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Government Efforts to Enhance the Contribution of IT Sector in the non-oil GDP Under the National Transformation Program 2020 Would Drive the Growth of Structured Cabling Market in Saudi Arabia" - 6Wresearch

12 September, 2018

Saudi Arabia structured cabling market experienced a major decline in 2017 due to crude oil price crisis along with delay or cancellation of various construction projects. However, post 2018, the market is expected to revive due to increasing crude oil prices, participation of private sector, government spending towards infrastructure development, construction of new construction projects have been awarded in multiple sectors such as hospitality, healthcare, energy, and commercial due to which the demand for structured cabling is likely to witness significant growth during 2018-24.

According to 6Wresearch, Saudi Arabia Structured Cabling market revenues are projected to grow at a CAGR of 10.7% during 2018-24. The government of Saudi Arabia plans on developing the IT sector and increase its contribution in the non-oil GDP of the country. Further, heavy investments are allocated for the development of IT infrastructure along with technical & regulatory framework. Additionally, internet penetration is likely to increase to 85% by 2020 under the National Transformation Program 2020.

According to Rishi Malhotra, Senior Research Analyst, Research and Consulting, 6Wresearch, "In the cable segment, copper cables dominated the market owing to its low cost and high compatibility with old communication infrastructure. However, the market for fiber optic cables would register significant growth due to rising internet penetration and growing demand for faster data transfer over the coming years."

"Additionally, by components, racks and cabinets accounted for the highest market revenue share in the overall structured cabling market in 2017 due to comparatively higher costs. However, the market for patch panels & cross connects and the patch cords & cable assemblies is projected to grow substantially in the near future owing to its short lifespan and therefore more frequent replacement cycles," He further added.

According to Kanchan Negi, Research Associate, Research and Consulting, 6Wresearch, "The commercial application segment which includes data centers, retail outlets, office space, healthcare facilities, hotels and warehouse are the highest revenue generating segments in the overall structured cabling market in 2017. Additionally, upcoming construction projects such as $500 billion Neom City project along with new data centers, rising supply of offices and hotels would drive the commercial application segment over the coming years as well.

"The industrial sector which includes the oil & gas sector, power utilities and manufacturing industries is expected to strengthen during the forecast period owing to upcoming projects such as the Saudi Aramco - Expansion of Khurais Oilfield, Ras Alkhair Power Plant Phase -2, South Jeddah Ext. Power Plant Phase -2 and Alrays Power Plant Phase -1. The demand for structured cabling components in the industrial application domain is therefore expected to rise in the future," Kanchan Concluded.

Some of the key players in Saudi Arabia structured cabling market include- CommScope, Belden, Legrand, Nexans, Schneider Electric, Panduit, Corning, Datwyler, Leviton, and Siemon.

"Saudi Arabia Structured Cabling Market (2018-2024)" report provides an in-depth analysis with 69 figures and 11 tables covered in more than 120 pages. The report estimates and forecast the overall structured cabling market by product types, applications and regions. The report provides an unbiased and detailed analysis of the on-going trends, opportunities/high growth areas and market drivers which would help the stakeholders to device and align their market strategies according to the current and future market dynamics.

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