Coaxial cables for smart home devices

by Vianie Li & Cecile de Veyra

Smart homes need structured or whole-house wiring for automation, security, energy management and ehealth. This is not a one-cable-fits-all scheme but a composite of various cabling technologies tapped to enable maximum connectivity performance.

For video transmission, such as in TVs and CCTV cameras, coaxial cables are still the go-to hardwire solution for their advantages of low cost, ease of installation and expansion, durability as well as anti-EMI capability. For these applications, impedance is 75ohms, which is the universally accepted value for all kinds of coaxial high-frequency signal connections.

Despite the popularity of replacement fiber-optic technology, coaxial cables remain a sizeable market, estimated to cap 2022 with a $34.66 billion performance, according to Research and Markets. By 2026, they are projected to reach $37.08 billion at a CAGR of 1.7 percent.

In the smart living sphere, a lucrative market is in the offing, based on demand for installation and maintenance services. This sector, valued at $5.6 billion in 2021, is anticipated to increase to $11.7 billion by 2028 or at CAGR of 11.4 percent from 2022, according to Grand View Research. The Asia-Pacific region is expected to exceed this growth rate and achieve 12.1 percent.

In China, shipments of smart home devices are expected to reach 240 million units by the end of 2022 and jump to 540 million in 2025 based on projections by Chinese consulting firm AskCI.

In this regard, Chinese manufacturers of coaxial cables will continue to improve product performance, emphasizing inherent insensitivity to EMI, reliability and stability, and provide a diverse range of customization options.

Most have also been boosting their output. Signal Plus Technology Group invested $7.35 million in factory expansion to increase production by 30 percent in the past year and will keep this up through 2023. The smart living market currently accounts for about a third of its coaxial cable shipments.

There are more than 500 manufacturers of coaxial cables in China. CE-Link, UGREEN, Moshi and Choseal are some of the leading companies.

Despite the intense competition, many more are expected to venture into this category, attracted by steady demand rise, and will likely set up shop in the coastal provinces.

Most suppliers are operating in Guangdong and Zhejiang, with many factories in Shenzhen, Dongguan, Zhongshan, Ningbo and Yueqing. There are also some that are based in Hubei, Sichuan and Shaanxi.