Worldwide xDSL and Cable Modem Semiconductor 2008-2013 Forecast

This IDC study presents the 2008-2013 forecast for both central office equipment and customer premise equipment xDSL chipsets, as well as cable modem semiconductors. The digital subscriber line (xDSL) and cable modem semiconductor markets are facing challenging times as the

"financial meltdown" of 2008 continues to affect the global economy and, subsequently, the outlook for the semiconductor market. This will be especially evident in the xDSL and cable modem semiconductor market, where much consolidation has occurred over the past two years, while other technologies, specifically passive optical networking (PON), increase their installed base with the deployment of multimedia services, including voice, Web access, content creation, and enhanced video services (e.g., video on demand, interactive TV). In light of 2008 economic events, IDC forecasts that the xDSL semiconductor market will decline at a CAGR of -13.5% to $433.2 million by 2013. The cable modem semiconductor market will face healthier, albeit moderate, growth as it grows at a CAGR of 4.9% to $749.2 million. Overall, the combined market will decrease at a CAGR of -4.4% to $1.2 billion by 2013.

"The challenges that both the xDSL and cable modem semiconductor markets experience currently - pricing pressure from OEMs, competition with each other and other broadband technologies, and market consolidation - will be magnified in 2009 and 2010 as the global economy tries to jumpstart itself into growth mode. While the cable semiconductor market remains in growth mode, xDSL semiconductor companies will be challenged as they try to generate additional revenue in a consolidating and shrinking market." - Aileen Arcilla, senior research analyst, Semiconductors