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Internet Providers: Latest Industry Statistics and Trends

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Global Internet Access ISP Industry

Segment of the telecommunication services industry, the global internet service provider sector is witnessing vibrant growth and contributing significant revenue to the world economy, reports IBISWorld. MarketLine estimates the global internet access market will generate almost $334 billion in 2015, representing 40% expansion in five years. Industry performance is being fuelled by constant improvements of internet-related services and infrastructure.

The introduction of a growing number of personal and business applications continues to make consumers increasingly dependent on computer-based activity. In both the professional and personal realms, the internet is helping people access information and services, regardless of distance, to become more time efficient.

The number of internet subscribers worldwide has witnessed over 12% growth in the past year, fuelling year-on-year profit. The EU, the US and North Asia remain the three most developed regions within the global internet service providers market, making up almost 83% of total global industry revenue.

During the five-year period ending 2015, the world internet access market is expected to reach a user base of almost 700 million, representing 27% growth between 2010 and 2015. The industry is characterized by intense competition, with competitors eager to adopt the latest technology to provide high-speed internet connections and capture greater market share.

Technology

The global broadband access equipment market is expected to witness almost 4% growth between 2011 and 2015, according to research from TechNavio. End-user demand for higher bandwidth is one of the major growth drivers in this sector. Increasing broadband demand in Latin America is also fuelling industry performance. Unsatisfactory infrastructure may represent an obstacle to market growth moving forward. Top industry players in the global broadband access equipment market include Huawei Technologies, ZTE and Alcatel-Lucent.

TechNavio predicts the global URL filtering sector will record 13% growth over the four-year period ending 2014. Demand for secure internet access contributes to growth in this sector, along with development of web antivirus scanning and cloud-based URL filtering. As filtering performance is dictated by the category of websites, this is a factor that may become a hurdle for market expansion. Trend Micro, McAfee, and Websense are leading vendors in the global URL filtering market.

Regional Market Share

Revenue from narrowband and broadband internet connections for businesses and consumers along with that of internet service providers are the two main contributors in the internet access industry. According to MarketLine, India’s internet access market generated revenue in excess of $1.5 billion in 2011. The country’s internet access sector witnessed yearly growth of more than 62% over the four preceding years. In terms of market volume, the Indian internet access market witnessed 39% yearly growth over the same four-year period, reaching almost 14 million subscribers in 2011.

In the US, the internet access market represented a $41 billion market in 2011. Yearly growth between 2007 and 2011 reached almost 9%, reports MarketLine. Market volume grew 5% yearly over the same period. In 2011, The US internet access market had a subscriber base of close to 85 million.

The Asia-Pacific internet access market witnessed yearly growth of more than 22% between 2007 and 2011 to surpass the $86 billion mark. Market volume witnessed a yearly growth rate of around 17% over the same four-year period. MarketLine estimates the Asia-Pacific internet access market had almost 235 million subscribers in 2011.

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Parent industry: Telecom
Related markets: Information Technology, Pay TV, Mobile Messaging Services, Mobile Data Services, Satellite

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