Cables and Connectors Growth Analysis Report - Market Size, Share, Forecast Trends and Outlook (2025-2034)

The cables and connectors market value reached around USD 58.16 Billion in 2024. This growth is driven by the increasing demand for high-speed data transmission fuelled by the proliferation of IoT devices and smart technologies, such as Amazon Echo and Google Nest. The expansion of telecommunications infrastructure, particularly with the rollout of 5G networks, necessitates advanced cables and connectors that support faster connections. The industry is expected to grow at a CAGR of 3.60% during the forecast period of 2025-2034 to attain a value of USD 82.84 Billion by 2034. Additionally, the booming consumer electronics market, with products like smartphones and laptops requiring reliable connectors for power and data transfer is further propelling demand.

Cables and Connectors Market Analysis

Cables and connectors are transmission mediums that are used to transmit data along a channel while transferring information from source to destination. They are increasingly used in electronic devices to enable their efficient functionality. Moreover, cables and connectors find applications across various industries and segments.

The growth of the cables and connectors market is primarily driven by the increasing demand for high-speed data transmission and connectivity solutions across construction, manufacturing, telecom, and healthcare industries. In the construction industry, companies are integrating 5G-enabled sensors for better real-time project management, which simultaneously requires advanced connector systems. Similarly, in healthcare, the demand for 5G-enabled medical devices like wearables is growing rapidly.

Cables and Connectors Market Growth

With the rise of 5G technology, there is a surge in demand for high-performance cables and connectors to support enhanced network speeds, particularly in the telecommunications sector. As per industry reports, 5G network infrastructure investments reached nearly USD 20 billion globally in 2022, significantly boosting the fiber optic cables and connectors demand growth.

Additionally, the growing adoption of electric vehicles (EVs) and advancements in automotive technology is driving the adoption of cabling systems for power and communication. As per industry reports, the number of EVs on the road globally exceeded 14 million in 2023, which accelerating the demand for automotive cables. Furthermore, large-scale infrastructure projects and the development of smart cities in regions like Asia-Pacific are contributing to cables and connectors market expansion. For instance, China has invested over USD 50 billion in smart city initiatives, which rely on advanced cabling for data transmission and power supply.

Key Trends and Developments

Rising adoption of fiber optic cables, expansion of renewable energy projects, and increasing demand from the electric vehicle (EV) industry are the key trends propelling the market growth.

September 2024

KEI Industries Limited begun commercial production of low voltage and medium voltage cables in its new facility at Alwar District, Rajasthan. Company aims to generate a revenue of INR 800 crore from this facility. This expansion also caters to the growing electric cables and connectors demand in power distribution sectors.

September 2024

ITT Inc. acquired kSARIA Parent, Inc., a manufacturer of advanced cable assemblies for avionics, sensors, communications, and networking applications in the aerospace and defense sectors. This acquisition, valued at USD 475 million will enhance ITT's existing connector portfolio and can propel cables and connectors market value.

September 2024

Belden launched new ‘Lumberg Automation Inner M12 Push Pull Connectors’ to ensure reliable connections in harsh environments and prevent accidental disconnections. They are compatible with industrial Ethernet cables, comply with International Electrotechnical (IEC) standard 61076-2-010, and improves performance in IoT applications.

September 2024

KEC International secured orders worth INR 1,003 crore to provide high-voltage and low-voltage cables for railway and civil infrastructure projects. The expansion is expected to strengthen KEC's cables and connectors market share and contribute to India's infrastructure development, particularly in the railway sector.

Increasing Focus on Product Innovations

Market players are engaged in developing innovating and advanced cables and connectors to help cater industry demands. For instance, in September 2024, Neutrik Americas introduced its etherFLEX TOP cable assemblies for end-of-network applications such as audio over IP and lighting control. These premium cables are flame-retardant, oil and corrosion resistant, UV resistant, and halogen-free. They also guarantee CAT 5E performance and ensures a consistent 1 Gbit/s data transfer rate. Similarly, in September 2024, Fairview Microwave introduced new RF angled PCB connectors designed to improve signal integrity in electronic designs and they feature a frequency range of up to 18 GHz. These connectors are available SMA, SMB, and SMC configuration, which allows for efficient routing of RF signals. The product line is suitable for various applications in telecommunications, aerospace, and defense industries.

