North America Coaxial Cable Market : An Insight On the Important Factors and Trends Influencing the Market

Coaxial cables are used to transmit audio and video data over various distribution networks by telephone service providers, cable television (CATV) providers and many other communication services. The demand for coaxial cables in North America is expected to grow at a moderate rate from 2012 to 2018.

Increasing popularity of Multimedia over Coaxial Alliance (MoCA) technology for sharing high definition videos to home interconnected devices is expected to drive the market. MoCA technology supports faster and reliable distribution of HD video and high speed internet data distribution over coaxial cables.

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By application, radio frequency transfer accounted for the largest market share of the North America coaxial cable market in 2012, while video distribution is expected to grow with the highest CAGR among various applications over the forecast period from 2012 to 2018. This is due to growing demand for Video on Demand (VoD), Over the Top (OTT) and Internet Protocol Television (IPTV) services. These cables are also used in business, corporation and residential ethernet networks for distribution of internet content.

End-users of coaxial cables include CATV companies, system integrators, military and aerospace industry, telephone service providers, internet service providers, construction industry and others (medical, automotive, marine and other OEMs). Owing to large number of internet subscribers and increased number of IPTV subscribers, internet service providers represent the largest end-use segment for coaxial cables in the region. The demand for coaxial cables from system integrators is expected to see the highest growth over the forecast period from 2012 to 2018.

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By geography, the U.S. and Canada are relatively mature markets for coaxial cables compared to Mexico. Currently, the U.S. dominates the North America coaxial cable market. In the U.S. about 90% of households have already installed coaxial cable networks to access multimedia content over multiple devices such as HDTVs, laptops, BlueRays, gaming consoles etc, in multiple rooms. Also, eight out of the top ten IPTV providers are using MoCA technology to provide their services over coaxial cables.

Mexico represents the fastest growing market for coaxial cables due to increasing investment from the government in telecommunication and broadband to support the country’s economic development. In addition, low trade barriers and attractive foreign direct investment (FDI) policies in telecommunication and broadband are influencing foreign players to invest in this potential market.

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