Patch Panels Market Size, Share & Industry Analysis, By Type (Cable Patch Panels, Fiber Optic Patch Panels, and Coaxial Patch Panels), By Application (Commercial, Residential, and Others), and Regional Forecasts, 2024-2032

The global patch panels market size was valued at USD 1.19 billion in 2023. The market is projected to grow from USD 1.28 billion in 2024 to USD 2.78 billion by 2032, exhibiting a CAGR of 10.19% during the forecast period.

Patch panels are used as Power over Ethernet (PoE) devices to connect network computers with each other within a LAN and to outside lines, which consist of the internet or other wide area networks. They come with multiple ports where Ethernet cables can be connected to transfer data. Patch panels come in different designs as per the application. They offer a medium to keep maximum numbers of cables organized, allowing flexible connectivity in network hardware located in a data center or an access or wiring closet. Patch panels play a crucial role in recording studios, radio & television, infrastructure networks, and computer networking. The rising demand for Ethernet devices that can handle more connectivity is backing the global patch panel market.

The global market experienced significant setbacks due to the COVID-19 pandemic, with many sectors, including manufacturing, suffering a decline in profits. During the lockdown, the industry faced multiple challenges, such as shortages of raw materials, the closure of manufacturing plants, and border shutdowns. These disruptions halted industrial activities, severely affecting global market growth.

Patch Panels Market Trends

Growing Need for Reliable Global Network Connectivity Solutions to Create Demand 

Increasing demand for high-speed internet is boosting the need for reliable network connectivity solutions. The robust expansion of the telecom industry is one of the major factors supporting the power of Ethernet devices, such as patch panels. Such devices serve as interface modules in the field and control cabinet cabling. The growing demand for this connecting equipment is creating new opportunities for the market.

In addition, growing network connectivity, such as Local Area Network (LAN), Personal Area Network (PAN), and Wireless Local Area Network (WLAN) is creating demand for patch panels in the global market as it is one of the essential connectivity components in the field of Ethernet power supply.

Patch Panels Market Growth Factors

Increasing Number of Data Centers to Boost Demand

A patch panel is considered a centralized connecting device that is vital in managing and forming network cables in a data center. Hence, the rapid expansion of data centers in multiple countries is boosting the demand for panels. For instance, in March 2024, Eaton, an intelligent power management company, announced the introduction of an innovative and new modular data center solution in North America for businesses seeking to quickly meet the growing requirements for machine learning, edge computing, and AI.

Since there are many cable connections in the data center room, patch panels identify end devices connected to the panels in case of change management or disaster management; such micro factors by data centers add value to these panels. Subsequently, the demand is increasing globally for different types of patch panels.

Growing Demand for Power over Ethernet (PoE) Applications to Drive Patch Panel Market Growth

In recent years, connectivity has become an essential part of day-to-day life, considering the growing number of personal interactions on online platforms and rising business activities. Internet connections require several consistent solutions to transmit data, and this is where a patch panel plays a crucial role. Power over Ethernet (PoE) can be achieved by applying advanced patch panels to a network system. This lets a single cable deliver both a data connection and enough electricity to influence networked devices, such as wireless access points. These applications of PoE will help the market grow. In addition, the market is expected to grow at a considerable rate during the forecast period due to the increasing focus on expansion of connectivity.

RESTRAINING FACTORS

High Initial Installation and Service Costs to Hinder Market Growth

Panels are of different designs according to their application in connectivity areas. Hence, the cost is higher when it comes to the installation of these panels due to several factors, such as the time required to install them. The installation process also requires highly professional engineers to set up the wiring and connection to different LAN cables.

Moreover, the service cost also plays a crucial role in the market’s growth. Internet connectivity requires daily check-ups and servicing, which adds to an individual’s or an organization’s costs. This factor is also delaying the patch panels market growth.

Patch Panels Market Segmentation Analysis

By Type Analysis

Cable Patch Panels Hold Largest Market Share Owing to Their Wide Adoption in Data Centers and Telecommunications Industry

By type, the market is segmented into cable patch panels, fiber optic patch panels, and coaxial patch panels. Cable patch panels are the dominating segment globally owing to their widespread applications in data centers and the telecommunications industry. Moreover, copper patch panels are designed for copper cables, such as Cat5e, Cat6, Cat6a, and Cat7 that are shielded together and unshielded.

