monitoring and troubleshooting. The high-quality protection offered by these systems aids in reducing the chances of power overloading, underpowering, etc.

With the advent of the Internet of Things technology, the applicability of PoE has increased immensely as these communication systems offer better energy efficiency required for streamlining IoT-powered devices. The ability of PoE systems to easily integrate with green building standards has further increased their popularity.

To sum it up, the rising pace of digitalization and the launch of 5G services across the globe is expected to help the structured cabling market flourish. The increased adoption of fiber optic cables and PoE technology has created new opportunities in the industry.

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