Rising Adoption of Fiber Optic Cables

A significant trend in the cables and connectors market is the increased adoption of fiber optic cables to support the growing demand for high-speed data transmission, particularly with the global rollout of 5G networks. For instance, in 2024, AT&T expanded its fiber network across 500,000 locations in the United States. Similarly, India, with its large-scale BharatNet project, is connecting many rural areas with fiber broadband. Furthermore, the increased need for reliable and faster internet connections due to the rise of remote work and cloud-based services is fuelling this trend as fiber optic cables play a critical role in upgrading digital infrastructure worldwide.

Expansion of Renewable Energy Projects

The global shift towards renewable energy is another key trend driving the cables and connectors market dynamics and trends. As countries ramp up their renewable energy capacity, particularly in solar and wind power, the need for reliable cables for energy transmission is increasing. In 2024, Australia announced investments of USD 12 billion in solar energy projects. Similarly, Europe, with its North Sea Wind Power Hub initiative, is working on achieving the target of reaching 300GW of offshore wind power by 2050. These projects require high-voltage cables to efficiently transmit electricity over long distances, from remote wind and solar farms to urban centres. In the U.S., the Department of Energy (DOE) has allocated USD 230 million for offshore wind projects as part of its commitment to integrating renewable sources into existing infrastructures. The trend towards sustainable energy is pushing the demand for cables that are capable of handling higher power loads, significantly impacting the market.

Increasing Demand for High-Speed Data Transmission

The demand for high-speed data transmission is a significant trend driving the cables and connectors market. As industries adopt technologies like 5G, IoT, and cloud computing, there is a growing need for advanced connectors capable of supporting higher data rates. For instance, TE Connectivity recently launched 8-pair shielded RJ45 connectors designed for 10GbE speeds in harsh environments. According to the Federal Communications Commission (FCC), broadband adoption in the U.S. increased from 70% in 2018 to over 80% in 2021, highlighting the growing need for high-speed cables and connectors to support enhanced connectivity across various sectors.

Cables and Connectors Market Trends

As per the International Energy Agency (IEA), global electric car sales reached 6.6 million units in 2021, up from just 2.1 million in 2019, indicating a rapid shift towards electrification. This electric vehicle (EV) boom is rapidly shaping the cables and connectors market, particularly as EV manufacturers continue to expand production levels with new launches. In the FY 2024, Tesla aims to produce over 2 million electric vehicles, while countries like Germany have implemented EV charging infrastructure mandates. These initiatives have significantly boosted the demand for advanced EV cables. This is because these cables are essential for fast-charging stations, battery management systems, and power distribution networks. The increasing investment in public charging infrastructure across the U.S., India, and Europe, along with favourable government incentives for EV adoption, is accelerating this trend and driving demand for high-performance automotive cables. Government policies aimed at promoting EV adoption, such as California's Clean Vehicle Rebate Project, which has provided over USD 1.5 billion in rebates since its inception, are further propelling this trend.

Opportunities in Cables and Connectors Market

The growing investments in smart city infrastructure, such as China's USD 50 billion smart city development plan and the U.S. smart grid projects, are driving the demand for advanced cabling solutions to support large-scale data transmission, power distribution, and connectivity. Additionally, the increasing focus on renewable energy also offers growth opportunities. For example, India aims to generate 40% of its energy from renewable sources like solar and wind by 2030, which will require cables capable of efficiently transmitting energy from remote generation sites to urban centres, further leading to cables and connectors market growth.

Moreover, the ongoing 5G deployment is further enhancing the need for high-speed fiber optic cables. In 2024, countries like South Korea and the United States are accelerating their 5G rollouts, with the U.S. expected to connect over 100 million users by the end of the year. Additionally, global internet traffic is expected to exceed 4.8 zettabytes annually by 2025, driven by the increasing adoption of cloud computing and IoT devices, further increasing demand for high-performance cables to support high-speed internet infrastructure. These emerging sectors provide ample growth avenues for manufacturers in the cables and connectors market.

Cables and Connectors Market Restraints

A primary challenge in the market is the high installation and maintenance costs of optic networks and high-voltage power transmission systems. As per industry reports, the cost of deploying fiber optic cables can reach as high as USD 15,000 per mile in urban areas, making it a significant investment. Additionally, the growing concern over environmental impact and the difficulty in recycling certain materials used in cables, such as PVC and copper, is limiting the market's growth.