Fiber optic cables are one of the fastest-growing segments due to their advantages, such as high-speed data transmission. In recent years, fiber cables have mostly been used in commercial applications. Hence, rising development in commercial areas will offer a wide range of opportunities for the development of the patch panel market. Coaxial patch panels also hold an ample global patch panels market share.

By Application Analysis

Rising Commercial Business Activities Drives Product Use in IT Sector

By application, the market is divided into commercial, residential, and others. The commercial segment is dominating the market, driven by the rising number of data centers and other connectivity devices where patch panels are crucial. IT hubs are one of the major contributors to the patch panel market as they require a wide range of patch panel solutions. This is owing to the availability of large networking systems in IT offices.

Residential is one of the fastest-growing segments worldwide. The growing popularity of home-based networking is the key factor driving the segment’s growth.

REGIONAL INSIGHTS

The market is studied geographically across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

Asia Pacific is a dominating region driven by the rising establishment of data centers. In addition, artificial intelligence is creating massive demand for data centers in India, Japan, and China. It is expected that the regional market will grow rapidly during the forecast period due to the increasing use of patch panels in cable management processes. For instance, India is likely to record the maximum capacity addition of approx. 850 MW between 2024 and 2026, which is higher than major countries in Asia Pacific.

North America is one of the fastest-growing regions, driven by the massive use of patch panels in various applications, such as residential and personal network systems.

Europe is also accounting for a significant market share due to the growing use of patch panels in industries where networking systems play a crucial role. Emerging countries, such as the U.K. and Germany are more focused on the establishment of data centers to drive AI in their industries. This is one of the major factors driving the market’s growth in Europe.

Latin American countries are slowly but increasingly focusing on networking systems; hence, the patch panel sales have grown in recent years. The Middle East & Africa are expected to grow during the forecast period as many commercial projects are in the pipeline, which will create demand for patch panels.

KEY INDUSTRY PLAYERS

Leading Players Are Collaborating With Governments, Organizations, and Industries to Create Sustainable Future

The market is being driven by investments and a strong product portfolio by leading market players, such as Schneider Electric, Legrand, and 3M. Schneider Electric is one of the leading global players that offers a wide range of patch panels. The company has been delivering connectivity products for several years and provides quality products to multiple sectors.

LIST OF TOP PATCH PANELS COMPANIES:

• Schneider Electric (France)


• Siemon (U.S.)


• Legrand (France)


• Commscope (U.S.)


• Nexans (France)


• 3M (U.S.)


• Sumitomo Electric (Japan)


• Nippon Seisen (Japan)


• Leviton (U.S.)


• DTT (U.K.)


• Potel-Group (China)

KEY INDUSTRY DEVELOPMENTS:

• March 2024 – Credo Technology Group Holding Ltd. launched high-speed connectivity patch panels that deliver improved energy efficiency as data rates and consistent bandwidth supplies increase through the data infrastructure network.


• September 2023 – Leviton announced the launch of the Front Loading UTP QUICKPORT Patch Panel. This comes with an innovative front-loading bezel that is designed to ease deployment in present networks, allow easy upgrades, and abridge frequent adds, and changes for a variety of media applications.


• November 2020 – R&M, the Swiss developer and provider of connectivity systems for high-performance, high-quality network infrastructures, introduced its InteliPhy Brownfield Service customization package for patch panels from any vendor.


• April 2020 – Nexans, one of the leaders in cables and cabling equipment, introduced a new Category 6A field installable plug as part of its LANmark-6A offer. This plug is intended to build Modular Plug Terminated Links (MPTL), a progressively popular method to directly connect patch panels with connecting devices, such as IP cameras and wireless access points.


• April 2019 – The R&M family of high-density ELISO patch panels introduced high port-density angled patch panels in the global market. Technically, the new 19” angled panels have space for 48 ports on one height unit and RJ45 connections for copper cabling in two rows.

REPORT COVERAGE

The report provides a detailed analysis of the market and focuses on key aspects, such as leading companies, product types, and key applications of the product. Besides, it offers insights into the market trends and highlights key industry developments. In addition to the factors mentioned above, the report encompasses several factors that have contributed to the growth of the market in recent years.

Report Scope & Segmentation