Cable Assembly Market is Estimated to Witness High Growth Owing to Advancement in Connectivity Technologies



Cable assembly refers to a group of cables bundled together to transfer data, signals or electric power. Cable assemblies are used in various industries like aerospace, defense, telecommunications and medical. They offer durable connectivity solutions and enable smooth transmission of data between various electronic devices. The growing adoption of IoT devices and emergence of new connected technologies like autonomous vehicles, artificial intelligence and 5G is fueling the demand for high speed and reliable cable assembly solutions.

The Global Cable Assembly Market is estimated to be valued at US$ 167.40 Bn in 2024 and is expected to exhibit a CAGR of 6.5% over the forecast period 2023 to 2030.

Key Takeaways

Key players: Key players operating in the Cable Assembly are Amphenol Corporation, Molex LLC, TE Connectivity Ltd., Belden Inc., Prysmian Group, Carlisle Interconnect Technologies, Nexans SA, L. Gore & Associates Inc., Panduit Corp., Fischer Connectors, JST Manufacturing Co., Ltd., Samtec Inc., L-com Inc., 3M Company, and Smiths Interconnect.

Key opportunities: Growth of IoT and automation is opening doors for cable assembly providers to develop cost-effective and high bandwidth connectivity solutions. Adoption of electric vehicles provides opportunities to manufacture reliable cables for battery charging and powertrain applications.

Technological advancements: Advancement in connectivity technologies such as 5G and Wi-Fi 6 is driving innovation in cable designs with improved throughput, reduced latency and smaller form factors. Development of new conductive materials allows creation of lightweight and flexible cables for robotics and industrial applications.

Market drivers

The primary driver for the cable assembly market is growing penetration of connected devices across various industries fueled by rapid digitization. Increasing demand for connectivity in sectors like automotive, industrial machinery, healthcare devices, networking infrastructure is propelling the cable assembly market growth. Cable assemblies offer advantages like corrosion resistance, electromagnetic interference shielding and durability which increases their preference over loose wires. Rise of automated production lines among cable manufacturers to achieve economies of scale further supports the market expansion.

Current Challenges in the Cable Assembly Market
The cable assembly market is facing major challenges due to rising costs of raw materials and labor. Copper, aluminum and other metals used in wiring and cables have seen a substantial increase in prices over the past year due to high inflation. Labor costs are also increasing across countries which is adding to the overall manufacturing expenses for cable assembly manufacturers. Supply chain disruptions due to the COVID-19 pandemic have further exacerbated raw material shortage issues. Geopolitical tensions and trade wars have also impacted raw material imports in some countries. Meeting newer connectivity standards and demand for customized solutions has necessitated heavy investments in R&D by players. High degree of competition and pricing pressure from clients has kept margins under check for players.

SWOT Analysis
Strength: Ability to provide end-to-end cable solutions and global distribution networks. Technical expertise in handling complex cable assemblies.
Weakness: Heavy dependence on price sensitive sectors like automotive and infrastructure exposed to demand shocks. Rising costs squeezing margins.
Opportunity: Growth in data centers, 5G rollout and electric vehicles promoting demand for advanced cable assemblies. Customization and integration with other electronics opening new avenues.
Threats: Threat from local players in emerging markets. Regulations against usage of certain materials.

Geographical Regions
In terms of value, North America accounted for the largest share in global cable assembly market in 2023 supported by huge investments in connectivity infrastructure, data centers and renewable energy in the US. Asia Pacific region is growing at a fast pace and emerged as the second largest region led by rapid industrialization and construction activities in China and India coupled with expansion of semiconductor manufacturing base.

Fastest Growing Regions
Central and Eastern Europe is expected to exhibit the fastest growth during the forecast period supported by robust growth in construction sector, expanding manufacturing industry and government spending on ICT infrastructure upgrade across countries. New EU regulations promoting sustainability and energy efficiency are also promoting cable assembly demand catering to diverse applications.


  1. Source: Coherent Market Insights, Public sources, Desk research
  2. We have leveraged AI tools to mine information and compile it