Since the COVID-19 outbreak, estimates suggest that the global market for cable modem equipment could be around US$7.2 billion in the year 2020.
This report anticipates the industry to more than double in size over the next decade and is set to reach a projected size of US$10 Billion by 2027, booming at 4.8 percent CAGR over the period 2020-2027. International revenue is predicted to grow by 5.6 percent over the next five years. By the end of the analysis period, it should have a US$6.6 billion market share.
Due to the pandemic, our assumptions of business growth have changed. In the next 7 years, we’re expecting a 2.7 percent CAGR for the internal segment.
The market of U.S. and China
The U.S. market is estimated to be worth $1.9 billion, while China is forecasted to boom at a 6.2 percent CAGR over the next several years.
The cable modem market is increasing in popularity due to the many benefits it offers to home internet users. It’s a fast, reliable, and cheap way for consumers to access the internet. Online retailers have made it easy for people to buy a new modem or upgrade their old one. The Cable Modem market in the U.S. is estimated to grow at an annual growth rate of 10 percent from 2019 to 2020, with total revenue of US$1.9 Billion for that year.
China is expected to continue its growth in the cable modem market, reaching a projected increase of billions by 2027. The China market is predicted to grow at a CAGR of 6.2 percent over the analysis period 2020 to 2027.
Japan and Canada are other countries that have high growth rates over the next 10 years. In both countries, cable modems are forecast to grow by 3 percent & 4 percent, respectively, for 2020-2027.
Within Europe and Germany cable modem global market is forecast to grow at approximately 3.7 percent CAGR over the next few years.
Interactive segments
The interactive segment is estimated to record a 4.1 percent CAGR. The global interactive entertainment market is expected to grow at a CAGR of 3.7 percent in the next five years. The USA and Canada are estimated to be the key performers in this industry, with Japan, China, and Europe being smaller but still highly prominent players.
The global cable modem market is expected to reach a projected size of US$1.1 Billion by the end of the analysis period. This regional market was the size of $869.5 Million in the year 2020, and $1.1 billion worth of regional cable modems is predicted to be sold by the end of this analysis period.
China is on the rise and will continue to be an important market for international companies. China is expected to remain among the fastest-growing regional markets in this sector. The graph is led by countries such as India, Australia, and South Korea.
Asia-Pacific is set to become a crucial area for business growth chances. Not only will this be one of the largest markets by 2027, but it also has a market with great potential for further expansion. Latin America will also see huge expansion opportunities throughout the timeline.
The market in the Asia-Pacific region is expected to reach $1.3 billion by 2027, and Latin America will expand at a 5.1 percent CAGR.
10 reasons for growth in cable modem global market
The global cable modem market has witnessed steady growth due to the increasing demand for high-speed internet. The factors that have contributed to the development of this market are:
- The growing number of broadband subscribers.
- The rising number of public Wi-Fi hotspots.
- The availability of high-speed internet in remote areas.
The cable modem global market is expected to grow at $10 Billion by 2027. Cable modem is used primarily for broadband internet access, and it is the most widely deployed technology in this field. The cable modem market is growing at a rapid rate, and the reasons for that are many.
The following are the top 10 reasons why the cable modem market is growing:
- Increase in penetration of smartphones and tablets: With more people owning smartphones and tablets, they are increasingly using these devices to access internet services. This has led to an increase in demand for cable modems;
- Increase in demand for high-speed internet access:The increasing number of people with high-speed internet access has led to a rise in demand for cable modems;
- Increase in usage of IPTV services: Global cable modem market has increased due to an increasing number of T.V. viewings. Increase in adoption of online video streaming services such as Netflix, Amazon Prime Video, Hulu Plus.
- Rise in demand for high-speed internet:With the rise in demand for high-speed internet services, the global cable modem market has grown significantly. The high-speed internet services companies have also increased their investment in this region.
- An increase in household broadband:Broadband has become a necessity in today’s world. With the increasing number of households with broadband, cable modems have become more popular than ever.
- Growth of 4K T.V. and Ultra H.D.: In the last five years, 4K T.V. has increased rapidly and is now offered in more than 80 percent of U.S. households. This increase in demand has led to an increase in the global cable modem market.
- Innovation in the field of telecommunications: The use of newer technologies and innovations in the field of telecommunications has resulted in increased demand for cable modems globally.
- Increase in Data Consumption rate:Rapidly growing data consumption is another whole topic. This revolutionized the way in which data was transmitted and consumed. Increasing demand for broadband, coupled with the increasing worldwide penetration of cable television, has led to a need for more cable modems.
- Growing OTT Platforms: The adoption of OTT services in the market leads to increased demand for cable modem products.
- Increasing penetration of fiber optic networks: Increased availability of fiber optics infrastructure and cabling in developing countries, resulting in increased statistics of cable modem global market share.
What is the Current Status of the Global Cable Modem Market?
As discussed above, the global cable modem market is expected to grow at a CAGR of 3.3 percent over the forecast period. The key drivers for this growth are the increasing demand for high-speed internet and the growing penetration of cable television networks in emerging markets like China and India.
The primary restraints on the market growth are:
- The high initial investment.
- Lack of awareness among end-users.
- Lack of competition among service providers.
The global cable modem market rose with a CAGR of 32.5 percent in 2018. The market is projected to reach $1 billion by 2025, which is a massive increase compared to 2017.
A Changing Cable Market Overview
The cable market is changing rapidly with the rise of streaming services like Netflix, Hulu, and Amazon Prime. The on-demand cable market has become more competitive as people switch from traditional cable providers to online services.
The cable industry has been facing an incline in revenue for the past few years as consumers are now opting for streaming services. The change in the market is creating a new opportunity for businesses.
The cable industry is changing. The cord-cutting trend is becoming more prevalent, and the market has been shifting to online streaming services like Netflix and Hulu. Cable companies are trying to adapt to this new reality by offering bundles of channels at a lower price point. In order to stay relevant in the changing market, cable companies need to provide better service, faster speeds, and better customer support.
In order to stay ahead in this changing market, cable companies need to offer better service, faster speeds, and better customer support. Cable operators face a challenging and complex market that is evolving rapidly with shifting demographics, competition from other media, content delivery, and more.
Reference :
Insights on the Cable Modems Global Market to 2027 – Business Wire
Internet Use In 2021 (Facts and Stats) – RouterCtrl
Cable Modem Subscribers Market: Global Industry Analysis – Persistence Market Research
