Press Release

STAMFORD, Conn., July 24, 2008 View All Press Releases

Gartner Says 17 Countries to Surpass 60 Percent Broadband Penetration into the Home by 2012

Worldwide consumer broadband connections will grow from 323 million connections in 2007 to 499 million in 2012, according to Gartner, Inc. Worldwide consumer broadband connections penetrated 18 percent of households in 2007, and by 2012, households with a broadband connection will reach 25 percent.

Five countries exceeded 60 percent broadband penetration into the home in 2007; and, this is expected to grow to 17 countries by 2012. The five countries with broadband penetration into the home above 60 percent are Canada, Netherlands, Switzerland, South Korea and Hong Kong (see Table 1).

“Depending on the specific market conditions, availability of Internet-enabled devices and the continued impact of broadband on consumer lifestyles, we expect some markets will have a broadband ceiling at 80 percent penetration or greater,” said Amanda Sabia, principal research analyst at Gartner.

The high penetration rates seen in countries such as South Korea, Hong Kong and the Netherlands demonstrate what is possible under the right conditions. The small, denser countries, or countries with government-backed spending for broadband infrastructure, have an advantage. As a result, by 2012, these countries will have maintained their lead in broadband penetration rates.

“Broadband penetration will increase, especially in the geographically larger markets, as current broadband providers continue to deploy their services, as newer technologies (wireless broadband, such as WiMAX) attract subscribers, and as users experience firsthand how speed enhances their Internet sessions,” Ms. Sabia said.

Table 1
Markets with Highest Broadband Penetration of Households, 2007 and 2012 (Percent)

Country

2007

2012

South Korea

93.0

97.0

Netherlands

74.0

82.0

Hong Kong

76.0

81.0

Canada

65.0

79.0

United States

54.0

77.0

Japan

54.0

77.0

Switzerland

69.0

76.0

Singapore

57.0

75.0

United Kingdom

58.0

74.0

Taiwan

59.0

74.0

France

58.0

73.0

Australia

52.0

72.0

Sweden

58.0

69.0

Spain

54.0

68.0

Germany

49.0

68.0

Belgium

55.0

66.0

New Zealand

43.0

64.0

Source: Gartner (July 2008)

When looking at household penetration for emerging versus mature markets, the overall growth is skewed. Not only will the digital divide continue between the emerging and mature markets, it will widen by 13 percentage points.

The top three markets of South Korea, the Netherlands and Hong Kong are already heavily penetrated so the change in penetration rates is minimal compared with markets such as the United States, Japan, Czech Republic, New Zealand and Australia. These markets will exhibit a swelling of broadband penetration by more than 20 percentage points. Growth in broadband adoption is dependent on specific market conditions, availability of Internet-enabled devices and the continued impact of broadband on consumer lifestyles.

“Consumers in heavily penetrated markets are already addicted to broadband, thus the future in these markets is less concerned with increasing subscriber numbers, and more with addressing what new applications and/or content will be transmitted over this pipe,” Ms. Sabia said. “Newer ventures in these markets are primarily entertainment (such as Internet video content and games), Internet Protocol television (IPTV) and home networking, which will bring these devices and services into one integrated system within the home.”

Gartner defines mature markets as the United States, Canada, Netherlands, Sweden, United Kingdom, Switzerland, Belgium, Spain, France, Italy, Germany and the rest of Western Europe, South Korea, Hong, Kong, Japan, Australia, Taiwan, Singapore and New Zealand. Gartner defines emerging markets as Malaysia, China, Thailand, Philippines, India, Indonesia, Czech Republic, Hungary, Poland, the rest of Eastern Europe, Latin America, and the Middle East and Africa.

Additional information is available in the Gartner report “Dataquest Insight: Consumer Broadband, Global Penetration Rates and Growth Prospects.” This report is available on Gartner’s Web site at http://www.gartner.com/DisplayDocument?ref=g_search&id=723508&subref=simplesearch.

 

Contacts
About Gartner

Gartner, Inc. (NYSE: IT), is the world's leading research and advisory company and a member of the S&P 500. We equip business leaders with indispensable insights, advice and tools to achieve their mission-critical priorities and build the successful organizations of tomorrow.

Our unmatched combination of expert-led, practitioner-sourced and data-driven research steers clients toward the right decisions on the issues that matter most. We're trusted as an objective resource and critical partner by more than 15,000 organizations in more than 100 countries—across all major functions, in every industry and enterprise size.

To learn more about how we help decision makers fuel the future of business, visit www.gartner.com.

Comments or opinions expressed on this blog are those of the individual contributors only, and do not necessarily represent the views of Gartner, Inc. or its management. Readers may copy and redistribute blog postings on other blogs, or otherwise for private, non-commercial or journalistic purposes. This content may not be used for any other purposes in any other formats or media. The content on this blog is provided on an "as-is" basis. Gartner shall not be liable for any damages whatsoever arising out of the content or use of this blog.