BROADBAND SERVICES MARKET ANALYSIS

The global broadband services market size was valued at US$ 410.82 billion in 2023 and is anticipated to witness a compound annual growth rate (CAGR) of 9% from 2023 to 2030. The global broadband services market is witnessing a significant growth due to the increasing demand for online education and remote work. The market is further boosted by the increased use of internet for entertainment purposes, which is expected to boost the consumption of internet services. Moreover, the growing demand for online learning platforms and e-health applications has also led to the need for a robust and stable internet connection.

Global Broadband Services Market: Regional Insights

North America is anticipated to dominate growth of the global broadband services market over the forecast period, owing to constant rise in demand for broadband services in the region, as they offer rapid data access the internet through various technologies. Moreover, growing initiatives by government, increase in consumer awareness, and technological advancements for improved user experience are also driving the market growth in region.

Asia Pacific is anticipated to show significant growth in the global broadband services market over the forecast period, owing to growing use and expanding customer pool. The internet service providers in the region are offering add-on services at economic rates for attracting the middle- and low-income consumer section. Moreover, increasing disposable income and growing consumer base across the region are also the factors driving growth of the market in this region.

Figure 1. Global Broadband Services Market Share (%), By Region, 2023

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Global Broadband Services Market Drivers:

Increasing internet penetration and need for higher bandwidth to boost the market growth

There has been a major growth in number of internet service subscribers around the world in recent years. These service include Wi-Fi, fixed broadband, and mobile networking. Factors such as development of infrastructure, reduced cost of internet services, and smartphone penetration are driving the number of internet users all over the world. As per the Cisco Systems, by 2023, nearly two-third of the population around the world will get internet access. The number of internet users is likely to grow to 5.3 billion by 2023, from 3.9 billion in 2018.

Increasing adoption of IoT devices to propel the market growth

Internet of Things (IoT) is a network that connects devices integrated with network connectivity, sensors, requisite electronics, and software using which they can exchange and gather information. These interconnected devices can remotely control and manage various tasks and functions due to which implementation of automated business processes in different industry verticals is crucial. With growing automation and technological advancements, the adoption of these IoT devices is increasing rapidly all over the world, as a result, the demand for broadband services is increasing. This factor is further anticipated to augment growth of the global broadband services market over the forecast period.

Global Broadband Services Market Opportunities:

New business avenues in 5G technology are expected to offer growth opportunities in the global broadband services market over the forecast period. With the emergence of 5G technology, businesses around several industries are provided with growth avenues. The use of advanced technologies such as AI and IoT in different business processes are gaining momentum with growing use of 5G services. As a result, all stakeholders across the ecosystem are provided with growth opportunities in the global broadband services market.

Technological advancements in wireless broadband services along with enhanced speed on next generation network is likely to bring lucrative opportunities in the global broadband services market over the forecast period. The demand for wireless broadband services is increasing all over the world, due to which vendors are seeking advanced wireless solutions in broadband services to cater the increasing demand. As a result, the market is likely to show growth opportunities in the coming future.

Global Broadband Services Market Trends:

Growing adoption of online learning and work from home module is a major trend

After the COVID-19 outbreak, several countries imposed lockdowns regulations. During this period, several educational institutes and businesses had to adopt online learning and remote work module. Many colleges, schools, and universities around the world adopted digital learning, which requires stable internet connection. While many companies adopted work-from-home module to continue business operations. As a result, the demand for broadband services is increasing all over the world. This trend is likely to boost growth of the global broadband services during the forecast period.

Increasing focus on market players on improvising technology is another trend in the market

Many providers in the industry are focused on improvisation of the technology in order to cater the growing demands of higher bandwidth applications, user-convenience, and high-speed internet needs coming from the applications that require intensive bandwidth. For instance, in May 2020, Sky and NBCUniversal introduced a business offering that allows consumers to purchase global international news of Sky through One Platform of NBCUniversal. Thus, this trend is likely to boost growth of the global broadband services market over the forecast period.

