Cable Modem Termination System Market

Cable Modem Termination System Market Outlook (2024 to 2034)

A new research study released by Fact.MR places the global cable modem termination system market size at a value of US$ 7.82 billion in 2024. Worldwide sales of cable modem termination systems are forecasted to climb to US$ 18.15 billion by the end of 2034, increasing at a noteworthy 8.8% CAGR over the next ten years.

Growing demand for high-speed data services is a key factor driving global cable modem termination system market growth. This device is required for controlling data traffic from several cable modems and maintaining reliable Internet connectivity for both residential and commercial users. Governments and companies in several countries are investing in and improving their broadband infrastructure, especially in rural and isolated areas, which makes cable modem termination systems (CMTS) all the more important.

More businesses are in the digital world and moving toward cloud computing, video conferencing, and other data-intensive apps. This change requires an effective and scalable internet infrastructure, resulting in a higher demand for cable modem termination devices.

Key Market Growth Drivers

• Growing dependency on high-speed Internet for activities such as streaming, online gaming, remote work, and telemedicine services is contributing to the overall cable modem termination system market size expansion.
• Increasing number of internet-connected devices such as smartphones, tablets, smart home devices, and IoT (Internet of Things) gadgets are pushing the demand for strong network infrastructure, where cable modem termination systems play a key role in handling the increasing data traffic generated by these devices.
• A key cable modem termination system market trend is rapid advancements in the Data Over Cable Service Interface Specification (DOCSIS) technology, such as the implementation of DOCSIS 3.1 and the upcoming DOCSIS 4.0, which is facilitating increasing data speeds and optimized broad range utilization.
• High-bandwidth Internet connections have become necessary due to the growing usage of OTT services such as Hulu, Netflix, Amazon Prime, and various others, and ISPs are modernizing their networks with CMTS solutions to cater to the high bandwidth requirements of streaming 4K and high-definition video.
• Cable modem termination systems are becoming more necessary as demand for smart home technologies and Internet of Things applications is rising, as these need dependable and fast Internet connections.

Report Attributes	Details
Cable Modem Termination System Market Size (2024E)	US$ 7.82 Billion
Forecasted Market Value (2034F)	US$ 18.15 Billion
Global Market Growth Rate (2024 to 2034)	8.8% CAGR
North America Market Share (2024E)	33.5%
East Asia Market Growth Rate (2024 to 2034)	9% CAGR
DOCSIS 3.1 System Standard Segment Value (2034F)	US$ 9.28 Billion
Business Segment Value (2034F)	US$ 14.39 Billion
Key Companies Profiled	Casa Systems; Nokia; Broadcom; Huawei Technologies Co., Ltd.; Versa Technology Inc.; Inango Systems Ltd.; C9 Networks Inc.; Harmonic Inc.; Juniper Networks, Inc.; CommScope; Chongqing Jinghong V&T Technology Co., Ltd.; Infinera Corporation

Why is Need for Cable Modem Termination Systems Higher Than Ever Before?

“Surging Popularity of OTT Platforms across the World”

Increasing popularity and demand for Over-the-Top (OTT) services such as Netflix, Amazon Prime, Hulu, and others are boosting demand for broadband Internet connections that help stream high-definition and 4K content. As more consumers are attracted to these social platforms for entertainment, the need for efficient Internet services is also increasing in parallel. To this, ISPs are retaliating by enhancing their networks using cable modem termination systems. These enhancements allow ISPs to accommodate the massive data traffic arising from OTT services, maintain photo finish stream quality, and satisfy rising customer demand and expectations.

Smartphones, smart homes, IoT gadgets, and other trending devices are increasing data traffic intensively. This is pushing the need for stronger network support to enable reliability and efficiency in the same. CMTSs are therefore extremely important tools that are designed to provide optimal solutions for increasing data flow by modulating and demodulating the Internet signals within cable systems.

What Factors are the Main Roadblocks to Market Growth?

“Competition with Fiber Optics and Requirement of High Capital”

Fiber optics is a key threat that is increasing the worry for cable modem termination system companies. Fiber optics is considered better than other cable networks because it delivers Internet faster, with better bandwidth, and is more reliable. Other than this, the requirement of high investment for deploying and upgrading cable modem termination systems is restraining their adoption. These cover expenses related to advanced equipment, software, and professionals to set up or for maintenance of CMTS.

Country-wise Insights

North America is projected to account for 33.5% of the global cable modem termination system market share in 2024. Market growth in the region is being driven by increasing investments in network upgrades, fast Internet adoption, and advanced broadband infrastructure. Also, leading technological companies and a growing need for gigabit-speed Internet services are two other factors propelling the development of CMTS solutions in North America.

Why is Need for Cable Modem Termination Systems High in the United States?

