Impact of IoT and New Standardization to Augur Well for Global Cable Modem Market
Cable modems are an integral component of networking infrastructure, which allows your computer, laptop, Smartphone, or tablet to connect to the Internet with the help of your Internet Service Provider (ISP).They can transmit and receive data using hybrid coaxial cables over a Radio Frequency over Glass (RFoG) infrastructure. Introduction of 4G carriers to provide better speed as well as expansion of Internet of Things (IoT) in industrial circles are expected to augur well for the cable modems market.
Standardization of Data Over Cable Service Interface Specification (DOCSIS) has allowed products of many manufacturers to be compatible with data cables, LAN (local area network) equipment, and other networking peripherals. This development has led to significant investments in customer premise equipment (CPE). Companies have decided to capitalize on this trend by offering innovative products. For instance, Linksys recently launched Linksys CG7500, which functions in a dual role of modem and router. It adheres to the latest DOCSIS and is compatible with broadband providers offering more than 300 Mbps speeds.
Arris Corporation recently acquired Ruckus Wireless to expand its current product portfolio. This acquisition has given the former an opportunity to expand into broadband access markets in Asia and Europe. Broadcom Solutions, a pioneer in semiconductor solutions, has managed to develop a system-on-a-chip (SoC) solution for Chinese operators who wish to offer their services in multiple dwelling units. It relies on networking standards such as Gigabit Passive Optical Networking (GPON) and Ethernet Passive Optical Networking (EPON) to deliver high speed.
The worldwide cable modems market is projected to reach a significant market size by 2022, according to a report available on Innovation Market Research, Inc. Its growth is driven by the need for high Internet speed in commercial, industrial, and residential settings. In addition, the trend of Internet of Things (IoT) as well as Bring-Your-Own-Device (BYOD) is expected to augment demand throughout the forecast period (2012 – 2022).
Based on type, the market is bifurcated into wired and wireless. The former relies on cables and routers to provide high Internet speed, while the latter utilizes mobile broadband modems or ‘dongles’. Wireless modems are expected to witness a decline in market share with respect to its counterpart due to declining PC sales and a surging secondhand modem market. The residential sector is expected to be the biggest end-user till 2022 due to a knowledgeable customer base. North America expects to rake in immense revenue over the forecast period due to adoption of latest networking standards. Notable market players include D-Link Corporation, Arris International Plc, SMC Networks, and Linksys.
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