Dell’Oro expects broadband access equipment revenues to shrink over next five years
Dell’Oro Group has released a new report in which it forecasts a $2 billion decline in cable broadband access equipment revenues over the next five years. The 2% annual decline from $13 billion in 2019 to $11 billion in 2024 will result, at least in part, from the growing popularity of virtualization and the resultant shift toward software, the market research firm states in the newly published Broadband Access 5-Year Forecast Report.
“Global operators continue to invest in their broadband access networks but are increasingly delivering more capacity with lower-cost, virtualized hardware,” explained Jeff Heynen, senior research director at Dell’Oro. “Virtualization, coupled with subscriber saturation in some mature markets, will result in gradually declining revenue for broadband access equipment globally.”
Virtualization appears to have taken root in cable operator networks. Heynen writes in the report that revenues from virtual CMTS/CCAP technology will increase from $90 million in 2019 to $418 million worldwide in 2024, the final year of the forecast range.
Meanwhile, this year will see mesh-capable routers and broadband customer premises equipment (CPE) unit sales reaching 30 million in 2020, according to the report.
Dell’Oro’s Broadband Access 5-Year Forecast Report covers the broadband access market with tables describing manufacturers’ revenue, average selling prices, and port/unit shipments for cable, DSL, and PON equipment. Covered equipment includes Converged Cable Access Platforms (CCAP), Distributed Access Architectures (DAA), DSL access multiplexers (DSLAMs, by ADSL/ADSL2+, G.SHDSL, VDSL, VDSL Profile 35b, and G.fast), PON optical line terminals (OLTs), CPE, and SOHO WLAN equipment, including mesh routers.
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About the Author
Stephen Hardy
Editorial Director and Associate Publisher, Lightwave
Stephen Hardy is editorial director and associate publisher of Lightwave and Broadband Technology Report, part of the Lighting & Technology Group at Endeavor Business Media. Stephen is responsible for establishing and executing editorial strategy across the both brands’ websites, email newsletters, events, and other information products. He has covered the fiber-optics space for more than 20 years, and communications and technology for more than 35 years. During his tenure, Lightwave has received awards from Folio: and the American Society of Business Press Editors (ASBPE) for editorial excellence. Prior to joining Lightwave in 1997, Stephen worked for Telecommunications magazine and the Journal of Electronic Defense.
Stephen has moderated panels at numerous events, including the Optica Executive Forum, ECOC, and SCTE Cable-Tec Expo. He also is program director for the Lightwave Innovation Reviews and the Diamond Technology Reviews.
He has written numerous articles in all aspects of optical communications and fiber-optic networks, including fiber to the home (FTTH), PON, optical components, DWDM, fiber cables, packet optical transport, optical transceivers, lasers, fiber optic testing, and more.
You can connect with Stephen on LinkedIn as well as Twitter.
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