Global Broadband Services Market Restraints:

High cost of deploying network services to limit the market growth

The broadband services market is growing significantly due to high demand for high-speed, bandwidth-intensive, and high-data rate applications all over the world. However, deploying the broadband connection can be of high cost, along with its timely maintenance. The infrastructure required for offering these services are expensive. Moreover, for better quality of internet connectivity, the subscription costs are also higher than normal connectivity. This factor thus impacts adoption of these services, which is further expected to hamper growth of the global broadband services market over the forecast period.

Stringent government regulations to hinder growth of the market

Broadband services and solution providers have to adhere to regulations imposed by regional authorities. Different regions have different regulations, and services providers have to follow these regulations in order to expand their business. This factor is acting as a major challenge, which is expected to hamper growth of the global broadband services market over the forecast period. However, market players are trying to create solutions that adhere to international standards, which is likely to support the market growth in the coming future.

Figure 2: Global Broadband Services Market Share (%), By End User, 2023

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Global Broadband Services Market Segmentation:

The global broadband services market report is segmented into Broadband Connection and End User.

Based on Broadband Connection, the market is segmented into Fiber Optic, Wireless, Satellite, Cable, and Digital Subscriber Line (DSL). Out of which, Fiber Optics is expected to dominate the global market over the forecast period and this is attributed to the high capacity of fiber optics to carry superior quality network signals from the equipment of operator to a household, enterprise, or business. Moreover, due to various other benefits of fiber optics broadband services such as increased bandwidth are also driving growth of this segment.

Wireless segment is also expected to witness significant growth in the near future and this is owing to the increasing technological developments and user convenience of wireless broadband services driving their demand.

Based on End User, the market is segmented into Business, Household, and Others. Out of which, Businesses is expected to dominate the global market over the forecast period and this is attributed to the increasing demand for broadband services due to requirement of consistent and fast internet connection for communicating externally with customers and business partners and internally with employees. With increasing industrialization around the world, the demand for broadband services is increasing in business sector. This in turn is driving growth of this segment.

Household segment is also expected to witness significant growth in the near future and this is owing to the growing trend of online learning, and adoption of work from home modules by many companies. Several, universities, colleges, and schools are adopting digital education, which requires reliable internet connection. Thus, the demand for broadband services is increasing in household sector. This is in turn is expected to drive growth of this segment.

Global Broadband Services Market: Key Developments

In June 2020, Cox Business, introduced novel work-at-home solutions that comprises a separate internet connection and an enterprise grade. With this novel solution, companies will be able to offer employees with services that includes broadband, McAfee endpoint security, MalBlock, and Wi-Fi.

In March 2020, Verizon announced that it is eliminating late fees and overage charges in order to support consumers impacted by the COVID-19 pandemic. The company will be adding 15GB of high-speed data for wireless consumers and small businesses, which will be used automatically without requiring involvement of consumer.

In May 2020, Comcast announced the availability of Xfinity xFi platform in Spanish to offer Spanish speaking customers an enhanced method of managing connected devices in their home and their home WiFi network.

In April 2020, Sprint completed its merger with T-Mobile USA, Inc. to create a new T-Mobile, a modified Un-carrier that can deliver a fast-speed transformative 5G network for urban areas and rural communities.

Global Broadband Services Market: Key Companies Insights

The global broadband services market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis. Some of the key players in the global broadband services market are BEC Inc., Comcast, Sprint, AT&T Inc., Charter Communication, Inc., Verizon, CenturyLink, Singtel, Embarq Limited, and Cox Communications, Inc.

*Definition: Broadband service is high-speed Internet access that provides the capacity to do online activities that require a significant amount of data, such as streaming videos and playing computer games. Depending on the location, broadband Internet can be provided via cable, fiber, DSL, fixed wireless or satellite networks.