Fixed-line Communications Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 11.32 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Asia Pacific |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Fixed-line Communications Market Analysis
The fixed-line communications market is expected to register a CAGR of over 11.32% during the forecast period.
- The trend for digitalization has also resulted in the emergence and shift toward purchasing set-top boxes (STBs) from cable television, allowing customers to enjoy a broader range of services at a relatively lower cost and enabling the providers to offer a better quality of services.
- The wired networks that provide fixed broadband and telephone services are generally referred to as fixed-line telecommunications. These modes of communication can be thought of as a cable connection to an end user, via which the user can connect to the Internet or make a phone call. Fixed data, often known as fixed broadband, refers to using a range of technologies for high-speed data transfer to a home or company. Examples of transmission methods are cable modem internet, digital subscriber line (DSL) internet, fiber optic cable, and other fixed broadband technology connections.
- The demand for faster Internet services is driving the market studied. Increasing Internet and broadband penetration and an increasing preference for high-definition (HD) channels and on-demand video services would likely boost market expansion. Fixed-line communications are highly relevant in small enterprises, homes, education institutes, and offices. Fixed-line telephone players are witnessing a boom in data service revenues. They are trying to provide 'triple play, a combination of play-broadband Internet, video, and voice, over an IP network, to consumers.
- Increasing demand for data centers is trending in the market with the advent of IoT, Big Data analytics, and cloud-based services. Network equipment plays a significant role in the operations of data centers. Additionally, there is an increasing demand for data centers from government agencies, large enterprises, and telecommunication organizations, driving the market studied.
- Nevertheless, the lack of training and development of technicians is a challenge for the growth of the market studied. According to Equinix, in this year's global tech trends survey, 74 percent of IT decision-makers view the shortage of personnel with the required skills as one of the main threats to the business.
- The COVID-19 pandemic provided a significant boost to connectivity. Digital technology and services enable individuals to have easy access to the Internet and use it regularly and effectively to better their lives in terms of work-from-home (WFH), online learning, online commerce, etc. This benefits people all over the world. This trend continues even post-pandemic owing to the increasing usage of data, an uptrend in 5G, and the rapid shift in working arrangements, helping businesses to stay in operation and communities connected in unprecedented conditions. These advancements drive the need for fixed-line communication equipment.
Fixed-line Communications Market Trends
This section covers the major market trends shaping the Fixed-Line Communications Market according to our research experts:
Growth of Fiber Optic Cable is Expected to Stimulate the Market Growth
- Fiber optic cables and devices are utilized in a variety of industries, including not only telecom and community access television (CATV) but also networks in the military and aerospace, energy utilities, municipal, campus, and other sectors. Fiber optic networks, designed to generate and transfer data using light signals, are the primary technical approach for high-speed communications around the globe.
- Fiber-based fixed broadband services remain the households and businesses' most adopted Internet services. In the leading markets, most of the fixed-line network has been replaced by fiber-optic cables to benefit from the optical fiber's far better performance than twisted-copper networks.
- The proliferation of the internet and the subsequent roll-out of services, such as video-on-demand, led to increased bandwidth demand, which fueled the adoption of fiber optics, a more enhanced communication medium. Governments' investments and the establishment of NBNs offering fiber on a wholesale basis, as well as investments by operators, have been and will be crucial for the widespread availability and adoption of fiber broadband services.
- Fixed-broadband deployment subscription continues to grow yearly, with growing importance on fiber infrastructure. The residential sector is one of the largest consumers of fixed-line services. A large and ever-increasing number of users connect to the internet via residential broadband networks.
- According to the International Telecommunication Union (ITU) survey, there were around 1.3 billion fixed broadband subscriptions worldwide, with a slight increase from 1.2 billion over the last year, which strives for the demand for fiber optic cable.q
Asia-Pacific is Expected to Dominate the Fixed-line Communications Market
- Asia-Pacific is witnessing an increase in the construction of data centers. The increasing adoption of data centers in the region is boosting the demand for router products because of digital transformation through new technologies, and the number of internet users has increased dramatically. Despite the rapid increase in smartphone users, fixed-line Internet connections remain popular among users. Thus, this has a positive impact on the fixed-line communications market.
- The adoption of the router is expanding due to the broadband penetrations, such as mobile-based internet access, network-based businesses, competitive business environments, and cloud-based service adoption, which may positively impact the market studied. Also, the adoption of STBs and optic cables for broadband services increased in the region owing to the need for demand of the Media and Entertainment segment to watch Movies, Live telecasts, Series, and social media platforms.
- Rising demand for high-speed internet services and competitively priced fiber broadband plans from operators would promote fixed broadband service adoption in the region. Benefits such as unlimited internet access and access to crucial subscription video-on-demand (SVoD) platforms would boost the adoption of fixed-line broadband service.
- In India, for example, BSNL's Superstar Premium Plans provide unlimited 150 Mbps broadband connection for INR 999 (US$12) per month and access to OTT platforms such as Disney + Hot Star. Premium, SonyLIV Premium, and Voot Select. Similarly, Telecom giants like Jio and Airtel have launched unlimited plans with all access to over-the-top (OTT) platforms and with a 5G capacity in smart cities.
