The global broadband services market size was valued at USD 457.23 billion in 2023. It is estimated to reach USD 976.77 billion by 2032, growing at a CAGR of 8.8% during the forecast period (2024–2032). The rising demand for high-speed internet access, fueled by remote work, online education, and streaming services, has been a major driver of market growth. Moreover, the deployment of fiber-optic networks and the introduction of 5G technology have increased the availability and quality of broadband services, accelerating market growth.
Broadband is a high-speed internet connection technology that enables rapid data transfer for voice, video, and web content over long distances. Unlike dial-up internet, which is slower and can disrupt phone lines, broadband offers significantly faster speeds, higher-quality services, and continuous connectivity without the need for frequent reconnections. There are various types of broadband services, including Digital Subscriber Lines (DSL), cable modems, fiber optics, wireless connections, and broadband over powerlines. Among these, fiber optics provide the fastest and most reliable speeds.
The functionality of broadband depends on the type of service used, with Internet Service Providers (ISPs) managing the delivery of these connections to homes and businesses. Broadband features include increased bandwidth, strong signal strength, wide bandwidth, symmetric speeds, and resistance to interference. These advantages make broadband essential across various sectors, including telecommunications, education, information technology, healthcare, and e-commerce. Moreover, broadband supports specialized applications in the marine, aerospace, and defense industries.
Highlights
The global broadband services market is experiencing substantial growth, driven primarily by the surge in internet penetration and the increasing demand for higher bandwidth. In 2022, the number of global internet users reached 4.9 billion and is expected to grow to 5.3 billion by 2024. This expansion in the user base is creating a corresponding demand for faster, more reliable internet connections.
The rise of data-intensive applications—such as video streaming, online gaming, and cloud computing—further underscores the need for higher bandwidth. In 2022, the average household consumed 215 GB of data per month, a figure anticipated to increase to 312 GB by 2024. This growth in data consumption is fueling the accelerated adoption of high-speed broadband services, with new subscriptions rising by 27% in 2022 and projected to grow by 35% in 2024.
Additionally, the proliferation of smart devices and the Internet of Things (IoT) is driving demand for seamless connectivity. In 2022, there were 14.2 billion connected devices globally, a number expected to soar to 25.4 billion by 2024. This expansion necessitates reliable, high-speed broadband services to support the increasing number of connected devices, further propelling the market’s growth.
The rising adoption of Internet of Things (IoT) devices is a major driver of the broadband services market. The rapid growth in the number of connected devices has significantly heightened the demand for reliable, high-speed internet connectivity. In 2022, there were approximately 14.2 billion IoT devices worldwide, which is expected to surge to 25.4 billion by 2024.
This expansion is especially notable in the smart home sector, where the adoption rate of IoT devices increased by 32% in 2022 and is projected to grow by 42% by 2024. The industrial sector has also grown substantially, with a 28% increase in IoT device deployment for applications like predictive maintenance and supply chain optimization in 2022. This sector is expected to experience a 38% increase by 2024.
The proliferation of IoT devices is driving a corresponding rise in demand for seamless connectivity and high-speed data transfer. In 2022, 67% of households with IoT devices subscribed to high-speed broadband plans. This percentage is anticipated to increase to 79% by 2024. Moreover, the average data consumption per IoT device grew by 18% in 2022 and is projected to rise by 24% in 2024. This surge in data consumption further underscores the need for higher bandwidth and dependable broadband services to support the growing number of connected devices.
The high cost of deploying network services is a significant restraint on the growth of the broadband services market. Establishing and maintaining high-speed internet connectivity involves substantial capital expenditure. For instance, in 2022, the average cost of deploying a fiber-optic network was estimated at $27,000 per mile, with projections indicating an increase to USD 31,000 per mile by 2024. Similarly, upgrading existing networks to accommodate higher bandwidths and emerging technologies requires considerable investment. In 2022, service providers invested approximately USD 12 billion in network upgrades, a figure expected to rise to USD 16 billion by 2024. These costs often translate into higher prices for consumers, making broadband services less affordable for many households and businesses.
Additionally, deploying networks in rural and remote areas presents further challenges. The cost of extending networks to these regions is significantly higher due to factors such as sparse population density and challenging terrain. In 2022, only 37% of rural households had access to high-speed broadband services. The estimated cost for extending networks to rural areas was USD 45,000 per mile, with expectations that this cost will increase to USD 52,000 per mile by 2024. The substantial costs associated with network deployment and upgrades create barriers for service providers, limiting their ability to expand and enhance their infrastructure. This, in turn, hinders the widespread adoption of broadband services and impacts efforts to improve connectivity in underserved regions.
The rise of cloud computing presents a significant opportunity for the broadband services market by driving demand for high-speed and reliable internet connectivity. As cloud-based services and applications become increasingly prevalent across various industries, there is a growing need for robust broadband infrastructure to support these technologies. The COVID-19 pandemic has further accelerated this trend, leading to a surge in remote work and digital transformation. This shift has heightened the demand for cloud-based collaboration tools, video conferencing, and other online services. A study by Flexera revealed that 92% of enterprises have adopted a multi-cloud strategy, and 80% have experienced increased cloud usage due to the pandemic.
