Cat 6 cable assemblies move steadily into the mainstream

Suppliers are updating their selections to match the trend for faster transmission in various networking applications.

Cat 6 and 7 cable assemblies are advancing toward the mainstream in China as production of Cat 5e units remains on the decline. Makers have shifted focus as the major improvement in transmission speed continues to erode the market share of the earlier standard, including in its key application home installations.

Cat 5e can support up to Gigabit Ethernet, while that is the certified speed of Cat 6 in the same 100m range. As for Cat 7, the maximum rate is 10Gbps.

Suppliers expect Cat 6 products, in particular, to gain the majority share of output for the local line in the next one or two years. This is while most keep turning out Cat 5 and 5e models and offer Cat 7 variants.

At Dongguan Kingson Communication Technology Co. Ltd, Cat 6 types already constitute half of yield. The maker plans to raise the portion in the year ahead, and will boost the subcategory in the future. The kind currently represents 60 percent of Ningbo Excellence Communicated Connectors Co. Ltd's volume. The ratio will climb in coming months as the maker deemphasizes Cat 5 and 5e units.

Manufacturers are generally buoyant about the line and will maintain production levels despite the fast development of rival fiber-optic technology. They are confident demand will be stable for the copper-based kind, while the latter is still a high-end option. Fiber-optic cable assemblies boast greater transmission speed and range, with 40Gbps and 500m the maximum, in addition to having no radiation, signal leakage and EMI. In the long term, they will replace Cat 6 and 7 variants, especially in data centers. In China alone, more than 80 percent of the last will switch to fiber optics in the years ahead.

As for fiber-to-the-desktop applications in homes and offices, growth is projected as early as this year amid steadily falling outlay for optical fiber. Anticipating opportunities here, some local manufacturers of Cat 6 and 7 cable assemblies will focus attention on the line in the future. They include the Hengtong Group, a major supplier of wires and cables in China. In 2014, the company achieved $1.6 billion in sales, climbing 18 percent from the previous year. Of this, copper and fiber-optic products respectively accounted for 12 and 36 percent.

The number of makers of Cat 6 and 7 cable assemblies in China exceeds 1,000, of which over 90 percent are domestic enterprises. Due to intense competition, some small businesses have dropped out of the line. There have also been no new players venturing into production.

Most suppliers gather in the coastal provinces of Guangdong, Jiangsu and Zhejiang. The main locations are Dongguan and Wujiang cities in the first two.

See a comparison table of Cat 6 cable assembly suppliers on GlobalSources.com