Microduct Market Size, Share & COVID-19 Impact Analysis, By Type (Direct Install, Direct Burial, Flame Retardant), By Application (FTTX Networks, Other Access Networks, Backbone Networks, Data Center Application, Others), and Regional Forecast, 2022-2029

The global microduct market size was valued at USD 4.06 billion in 2021. The market is projected to grow from USD 4.41 billion in 2022 to USD 9.08 billion by 2029, exhibiting a CAGR of 10.8% during the forecast period. North America dominated the global market with a share of 40.39% in 2021.

The global COVID-19 pandemic has been unprecedented and staggering, with microduct experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global microduct market exhibited a growth of 10.1% in 2020 as compared to 2019.

Microducts are used as a protective cover or coating such as a tube for microcables and fiber optic tables. These products help to integrate and to form a substantial and structured data network, enabling infrastructure to deploy additional fiber networks. The enhanced ruggedness and better installation routes provide the service provider to raise network structure on demand. Global demand for optic cable infrastructure for FTTX networks and data center applications is rising to provide a substantial boost for the application of the product.

Microduct plays a pivotal role in IT solutions and perforation of the internet across diverse geographical locations owing to the adoption of fiber optic cable networks in professional IT sectors and personal interest users for faster, streamlined, and reliable data networks.

COVID-19 IMPACT

Rising Preference to Online Education Systems and Work from Home during the Pandemic to Accelerate Market Growth

The COVID–19 pandemic had an adverse impact on the global economy. It resulted in forcefully shutting down of manufacturing facilities for a shorter period, which resulted in a decline in the growth of this market. However, several key players were able to operate their manufacturing facilities during the COVID-19 pandemic period. For example, in April 2020, Sterlite Technologies Limited re-opened its manufacturing activities at around 65% capacity as of its global operations.

Owing to COVID-19 pandemic, there was an increasing transition toward online education systems and work from home for offices. This resulted in increasing the deployment of broadband connectivity and 5G network connectivity globally, thus accelerating the microduct market growth.

Post COVID-19, the incorporation of technologically advanced products with a robust built quality is projected to attract heavy demand especially from the telecommunication industry and healthcare sectors. According to EURACTIV France Reports, in July 2021, the French government planned to spend approximately USD 1.92 billion for connecting 5G technology, which provides the strongest opportunity for the market for a long term.

Thus, even though the lockdown amidst COVID-19 resulted in short-term challenges, it also shaped the long-term opportunities for the market.

LATEST TRENDS

Technological Advancements in Cloud Computing to Aid Market Growth

Cloud computing is used by enterprises for operating web servers remotely and to process critical data. A rise in volume of data generation in mobile apps and website apps, d rising focus on adopting customer centric applications, and operational expenditure are some of the factors driving the growth of these emerging technologies.

Technologies such as Machine Learning (ML), Artificial Intelligence (AI), and Big Data are largely adopted in microduct products, which leads to the growth of the cloud computing technology globally.

Benefits associated with cloud computing such as data security, compliance requirements, and Faster Disaster Recovery (FDR) are the driving factors for cloud computing services.

MICRODUCT MARKET GROWTH FACTORS

Expansion of Microduct Cables to Connect Data Centers to Fuel Market Growth

An increased installation of data centers globally rises the demand for microduct for the data center industry, which boosts the growth of the market. Cable technologies, such as microduct and fiber optic cables, are making fiber optic cabling necessary in data centers. In addition, these cables are used for inter-data center communications, and intra-data center communications.

In inter data center sources, data is transmitted within data centers located in buildings using optical interconnect. These communication channels are used for transmitting data within two data centers or campuses. The distance between two data centers can be thousands of kilometers (km), which requires high transmission speed. As a result, high data transmission bandwidth is needed from data centers to send massive volumes of data. Thus, a rise in demand for these ducts for data center sectors fuels the growth of the global market.

