The cable tag market was valued at USD 1492.64 million in 2020 and is expected to reach a value of USD 2077.141 million by 2026 at a CAGR of 5.77%, over the forecast period (2021 - 2026). Cable tags have the ability to withstand harsh weather conditions and high temperatures, such that printing on the tag does not fade away. Therefore, cables used in the manufacturing and automotive industries are labeled with these tags that avoid any damage, and it is easy to identify different cables in industrial processes. The cable tag companies are printing labels on stainless steel or aluminum tags, by punching the letters on tags. Stainless steel and aluminum tags have a longer life than that of paper or plastic, thereby, offering a competitive advantage. However, plastic ferrules and other plastic-coated, paper wrap-around cable label tags are used commonly in the market, owing to their low cost.
- The market for automation is increasing at a significant rate, owing to its adoption in industrial and urban use. Automation uses a large number of components, such as switchgear, relays, HVAC systems, human-machine interface (HMI,) and IT systems, which are connected through wires or cables.
- These cables may be small in size, ranging from 0.5 sq. mm to 35 sq. mm. Tracking the exact wire connection in an automation system is a challenging task for any skilled professional. Thus, the use of a cable tag has become an important component in the cable management process.
- Moreover, recently, data centers are growing drastically. With the rise in cloud computing, social media, big data, online gaming, and other online applications, there is a constant need for enhanced IT infrastructure that caters to the ever-increasing demand for resources; a factor that further supplements the demand for hyperscale data centers.
Key Market Trends
Manufacturing Occupies Major Share in the Cable Tag End-user Industry
- Manufacturers across various industries must identify parts, cartons, pallets, and shipments. This requires labeling, coding, and marking on a wide range of products and packaging systems, without sacrificing line speed.
- Cable tags are able to withstand high temperature and harsh weather condition so that the printing on the tag does not fade away, which is necessary for the manufacturing sector. Cable tag companies are now finding innovative ways to resolve this problem.
- Furthermore, continuous self-adhesive label stocks are ideal for warehouse and pipe marking. Self-adhesive labels are being used for asset labeling, removable asset tracking, temporary tracking labels, warehouse labeling, pipe marking, wire and cable identification, and secure identification of component parts and circuit boards.
Asia-Pacific is Expected to Witness Highest Growth Rate
- China is one of the major players in the global cable tags market, mainly due to a high rate of investment in industrial automation and also due to growing local manufacturing production. The need to track the exact wire connection in an automation system is boosting the demand for cable tags.
- According to the National Bureau of statistics, China's industrial output grew by 6.1% in 2018. The growth is expected to sustain as a result of the increase in retail sales of industrial products by about 10.4%. These factors are also acting as a significant driver for automation in the country.
- The Indian manufacturing sector is one of the highest growth sectors, registering a 7.9% year-on-year growth. The Make in India initiative plans to make India equally attractive for domestic and foreign players, and give global recognition to the Indian economy. By the end of 2020, the Indian manufacturing sector is expected to touch USD 1 trillion.
- Japan is becoming an automated industrial economy, and the advancement in Industrial version 4.0 is taking up at a faster pace in the country. The country has emerged as the manufacturing hub for the factory automation products, supplying them to another regional market in the Asia-Pacific region.
- The Olympic games that are to be held in Japan in 2020 has accelerated the pace of public and private sector investment in construction projects. Even the government efforts to revitalize the economy by focusing on infrastructure development are expected to provide momentum to the construction industry's growth. As the adoption of cable tags are vital in infrastructure, this is expected to impact the market for cable tags.
The market can be characterized by high levels of market fragmentation, rising levels of market penetration, and low exit barriers. The market comprises several regional and global players vying for attention in an increasingly contested market space. The companies operating in the market are also acquiring companies working on cable tag technologies to strengthen their product capabilities.
- August 2017 - TE Connectivity acquired Hirschmann Car Communication, a company that provides antennas, antenna systems, and broadcast tuners for automotive and commercial vehicle applications. The acquisition expands TE Connectivity's product portfolio as well as the integrated and highly engineered solutions provided for connected and autonomous vehicles, worldwide. Hirschmann Car Communication's strong R&D and engineering capabilities in electronics and software development allow the company to further strengthen its global leadership position in automotive sensing and connectivity.
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