The fiber-to-the-home market is forecasted to rise at a 12.38% CAGR, reaching USD 103.072 billion by 2030 from USD 57.510 billion in 2025.
The installation and use of optical fiber from a central location directly to individual structures such as homes, flat complexes, and companies to provide high-speed internet access are known as fiber to the home (FTTH). FTTH prominently enhances the existing technology employed in a majority of the areas and regions with respect to the connectivity and connection speed provided to consumers. FTTH technology links optical fiber directly to homes for the majority or all geographically distant communications. The enhancement in the performance of FTTH technology in comparison with other internet technologies can be attributed to the use of optical fiber that employs light signals to transfer data. The extensive application of fibre-to-the-home technologies across different countries and industries is expected to promote the growth of the fiber-to-the-home market over the forecast period.
The constant development in internet technology and infrastructure is enhancing internet speed and quality through the introduction of new technologies such as optic fiber internet which is stimulating the growth of fibre-to-the-home services. The Federal Communications Commission estimated that FFTH technology is the only internet service with the capacity to meet the anticipated consumer demands over a period of the next ten years as one pair of fiber has the efficiency of simultaneously implementing approximately 2.5 million calls over mobile phones. In addition, the developments in FFTH technology have relatively lowered the deployment and installation costs over the last few years. As a result of this, governments of certain major economies are formulating policies for the provision of fibre-based internet services in their nations. For example, the Ministry of Communications of India announced that the PMO India has released a new initiative to provide optical fibre-based internet service across 45,945 villages in Bihar. Therefore, the increasing adoption of optical fibre internet service and the advancements in internet technology are anticipated to drive the steady expansion of the fiber-to-the-home market.
Voice over Internet Protocol and smart televisions are two areas that contribute majorly to the consumption of fiber-to-the-home technology. For instance, in India, Bharat Sanchar Nigam Limited, a Government telecommunications company offers VOIP services for landlines using FTTH technology at Rs. 250 for fiber connections using copper and Rs.500 for connections that use Bharat fiber. In the US, Alianza provides FTTH broadband connection to facilitate VoIP systems in the US. Apart from VoIP, the rise in demand for internet TVs offers an opportunity for the expansion of the FTTH market. For instance, Google Fiber FTTH service offered by Google Inc. can be employed for providing connections to internet televisions. Therefore, the increase in the availability of FTTH services for VoIP and smart TVs is a significant factor propelling the growth of the FTTH market.
The growth in the 5G network infrastructure and internet technology is posing as a strong competitor to the rapid adoption of FTTH services by consumers. Leading companies are focusing their research on the efficient convergence of 5G internet and FTTH services to meet exceeding consumer needs however since 5G networks dominantly focus on wireless technology, the infrastructural differences in both technologies offer complications in the convergence of 5G and FTTH services. For instance, research conducted by FTTH Council Europe revealed that the convergence of 5G internet and FTTH technology needs the substitution of legacy fibers using enhanced versions of bend-insensitive fibers. Nevertheless, the constant research efforts by ISPs and telecommunications companies could overcome this limitation. In addition, the presence of other non-fiber and wireless broadband services also has the potential of restraining the extensive adoption of fiber-to-the-home broadband services across different homes.
The abundance of IT infrastructure and the constant evolution in network and computer technology driven by the presence of leading communication and internet service providers such as AT&T Internet, Spectrum Internet, Verizon Internet, and Xfinity Internet provides an opportunity for the development of the fiber-to-the-home market in North America. In addition, the increasing adoption of broadband and wifi services across countries like the US promotes the installation and application of fiber-to-the-home services to ensure the smooth functioning of various applications using fiber communications. For instance, Frontier Communications, a leading telecommunications company in the US announced that approximately 29,000 new subscribers opted for its FTTH services resulting in an aggregate value of 450,000 US homes with FTTH solutions in 2022. In addition, another ISP in the US, Consolidated Communications announced its plan to enhance its FTTH and other broadband services to more than 1.6 million subscribers by 2025. Hence, the fiber-to-the-home market in North America is anticipated to significantly expand over the forecast period.
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