Forecast: Broadband equipment spend over $120bn to 2027
August 3, 2023
According to a report by Dell’Oro Group, a source for market information about the telecommunications, security, networks, and data centre industries, cumulative broadband equipment spending is expected to exceed $120 billion (€109.8bn) between 2022 and 2027.
The sales of PON equipment for fibre-to-the-home deployments, cable broadband access equipment, and fixed wireless CPE will show a 0.2 per cent Compounded Annual Growth Rate (CAGR) from 2022 to 2027, as service providers continue to expand their fibre and DOCSIS 3.1/4.0 networks, while also increasing the reliability and sustainability of their broadband access networks.
“After three consecutive years of tremendous broadband network expansions and upgrades, 2023 is expected to show a return to normalised levels of spending,” said Jeff Heynen, Vice President of Broadband Access and Home Networking research at Dell’Oro Group. “After 2023, spending is expected to increase through 2026 and 2027, driven by 25 Gbps and 50 Gbps PON, Fixed Wireless CPE, as well as DAA and DOCSIS 4.0 deployments.”
Additional highlights from the forecast report:
- PON equipment revenue is expected to grow from $11.8 billion in 2022 to $13.3 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 $1.6 billion by 2027, as operators ramp their DOCSIS 4.0 and fibre deployments.
- Revenue for Fixed Wireless CPE is expected to reach $2.7 billion by 2027, led by shipments of 5G sub-6GHz and 5G Millimeter Wave units.
- Revenue for Residential Wi-Fi Routers will surpass $5.2 billion in 2027, owing to massive shipments of Wi-Fi 7 units.