Regulatory bodies, particularly in Europe, are also imposing stringent environmental regulations on cable production, which increases compliance costs for manufacturers. Another factor impacting cables and connectors demand forecast is the increasing shift towards wireless technologies in some sectors, which reduces the demand for physical cables in areas such as home automation and consumer electronics.

Furthermore, supply chain disruptions and raw material shortages, particularly in metals like copper and aluminum, have caused price volatility and delayed multiple projects. For instance, the price of copper surged by more than 25% in 2023, leading to increased production costs and longer lead times for manufacturers. These challenges are collectively acting as significant restraints on market’s expansion.

Cables and Connectors Market Dynamics

The increasing cost-effectiveness or affordability of newly launched connectors is shaping market dynamics. Companies like TE Connectivity have recently introduced advanced, cost-efficient connectors, catering to needs of industrial automation, automotive, and aerospace industries. Moreover, the emergence of connectors with automated disconnection capacity to prevent injury or equipment damage is aiding cables and connectors market development. In 2023, Amphenol Corporation launched a series of connectors designed for frequent disconnection, particularly for use in automation equipment.

The growing popularity of robots, drones, and smart wearables (industries that increasingly rely on connectors capable of automated disconnection), is expected to further boost cables and connectors market demand. For instance, automated guided vehicles (AGVs) in warehouses require these advanced connectors for safe and frequent disconnection. However, rising regulatory pressures are impacting the materials used in cables and connectors. The European Union's Restriction of Hazardous Substances (RoHS) directive has forced manufacturers to reduce the use of toxic substances in cables, which in turn increases production costs.

Cables and Connectors Industry Segmentation

“Cables and Connectors Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

Market Breakup by Type

• Internal
• External

Market Breakup by Product Type

• HDMI Cable and Connectors
• USB Cables and Connectors
• VGA Cables and Connectors
• DVI Cables and Connectors
• CAT5/CAT6 Cables and Connectors
• Others

Market Breakup by End Use

• Automotive
• Commercial
• Oil and Gas
• Energy and Power
• Aerospace and Defence
• Others

Market Breakup by Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

Market Insights by Type

Internal cables and connectors are primarily used within devices to connect components like motherboards, hard drives, and power supplies. The growth in this segment is driven by growth of industries such as data centres, consumer electronics, and telecommunications. For example, the rise of cloud computing and edge data centres is pushing demand for internal connectors that offer high-speed data transmission and low latency. In 2023, Intel announced a shift towards optical internal connectors for their data centre servers to boost data transfer speeds, marking a significant trend in this segment. As per the cables and connectors industry analysis, the need for compact, high-performance connectors in smaller devices like wearables is also contributing to growth.

On the other hand, external cables and connectors are essential for linking devices, such as charging cables, USB connectors, and HDMI cables. With the expansion of 5G networks and electric vehicle (EV) infrastructure, demand for external connectors has surged. In 2024, Tesla and other key automakers are advancing high-power charging connectors to enable fast charging. Additionally, the USB4 standard, introduced in 2022, is gaining traction for its capability to handle higher data transfer rates (up to 40Gbps), further boosting the demand for external connectors in consumer electronics. This segment is also experiencing growth due to increased sales of smart home devices, resulting in enhanced cables and connectors market revenue.

Market Insights by Product Type

HDMI (High-Definition Multimedia Interface) cables are widely used in consumer electronics for transmitting high-definition audio and video between devices like TVs, gaming consoles, and computers. As per industry reports, the adoption of 4K and 8K video formats is driving the demand for higher bandwidth HDMI 2.1 cables, which support up to 48 Gbps data transfer. The growing sales of smart home entertainment systems is also expected to propel the HDMI segment as companies like Sony and Samsung have launched television sets and music systems with HDMI 2.1 capabilities to support high refresh rates and HDR vision.

USB (Universal Serial Bus) cables and connectors, however, dominates the cables and connectors market share due to their universality and high use in commercial and residential sectors. Moreover, the introduction of USB4 in 2022, offering data transfer speeds of up to 40 Gbps has pushed their demand in data-intensive applications such as external storage and gaming accessories. Additionally, in 2023, Apple's shift to USB-C for its entire iPhone lineup, influenced by EU regulations, which further boosted the market for USB-C connectors.

