Global HFC market to grow at 9% CAGR through 2023
According to Technavio, the global hybrid fiber/coaxial (HFC) market is expected to post a compounding annual growth rate (CAGR) of close to 9% during the period ...
According to Technavio, the global hybrid fiber/coaxial (HFC) market is expected to post a compounding annual growth rate (CAGR) of close to 9% during the period 2019-2023.
A key factor driving the growth of the global HFC market is the growing expansion of telecommunication networks, Technavio says. HFC technology is being used extensively in wireline communication and is gaining importance among telecommunication service providers, mobile device manufacturers, and network equipment manufacturers. In addition, rise in the number of smartphone users and Internet subscribers has led to an increase in demand for high-speed Internet access, which has also propelled network operators to upgrade their network infrastructure. Telecom operators are progressively adopting technologies to handle the rapid increase in data traffic. Furthermore, the standardization of 5G wireless technology ahead of schedule is further expected to boost investments in cell towers and network infrastructure upgrades across the world. All these factors are expected to drive HFC market growth during the forecast period.
Technavio believes the migration to WDM architecture will have a positive impact on the market and contribute to its growth significantly over the forecast period.
The migration from synchronous optical networking (SONET) technology to dense wavelength division multiplexing (DWDM) is one of the key HFC market trends gaining prominence in recent years. Carrier service operators are tapping into the enormous data transmission capacity by carrying multiple wavelengths over single HFC fiber or cable. As a result, carriers have started making significant reductions in cost while deploying single and multiple-channel networks for each offering.
"WDM is gaining importance in areas where the installation space is less. WDM offers several benefits including fault detecting, performance monitoring, and the isolation of the wavelength. Furthermore, WDM equipment vendors are gaining prominence due to the increased deployment of DWDM systems by the carriers," said a senior research analyst at Technavio.
Technavio segments the global HFC market by type (DOCSIS 3.0 and below and DOCSIS 3.1) and geographic regions (APAC, North America, Europe, MEA, and South America).
APAC led the market in 2018, followed by North America, Europe, MEA, and South America respectively. The market growth in APAC can be attributed to the increased use of HFC technology in emerging south Asian countries including India and China. The accelerated development of domestic IT and server infrastructure in China and its neighboring countries is expected to foster market growth during the forecast period.