Africa Structured Cabling - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

The Africa Structured Cabling Market size is estimated at USD 0.75 billion in 2024, and is expected to reach USD 1.12 billion by 2029, growing at a CAGR of 8.32% during the forecast period (2024-2029).

Key Highlights

• The African structured cabling market is transitioning toward growth, propelled by increased investments in communication infrastructure and a trend toward data center convergence. Moreover, a surging demand for high-speed connectivity devices and systems bolsters market expansion.
• Major subsea cable projects, 2Africa and Equiano, are nearing completion. Their launch is anticipated to double Africa's internet capacity, paving the way for a swift adoption of 5G technology. Governments and telecom giants are channeling significant investments into 5G infrastructure, providing benefits like high speeds, reduced latency, and enhanced coverage, spanning both urban and rural landscapes. Submarine cable systems, like 2Africa, are planned to revolutionize African connectivity and initiatives like diversifying communications between APAC and Europe.
• As network coverage becomes a critical focus, cross-border collaborations are increasingly vital. Governments are teaming up with telecom operators, tech firms, and development agencies. This collaboration not only drives infrastructure projects but also facilitates knowledge exchange, ultimately leading to a more interconnected continent. As per the data by International Finance Corporation and Google, Africa's internet economy will grow the continent's GDP by USD 180 billion by 2025. This provides a critical opportunity for a strong digital infrastructure to support the growth of the market.
• Many regions of Africa lack network infrastructure, including reliable power supply and internet connectivity, to facilitate the deployment of data centers and high-speed data networks. The shortage of skilled professionals in data structure cabling technology also hampers the market’s growth.
• The COVID-19 pandemic has led to digital transformation across sectors, leading to the surge in demand for robust and reliable data-cabling infrastructure to support the increase in network connectivity in remote working, online education, telemedicine, and e-commerce. Organizations have invested in IT infrastructure for flexible and scalable cabling solutions to accommodate hybrid models and future uncertainty.

Africa Structured Cabling Market Trends

Fiber Segment to Witness Major Growth

• The fiber segment is expected to witness growth in Africa during the forecast period, primarily due to the growing demand for high-speed internet access, driven by digital transformation, e-commerce, cloud services, and online media consumption, which has fueled the expansion of fiber optic networks across Africa. The widespread adoption of 5G technology and enhancements in broadband infrastructure are set to open lucrative avenues for the structured cabling market.
• Over the past five years, African nations have witnessed a notable surge in mobile internet connectivity. This increase is primarily attributed to increased investments by operators in mobile broadband networks (spanning 3G, 4G, and even 5G) and rising smartphone usage. While mobile broadband has been pivotal in linking people, addressing the gap in last-mile fixed broadband connectivity is crucial to delivering enhanced connectivity services to households and enterprises. As per GSMA data, 5G adoption is 1% in the region, which is expected to reach 8% by 2026.
• The proliferation of smartphones and mobile devices, coupled with rising mobile data consumption for applications like video streaming, social media, and mobile gaming, has led to increased investment in fiber backhaul infrastructure to support mobile networks. While fixed wireless access (FWA) services are not new in Africa, with many operators already offering 4G FWA, the landscape is evolving. Telkom South Africa disclosed that a significant 57% of its network's data traffic caters to FWA services, compared to 39% allocated to traditional mobile data services.
• While 5G coverage in the region remains concentrated in major cities, several countries are notably accelerating their 5G deployment. However, emerging markets in Africa, such as Ethiopia, Nigeria, Kenya, and Ghana, present significant growth potential for fiber optic cable deployments driven by urbanization and expanding digital services.
• Enterprises across various sectors, including banking, education, healthcare, and government, are undergoing digital transformation initiatives, driving the demand for reliable and high-capacity fiber optic networks for data transfer, cloud connectivity, and IoT deployments.

South Africa Holds the Largest Market Share

• South Africa holds the largest market share in the African structured cabling market due to the growing investment in telecommunications infrastructure, which includes fiber optic networks and 5G deployments. According to GSMA data, as of September 2023, 27 operators in 16 African markets had rolled out commercial 5G services. Additionally, operators in 10 more countries have pledged to introduce 5G in the near term. Notably, in South Africa, 41% of the population had access to 5G by September 2023.
• Businesses and enterprises in South Africa are expanding their IT infrastructure to accommodate growing data volumes, cloud services adoption, and emerging technologies like IoT (Internet of Things), driving the need for efficient and well-organized cabling solutions.
• Government initiatives aimed at improving 5G digital connectivity and promoting the adoption of ICT (information and communication technology) have contributed to the growth of the structured cabling market, especially in sectors such as education, healthcare, and government institutions. As per GSMA data, 5G mobile connection is expected to reach 58.2 million by 2030.
• Many market players are investing in building the 5G infrastructure in South Africa. For instance, as per a GSMA report, by 2025, the Mobile Telecommunication Network (MTN) aims to link 10 million households, focusing on South Africa and Nigeria, where 75% of these connections will be established. Their approach involves deploying mobile broadband modems to the top 30% of households, introducing 5G fixed wireless access (FWA) to the top 10%, and rolling out fiber connections to the top 1%.
• Growing concerns over data breaches and cybersecurity threats are driving the emphasis on data security and regulatory compliance in compliance with South Africa's POPIA (Protection of Personal Information Act). Consequently, there is a surge in investments directed toward secure and compliant cabling infrastructure. In 2023, South African organizations faced a record-high average data breach cost of USD 2.6 million (ZAR 49.45 million), marking an 8% increase over the preceding three years, as per IBM Security's "Cost of a Data Breach" report.

Africa Structured Cabling Industry Overview

Africa's structured cabling market is fragmented, as it currently consists of various significant players. Some key players are Africa Digital Distributors Limited, Corning Incorporated, Legrand Group, Schneider Electric SE, and The Siemon Company. Several key players in the structured cabling market are constantly making efforts to bring advancements.

For instance, in June 2024, Siemon, a player in network infrastructure solutions, unveiled an expansion of its UltraMAXTM copper connectivity system. The new products, aimed at boosting network performance and flexibility, feature UltraMAX 48-port patch panels in flat and angled 1U configurations, the UltraMAX Turbo Tool, and pre-terminated copper trunk cables. Siemon's latest offerings are set to elevate connectivity standards and simplify installation procedures in Africa.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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