Broadband services provide high-speed internet connectivity to both residential and commercial users. With the rise of digital content, robust internet connectivity has become essential for streaming online videos, music, gaming, video calling and more. Broadband allows high-speed data transmission through technologies such as cable modem, DSL, fiber optic, wireless and satellite. As users demand faster internet speeds to support emerging technologies like IoT, augmented/virtual reality and cloud based applications, broadband providers are upgrading their infrastructure to offer Gigabit internet speeds and beyond. The global Broadband Services Market is estimated to be valued at US$ 488.10 Bn in 2024 and is expected to exhibit a CAGR of 9.0% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends: One of the key trends in the broadband services market has been the shift towards fiber broadband connectivity. Fiber offers blazing fast speeds and huge bandwidth capacity to support the increasing data needs. Many providers across regions have started fiberization of their networks to migrate customers from legacy technologies to fiber broadband. For instance, in North America over 70% of new broadband subscriptions are on fiber networks. In Europe as well nations have outlined targets to cover most of their territories with fiber to the home networks by 2025 or earlier. The superior performance of fiber is boosting its adoption globally and driving substantial investments in fiber broadband infrastructure.
Threat of new entrants: The threat of new entrants in the broadband services market is low due to the high infrastructure and capital investment required to build the telecommunication network.
Bargaining power of buyers: The bargaining power of buyers is high as there are many existing players providing broadband services with variety ofchoices and price packages available to consumers.
Bargaining power of suppliers: Suppliers have low bargaining power as broadband service providers have alternative suppliers and switching costs are relatively low.
Threat of new substitutes: The threat of substitutes is moderate as wireless technologies like 5G provide alternatives but broadband services have certain advantages over them.
Competitive rivalry: The competitive rivalry in the market is high due to the presence of many global and regional players competing on the basis of pricing, speed, and service quality.
The global broadband services market is expected to witness high growth at a CAGR of 9.0% during the forecast period from 2024 to 2031.
Regional analysis: North America dominates the broadband services market currently due to high penetration of fast and ultra-fast broadband in countries like US and Canada. Key players operating in the region are continually upgrading their infrastructure to rollout 5G services for both residential and business customers.
Key players operating in the broadband services market are BEC Inc., Comcast, Sprint, AT&T Inc., Charter Communication, Inc., Verizon, CenturyLink, Singtel, Embarq Limited, and Cox Communications, Inc. The market is witnessing significant investments from these players to develop full fiber networks and expand 5G coverage. Major strategies adopted by players include mergers and acquisitions, partnerships, and product launches with innovative pricing plans and bundled offers.
- Source: Coherent Market Insights, Public sources, Desk research
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