“Focus on Developments in DOCSIS”

Attribute	United States
Market Value (2024E)	US$ 1.89 Billion
Growth Rate (2024 to 2034)	9.3% CAGR
Projected Value (2034F)	US$ 4.59 Billion

Ongoing developments in DOCSIS, particularly with the launch of DOCSIS 3.1 and the approaching DOCSIS 4.0 in the United States, are improving network performance and data transfer rates. By boosting the capacity and efficiency of cable networks, DOCSIS 3.1 is making Internet connections faster and more dependable, while DOCSIS 4.0 promises even bigger gains, such as multi-gigabit speeds and reduced latency in the country. Ever-growing demand for high-speed Internet in the United States from consumers and companies alike is compelling cable operators to focus on modernizing their cable modem termination systems.

What is the Main Reason for Rapid Market Expansion in Japan?

“High Popularity of Gaming and Streaming Videos Online”

Attribute	Japan
Market Value (2024E)	US$ 499.1 Million
Growth Rate (2024 to 2034)	9.5% CAGR
Projected Value (2034F)	US$ 1.24 Billion

Huge demand for high-speed broadband services and the high adoption rate of the Internet in Japan are key factors driving the demand for cable modem termination systems. In Japan, data traffic is rising rapidly due to increasing online activities such as gaming, streaming video, and remote work. To effectively handle this boost and guarantee dependable and fast Internet connections, ISPs in Japan are investing in advanced CMTS that can manage higher data loads and provide flawless user experiences. With device usage in Japan higher than in most other countries in the world, the need for CMTS cannot be emphasized more.

Category-wise Insights

Based on type, the market is segmented into virtual CMTS and traditional CMTS. Popularity of virtual CMTS is increasing due to its advantages such as power efficiency and cost-effectiveness.

Why is Preference for DOCSIS 3.1 System Standard Increasing Across the World?

“Huge Demand for High-Speed Internet Services”

Attribute	DOCSIS 3.1 System Standard
Segment Value (2024E)	US$ 4.2 Billion
Growth Rate (2024 to 2034)	9% CAGR
Projected Value (2034F)	US$ 9.28 Billion

Preference for the DOCSIS 3.1 system standard is increasing over DOCSIS 3.0 due to it offering better performance and its ability to support faster data rates and increased network efficiency. Significant improvements are provided by DOCSIS 3.1 such as support for gigabit speeds, increased network capacity, and higher spectral efficiency, which is enabling service providers to cater to the rising demand for high-speed Internet and serve more customers continuously.

By facilitating better handling of data-intensive applications such as 4K streaming and smart home devices, these enhancements are making DOCSIS 3.1 a more future-proof solution, which is increasing its adoption over previous standards.

Which Application is an Important Segment of This Market?

“Increasing Online Activities and Trend of Remote Work”

Attribute	Consumer
Segment Value (2024E)	US$ 1.96 Billion
Growth Rate (2024 to 2034)	9.1% CAGR
Projected Value (2034F)	US$ 3.76 Billion

Demand for cable modem termination systems is increasing from consumers due to the growing popularity of activities such as online gaming, reading news, social media, streaming video, online education, blogging, content creation, remote work, and various others, which are constantly pushing the need for high-speed Internet. Also, increasing sales of Internet-connected devices such as tablets, smartphones, smart home appliances, IoT devices, and others are boosting the requirement for dependable broadband services. As such, even though the business segment holds a leading market share, demand for cable modem termination systems is increasing at a faster rate in the consumer segment.

Competitive Landscape

Key players in the cable modem termination system market are investing heavily in research and development activities to make more advanced solutions, such as those supporting DOCSIS 3.1 and COCSIS 4.0 system standards.

• In March 2024, as a component of its Entra Cloud platform of open, interoperable, cloud-native apps that assist cable operators in transforming their networks for next-generation internet access, Vecima Networks Inc. unveiled the Entra Virtualized Cable Modem Termination System (vCMTS). Entra vCMTS is designed from the bottom up to offer the performance and scalability needed for services based on DOCSIS 4.0.
• In September 2023, a new virtualized cable modem termination system (vCMTS) from CommScope was revealed as network operators get ready for DOCSIS 4.0 upgrades. Notably, during recent tests, the company's 'vCore' architecture outperformed its other CMTS architectures, proving cable providers can reach over 8 Gbps using a combination of new and old equipment.
• In February 2023, Cisco and T-Mobile unveiled the Meraki 5G Gateways. The main objective was to provide a simple, scalable, and repeatable business Internet. The Cisco Meraki MG51 and MG51E cellular gateways offer a new approach to wide-area networking. It is cloud-first and powered by 5G. T-Mobile for Business customers will benefit from the cloud-native features of the Cisco Meraki platform.

Fact.MR provides detailed information about the price points of key manufacturers of cable modem termination systems positioned across the world, sales growth, production capacity, and speculative technological expansion, in this new market report.

Segmentation of Cable Modem Termination System Market Research

• By Type:

  • Virtual CMTS
  • Traditional CMTS

• By DOCSIS Standard:

  • DOCSIS 3.0 & Below System Standard
  • DOCSIS 3.1 System Standard

• By Application:

  • Business
  • Consumer

• By Region:

  • North America
  • Western Europe
  • Eastern Europe
  • Latin America
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa