Fiber-optic cables come with speed, but they need the reach of coax cables to efficiently reach customers, according to a new report from Verified Market Research.
The report predicts the global hybrid fiber-coax (HFC) cable market will be worth $24.27 billion by 2031, representing a compound annual growth rate (CAGR) of 8.78%. In 2024, the global HFC market was valued at $12.43 billion.
The ongoing deployment of DOCSIS 3.1 will encourage the growth, as will the upcoming deployment of DOCSIS 4.0, according to a press release about the data. Remote PHY (“high-split” technology) and Distributed Access Architecture (DAA) will expand the capabilities of HFC even further.
All this will go hand-in-hand with fiber upgrades, but won’t require a complete replacement of coax networks with fiber-to-the-premises (FTTP) connections. Instead, the Converged Cable Access Platform (CCAS) segment will dominate, the report said.
Businesses will need scalable HFC for cloud computing, data centers, and enterprise connectivity, the report predicts.
Infrastructure needs will be immense, too. Initiatives like the Broadband Equity Access and Deployment Program (BEAD) Program in the U.S. will keep demand high. Final proposals for the BEAD Benefit of the Bargain funding round were due September 4; at this point, 49 states have announced their provisional awards.
There will also be high demand for HFC in public and private initiatives in other advanced countries in North America, Europe, and Asia. Developing countries in the Asia-Pacific, Latin America, and Africa will also need hybrid infrastructure, according to the Verified Market Research report.
“Such infrastructure expansion initiatives are opening new business opportunities for telecom equipment suppliers, system integrators, and network service providers,” it reads.
Despite high demand for HFC, barriers exist. They include the following, researchers reported:
- High cost of optical nodes, amplifiers, and Cable Modem Termination Systems (CMTS)
- Limited internet service provider (ISP) budgets for setup and maintenance
- Initial costs of workforce training, technical expertise, and ongoing maintenance
- Competition from FTTP, especially with 5G backhaul investment by major providers
Despite these challenges, researchers believe investors and telecom operators can “unlock substantial revenue streams” by partnering with regional broadband service providers.
“Leveraging next-gen HFC solutions for scalability, performance, and affordability will be crucial to gaining a competitive edge in the global broadband connectivity landscape,” the hybrid fiber-coax cable report reads.