VGA (Video Graphics Array) cables, once the dominant technology for video transmission, are now seeing a decline due to the rise of HDMI, DVI, and DisplayPort connectors. However, VGA still holds relevance in legacy systems and industrial applications, particularly in sectors where older displays and projectors are in use. DVI (Digital Visual Interface) cables, in contrast, are used primarily in computer monitors and projectors as they offer superior video quality compared to VGA. However, as per cables and connectors market overview, DVI is being gradually replaced by HDMI and DisplayPort, particularly in consumer electronics.

Lastly, with the rapid expansion of cloud computing, IoT, and 5G networks, demand for CAT5 and CAT6 cables has soared due to their ability to support 10 Gbps speeds over short distances, which is ideal for modern homes, businesses, data centres and enterprise networks. In 2023, companies like Belden and Siemon announced the release of enhanced CAT6A cables to support higher performance in data-intensive environments such as edge computing and smart city infrastructure.

Market Insights by End Use

The automotive sector is witnessing robust growth in the cables and connectors market due to the rising sales of electric vehicles (EVs) and automakers’ focus on autonomous driving technologies. The need for high-voltage cables for battery systems, charging infrastructure, and in-vehicle connectivity is rising as EV sales are expected to cross 17 million units in 2024. Additionally, automotive manufacturers are investing in fiber optic cables for advanced infotainment and communication systems in next-generation vehicles, leading to segment’s growth.

The oil and gas industry also relies on durable cables and connectors for both onshore and offshore operations. According to cables and connectors market analysis, in 2023, Prysmian Group announced the expansion of its subsea cable division, focusing on high-performance cables designed for offshore wind farms and oil platforms. Similarly, BP's offshore drilling projects in the Gulf of Mexico also use robust underwater fiber optic cables for real-time data transmission and monitoring, showcasing the high adoption of the product in this sector.

In the commercial sector, the increasing use of IoT and smart building technologies is driving demand for advanced cabling infrastructure. Moreover, Amazon Web Services (AWS), Google Cloud, and Microsoft's ongoing investment in expanding its global data centres is creating a substantial need for CAT6A Ethernet cables and fiber optic connectors. Additionally, the rise of remote working culture post-pandemic has accelerated the demand for high-speed internet connections, increasing the use of USB-C and HDMI connectors in homes and flexible office spaces.

Furthermore, the global push for renewable energy is creating significant cables and connectors market opportunities. As per industry reports, China is estimated to account for nearly 60% of global renewable capacity additions expected by 2028, with utility-scale solar and wind projects under construction totaling 339 GW. Similarly, India aims to achieve 300 GW of solar PV capacity by 2030, supported by over USD 250 billion investments in renewable energy projects, including USD 15.5 billion specifically for solar PV. These goals are creating a pressing need for high-voltage cables for energy transmission over long distances. The construction of smart grids in the United States and Germany is also boosting the market for fiber optic cables that support real-time data collection and control systems in power distribution networks. The expansion of battery storage facilities further increases demand for high-capacity cables.

Cables and Connectors Market Regional Insights

North America Cables and Connectors Market Trends

The North American market for cables and connectors is experiencing strong growth, driven by the rapid expansion of 5G networks, data centres, and the electric vehicle (EV) industry. In 2024, the U.S. government allocated around USD 66 billion to enhance 5G connectivity, boosting demand for fiber optic cables. Additionally, the Biden administration's investment in EV infrastructure, with plans to install 500,000 charging stations by 2030, is significantly increasing the need for high-voltage automotive cables. Major companies like General Motors and Ford are expanding their EV lines, which further fuels the demand for advanced connectors.

Asia Pacific Cables and Connectors Market Drivers

The Asia Pacific region holds the largest share in the market, driven by its dominant position in consumer electronics, telecommunications, and automotive production. China, the world’s largest 5G market, is aiming to deploy over 1 million 5G base stations by 2024, spurring demand for fiber optic and RF cables. India's BharatNet project, aimed at connecting 250,000 villages with broadband, is another example of large-scale investments in cable infrastructure, increasing cables and connectors market revenue. Additionally, Japan's and South Korea's high-tech industries are pushing demand for USB-C and HDMI connectors in consumer electronics. The rapid growth of electric vehicle production in China and India, where companies like BYD and Tata Motors dominate, also propels the market for automotive cables.