Microduct have speed 10 times more than traditional network cables. This surges the demand for these types of cables, which are adopted for network support with data centers, and thus expected to increase the demand for microducts cables for data centers. A rise in the number of data centers for increasing security, affordable connectivity of IT infrastructure, and availability of networks surge the product demand.

RESTRAINING FACTORS

Volatility in Raw Material Prices and Lack of Skilled Workforce are Hampering Market Growth

High Density Poly Ethylene (HDPE), polyethylene, Medium Density Poly Ethylene (MDPE), Low Density Poly Ethylene (LDPE), Low Smoke Zero Halogen (LSZH), rubber, and plastic-based ingredients are vital materials used by manufacturers. Prices of raw materials such as rubber and polyethylene are quite volatile. The volatility in the prices of raw materials can affect the sales of these products, which also affects the sales of manufacturers of microduct and profit margins, which restraints the market growth.

Additionally, various types of servicing and installation equipment adopted can increase the hardware damage, which results in sustaining additional maintenance costs. To deploy these cables, skilled workforce is required, which, in turn, increases the cost for companies, thereby impacting the growth of the market.

SEGMENTATION

By Type Analysis

High Demand for Flame Retardant to Aid Market Growth

Flame retardant segment is expected to hold the highest market share, owing to its demand across the FTTx network and data center application as well as its capabilities to operate in diverse surrounding temperatures and high level of reliability due to its obvious flame retardant abilities.

Moreover, manufacturers are also interested in manufacturing flame retardant microduct cables as they are more environment-friendly when it comes to manufacturing and emission of acid gas during the manufacturing process.

The ability to have easier and more convenient installation, operation, and overall process of use is also contributing to the decent performance of the segment in the global market. However, direct burial type and direct install type segment are also expected to retain a considerable chunk of the market share as these types of microducts cater to the specific locations of application.

By Application Analysis

FTTX Networks Segment to Dominate Market During the Forecast Period

By application, the market is categorized into FTTX networks, other access networks, backbone networks, data center application, and others. Among the application segment, the FTTx networks segment is expected to be dominant, owing to growth in household users of fiber optic-based broadband data networks.

Additionally, constant effort of private investors and public authorities to increase optic cable-based internet connection penetration rate to have a reliable, convenient, and cost effective network source across diverse geographies is the prime contributor toward the decent performance of the FTTX networks segment.

Data center application is also expected to have a significant share, and is projected to develop with a faster growth pace due to the increasing demand from data center infrastructure by leading tech companies and the emergence of data science and network automation techniques across diverse markets.

Likewise, other access networks, backbone networks and others segments are anticipated to collectively contribute to approximately 20% of the market share with moderate growth projections.

REGIONAL INSIGHTS

The report's scope comprises five major regions, North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America.

Asia Pacific is anticipated to have a leading market presence due to rising demand for high-speed internet services and the adoption of fixed broadband services across all sectors in Asian countries. Robust growth in the subscriptions of broadband networks is expected to continue to transform in the coming years, witnessing a shift from conventional DSL based or cable-connections to 100% fiber optic cable connections, resulting in demand for microducts to increase.

Moreover, the rise in IT service clusters in the emerging market of India and numerous ASEAN countries is projected to drive the sales of microducts with increasing data centers across the said clusters.

China leads the market as a result of hefty investments conducted in the development of the internet and data sectors. Developed and established manufacturing clusters across China, owing to numerous reasons such as low manufacturing cost, low labor cost, and low raw material cost, has witnessed frequent emergence of microduct manufacturers with a substantial regional market reach and obtained a substantial profit yield from other parts of the Asia Pacific region. Chinese manufacturers are swiftly climbing the technology and quality ladder, as they continue to invest in research & development and transform themselves into “value for money” constructive innovators from the tag of low-price and low quality.

