Hybrid Fiber Coaxial Market

Hybrid Fiber Coaxial Market Outlook (2023 to 2033)

The global hybrid fiber coaxial (HFC) market size is likely to be valued at US$ 12.2 billion in 2023. High bandwidth and cost-effectiveness in comparison to other technologies are key drivers propelling market expansion. As a result, the market revenue is anticipated to surpass US$ 24 billion by 2033, exhibiting a CAGR of 7%.

The demand for high bandwidth eliminates the limitation of copper cable architecture such as latency and data transfer at high bandwidth. Accordingly, HFC has attracted enormous attention for data transport in Internet of Things (IoT) applications.

The demand for high bandwidth is increasing, as is the global foothold of IoT. Hybrid fiber coaxial cables are becoming cheap and cost-effective. Significant and high-speed data transfers are a significant advantage of these cables.

Companies in the cable TV, IT, and telecommunications sectors are modernizing their infrastructure to incorporate hybrid fiber coaxial cables. The reason behind this is they can transmit data than just using coaxial wires. The demand for internet connectivity is increasing, along with the benefits of high bandwidth. This network facilitates the bi-directional flow of interactive signals from the end user given its significantly high bandwidth. This network also offers good performance at a reasonable price. This is due to its ability to be customized to the asymmetrical bandwidth requirements of broadband systems.

Several factors enhance the product standard and quality of hybrid fiber coaxial cables. One of these factors is energy efficiency. A trustworthy network with no attenuation is another consideration. Additionally, the maintenance cost is also low since it requires a few amplifiers, leading to market growth.

The deployment of cutting-edge optical transmitters, receivers, and network switches has increased as a result of advancements in this area. Thus, the modernization of techniques is likely to show considerable market growth during the forecast period.

The increase in the global foothold of cloud technology is also expected to fuel market expansion. The leading market participants are enhancing the hybrid fiber-coaxial access network's accuracy and performance. Companies are in an ongoing process to innovate products to meet the demand for 5G and advancements in digital infrastructure.

Automobile manufacturers are focusing to develop autonomous and smart vehicles with integrated infotainment systems to enhance the in-vehicle experience. Hybrid fiber coaxial cable integration decreases cable weight by 30% and wireless connection difficulties by 80%. This is because the cables use light, low-cost, and effective wires for high-speed transmission.

Rising demand for UAVs and systems is anticipated to generate market opportunities. In addition, the deployment of high-speed cable technology and the demand for video-focused data are expected to present new possibilities in the hybrid fiber coaxial industry. The development of low-cost GPS anti-jamming solutions is also likely to open up new opportunities in the forecast period.

The market faces several obstacles including monitoring, troubleshooting, and maintenance issues. Lack of skilled workforce and changing consumer behavior also hinder market growth. Signal interference in return paths is a further challenge that limits market expansion.

2023 to 2033 Hybrid Fiber Coaxial Market Outlook in Comparison to Sales Registered from 2018 to 2022

The hybrid fiber coaxial market revenue is projected to expand by US$ 11.8 billion between 2023 and 2033, surpassing the growth of US$ 2.91 billion observed between 2018 and 2022.

The market experienced steady growth between 2018 and 2022. High-speed internet and cable TV service demand are two factors that have contributed to this rise. The market also witnessed new HFC technology innovations. These inventions helped to improve network performance and efficiency. Competition in the market also increased as new players entered. This has led to great innovation and cost reductions.

Between 2023 and 2033, when it is projected to increase by about 2X, the market is expected to have significant growth possibilities.

• Short-term (2023 to 2026): HFC technology is crucial for high-speed internet services, especially with the growth of 5G networks. Its role in providing backhaul and front-haul connectivity is becoming important as society becomes increasingly dependent on digital technologies. Therefore, HFC technology is expected to experience notable growth to meet the increasing demand for high-speed internet services.
• Medium-term (2026 to 2029): As fiber optic technology becomes affordable, its adoption is also projected to rise. HFC is an excellent solution for providing last-mile connectivity to end users. Hence, it is likely to be in demand as many people require high-speed internet access. Moreover, video streaming services are expected to construct a growing demand for HFC technology to deliver high-quality video content.
• Long-term (2029 to 2033): The development of new technologies like 10G EPON, DOCSIS 4.0, and DAA is likely to enable HFC networks to offer higher bandwidth, low latency, and good scalability. Additionally, it is anticipated to be an increasing adoption of smart home technologies. HFC is an excellent solution for providing connectivity to smart home devices. These factors are expected to pave the way for future growth in the long run.

