CABLE CONDUIT SYSTEMS MARKET ANALYSIS

Market Challenges And Opportunities

Market Restraint

1. High installation and alteration cost of cable conduit systems is expected to restrain growth of the global cable conduit systems market during the forecast period

The installation of a cable conduit system is significantly high. Cable conduit systems installation requires significantly large amounts of material as compared to other types of wiring systems. Furthermore, the installation of cable conduit systems requires highly skilled labor, which is usually not required for installing cleat, casing, and capping and batten wiring. Although conduit systems are manufactured using materials such as composites and PVC which are less costly, the installation costs for these systems are high.  Moreover, there are several challenges associated with altering wiring systems. Thus, these factors are expected to restrain growth of the market during the forecast period.

2. The volatility of raw material prices is expected to hamper the global cable conduit systems market growth over the forecast period

Steel, plastics, and aluminum are some of the major materials used in the manufacturing of conduit systems. However, prices of these materials change frequently and are unpredictable in nature. Furthermore, prices of carbon steel and composite steel change rapidly, which in turn, is expected to hamper the global cable conduit systems market growth over the forecast period.

Market Opportunity

1. Development of advanced materials for conduit system manufacturing can present lucrative growth opportunities

The most popular materials used for manufacturing cable conduit systems include steel, PVC, aluminum, fiberglass, nylon, and others. Among these, composite materials such as fiberglass offer numerous advantages as compared to the conventional aforementioned materials. Composites are materials that are made up of two or more constituents with different properties. The most common example of composites is fiberglass, which is manufactured by embedding glass into epoxy or polyester resin. Due to their high tensile strength, low conductivity, chemical resistance, and other conduit favorable properties, composites are among the most suitable materials for manufacturing conduit systems.

2. Gradual shift from rigid to flexible cable conduit systems can provide major business opportunities

Rigid conduit systems are among the most traditional conduit systems used for wiring system installations. The most important reason for the dominance of rigid conduit systems is their high capacity for protection and availability in different types of materials. The availability of rigid conduit systems made of various materials has made the rigid conduits market highly versatile in terms of cost and application. However, some of the major limitations of rigid conduit systems are the costly and difficult installation of wiring systems, their challenging alteration, and other handling issues. Instead, flexible conduits are used in applications where installation space is critical and frequent changes in the wiring system may be required.

Market Dynamics- Drivers

1. Accelerating bandwidth requirements is expected to drive growth of the global conduit systems market during the forecast period

There is rising demand for higher bandwidth, which in turn, is leading to high infrastructure requirements. According to Emulex’s study in 2012, in North America and Europe, the demand for higher bandwidth is currently huge and is expected to grow further in the near future. Furthermore, rising number of subscribers leads to a higher number of devices that are connected to the networks, and more data-dense services that can ride over the networks. These factors give rise to the need for higher bandwidths. Furthermore, the requirement for higher bandwidth is expected to increase globally. The Africa region is expected to witness the highest demand for bandwidth at a CAGR of over 50% during the period from 2012 to 2019. The bandwidth demand in Asia is expected to rise at a CAGR of over 30% during the period from 2012 to 2019. Hence, these factors are expected to drive growth of the global cable conduit systems market during the forecast period.

2. Wide availability of cable conduit systems is expected to propel the global cable conduit systems market growth over the forecast period

Cable conduit systems are manufactured from various materials including galvanized steel, steel, PVC, and aluminum. PVC and aluminum conduit systems offer a number of advantages such as lightweight, low cost, high durability, and easy installation as compared to conduit systems made from steel. As a result of this, consumers are preferring low-cost PVC and aluminum cable conduit systems over other wiring methods. Furthermore, the introduction of flexible cable conduit systems is another factor responsible for the continued growth of the cable conduit systems market. Flexible cable conduit systems are the most suitable type of conduit systems for industrial and commercial applications. These conduit systems offer easy installation as they require no bending depending upon the construction design. Hence, these factors are expected to propel the global cable conduit systems market growth in the near future.