Europe Cables and Connectors Market Opportunities

The European Union’s Green Deal, aiming for climate neutrality by 2050, is driving investments in wind farms and solar energy projects. These projects also require durable high-voltage cables for energy transmission. For example, in 2024, Siemens Gamesa and Nordex expanded their offshore wind projects, leading to increased demand for subsea cables. Europe is also a significant player in the electric vehicle market, with Germany, France, and the UK leading in EV sales. The EU’s mandate for USB-C standardisation across all smartphones and electronics by 2024 has pushed demand for USB-C connectors in companies like Apple and Samsung. Additionally, EU government announced a Germany’s broadband expansion plan to provide gigabit internet to all rural areas by 2025, which is why fiber optic infrastructure is being expanded in the region, resulting in market’s growth.

Middle East and Africa Cables and Connectors Market Dynamics

In the Middle East, countries like Saudi Arabia and the United Arab Emirates are investing heavily in smart cities and data centres, which is driving demand for fiber optic and high-speed Ethernet cables. For example, NEOM, Saudi Arabia’s USD 500 billion mega-city project, is expected to significantly boost demand for advanced cables and connectors to support its smart infrastructure. In Africa, projects like Google's Equiano subsea cable aims to bring faster internet to South Africa, Nigeria, and Ghana, further increasing the demand for fiber optic cables. Additionally, the rise of solar power projects in countries like Morocco and Egypt is creating demand for energy transmission cables and connectors to connect renewable energy sources to national grids.

Innovative Start-ups in Cables and Connectors Market

Start-ups are focused on meeting the evolving demands of industries such as telecommunications, automotive, and renewable energy. They are developing high-speed, durable cables for 5G networks and electric vehicles. Additionally, start-ups are creating high-performance connectors with advanced features like automated disconnection for use in automation and robotics. These companies are also leveraging emerging technologies like IoT and artificial intelligence to enhance product functionality.

HARTING Technology Group, founded in 1945 and headquartered in Espelkamp, Germany, develops connectors for Industry 4.0, automation, and data transmission. HARTING's modular connectors, such as the Han-Modular series, are highly favoured in automation and energy markets. The company is also focused on developing miniature version of connectors for applications like electric vehicles (EVs) and renewable energy systems. HARTING has garnered multiple industry awards for its innovation, positioning it as a key player in the cable and connector market.

Samtec, Inc., founded in 1976 and based in Indiana, United States, is known for its high-speed interconnect solutions. The company caters to industries, such as telecommunications, medical devices, and data centres. One of its key innovations is its high-speed microelectronic connectors, which support next-generation applications like 5G and autonomous vehicles. Samtec is also highly involved in the development of fiber optic solutions and advanced connectors for high-performance computing.

Competitive Landscape of Cables and Connectors Market

Market players are primarily focusing on improving data transfer and power transmission capabilities to meet the growing demand for high-speed internet in telecommunications, automotive, and healthcare industries. Companies are also investing in advanced materials to enhance performance of cables. Additionally, strategic activities like mergers and acquisitions are being pursued to consolidate market positions and expand product portfolios in response to increasing competition and technological advancements.

Amphenol Corporation

Amphenol Corporation was founded in 1932 and is headquartered in Connecticut, United States. It is one of the largest manufacturers of connectors in the world. The company provides a wide range of interconnect products for telecommunications, automotive, and industrial applications.

Axon Cable S.A.S.

Axon Cable S.A.S. was founded in 2003 and is headquartered in Épernay, France. It specialises in designing and manufacturing high-performance cables and connectors for aerospace, defense, and medical industries.

Fujitsu Limited

Fujitsu Limited was founded in 1935 and is headquartered in Tokyo, Japan. It is a global leader in information technology services and products, including cables and connectors. The company develops innovative solutions that enhance connectivity and data transfer across telecommunications and IT industries.

Sumitomo Electric Wiring Systems, Inc.

Sumitomo Electric Wiring Systems, Inc. was founded in 1954 and is headquartered in Osaka, Japan. As a subsidiary of Sumitomo Electric Industries, this company focuses on manufacturing automotive wiring harnesses and connectors.

Other cables and connectors market players include Nexans Group, among others.