A new market study published by Global Industry Analysts Inc., (GIA) the premier market research company, today released its report titled “Cable Modems – Global Market Trajectory & Analytics”. The report presents fresh perspectives on opportunities and challenges in a significantly transformed post COVID-19 marketplace.
Global Cable Modems Market to Reach $9.5 Billion by 2026
Cable modems are an evolutionary response to the growing technology demand for alternate internet connectivity. Cable modems are used mainly for delivering broadband Internet access as cable Internet services by utilizing the high bandwidth offered by RFoG and HFC network. The growing demand for high speed Internet services from both residential and commercial sectors, expanding Internet user base, and the growing digitalization process especially in emerging economies is supporting demand for cable modem equipment. The rapid rise in IPTV subscriber base and the escalating demand for high speed broadband services are fueling growth for the external cable modems market. Amid the COVID-19 crisis, the global market for Cable Modems estimated at US$7.7 Billion in the year 2022, is projected to reach a revised size of US$9.5 Billion by 2026, growing at a CAGR of 4.8% over the analysis period. External, one of the segments analyzed in the report, is projected to record a 5.6% CAGR and reach US$6.6 billion by the end of the analysis period. After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the Internal segment is readjusted to a revised 2.7% CAGR for the next 7-year period.
Cable modem along with wireless router plays an important role in enabling customers to exploit the high-speed broadband service. These systems match the broadband service with requirements of customers. Cable modems available on the market are classified on the basis of Data over Cable Service Interface Specification (DOCSIS), which covers 1.x, 2.x and 3.x levels. These levels indicate the speed supported by a cable modem, with 3.x modems supporting the highest data transfer speed. Depending on channels, DOCSIS 3.x modems are capable of supporting a download speed of 170Mbs to 1Gbps. A DOCSIS 3.0 modem with eight channels can support 100Mbps Internet service plans. In addition, the use of a router delivers consistent Wi-Fi speeds that are almost close to the speed promised by a service provider. Advanced versions such as DOCSIS 3.1 modems with 24 download channels are capable of supporting ISP plans offering speeds of 300Mbps or higher, irrespective of the use of Wi-Fi network for streaming Netflix or playing video games online. The use of advanced equipment such as cable modem allows customers to enjoy higher Wi-Fi speeds. However, ISP customers who are unable to get desirable broadband speed through Wi-Fi are required to downgrade to a lower-speed plan matching their standard Wi-Fi equipment.
DOCSIS 4.0 technology, the latest version, supports up to 10 Gbps speeds downstream capacity and about 6 Gbps upstream capacity. The technology allows for multi-gigabit symmetric services over HFC networks for residential and business services. The technology supports future applications that would benefit from high speeds and ability to share interactive high resolution videos such as interactive video conferencing, remote learning, IoT, health care applications, and virtual reality.
The U.S. Market is Estimated at $1.9 Billion in 2022, While China is Forecast to Reach $2.2 Billion by 2026
The Cable Modems market in the U.S. is estimated at US$1.9 Billion in the year 2022. China, the world`s second largest economy, is forecast to reach a projected market size of US$2.2 Billion by the year 2026 trailing a CAGR of 6.2% over the analysis period. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 3.3% and 4.1% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 3.7% CAGR. In North America, the prospects for cable modem equipment remains high due to the continuous rise in smart homes and the transforming corporate culture that supports BYOD trend in enterprises. The rapid rise in demand for high-speed Internet connectivity to support the needs of households and enterprises alike, especially in China, India, and Southeast Asian countries, is supporting demand for cable modem equipment in the Asia-Pacific region. The growing IT industry and the escalating demand for IPTV services are also expected to support growth of the cable modems market in the region.
Interactive Segment to Reach $1.4 Billion by 2026
In the global Interactive segment, USA, Canada, Japan, China and Europe will drive the 3.7% CAGR estimated for this segment. These regional markets accounting for a combined market size of US$869.5 Million will reach a projected size of US$1.1 Billion by the close of the analysis period. China will remain among the fastest growing in this cluster of regional markets. Led by countries such as Australia, India, and South Korea, the market in Asia-Pacific is forecast to reach US$188.9 Million by the year 2026, while Latin America will expand at a 5.1% CAGR through the analysis period.
Preference for Cable Modems over CATV Networks Presents Growth Opportunities
CATV is a common method of transmitting television signals to a consumer’s home, using radio frequency signals transmitted through coaxial cable. Due to technological advancements, CATV can also be transmitted using optical fiber, which utilizes pulses of light to transmit a signal. With the advent of broadband, smart TV, and other new services, a growing number of cable television providers offer cabling infrastructure that supports both cable TV and cable internet. The continuous growth of media industry offers lucrative growth opportunities for CATV equipment. Growing consumer preference, especially in emerging economies, for subscribing television and broadband as a bundled service; and rising adoption of digital television accelerates demand for CATV equipment. In addition, changing technologies and continuous progress in rural electrification is expected to further fuel demand.
Many internet service providers (ISPs) offer customers cable internet service together with television and phone service over the same CATV lines. Cable internet requires installation of a cable modem to connect broadband routers or other devices to Internet service. This in turn bodes well for cable modem equipment market. Cable Internet provides connectivity from the ISP to the end users in a similar manner as fiber-to-the-home (FTTH) and digital subscriber line (DSL). A cable modem and a cable modem termination system (CMTS) are the two types of equipment required to transmit both upstream and downstream data.
In addition to telecommunications networks, Cable TV networks is the other predominant form of residential Internet access. Cable Internet faces increasing competition from fiber deployments, mobile networks, and wireless. Cable internet is more broadly available as they are easier to install, while in comparison, fiber optic connections are complex and expensive to install. The faster speed of fiber-optic Internet services even during peak periods and reliability issues on account of frequent cable interruptions and electricity outages pose considerable challenge to popularity of cable Internet. PR Newswire