Exploring the Regional Patterns of the Hybrid Fiber Coaxial Market: An In-depth Examination at the Country Level

Hybrid Fiber Coaxial Sets the Pace for the Telecom Industry in North America

In terms of market size, North America contributed more than any other region in 2022, with the United States being the key contributor. The United States hybrid fiber coaxial market has witnessed significant growth in recent years. The market has expanded given the emergence of internet-based services. The rising demand for high-speed internet has also significantly contributed to the market growth.

Coaxial cable provides internet connectivity to more than 90% of homes in the United States. Hybrid fiber coaxial networks are in high demand in the country. Businesses are using them to support cloud-based services. Almost 94% of business infrastructure decision-makers in the country are using hybrid or multi-cloud deployments, according to the 2022 North American Cloud Adoption Survey.

Businesses are investing hugely to meet the demand for high-speed internet and video services. Altice USA declared in February 2022 that a 10Gbps hybrid fiber coaxial network had been successfully installed in New York. The network employs DOCSIS 3.1 technology. It can provide symmetrical speeds of up to 10Gbps to both residential and commercial clients.

Hybrid Fiber Coaxial Technology Paves the Way for 5G Deployment in Europe

The demand for high-speed internet and advanced TV services has driven the market growth in Europe. The adoption of new technologies such as 5G and fiber-to-the-home (FTTH) networks are expected to drive market growth during the forecast period.

The United Kingdom’s hybrid fiber coaxial market has been growing prominently in recent years. The demand for high-speed internet and digital content is rising across the country. Streaming services like Netflix and Amazon Prime Video are driving this trend. This is also expected to drive market growth in the United Kingdom during the forecast period.

Businesses are investing notably in extending their HFC networks given the increasing demand for high-speed internet and digital content. HUBER+SUHNER improved their SUCOFLEX 500 series in October 2020 with a new cable assembly that offers consistent electrical performance up to 70 GHz. It is also ideal for different applications and offers incredibly precise readings.

Hybrid Fiber Coaxial Connectivity Enables Seamless Digital Transformation in Asia Pacific

The hybrid fiber coaxial industry in Asia Pacific is anticipated to develop substantially in terms of revenue. The rising number of Internet users in the countries of the region is a significant factor behind this growth. The hybrid fiber coaxial network market in this region is primarily supported by the mobile telecommunications industry. The market growth is also being supported by the increasing use of mini and micro-coaxial cables for internal connections in consumer and industrial electronics.

China’s hybrid fiber coaxial market is expected to witness high growth than other countries. Increasing demand for high-speed internet, rising investments in the telecommunications sector, and favorable government policies are the factors that contribute greatly to the market growth. The government has implemented favorable policies to promote the adoption of HFC technology in the country.

Players in the market are focusing on developing innovative products to stay ahead of the competition. The first Giga Coax access device for usage in hallways was introduced by Technologies Co Ltd. in China in July 2017 with the MA5633-XB10.

Japan hybrid fiber coaxial market is experiencing significant growth. The key factor contributing to this growth is the increasing demand for high-speed internet and digital services. The government's initiatives to support a digital society are also helping the market in Japan to flourish. Additionally, the increasing adoption of cloud-based services by SMEs is expected to create new opportunities for HFC service providers.

The growing demand for high-speed internet services for online gaming, video streaming, and remote work has been a key driver of market growth in South Korea. The government has been actively promoting the adoption of HFC technology. It aims to provide high-speed broadband services to consumers. Hence, it has allocated significant funds for the development of fiber optic and HFC networks in the country. Therefore, South Korea hybrid fiber coaxial market is likely to witness a significant growth rate.

Sudip Saha

Principal Consultant

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Exploring the Hybrid Fiber Coaxial Market: An In-depth Segment Analysis

The Versatility of CMTS/CCAP Systems Revolutionizes Cable Services

The CMTS/CCAP segment dominates the hybrid fiber coaxial (HFC) market. It is a crucial cable broadband service infrastructure. The downstream and upstream cable modem traffic is managed by the CMTS. CCAP creates a single device that combines edge QAM and CMTS technologies.

