ISDN Modem Market Research Report and Outlook by 2028

The ISDN modem sector is projected to experience a significant downturn, decreasing from US$ 982.97 thousand in 2022 to just US$ 36.89 thousand by 2024, reflecting an estimated compound annual growth rate (CAGR) of -80.6% during this period.

The ISDN modem market is facing challenges due to shifting consumer preferences towards more advanced telecommunications solutions, which are being propelled by rapid advancements in modem and router technologies. Over the past few decades, the infrastructure supporting modem services has seen a dramatic evolution, leading to the development of modem systems that cater to modern demands. Today, users favor systems that provide high-speed internet access alongside VoIP-enabled telecommunications. Consequently, there is a growing demand for DSL, VoIP, and various cable connections, while the ISDN modem market is struggling to keep pace.

Moreover, the hardware associated with ISDN modems requires high-speed internet and connectivity frameworks, which are increasingly only compatible with high-speed systems. The rising popularity of DSL and cable modems has led to a gradual decline in the ISDN modem market across numerous regions. The high installation costs associated with ISDN modems, coupled with the phasing out of ISDN infrastructure, are further hindering the anticipated growth of this market.

Effects of the COVID-19 Pandemic on the Global ISDN Modem Market

As communication needs evolve, businesses are increasingly adopting VoIP and cloud-based systems to enhance their operational frameworks. The push to phase out ISDN lines is also contributing to a decline in their usage. The COVID-19 pandemic underscored the necessity for remote communication, which has further diminished the demand for ISDN lines.

- The surge in cloud telephony services is notable as organizations transition from legacy networks to cloud-based IP networks. Europe is expected to see significant growth in this sector, as the region rapidly embraces cloud telephony solutions. The pandemic has accelerated the shift from traditional networks to more reliable and robust alternatives.

- Telecom providers in countries such as France, Germany, and the UK have announced plans to discontinue ISDN services, creating new opportunities for cloud telephony. Increased investments and advancements in network infrastructure have reduced the relevance of ISDN services while promoting cloud telephony in nations like China, India, and the Philippines.

The global ISDN modem market analysis includes various stakeholders such as manufacturers, component suppliers, distributors, system integrators, and end users. Component suppliers in this market include companies that provide terminal adapters, network-termination devices, terminals, exchange-termination equipment, and line-termination equipment. The modem hardware typically consists of a microcontroller unit, data access arrangement, and a data pump unit. Key players in the ISDN modem market, such as Patton LLC, Plantronics, Inc., Aristel Networks Pty Ltd, Terratel LLC, and EKINOPS S.A., are involved in the global manufacturing of ISDN modems. These modems are then distributed to end users, which can be either residential or commercial, through various intermediaries. These distributors play a crucial role in ensuring the products reach their intended destinations. ISDN services are utilized for a range of communication purposes, including video, voice, and data transmission in business settings.

Numerous ISDN modem market participants are based in North America, including Patton LLC, Epygi Technologies LLC, and Plantronics Inc. These companies cater to both domestic and international markets, with a significant portion of their revenue coming from international clients due to the limited ISDN infrastructure in the United States. Their international clientele includes countries like Mexico, South Africa, and several developing nations that lack comprehensive telecommunication frameworks.

Several nations are actively working to replace their ISDN infrastructure by 2025, with many vendors already ceasing the sale of ISDN modems for commercial applications. The existing ISDN infrastructure is being rapidly supplanted by DSL, WAN, Router, and WLAN connections. For example, British Telecom announced in 2015 that it would cease ISDN line connections for new customers by the end of 2020, although this deadline was extended to September 2023 to accommodate approximately two million existing ISDN users who will need to upgrade their systems by 2025. Users are encouraged to transition to Voice over Internet Protocol (VoIP) or Session Initiation Protocol (SIP) systems, which offer improved user experiences, lower installation costs, and enhanced communication speeds for efficient operations.

Key players in the ISDN modem market, such as Ekinops, TERRATEL, Patton LLC, A TLC S.r.l., Epygi Technologies LLC, Polycom, Xiamen Yeastar Information Technology Co. Ltd., HypermediaS, and Aristel Networks, have been profiled in market studies. However, as of 2015, many vendors were still operating with their existing ISDN product lines. These companies have since shifted their focus to more advanced technologies like DSL, ADSL, VoIP, and broadband-based connection products, responding to the migration of users away from ISDN systems. This shift has contributed to the overall decline in the ISDN modem market globally.

The size of the ISDN modem market has been determined through a thorough analysis of both primary and secondary sources. The research process began with extensive secondary research utilizing both internal and external sources to gather qualitative and quantitative data regarding market size. This foundational work provided an overview and forecast of the ISDN modem market across all segments. Additionally, numerous primary interviews were conducted with industry experts and stakeholders to validate the data and gain deeper insights into the subject. Participants in this research included VPs, business development managers, intelligence managers, and national sales managers, as well as external consultants such as research analysts, valuation experts, and key opinion leaders with expertise in the global ISDN modem market.