Study: Cable modem market is healthy

Mon, 05/13/2002 - 8:00pm

The worldwide cable modem and cable modem termination system markets are expected to generate $2.5 billion in revenue in 2004, one analysis says. The outlook: healthy.

Last year, the markets reported a 28 percent year-over-year increase in revenue to $1.61 billion in 2001, according to a new report from research firm Frost & Sullivan.

At present, the cable modem segment is the primary revenue generator in the cable modem equipment market, but the "World Cable Modem and Head-End Equipment Markets" report predicts that by 2005 the CMTS sector will take the lead. The North American market will lead the growth trend in the short-term, but Europe, Asia Pacific and Latin America are all poised for growth spurts through 2005.

"Cable operators are undergoing a strong wave of consolidation that started in the U.S. and is expanding to Europe. Mergers will permit massive network upgrades," says Jean-Christophe Deverines, a Frost & Sullivan analyst. Consolidation will define the cable modem equipment market's competitive landscape, says Deverines.


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