The global broadband services market was valued at USD 419.4 billion in 2022 and is estimated to reach USD 964.91 billion by 2031, expanding at a CAGR of 9.7% during the forecast period, between 2023 - 2031. The growth of the market is attributed to the increasing deployment of broadband services by several industries for digital transformation.
Broadband is a large bandwidth data transmission of multiple signals. Broadband service supplier such as YOU broadband permits users to transfer heavy files and data that with the help of dial-up service.
The global digital revolution over various industry verticals has created a lucrative opportunity to the market. According to a report of the Organization for Economic Co-operation and Development (OECD), the major growth booster for the market is the increasing number of wireless subscribers across the globe. Moreover, the digital transformation in businesses and rising acceptance of online learning has not only increased the requirement of digital education but also has raised a strong need for an uninterrupted broadband connectivity.
Continuous research and development in the market is ensuring high-speed Internet to various industry and making it more application oriented. The COVID-19 pandemic has negatively impacted various businesses across all globe. It has disrupted the supply chains, which in turn, draining the economy globally. The outburst of COVID-19 has persuaded various industries to work from home. This has increased the requirement for digitalization to stay connected and run businesses.
Businesses such as education and fitness clubs are gradually shifting toward online coaching. These above mentioned factors along with the rising usage of Internet users for entertainment reasons, have resulted in the exponential growth of the broadband services market.
Market Trends, Drivers, Restraints, and Opportunities
Rapid growth of the e-commerce industry owing to online shopping is expected to fuel the market growth.
Rising shift toward digitalization of hospital records and government initiatives to digitize the daily activities is spurring the growth of the market.
Increasing number of online platforms for entertainment and media practices is significantly boosting the growth of market.
Majority of the business are anticipated to shift their strategies toward digital channels, which is expected to foster the market growth.
Lack of awareness and knowledge about the usage of broadband services may hinder the market growth during the analysis period.
Scope of Broadband Services Market Report
The report on the global broadband services market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been involved in this report.
Broadband Services Market - Global Industry Analysis, Trends, Growth, Share, Size, and Forecast
Broadband Connections (Cables, Digital Subscriber Lines (DSLs), Fiber Optics, Satellites, and Wireless) and End-users (Household and Business)
Asia Pacific, Europe, North America, Latin America, and Middle East & Africa
Company Share, Market Analysis and Size, Growth Factors, Competitive Landscape, and Trends, and Revenue Forecast
Key Players Covered in the Report
Verizon Communications, Inc., Time Warner Cable, Inc., Rogers Communications, Inc., Qwest Communications International, Inc., Cox Communications, Inc., Comcast, Charter Communications, Inc., Cablevision Systems Corp., and AT&T Intellectual Property
Global Broadband Services Market Segment Insights
Fiber optics segment anticipated to dominate the market
Based on broadband connections, the market is hey divided into cables, digital subscriber lines (DSLs), fiber optics, satellites, and wireless. The fiber optics segment is anticipated to dominate the market owing to the ability of fiber optics to carry high bandwidth signals. Fiber networks are also known as ‘futureproof’ due to their constant development in the fiber optics technology that enables in increase in the bandwidth according to business requirements.
The wireless segment is anticipated to expand at a high CAGR owing to the rising technological development and adoption of wireless services due to customer convenience. The wireless broadband connection services use radio waves or wireless fidelity (Wi-Fi) instead of cables as compared to the other broadband connections. An evolution of mobile wireless services from 3G to 4G and emerging of 5G technology has boosted the demand for wireless broadband services.
Business segment to account for a large market share
On the basis of end-users, the market is bifurcated into household and business. The business segment is expected to account for a large market share during the forecast period. Majority of the businesses need a fast and steady Internet connection to connect with employees and clients. The prime components of latest business models such as customer engagement, marketing and sales, and profit analysis reverberates with the demand for broadband services.
The implementation of broadband services has improved due to the digitalization among industry’s major players. Increasing requirement of a steady Internet connection due to the digitalization in schools, colleges, and universities for online learning has boosted the growth of the market segment.
On the other hand, the rising trend of work from home owing to the lockdown by governments of various countries on account of COVID-19 pandemic has been acting as a major factor contributing to the market growth across the globe. Conversely, the installation of Internet services in the household sector is increasing due to rising number of people using Internet for the entertainment and social media platforms.
The market in Asia Pacific to expand at a high CAGR
In terms of regions, the global broadband services market is categorized as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Europe is anticipated to dominate the market owing to the rapid technical developments and proactive government initiatives. A report of the European Commission (EC) says that, almost 96.8% of households in Europe have fixed broadband services. The European Commission is aiming to transform the overall region into a gigabit society by the year 2025.
The market in Asia Pacific is projected to expand at a high CAGR during the forecast years. Countries such as China and Japan are developing ultra-fast broadband, which in turn, is expected to increase the consumer pool and user rates during the coming years.
Moreover, the market players in this region are focusing to attract the middle- and low-income segments of customers and offer them an exclusive service at economic rates. Additionally, the rising disposable income as well as a high population in this region, are some of the main factors contributing to the growth of market.
The global broadband services market has been segmented based on
- Digital Subscriber Lines (DSLs)
- Fiber Optics
- Asia Pacific
- North America
- Latin America
- Middle East & Africa
Some major players competing in the global broadband services market include Verizon Communications, Inc., Time Warner Cable, Inc., Rogers Communications, Inc., Qwest Communications International, Inc., Cox Communications, Inc., Comcast, Charter Communications, Inc., Cablevision Systems Corp., and AT&T Intellectual Property.
Numerous service providers are concentrating on developing the technology to fulfill the growing demand for high-speed Internet requirements, and bandwidth applications.
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