The global internet access market grew at a good rate in 2012, despite some minor deceleration from previous years. Internet access, in general, is becoming more of a necessary lifestyle expenditure in many developed markets, meaning that consumers consider internet access to be something they are unlikely to go without. Even in times where disposable income is fairly low, we see consumers retaining internet access contracts. This is good news for the future of the market as although in coming years some regions will eventually become saturated, they are likely to be protected from real decline in the future. This need for the product means that buyer power in the market is unlikely to become particularly strong in the future if levels of competition remain similar. Figures The global market grew by 7.1% in 2012, to reach a value of $242.4 billion. This represents a compound annual growth rate (CAGR) of 13.8% for the period 08-12.
Volumes also increased in 2012 by 4.9% to reach a volume of 573.1 million subscribers representing a (CAGR) of 10.2% for the period 08-12. The global market is difficult to characterise as a whole because it contains regional markets that are very different, however the trend in most regions is for the internet access market to be growing well and new technologies are providing a platform for growth in value.
The Asia-Pacific internet access market is the largest of the regional markets representing 39.8% of the overall value. Despite this current dominance it is also the region with the most potential for growth. For instance South Korea is one of the most highly developed markets in the world producing download speeds that are superior to even western markets. However the market also contains China and India, two countries with vast populations and huge potential for future growth.
- See more at: http://www.marketline.com/blog/the-internet-access-market-is-growing-well-but-deceleration-may-be-on-the-cards/#sthash.9GuvcbSw.dpuf