- In recent years, according to the International Telecommunication Union (ITU), China accounts for the largest broadband subscriber base in the region and accounts for about 80% of all fixed-broadband subscriptions at speeds over 10 Mbps. In countries like China and India, the government has taken the initiative to focus on high-definition pictures by converting normal channels to HD channels which led to the growth of the set-top box market in the region.
Fixed-line Communications Industry Overview
The fixed-line communications market is highly fragmented, as the competition is expected to remain intense, with highly penetrated markets. Fixed-line outperforms mobile operations due to lower churn rate and price competition. Key players in the market studied are Arris International PLC, Broadcom Inc., Arista Networks Inc., etc. Recent developments in the market studied are -
In December 2022, Nokia, in partnership with National Broadband Network(NBN) Co, deployed Nokia's next-generation broadband platform and its Altiplano access controller to deliver a smarter, faster, and greener Australian NBN network. The deployment is the first for the Lightspan MF-14 in the Southern Hemisphere.
In October 2022, South African telecom giant Telkom launched 5G high-speed Internet network services in partnership with Huawei to boost its fast-growing mobile data and fixed-line broadband businesses amid increasing demand for broadband.
Fixed-line Communications Market Leaders
Arris International PLC
Broadcom Inc.
Arista Networks Inc.
Huawei Technologies Co. Ltd
Albis Technologies AG
*Disclaimer: Major Players sorted in no particular order
Fixed-line Communications Market News
- November 2022: Ciena, a network equipment and software services supplier, acquired Benu Networks and agreed to acquire Tibit Communication. Ciena will use Tibit's products to add passive optical network (PON) capabilities to its switches and routers to improve subscriber management services and extend PON access to make connectivity easier for end users. These investments support fiber infrastructure, fixed lines, fixed wireless, etc.
- August 2022: Allied Telesis, a connectivity solutions and intelligent networking tools company, launched the AR4050S-5G Mobile Broadband UTM Firewall, an integrated security platform that's ideal for modern distributed businesses. AR4050S-5G supports the growing use of immersive-experience applications, video conferencing, and other online corporate resources.
Fixed-line Communications Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Demand for Faster Internet Services by Public
4.2.2 Increasing Demand for Data Centers through Network Equipment
4.2.3 Growth of Fiber Optic Cable is Expected to Stimulate the Market Growth
4.3 Market Restraints
4.3.1 Lack of Training and Development of Technicians
4.4 Value Chain Analysis
4.5 Industry Attractiveness - Porter's Five Forces Analysis
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Buyers/Consumers
4.5.3 Bargaining Power of Suppliers
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
4.6 Assessment of Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
5.1 By Product Type
5.1.1 Routers
5.1.2 Set-top Box (STB)
5.1.3 Fiber-optic Cables
5.2 By End User
5.2.1 Residential
5.2.2 Commerical
5.3 Geography
5.3.1 North America
5.3.2 Europe
5.3.3 Asia-Pacific
5.3.4 Latin America
5.3.5 Middle East & Africa
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Arris International PLC
6.1.2 Broadcom Inc.
6.1.3 Arista Networks Inc.
6.1.4 Avaya Inc.
6.1.5 Albis Technologies AG
6.1.6 Allied Telesis Inc.
6.1.7 Peak Communications Inc.
6.1.8 Aerohive Networks Inc.
6.1.9 Raycap Inc.
6.1.10 Huawei Technologies Co. Ltd
6.1.11 Manx Telecom Trading Ltd
- *List Not Exhaustive
7. INVESTMENT ANALYSIS
8. MARKET OPPORTUNITIES AND FUTURE TRENDS
Fixed-line Communications Industry Segmentation
With the increasing digitization and the demand for data transmission, the fixed-line network has developed into a universal integrated services network. The merging of voice and data transmission via the fixed-line network opens up new possibilities. The adoption of 4G and 5G services is expected to augment the growth of the cable segment, as fixed-line communications are necessary to deliver such services.
The fixed-line communications market is segmented by product type (router, set-top box, and fiber optic cable), end user (residential and commercial), and geography.
The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.
| By Product Type | |
| Routers | |
| Set-top Box (STB) | |
| Fiber-optic Cables |
| By End User | |
| Residential | |
| Commerical |
| Geography | |
| North America | |
| Europe | |
| Asia-Pacific | |
| Latin America | |
| Middle East & Africa |
Fixed-line Communications Market Research FAQs
What is the current Fixed-Line Communications Market size?
The Fixed-Line Communications Market is projected to register a CAGR of 11.32% during the forecast period (2024-2029)
Who are the key players in Fixed-Line Communications Market?
Arris International PLC, Broadcom Inc., Arista Networks Inc., Huawei Technologies Co. Ltd and Albis Technologies AG are the major companies operating in the Fixed-Line Communications Market.
Which is the fastest growing region in Fixed-Line Communications Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Fixed-Line Communications Market?
In 2024, the Asia Pacific accounts for the largest market share in Fixed-Line Communications Market.
What years does this Fixed-Line Communications Market cover?
The report covers the Fixed-Line Communications Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Fixed-Line Communications Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Fixed-line Communications Industry Report
Statistics for the 2023 Fixed-line Communications market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Fixed-line Communications analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
