Forecast: PON equipment market revenue $7.3bn by 2023

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According to a report by Dell’Oro Group, the trusted source for market information about the telecommunications, networks, and data centre IT industries, global PON equipment market revenue is forecast to reach $7.3 billion by 2023, driven by spending on new 10 Gbps EPON and XGS-PON deployments, and on maximising existing 2.5 Gbps GPON networks. Telecom operators and ISPs focused on XGS-PON for the next-generation deployments.

“Fibre deployments continue to expand around the world, thanks to increased competition and an improved funding environment for both public and private networks,” noted Jeff Heynen, Research Director at Dell’Oro Group. “Today’s XGS-PON trials are quickly moving to production deployments, positioning operators to compete with cable DOCSIS 3.1 networks,” continued Heynen.

Additional highlights from the report:

  • Broadband Access market projected to increase at a 4 percent compounded annual growth rate (CAGR) over the forecast period.
  • Spending on cable infrastructure will only reach $1.6 B by 2023, as cable operators slow their Converged Cable Access Platform (CCAP) purchases while focusing on their Distributed Access Architecture (DAA) deployments.
  • VDSL Profile 35b and Gfast will offset some, but not all of the revenue loss from declining ADSL and VDSL port shipments. Some major Gfast deployments are already seeing signs of shrinking, as operators increase their investments in fibre.

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