Reportlinker: Market for G.fast Chips to Grow at 116.5% CAGR

“Increased competition among broadband service providers is driving the G.fast chipset market,” according to Reportlinker, which said the G.fast chipset market is expected to reach $4,216 million by 2022, up from $41 million in 2016, a CAGR of 116.5% between 2016 and 2022. Reportlinker said the growing market for fixed broadband has led to increased competition between cablecos and telcos, which is driving sales of G.fast chips. Then there are a new type of Internet service providers such as Google Fiber that are motivating cablecos and telcos to upgrade their networks to G.fast and all-fiber networks.

Reportlinker said the limited availability of consumer apps that need gigabit speeds rates is expected to hinder the market for G.fast. It admitted that the growth of 4K TV is expected to lead to significant demand for ultrafast broadband. It is estimated that there would be over 189 million new 4K users by 2021, compared to the 3 million in 2015. That, it said, will increase the need for faster broadband in the coming years.

It also said that North America and Europe will have the largest share of the G.fast chipset market because major service providers such as AT&T and Verizon have large copperwire networks. It said that both AT&T and Verizon are testing G.fast but Rider Research has seen no evidence that Verizon is serious about deploying G.fast. All indications are that Verizon is betting the fixed broadband market on all-fiber and 5G.

It said the UK (in the form of BT) has an effective future plan for the deployment of G.fast and that other countries, such as Germany, France, and Switzerland have started their test and validation phase of G.fast technology. In fact Swisscom has already said it will deploy G.fast nationally and BT has started its rollout under the guise of trials. Reportlinker said European countries are expected to have wide deployments of G.fast technology starting in 2017.

The report examines the key players in the G.fast chipset market such as Broadcom, Sckipio and Taiwan’s Metanoia. Oddly it did not mention Huawei, which is believed to be developing G.fast chips but did examine Qualcomm, which in August closed its Calix acquisition that was developing G.fast chips.
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