UK Fixed Connectivity Market Size (2024 - 2029)

UK Fixed Connectivity Market Analysis

The UK Fixed Connectivity Market size is estimated at USD 34.02 billion in 2024, and is expected to reach USD 40.77 billion by 2029, growing at a CAGR of 3.69% during the forecast period (2024-2029).

• The UK's fixed connectivity market is propelled by rising digital transformation, infrastructure investments, and government initiatives. The increasing need for reliable, high-speed internet, fueled by trends like remote work, online education, and digital services, underscores the demand for robust connections.
• Substantial investments in fiber optics and the deployment of gigabit-capable broadband are bolstering both the availability and quality of internet services. Government initiatives, such as "Project Gigabit," are specifically targeting the expansion of broadband access, with a focus on underserved regions. Moreover, as consumer demands for smooth streaming and adoption of smart home technologies surge, and businesses increasingly rely on steadfast connectivity, the market is witnessing a notable upswing.
• Ofcom's analysis of ISPs' rollout plans reveals a significant surge in the market's development. The number of properties with full-fiber coverage, also known as fiber to the premises (FTTP), is set to jump from 15.4 million in May 2023 to an estimated 27.0 million by May 2026, encompassing a remarkable 91% of all the properties. Physical Infrastructure Agreements (PIAs) serve as a pivotal enabler, granting ISPs access to Openreach's ducts and poles.
• This access surge is empowering more consumers, offering them a choice between ISPs operating on Openreach's infrastructure and those opting for alternative networks. These alternatives, like Hyperoptic, are increasingly constructing their fiber networks, diverging from reliance on Openreach or Virgin Media.
• Competition in the market is intense, driven by a mix of established and emerging players. These players are adopting a range of strategies to enhance their competitive edge and fuel market growth. For instance, in February 2024, Virgin Media O2 became the major UK provider to publicly introduce a residential 2 Gbps broadband service and present symmetrical download as well as upload speeds throughout all of its speed tiers as an alternative add-on for customers.
• However, the growing concerns about data security and privacy-related issues and Heavy CAPEX associated with advanced telecom infrastructure are some factors that can restrain the market growth over the forecast period.

UK Fixed Connectivity Industry Segmentation

The market study tracks the overall revenue accrued through the sale of voice and data services from fixed networks offered by telecom providers to various end users in the United Kingdom. The scope of the study also includes fixed leased lined connectivity services, along with an analysis of fixed access networks, wireless access networks, and network design and installation services in the United Kingdom.

The UK fixed connectivity market is segmented by type (fixed data and fixed voice) and end user (consumers and enterprises). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.