China's Appetite for Broadband Driving Growth in CPE Market
October 2, 2015 | IHSEstimated reading time: 1 minute
IHS raised its outlook for the broadband customer premises equipment (CPE) market, which includes DSL, cable, fiber-to-the-home (FTTH), residential gateways and mobile broadband CPE. In a September report, the firm noted it increased its 2019 worldwide broadband CPE forecast by 8 percent, to US$12.4 billion.
"The primary source for raising our global broadband CPE forecast is the massive investment currently ongoing in China. Despite reported economic headwinds, the Chinese government continues to subsidize telco investments in fiber infrastructure to expand accessibility and throughput. The result is heavy spending on GPON and EPON ONTs," said Jeff Heynen, research director for broadband access and pay TV at IHS.
“At the same time, the shift from fiber-to-the-building (FTTB) to FTTH architecture is well underway in China. A primary reason for this architectural shift is that FTTB plus ADSL take-rates at China Telecom have been disappointing; consumers aren't interested in a connection that offers only a marginal improvement over what they already have. If they are to subscribe to a home broadband service, it needs to provide a minimum of 8MB to 10MB speeds,” Heynen said.
BROADBAND CPE MARKET HIGHLIGHTS
- The big story this quarter is FTTH optical network terminals (ONTs) in China, unit shipments of which more than doubled year-over-year, from 9.8 million to over 20 million from 2Q14 to 2Q15
- In 2Q15, the global broadband CPE market grew 5 percent from the previous quarter, to $2.9 billion; unit shipments grew 11 percent, to 61 million
- Worldwide total broadband CPE revenue is up 7 percent from the year-ago second quarter, when it was just under $2.7 billion
- Quarter-over-quarter, from 1Q15 to 2Q15:
- DSL CPE unit shipments were down 1 percent to 23 million, with VDSL IADs posting the highest growth (+11 percent)
- Cable CPE units were up 1 percent to 11.6 million (90% of which were WiFi-enabled), with DOCSIS 3.0 modems posting the highest growth (+13 percent)
- Fixed LTE CPE shipments grew 4 percent
Suggested Items
ALL Circuits, DBG Technology Strategic Alliance Delivers Optimal Global Footprint
12/17/2024 | ALL CircuitsWith DBG Technology, the 16th largest EMS globally, poised to acquire ALL Circuits, the largest EMS in France, they will create a global footprint that truly reflects the needs of OEMs in a geopolitically challenged world.
I-Connect007 Editor’s Choice: Five Must-Reads for the Week
12/13/2024 | Andy Shaughnessy, I-Connect007This week, Peter Tranitz discusses the upcoming Pan-European Electronics Design Conference, set for Jan. 29-30 in Vienna, Austria. Pete Starkey brings us a review of the most recent EIPC Technical Snapshot webinar, which featured a global PCB maker update by Dr. Hayao Nakahara. Don't miss our interview with Manfred Huschka, who explains how companies can begin their own China Plus One plan. Stan Farnsworth breaks down photonic soldering and discusses its use in soldering materials that are not typically compatible. I also enjoyed Dan Beaulieu’s discussion on the value of consistency, and why just showing up for work is half the battle, especially in an inconsistent, evolving industry like ours.
EIPC Technical Snapshot: Factors Driving the Fluctuating Demand for PCBs
12/11/2024 | Pete Starkey, I-Connect007EIPC continued its series of online Technical Snapshots with a webinar on Nov. 21 presented by Dr. Hayao Nakahara of N.T. Information Ltd, who summarised world PCB production and shared his vision of the market over the next five years. With information gathered from many sources, Nakahara examined factors driving the increasing demand for printed circuit boards.
China Captures 61% of Global EV Traction Inverter Installation Volume in 3Q24, Europe Pushes Reforms to Rebound
12/10/2024 | TrendForceTrendForce’s latest findings show that global shipments of EV traction inverters reached 6.87 million units in the third quarter of 2024, representing a 7% QoQ increase, though the growth rate has slowed compared to the same period last year.
Does China Plus One Actually Work?
12/10/2024 | Manfred Huschka, Manfred Huschka Management Consulting (Shenzhen) Ltd.We all know of the current geopolitical challenges between the U.S. and China, which have motivated companies to investigate shifting supply chains to other countries, including Vietnam, Thailand, Mexico, India, and Malaysia while continuing to source mainly from China. This strategy is being referred to as China Plus One. In this two-part article, I will summarize the current economic trends in China, and look at the trends in wider Southeast Asia.