Broadband equipment spending to grow at 2% CAGR over next five years

According to a newly published report by Dell’Oro Group, the trusted source for market information about the telecommunications, security, networks, and data center industries, Broadband Access Equipment market is forecasted to grow 2 percent 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 fiber network expansions as well as cable DAA upgrades,” added Heynen.

Additional highlights from the Broadband Access & Home Networking 5-Year July 2024 Forecast Report:

• PON equipment revenue is expected to grow from $11.1 B in 2023 to $12.9 B in 2028, driven largely by XGS-PON deployments in North America, EMEA, and CALA, as well as FTTR (Fiber 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 B in 2027, as operators continue their DOCSIS 4.0 and early fiber deployments.
• Revenue for Fixed Wireless CPE is expected to reach $2.6 B 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 B by 2028, as the technology is rapidly adopted by consumers and service providers alike.

Dell’Oro