Sustained broadband spending expected through 2027: Report

Feb. 6, 2023
Dell’Oro Group expects XGS, 25G, and early 50G PON technology rollouts to fuel sustained broadband spending.

A newly published report by Dell’Oro Group, a provider of market information for the telecommunications, security, networks, and data center industries, predicts that sales of PON equipment for fiber-to-the-home (FTTH) deployments, cable broadband access equipment, and fixed wireless CPE will all increase from 2022 to 2027.

The analyst reports that service providers continue to expand their fiber and DOCSIS 4.0 networks, while expanding the types of services they deliver to residential subscribers. Dell’Oro Group expects XGS, 25G, and early 50G PON technology rollouts to fuel the sustained spending.

Dell'Oro's January 2023 Broadband Access & Home Networking 5-Year Forecast Report says that 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 the North America, EMEA, and CALA regions.

Meanwhile, revenue for Cable Distributed Access Equipment (including 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 fiber deployments.

Finally, revenue for Fixed Wireless CPE technology is expected to reach $2.2 billion by 2027, led by shipments of 5G sub-6GHz and 5G millimeter wave units.

Jeff Heynen, vice president at Dell’Oro Group, remarked:

"Service providers around the world continue to transition their broadband networks to fiber and retire their existing copper and DSL networks. 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."

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