The global broadband access equipment market is expected to witness high growth over the forecast period owing to increasing demand for high speed internet services. The necessity of broadband access equipment continues to rise due to number of internet users. The broadband access equipment market is characterized by continuous technological developments, and has witnessed a significant shift from copper-wired network to more sophisticated fiber optic cables, thereby increasing network speed.
The introduction of WiMax technology is also a key factor for developments in this market. Introduction of wireless broadband has catered to the demand for mobility and is also expected to catapult market growth. The broadband access equipment market may witness high growth with the rise in deployments of novel technologies such as Gigabit Capable Passive Optical Network (GPON) and Very high bit rate Digital Subscriber Lines (VDSL). The need for improved internet access, wired or wireless has become a necessity for commercial as well as personal use. Technological proliferation has resulted in smaller equipment size, efficient performance and low cost, and is expected to positively impact the market demand over the next seven years. The transition from copper to fiber optics is accelerating as network providers seek benefits of deploying a low cost-to-operate infrastructure, while providing high value to the end-users. Increasing number of users in urban area, network applications, and emerging network related markets are also anticipated to augment the broadband access equipment market growth. Further, increasing use of this broadband access equipment across several industries, particularly the network industry has also spurred market demand. The demand to accommodate hundred mega bits to one giga bits speed may intensify competition in this market. The capability of broadband to serve high-end requirements of Internet Protocol Television (IPTV), internet gaming, and voice & video conferencing may provide avenues for market growth. Furthermore, innovation, speed, and agility are key trends that drive market demand.
Slowdown in the IT sector may adversely affect market performance. Further, the telecom sector poses a serious challenge to the broadband access equipment market due to their flagship 3G and 4G LTE services, and accounts for a substantial share across the personal usage segment. Increase in raw material price, failure in responding to continuously evolving technological trends may also pose a challenge to the broadband access equipment market growth. Further, incidences such as patent infringements may also affect the long-term profitability of market. Product cannibalization may also be a challenge to the broadband access equipment market. For instance, development of FTTH technology has cannibalized the DSL broadband access equipment due to its capability to provide better performance at the same costs. Broadband access equipment includes wire line broadband access equipment and wireless broadband access equipment. The introduction of GPON and FTTH may negatively affect the growing demand for wireless broadband access equipment owing to growing demand for high speed internet.
The North American broadband access equipment market accounted for majority of share owing to high demand for Fiber to the Home (FTTH) and gigabits services in the commercial and residential sector. The Latin America market is expected to witness major transition to fiber network owing to increased spending on Gigabit capable Passive Optical Networks (GPON) and Ethernet FTTH broadband access equipment. The Asia Pacific market may witness growth in the next seven years, which may be attributed to rapid IT infrastructure development in this region.
Key industry participants include ZTE, Tellabs, Samsung Electronics, Huawei Technologies, Cisco Systems, Allied Telesis, Alcatel Lucent, Adtran, Calix Networks, Ericsson, Fujitsu, and Nippon Electric Company. The prominent market participants are expected to capitalize on new product development to cater to the current market demand or to enter new markets. Industry consolidation may be another strategy adopted by the companies to compete and survive in the broadband access equipment market.
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