For dependable, high-speed internet service and other services, cable operators rely on CMTS/CCAP. They work well in densely crowded locations and support huge numbers of users.

The headend of multiple service operators (MSOs) incorporates CMTS/CCAP systems. On a cable network, these systems are typically utilized with cable modems to exchange digital signals. They make it feasible to offer services like voice over internet protocol (VoIP) and fast internet to be provided.

In HFC networks, cable modems are managed using CMTS. CMTS/CCAP systems are constantly evolving and improving with new technologies such as DOCSIS 3.1. As a result, CMTS/CCAP is crucial to the whole HFC network.

Streaming Services Propel Digital TV to the Top of the HFC Market

The digital TV segment dominates the market due to several factors. The growing demand for high-quality digital information is one of the key factors. High bandwidth and network capacity are needed for this. Both household and commercial customers can receive high-speed data, video, and voice services using HFC networks. The availability of digital TV channels and on-demand content has fueled the growth of the digital TV sector.

The growing popularity of streaming services is another element driving the dominant position of the digital TV sector. High-speed internet connections are required for streaming services like Netflix and Amazon Prime Video to operate. Hybrid fiber coaxial bandwidth is required to support the speed. This makes HFC an attractive option for consumers. The availability of different digital TV services from multiple providers has created a competitive environment. This has further boosted the demand for digital TV services.

Hybrid Fiber Coaxial Market: Analyzing Key Players, Strategies, and Market Share in the Global Landscape

The key market players are upgrading their networks and implementing new technologies. They are aiming to offer fast internet speeds and improve overall performance. The demand for high-speed internet services is driving the necessity for these investments and expansions.

Cisco Systems Inc.: Cisco Systems Inc. is a global leader in networking technologies. The HFC solutions provided by the company are used by operators worldwide.

• Cisco has announced new 800G innovations in March 2023. These innovations aim to transform the economics and sustainability of the Internet for the Future. The goal is to help connect the about 40% of the world's population that is still unconnected or underserved.
• Cisco and T-Mobile have announced a new partnership in February 2023 intending to offer businesses access to Cisco Meraki's 5G cellular gateways. These gateways are designed for fixed wireless access (FWA). The gateways, called MG51 and MG51E, are the first of their kind from Cisco Meraki.

Nokia Networks: Nokia Networks is another key market player. Nokia is known for its advanced digital signal processing (DSP) technology that enables operators to maximize the capacity of their HFC networks.

• To enable seamless and high-capacity mesh networking, Nokia released the Beacon 10 in February 2023. Beacon 10 is its first gateway supporting Wi-Fi 6E. It is a real tri-band gadget that can deliver 10Gbps of Wi-Fi speed.
• Nokia unveiled a new technology called XG-Cable in September 2021. XG-Cable can provide symmetrical speeds up to 10Gbps using existing coaxial cable infrastructure.

Corning Incorporated: Corning Incorporated is a leading supplier of optical fiber and cable products. The company's HFC solutions are known for their high-quality components and innovative designs.

• Corning Incorporated announced an expansion of its manufacturing capacity for optical cable in August 2022. The expansion is based on a long-term relationship with AT&T, the leading fiber internet provider in the United States.
• Corning Incorporated introduced the recent round of innovations in its Evolv™ portfolio of network connectivity solutions in August 2022. The new products are designed to provide network operators with greater flexibility compared to traditional cable deployment methods.

Key Players

• Huawei Technologies Co Ltd.
• Nokia Networks
• Cisco Systems Inc.
• Technicolor SA
• Corning Incorporated

How can Hybrid Fiber Coaxial Market Players Grow Their Businesses?

• Invest in advanced hybrid fiber coaxial structure to provide high speed
• Offer bundled services to increase customer loyalty besides revenue
• Focus on providing excellent customer service through effective problem resolution
• Provide personalized solutions to customers for better experiences
• Expand service offerings beyond traditional internet and cable TV services
• Include value-added services like smart home automation
• Collaborate with other service providers to broaden their service portfolio

Hybrid Fiber Coaxial Market Segmentation

By Component:

• CMTS/CCAP
• Fiber Optic Cable
• Amplifier
• Optical Node
• Optical Transceiver
• Other

By Application:

• Digital TV
• Analog TV
• Telephone Network
• Broadband
• Others

By Region:

• North America
• Latin America
• Europe
• East Asia
• South Asia
• Oceania
• The Middle East and Africa(MEA)