Bundle up: As internet use continues to rise, increased demand for internet services will drive revenue

Increasing use of the internet has significantly benefited the Internet Service Providers industry in the United States. Current regulatory overhaul is expected to drive government-subsidized network expansion and increase the number of US broadband connections, further driving industry revenue growth. A push toward broadband expansion in rural markets, as well as a rise in demand from the business segment, will boost industry revenue over the five years to 2018. In recent years, consumers have progressively viewed the internet as a necessity rather than a luxury, a perception that is set to become more widespread over the five years to 2023. Demand for...purchase to read more.

Industry Statistics & Market Size
Revenue
$118bn
Annual Growth 13-18
6.3%
Forecast Growth 18-23
x.x%lock
Profit
x.x%lock
Employment
264,079
Businesses
13,589
Market Share of Companies

Industry Threats & Opportunities

  • Increasing adoption of cloud computing is boosting demand for dedicated internet access services sold at a much higher margin
  • Industry operators continue to invest heavily in new internet infrastructure to boost speeds
  • Widespread internet accessibility continues to pose a unique challenge to the industry

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    Industry Report - Industry Key Buyers Chapter

    The Internet Service Providers industry in the United States has a low to medium level of concentration. It is characterized by a dominant group of larger players and numerous small players. These small players are mostly regional companies and business-to-business operations that offer back-end capacity to larger players. The top four industry participants account for 33.4% of industry revenue in 2018. Government regulation has prevented any single telecommunications provider from becoming too dominant. For example, in February 2014, Comcast Corporation agreed to buy Time Warner Cable for $45.2 billion, although this deal was ultimately abandoned amid regulatory opposition. The...purchase to read more.

    Additional Insights for the Internet Service Providers Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Internet Service Providers Industry are

  • Effective product promotion
  • Ability to quickly adopt new technology
  • Economies of scope

    • IBISWorld analysts also discuss how external factors such as Private investment in computers and software and Number of broadband connections in the Internet Service Providers industry impact industry performance..

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    What's in this report

    Industry Products

    What is the Internet Service Providers Industry?

    Internet service providers (ISPs) use wired infrastructure to provide clients with internet access and related services such as web hosting, web page designing and hardware or software consulting related to internet connectivity. Operators (except telecommunications carriers) may also lease out capacity on their networks to support the network infrastructure of other companies (i.e. backbone services). This industry excludes wireless internet and VoIP services.

    Industry Products
  • Carrier and internet backbone services
  • Dial-up internet access
  • Residential broadband services
  • Business broadband services
    • Industry Activities
  • Providing wired broadband internet access
  • Providing wired narrowband internet access
  • Providing internet backbone and carrier services
  • Hardware and software consulting
  • Web hosting
    • Table of Contents

    About this Industry

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources

    Industry at a Glance

    Industry Statistics Snapshot
    Industry Structure
    Executive Summary

    Industry Performance

    Executive Summary
    Key External Drivers
  • Private investment in computers and software
  • Number of broadband connections
  • Percentage of services conducted online
  • Median age of population

    • Current Performance
  • Business market heating up
  • The United States expands internet access
  • Managing bandwidth usage and net neutrality
  • Chart: Revenue Growth

    • Industry Outlook
  • Broadband expansion
  • Go big or go niche
  • Bandwidth crunch
  • Continued investments in infrastructure
  • Table: Internet Service Providers Industry Revenue Outlook

    • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Internet Service Providers Industry Lifecycle vs The Economy

    • Products & Markets

    Supply Chains
    Key Buying Industries
  • VoIP
  • Advertising Agencies
  • Internet Publishing and Broadcasting
  • Search Engines
  • Consumers

    • Key Selling Industries
  • Cable, Internet & Telephone Providers
  • Telecommunication Networking Equipment Manufacturing
  • Transmission Line Construction
  • Wired Telecommunications Carriers

    • Products & Services
  • Residential broadband services
  • Business broadband services
  • Other
  • Carrier and internet backbone services
  • Dial-up internet access
  • Chart: Internet Service Providers Industry Products and Services Segmentation

    • Demand Determinants
    Major Markets
  • Other (research, academic, government)
  • Residential
  • Medium and large enterprises
  • Small businesses
  • Chart: Major Market Segmentation for the Internet Service Providers Industry

    • International Trade
    Business Locations
    Chart: Business Locations by State

    Competitive Landscape

    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Operating profit
  • Wages
  • Depreciation
  • Purchases, rent and other expenses
  • Chart: Cost Structure Benchmarking – Sector vs Internet Service Providers

    • Basis of Competition
    Service availabilityPriceCustomer serviceSpeed
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Internet Service Providers Industry

    • Industry Globalization

    Major Companies

    Verizon Communications Inc., AT&T Inc.,
  • Table: Verizon Communications Inc. - financial performance
  • Table: AT&T Inc. - financial performance

    • Operating Conditions

    Capital Intensity
  • Chart: Level of Capital Intensity for the Internet Service Providers Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

    • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

    • Regulation & Policy
    Industry Assistance

    Key Statistics

    Table: Industry Data for the Internet Service Providers Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Internet Traffic Volume (2009-2023)

    • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios

    Jargon & Glossary

    Bit
  • A bit (b) is the smallest unit of information that can be stored or manipulated on a computer and is represented by a 1 or a 0. Eight bits make up a byte (B).
    • Broadband
  • An internet connection with a minimum speed of 5 Mbps for downloads and three Mbps for uploads.
    • Bundling
  • A marketing strategy that involves offering several products for sale as one combined product.
    • Docsis
  • An international telecommunications standard that permits the addition of high-speed data transfer to an existing cable TV (CATV) system.
    • Exabyte
  • A large unit of digital information, two to the sixtieth power bytes.
    • Internet Backbone
  • The principal data routes between large networks and core routers in the internet.
    • Megabits Per Second (Mbps)
  • A unit of data transfer representing one million bits per second.
    • Narrowband
  • Legacy internet access technology. More generally, any connection with speeds under 5 Mbps for downloads and three Mbps for uploads.
    • What Our Customers Say
    Why buy this report?

    IBISWorld’s industry research report on Internet Service Providers provides up-to-date sales and market data, allowing you to identify the product and customer segments driving revenue growth. The report identifies the leading companies in the industry, and offers strategic analysis of the key factors influencing the market. Our data forecasts are accompanied by full analysis to illustrate how the market is responding to dominant and emerging trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Internet Service Providers:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Internet Service Providers market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Internet Service Providers, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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