#United States #Redwood City #Dell'Oro Group #Broadband Equipment #Fixed Wireless

Broadband Equipment Market Growth

The latest quarterly report by Dell'Oro Group reveals a noteworthy trend within the broadband equipment sector. For the second consecutive quarter, overall spending in the global broadband access market has increased, achieving a significant revenue milestone of $4.6 billion in Q3 2024. This represents a 5% year-over-year growth and a 1% rise from the previous quarter, signaling robust market health and investor confidence.

Key Highlights

Fixed Wireless Dominance

According to Jeff Heynen, Vice President at Dell'Oro Group, fixed wireless providers are increasingly capturing new broadband customers. These providers are strategically introducing a range of pricing options tailored to both mobile users and existing subscribers of cable, DSL, and fiber services. This shift has propelled fixed wireless customer premise equipment (CPE) shipments to witness an impressive 19% growth year-on-year.

PON Equipment Investment

The report outlines how spending related to Passive Optical Network (PON) equipment has surged by 6% from Q3 2023. Notably, the investment in PON Optical Network Terminals (ONTs) experienced an 11% uptick, with North America achieving a remarkable milestone—surpassing 2 million ONT shipments for the first time since Q1 2023.

Significant Rise in DOCSIS Spending

Moreover, there has been a remarkable 26% increase in spending on cable infrastructure utilizing the DOCSIS standard. This rise is attributed to hefty investments in Remote PHY Devices (RPDs) and Virtual Cable Modem Termination System (vCMTS) platforms. These advancements are paving the way for enhanced broadband services, meeting customer demands for more robust connectivity.

Wi-Fi Router Trends

However, residential Wi-Fi router shipments remain stable year-on-year, despite an astonishing 5935% growth in the shipments of Wi-Fi 7 units. This surge in newer technology is primarily driven by the introduction of more affordable dual-band units in the Chinese market.

Future Outlook

Looking ahead, 2025 is projected to witness a rebound in broadband access equipment spending. Nonetheless, service providers are expected to adopt a cautious approach in their network expansions due to persistently high interest rates. This environment is likely to elevate the cost of capital, urging companies to strategize carefully before expanding their infrastructures.

An Overview of the Industry

The Dell'Oro Group provides comprehensive insights into the broadband access market, including detailed tables on manufacturers' revenues, average selling prices, and shipments for various types of equipment including Cable, DSL, and PON technologies. Their analysis offers invaluable data for stakeholders to make informed business decisions in a rapidly evolving marketplace.

In summary, the broadband equipment sector is not only adapting to technological advancements but also evolving to meet changing consumer demands. With a clear upward trajectory in growth, the future of broadband appears bright as innovations and strategic investments continue to reshape how connectivity is delivered around the globe.