Furthermore, North America is dominating the market followed by Asia Pacific due to the strong presence of prominent firms and global manufacturers in the region. Additionally, the implicit efforts of these companies regarding technological developments through strategic partnerships, collaborations, acquisitions, strong investments in research & development operations, and joint ventures are the pivotal factors boosting the development potential of North America.

Moreover, the Europe market is expected to have a noteworthy upsurge in the second half of the forecast period. FTTX network is identified as the prime application contributing to the majority of the revenue generation of the market. The current augmented hefty investments made by the multiple key stakeholders in the data and communication business to widen the scope of fiber broadband based access network infrastructure across the entire region of Europe is set to boost the sales of microduct around the Europe region.

The GCC holds a considerable microduct market share and has a swift pace of market growth within the Middle East & Africa region, owing to the significant action plans initiated by the market players to roll out optic fiber networks across Dubai, Al Ain, and Abu Dhabi and is also gaining a considerable momentum as operators are eyeing for a paradigm shift toward 5G technology for developed gulf countries. The increasing adoption of FTTx network with increment in FTTH and FTTB subscriptions in the regional market is expected to emerge as the prime contributors for the market development prospects over the course of time.

Latin America is anticipated to show sluggish growth during the forecast period, owing to niche opportunities for the development of fiber optical network establishments and data centers, limited presence of global market players in the region, and underdeveloped distribution channels for the market. The key growth factor of the Latin America market is the increment in internet penetration and increasing reliance of customers on e-retail and online shopping. The market is heavily dependent on imported products due to underdeveloped manufacturing facilities in the market.

KEY INDUSTRY PLAYERS

Prominent Players Focus on Innovative Applications for Robotic Systems

The market is moderately fragmented as this is a relatively new market when compared to other markets in the power electronic solutions domain. The market is growing with increasing technological advancements, and there are many well-known brands in the market, along with some regional players, to cater to the increasing demand.

LIST OF KEY COMPANIES PROFILED IN MICRODUCT MARKET:

• Emtelle Holdings Ltd (Scotland)


• Primo (Denmark)


• Hexatronic Group AB (Sweden)


• Prysmian Group (Italy)


• Datwyler Holding Inc. (Switzerland)


• Egeplast International GmbH (Germany)


• Clearfield Inc (U.S.)


• Spur A.S. (Czechia)


• GM Plast A/S (Denmark)


• Belden Inc (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• July 2022 – Clearfield Inc acquired Nestor Cables Ltd, based in Finland, deals in fiber optic cables, microducts, and cables. The acquisition was done for approximately USD 23 million. Also, acquisition will help to improve the product portfolio and improve the geographical presence.


• February 2022 – Egeplast International GmbH opened a new manufacturing facility in Greven, Germany. The business expansion aimed to doubling the production capacity of microduct and related products. The manufacturing facility was done at 11,000 sq. meter. The manufacturing facility will be completed by 2023.


• December 2021 – Emtelle Holdings Ltd acquired Afripipes, based in Dubai, that deals in microduct, plastic pipes, and ducts. The acquisition aimed to improve the footprints of microduct products.


• December 2021 – Prysmian Group launched a new Sirocco Series microduct cables for the telecommunication, and energy sectors. This cable has the latest 576f cables, has a diameter of 8.2 mm, providing fire density of 10.9 fibers per mm2. It is ideally suitable for FTTX, FTTP, and FTTH connectivity networks.

• August 2021 – Hexatronic Group AB (publ) signed an agreement with Ting Internet based in the U.S., for about USD 50 million. This agreement was done for providing microducts, microcables, and blowing tools for fiber to the home (FTTH) connectivity.

REPORT COVERAGE

The research report provides a detailed analysis of the type, application, and industries of microduct. It provides information about the leading companies and their business overview, types, and leading applications of the product. Besides, it offers insights into the competitive landscape, SWOT analysis, and current market trends and highlights key drivers and restraints. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the market's growth in recent years.

Report Scope & Segmentation