Continued global demand for high speed services

SCENARIOS

Household broadband adoption is increasing all around the world, with broadband services remaining a key driver for productivity and communication going forward.

Brett Sappington

SENIOR DIRECTOR OF RESEARCH, PARKS ASSOCIATES

“Global adoption of fixed-line broadband services continues to increase. This is largely driven by due to factors such as connected device ownership, always-on access and Wi-Fi and entertainment. New connected products and Internet-based services are being launched with the assumption that high-speed data connections are easily and readily available. This is generally true for most developed nations and increasingly the case in many emerging markets.”

 

“At the end of 2015, some 739 million global households subscribed to a residential fixed-line broadband service. That’s an increase of more than 40 percent since the end of 2010. At the end of 2016, some 776 million global households subscribe to a residential fixed-line broadband service. That’s an increase of more than 46 percent since the end of 2010.”

 

 

Fueling connected services

 

“Among global regions, developing Asia will experience the highest volume of fixed broadband growth through 2020, adding 75 million new broadband households over the next few years. Fixed broadband subscriptions in Latin America will increase by over 20% during that time period.”

 

“The increasing amount of information, communications, services, and entertainment is helping drive interest in fixed line services, particularly for high bandwidth activity like online video. Wireless access will remain a key part of future connectivity in emerging markets due to the lack of wired infrastructure and some regions will rely heavily on mobile data for the foreseeable future. Yet, the throughput available through fixed broadband allows delivery of services that help fuel the growth of connected services worldwide.”

Parks Associates, founded in 1986, is an internationally recognized market research and consulting company specializing in emerging consumer technology products and services.

China

  • Over 216 million broadband households – 29% of global total.
  • Over 15 million new broadband homes added within the past year.
  • Leading global market in the total increase in broadband subscribers.
  • Vast growth opportunity: less than half of households have broadband.

India

  • Just over 15 million households have broadband subscriptions: mobile communications historically strong.
  • Government-required digitization of national cable infrastructure is driving fixed-line broadband adoption.
  • As a result, broadband household volume increase rivals that of China.

Latin America

  • Among fastest-growing broadband regions despite recent slowing down.
  • 2015: 66 million broadband households.
  • Global share of broadband subscribers grew from 8% in 2010 to 9% in 2015, outpacing all regions except APAC.
  • Chile and Venezuela among fastest growing local markets.
  • Also strong growth in Colombia, Peru, Mexico and Argentina.

Africa and the Middle East

  • Highest global broadband growth percentage
  • Largely due to regional low starting point for broadband penetration.
  • Volume growth is increasing with improved stability, particularly in Egypt.

 

North America and Western Europe

  • Among most mature broadband markets
  • Most nations exceed 75% penetration.
  • As a result, subscriber growth has slowed.

Japan and South Korea

  • Mature markets with increasingly intense very-high-speed competition.
  • Residential gigabit broadband offered as early as 2008.

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All rights reserved.