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Cable Modem Termination System - Drivers and Growth Rate by Technavio
[August 09, 2017]

Cable Modem Termination System - Drivers and Growth Rate by Technavio


Technavio analysts forecast the global cable modem termination system (CMTS) market to grow at a CAGR of more than 8% during the forecast period, according to their latest report.

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Technavio has published a new report on the global cable modem termination system market from 2017-2 ...

Technavio has published a new report on the global cable modem termination system market from 2017-2021. (Graphic: Business Wire)

The research study covers the present scenario and growth prospects of the global CMTS market for 2017-2021. The market is segmented based on application (residential and commercial) and geography (the Americas, EMEA, and APAC).

A CMTS is an equipment which is generally located at a headend or hub site of a cable company. It is used to provide high-speed data services, such as cable internet or VoIP, to cable subscribers. The functions of CMTS are similar to the Digital Subscriber Line Access Multiplexer (DSLAM) in a Digital Subscriber Line (DSL) system. By combining the functionality of a CMTS and an edge quadrature amplitude modulation (eQAM), which is a physical downstream component used to move video, voice, and data from the headend-to homes, the Converged Cable Access Platform (CCAP) enables voice, video, and data in a converged IP network.

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Technavio hardware and semiconductor research analysts highlight the following three factors that are contributin to the growth of the global CMTS market:

  • Growth of customers opting for cable network-based unified services
  • Operational efficiency with minimal cost and good scalability
  • Rising bandwidth demand from consumers

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Growth of customers opting for cable network-based unified services

Modern networks come in the form of multiple access networks, which can connect customers to a core network based on IP technology. These access networks include fiber-optics or coaxial cable networks connected to fixed locations or customers connected through Wi-Fi as well as to 3G/4G networks connected to mobile users. This can make it impossible to identify whether the next-generation network is a fixed or mobile network and whether the broadband wireless access would be used for both fixed and mobile services.

Jujhar Singh, a lead computing devices research analyst at Technavio, says, "With the rapid growth in mobile voice and data usage and the emergence of new multifunction, multi-radio handheld devices, there is an emerging interest in seamless mobility. To bridge these rapidly upcoming technologies, fixed-line operators and cable companies need to carefully weigh optimal combinations, which help extract better performance from existing assets. Wireless mobility has seen faster growth over the years, due to the increasing presence of mobile devices."

Operational efficiency with minimal cost and good scalability

As newer over-the-top (OTT) video services and consumer devices are creating demand for cable networks, vendors are competing for new customers and retaining loyal customers. By rolling out new services and gigabit tiers, multiple system operators (MSOs) will have to expand capacity significantly.

"Advanced Telecommunications Computing Architecture-based CCAP solutions can support only 24 to 32 channels per service group and are not designed for supporting DOCSIS 3.1 at scale. By using these platforms, MSOs would be required to significantly increase capital expenditures to challenge gigabit billboard rates and grow at a steady pace," adds Jujhar.

Rising bandwidth demand from consumers

Network bandwidth demand has been rising as wireless customers adopt smartphones and demand higher-quality network service. Currently, consumers expect a higher quality of data from their wireless networks. Carriers strive to offer better service delivery, support, and integration with other services. Failure to do so will lead to a significant loss in the user base of data services.

The integration of high-definition web services such as Netflix increases the usage of network bandwidth. If a wireless network is not able to handle large volume of data, then the infrastructure needs to be upgraded to handle heavier network bandwidth demand or release services within the limitations of the network bandwidth.

Top vendors:

  • ARRIS International
  • Cisco Systems
  • Huawei (News - Alert) Technologies

Browse Related Reports:

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 10,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

If you are interested in more information, please contact our media team at media@technavio.com.


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