To address this rising demand, broadband service providers have the opportunity to offer high-speed internet packages tailored specifically to the needs of businesses and enterprises. According to a Cisco report, broadband networks are expected to handle the majority of cloud workloads by 2023, with data centers managing approximately 94% of these workloads. Moreover, the advent of 5G technology introduces new opportunities for broadband providers to deliver low-latency, high-bandwidth connectivity solutions, particularly for edge computing and IoT applications. This technological advancement is expected to drive further demand for cloud-based services.
Major broadband providers are already capitalizing on these opportunities. For instance, Verizon has partnered with Amazon Web Services (AWS) to offer 5G edge computing services. At the same time, AT&T has launched a multi-cloud computing platform in collaboration with Microsoft Azure and Google Cloud. By leveraging the growing demand for cloud computing services, broadband providers can diversify their offerings, attract new customers, and generate additional revenue streams. This strategic positioning enables them to become critical enablers of digital transformation across various industries.
| Study Period | 2020-2032 | CAGR | 8.8% |
| Historical Period | 2020-2022 | Forecast Period | 2024-2032 |
| Base Year | 2023 | Base Year Market Size | USD 457.23 billion |
| Forecast Year | 2032 | Forecast Year Market Size | USD 976.77 billion |
| Largest Market | North America | Fastest Growing Market | Asia-Pacific |
Based on region, the global market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.
North America holds the largest share of the global broadband market and is expected to experience significant growth during the forecast period. In 2022, the region accounted for 38% of global broadband subscriptions, with 92% of households having access to high-speed internet. The United States, in particular, led with 121 million broadband subscribers in 2022, a number projected to rise to 128 million by 2024.
Several factors contribute to North America's market dominance. The region benefits from advanced infrastructure, high disposable incomes, and widespread technology adoption. Major technology companies and service providers, such as AT&T, Verizon, and Comcast, play a crucial role in this growth. In 2022, these companies collectively invested $37 billion in network upgrades and expansions, underscoring their commitment to enhancing broadband services.
Moreover, the high penetration of smart devices and the increasing demand for data-intensive applications further drive the need for faster and more reliable broadband. In 2022, the average North American household consumed 312 GB of data per month, a figure expected to rise to 425 GB by 2024. This surge in data consumption highlights the ongoing demand for robust broadband infrastructure and services in the region.
The Asia-Pacific region has emerged as a significant player in the global broadband services market, driven by rapid urbanization, rising disposable incomes, and government efforts to bridge the digital divide. In 2022, the region accounted for 27% of global broadband subscriptions, with key markets like China, Japan, and South Korea leading the charge. Several factors contribute to the rapid growth of broadband services in this region. Firstly, the booming economies and expanding middle class have increased the demand for reliable internet connectivity. The region had 1.9 billion internet users in 2022, which is projected to reach 2.3 billion by 2024.
Secondly, regional governments are actively working to enhance broadband infrastructure, particularly in rural and underserved areas. For example, India's BharatNet project aims to extend high-speed internet access to over 250,000 villages by 2024. Moreover, the proliferation of smart devices and the rising adoption of Internet of Things (IoT) technologies have further fueled the demand for broadband services. In 2022, the Asia-Pacific region had 4.8 billion connected devices, with expectations of growth to 7.2 billion devices by 2024.
To meet this increasing demand, service providers have been investing significantly in network upgrades and expansions, with USD 28 billion allocated in 2022 and projections of USD 35 billion by 2024. This investment underscores the region's commitment to advancing broadband infrastructure and supporting its expanding digital economy.
We can customize every report - free of charge - including purchasing stand-alone sections or country-level reports
The global broadband services market is segmented by fiber broadband connection and network end-user.
Based on fiber broadband connection, the global market is segmented into fiber optic, wireless, satellite, cable, and digital subscriber lines (DSL).
The fiber optic segment holds the largest market share in the broadband services sector, primarily due to its superior performance and reliability. Fiber optics, or optical fiber, transmit high-quality signals directly from service providers to consumers. This technology includes various deployment types, such as Fiber to the Home (FTTH), Fiber to the Building (FTTB), and Fiber to the Cabinet (FTTC). Fiber optics support transmission rates of up to 100 Gbps over distances ranging from 10 to 60 km.
Fiber optics work by transmitting data through light particles or photons that travel through a fiber optic cable. This method provides exceptional transmission speeds and symmetrical performance, with minimal signal degradation and no power loss over long distances. Fiber optics are extensively used in telecommunications, including internet, television, and telephone services. For example, Verizon's FIOS and Google Fiber leverage fiber optics to offer gigabit internet speeds to their customers.
Based on network end-users, the global market is bifurcated into businesses, households, and others.
The business segment leads the global broadband services market. Businesses require reliable and high-speed internet connections to interact effectively with clients, partners, and employees both locally and globally. Broadband services are integral to various aspects of modern business operations, including marketing, sales, customer engagement, and performance analysis.
Moreover, the increasing reliance on digital channels and the global digital transformation have further heightened the demand for broadband services across all industry sectors. Nearly all business functions—such as marketing, sales, client interactions, and customer support—depend on continuous internet connectivity. This ubiquitous need for 24/7 connectivity has fueled the growth of this market segment.
