The structured cabling market in Asia Pacific (including Japan) should
hit US$1.53 billion by 2010, with a compounded annual growth rate (CAGR)
of 11 percent from 2005 to 2010 according to an AMI Partners research
commissioned by SYSTIMAX® Solutions™ from CommScope (NYSE: CTV), the
worldwide leader in structured connectivity solutions. Only 68 percent
of this market will be made up of residential and enterprise structured
cabling, while the remainder will come from the data center structured
According to AMI, in 2005 only 13.8 percent of the structured cabling
business in the region came from the data center market. In 2010, the
research suggests that data centers will contribute about 32 percent of
the structured cabling business in the region.
“A typical data file has more than tripled in size over the last few
years,” said Dr Ispran Kandasamy, Vice President and Managing Director
of Asia Pacific for SYSTIMAX Solutions. “This trend is projected to
continue over the next several years as multiple terabytes of data are
moved and stored on enterprise servers in data centers. Keeping ahead on
access capability and storage capacity is a daunting task for data
center managers. This challenge presents a great opportunity for the
region’s data center structured cabling support businesses.”
Fastest growth in India
The fastest growing market in the region is India, with a CAGR of 46
percent in the data center structured cabling market according to AMI.
In comparison, the overall structured cabling market in the country is
expected to grow by a CAGR of 22.1 percent for the same period.
The Indian data center market opportunity, which is estimated to be
worth around US$100 million now, is expected to double by 2009. The
growth is expected to be driven by a number of factors, including
increasing supply and decreasing cost of Internet bandwidth and the
reality of more domestic companies hosting their mission-critical
applications such as Enterprise Resource Planning (ERP) and Customer
Relationship Management (CRM) in third-party data centers. AMI expects
that increasing convergence will also be a growth factor as India’s
leading cable operators and telecommunications companies roll out
‘triple play’ services and solutions that include the delivery of
television, telephony and broadband Internet access over a single
China outruns overall market
China is expected to showcase a 37.5 percent CAGR in the data center
structured cabling market, while the overall structured cabling market
will demonstrate only 13.6 percent growth.
AMI Research projects the healthy growth in China to be driven by the
• Cable TV is set to play a pivotal role in China’s converged media
environment as triple play services begin to be delivered over cable TV
infrastructures. China has the largest cable TV network in the world.
• China’s online game sector will see very high double-digit growth
rates in the coming years as more Chinese gain access to the Internet.
China is a big hub for game distribution, which involves huge amounts of
data. This, in turn, raises demand for data centers.
• The most rapid growth in Internet usage last year came from blogging.
The nation now has 20.8 million bloggers. Top blogging sites are hosted
by Sina, Qzone and Microsoft's MSN.
• Other new Internet services that are gaining particularly wide
acceptance include personal Web pages similar to those on MySpace,
video-hosting and video-sharing based on the Web 2.0 standards, as well
as a service called wit-key that allows users to post their questions
for solution tips from online pals.
• The popularity of video-hosting and video-sharing services has led to
a surge of 76 million users by the end of 2006, more than traditional
Internet services in e-commerce, automobile or real estate networks.
Mature markets continue to grow
According to AMI, in mature markets such as Singapore, Hong Kong,
Australia, South Korea and Japan, the data center structured cabling
business is expected to register a robust CAGR of approximately 15 to 26
percent, with Singapore (25.3 percent) and Hong Kong (25.8 percent)
leading the pack.
Hong Kong’s growth leadership is driven by its Digital21 Strategy. The
Hong Kong Government is making special provisions for data center and
call center locations, thus playing an active role in promoting data
center facilities in the Special Administrative Region (SAR).
On the other hand, AMI Research suggests that Singapore’s healthy growth
in the data center structured cabling market is being driven by the
• SingTel, the country’s biggest telecommunications operator, has jumped
into the triple play bandwagon with the launch of its Generation Mio
• iN2015, the nation’s new infocomm development master plan, includes
the Next-Generation National Infocomm Infrastructure, (NII) which will
be put in place by 2012. The NII is capable of delivering broadband
speeds of up to 1 Gbps while offering extensive connectivity around the
country. The infrastructure will also be IPv6-compliant and will enable
an exciting host of new broadband-enabled services and applications,
such as immersive learning experiences, telemedicine, high definition
TV, immersive video conferencing and grid computing.
