Forecast: Broadband equipment spend to grow at 2% CAGR
July 30, 2024
According to a report by Dell’Oro Group, a source for market information about the telecommunications, security, networks and data centre industries, Broadband Access Equipment market is forecasted to grow 2 per cent on average for the next five years (2024-2028) due in part to lower spending in 2024 as operators continue to absorb excess inventory and, in the case of Tier 1 cable operators, dramatically slow their purchases of new DOCSIS CPE.
“Most service providers are taking a conservative approach to 2024, choosing to rely on existing inventory as they receive mixed signals on inflation, consumer spending and new home construction,” said Jeff Heynen, Vice President at Dell’Oro Group. “2025 is shaping up to be a rebound year for spending, driven by ongoing fibre network expansions as well as cable DAA upgrades.”
Additional highlights from the report:
- PON equipment revenue is expected to grow from $11.1 billion (€10.2bn) in 2023 to $12.9 billion in 2028, driven largely by XGS-PON deployments in North America, EMEA and CALA, as well as FTTR (Fibre to the Room) and 50 Gbps deployments in China.
- Revenue for Cable Distributed Access Equipment (Virtual CCAP, Remote PHY Devices, Remote MACPHY Devices, and Remote OLTs) is expected to peak at $1.2 billion in 2027, as operators continue their DOCSIS 4.0 and early fibre deployments.
- Revenue for Fixed Wireless CPE is expected to reach $2.6 billion by 2028, led by shipments of 5G sub-6 GHz and a growing number of 5G millimeter wave units.
- Revenue for Wi-Fi 7 residential routers and broadband CPE with WLAN will reach $8.4 billion by 2028, as the technology is rapidly adopted by consumers and service providers alike.