Forecast: Sustained broadband spending to 2027
February 1, 2023
According to a report by Dell’Oro Group, a source for market information about the telecommunications, security, networks, and data centre industries, predicts that sales of PON equipment for fibre-to-the-home deployments, cable broadband access equipment, and fixed wireless CPE will all increase from 2022 to 2027, as service providers continue to expand their fibre and DOCSIS 4.0 networks, while expanding the types of services they deliver to residential subscribers.
“Service providers around the world continue to transition their broadband networks to fibre and retire their existing copper and DSL networks,” said Jeff Heynen, Vice President at Dell’Oro Group. “With markets expected to become more competitive, broadband providers will have to continue spending in order to differentiate their services not only by increasing advertised speeds, but also improving latency and expanding managed Wi-Fi services.”
Additional highlights from the report:
- PON equipment revenue is expected to grow from $11 billion in 2022 to $13.2 billion in 2027, driven largely by XGS-PON deployments in North America, EMEA and CALA.
- Revenue for Cable Distributed Access Equipment (Virtual CCAP, Remote PHY Devices, Remote MACPHY Devices, and Remote OLTs) is expected to reach $1.5 billion by 2027, as operators ramp their DOCSIS 4.0 and fibre deployments.
- Revenue for Fixed Wireless CPE is expected to reach $2.2 billion by 2027, led by shipments of 5G sub-6GHz and 5G Millimeter Wave units.