• The Singapore government will roll out further e-services to provide
better citizen-to-government interaction. This is expected to require
more data centers.
“We believe there is a significant data center structured cabling market
opportunity in the region," Dr Kandasamy continued. “We are confident
that our SYSTIMAX Solutions market-leading product portfolio, which
includes SYSTIMAX GigaSPEED® X10D, the real-time infrastructure
management solution, iPatch®, and the SYSTIMAX VisiPatch® 360 System
solutions, will help meet the market demands in Asia Pacific."
Summary of AMI Research Findings
• The Structured Cabling Market in Asia Pacific is set to grow at 11
percent through 2010. The fastest growing market is India with a CAGR of
22.1 percent. China is second at 13.6 percent. However, in sheer market
size, the China market (US$229.6 million) will be a much larger market
than India (US$125.7 million) in 2010.
• Data Center Structured Cabling market has picked up momentum in the
APAC region with the 2010 market size expected to be close to US$500
million. The CAGR is expected to be 32.8 percent.
• More than 90 percent of the Structured Cabling market (including Data
Center Structured Cabling) is concentrated in China, India, Japan, South
Korea and Australia.
• The highest growth market in APAC is India (46 percent), closely
followed by China (37.5 percent). The moderate growth markets are Hong
Kong (25.8 percent), Singapore (25.3 percent), South Korea (24.1
percent), Australia (19.7 percent) and Japan (14.7 percent).
• India (US$39.3 million) overtook Japan (US$26.5 million) in 2006 in
terms of spending on data center structured cabling.
• Growth in the APAC Data Center market is being driven by the
popularity of online gaming, triple play services, blogging, video
sharing and video hosting. This growth will directly translate into
excellent growth for Data Center Structured Cabling.
The market figures are based on research conducted by AMI Partners and
commissioned by SYSTIMAX Solutions.
About SYSTIMAX Solutions
SYSTIMAX Solutions from CommScope (NYSE: CTV) is a worldwide leader in
structured cabling systems and provides integrated end-to-end
connectivity solutions for video, voice, data and building management
applications in both wired and wireless enterprise networks.
SYSTIMAX Solutions supplies its high-performance and market-leading
range of products through a network of highly skilled BusinessPartners.
The product range includes the copper-based GigaSPEED X10D and GigaSPEED
XL Solutions, the fiber optic LazrSPEED® and TeraSPEED™ Solutions and
the iPatch® Real Time Infrastructure Management System. The SYSTIMAX
AirSPEED™ Solution adds a wireless option to the portfolio. Drawing on
their Bell Labs heritage, the people of SYSTIMAX Labs who have
spearheaded these innovations will continue to play an integral role in
the future success of SYSTIMAX Solutions. Currently the company’s
BusinessPartners install an average of over 1,000 miles (1,600km) of
SYSTIMAX cable every day in approximately 130 countries worldwide.
All statements in this press release that are not historical facts
should be considered forward-looking statements that are based on
information currently available to management, management's beliefs, as
well as on a number of assumptions concerning future events. These
forward-looking statements are identified by words such as “believe,”
“expect,” “confident” and similar expressions. They are not a guarantee
of performance and are subject to a number of uncertainties and other
factors that could cause the actual results to differ materially from
those currently expected. Factors that could cause such a difference
include, but are not limited to, actual structured cabling demand in the
Asia Pacific region, changes in technology and the business environment
that could alter customer demand, among others. For a more detailed
description of the factors that could cause such a difference, please
see CommScope's filings with the Securities and Exchange Commission. In
providing forward-looking statements, the company does not intend, and
is not undertaking any obligation or duty, to update these statements as
a result of new information, future events or otherwise.