#United States #Dell'Oro Group #Telecommunications #Broadband Equipment #Redwood City, California

Broadband Equipment Spending to Surge

According to a recent analysis by Dell'Oro Group, a prominent authority in telecommunications market research, the spending on broadband equipment is anticipated to reach an impressive $18.8 billion by 2028. This growth reflects a steady climb in broadband access investments driven mainly by the ongoing implementations of DOCSIS 4.0 technology and extensive fiber network expansions by internet service providers (ISPs).

Current Market Trends

The Broadband Access Equipment market is projected to grow at an annual average rate of 0.3% from 2025 through 2030. However, Dell'Oro Group has adjusted its previous forecasts, attributing reductions largely to a slower-than-expected deployment of 50 Gbps PON technologies globally. Jeff Heynen, Vice President at the firm, states, "Operators are expressing concerns regarding average bandwidth consumption trends, which has influenced our revenue predictions. There is also a crucial focus on maintaining profitability amid competitive pressures."

Despite these challenges, key factors such as the expansion of fiber networks and a growing subscriber base remain priorities for ISPs. As the demand for robust broadband solutions rises, companies must also ensure that their services deliver tangible value to consumers.

Key Highlights from the Report

• - PON Equipment Growth: It is estimated that PON (Passive Optical Network) equipment revenue will rise at an average annual rate of 1.9% between 2025 and 2030. This increase will be largely fueled by XGS-PON (10 Gbps PON) deployments across North America, EMEA (Europe, Middle East, and Africa), and CALA (Caribbean and Latin America), as well as FTTR (Fiber to the Room) projects in China.

• - Cable Access Equipment Revenue: The revenue generated from Cable Distributed Access Equipment—including Virtual CCAP, Remote PHY Devices, Remote MACPHY Devices, and Remote OLTs—is expected to reach $1.2 billion by 2030. This growth correlates with ongoing DOCSIS 4.0 and early fiber deployment initiatives from various operators.

• - Fixed Wireless Peak: The market for Fixed Wireless Customer Premises Equipment (CPE) is forecasted to peak in 2026 and 2027, driven mainly by increased shipments of 5G sub-6 GHz devices and a growing number of 5G millimeter-wave units.

• - Wi-Fi 7 Revenue: The revenue for residential routers supporting Wi-Fi 7 and other broadband CPE with WLAN capabilities is projected to hit $7.9 billion by 2028, before experiencing a slowdown as Wi-Fi 8 products begin to enter the market.

About the Dell'Oro Group

Dell'Oro Group has established itself as a leading market research firm focusing on telecommunications, security, enterprise networks, and data center infrastructure. Their reports provide essential quantitative data and qualitative insights that inform strategic business decisions in a rapidly evolving technology landscape. Through their comprehensive analyses, businesses can navigate the complexities of the broadband market effectively.

For a deeper understanding of the Broadband Access market and to access the full report, visit Dell'Oro Group.

In summary, while challenges exist in terms of technology deployment and market competition, the broadband equipment market remains poised for significant growth, highlighting the essential role of robust broadband solutions in today's digital age.