Broadband Equipment Market to Hit $20.1 Billion by 2028 Amid Growing Fiber Network Deployments

A Surge in Broadband Equipment Spending

According to recent insights from the Dell'Oro Group, a leader in telecommunications market analysis, the Broadband Access Equipment landscape is set for significant growth. The report forecasts that spending in this sector will reach a staggering $20.1 billion by the year 2028. This remarkable rise will be fueled by an aggressive expansion of fiber networks and advancements in technology such as DOCSIS 4.0.

The anticipated annual growth rate of 1.6% from 2024 to 2029 signifies robust interest from Internet Service Providers (ISPs) as they aim to modernize and enhance their network infrastructures. Jeff Heynen, Vice President at Dell'Oro Group, noted that providers are not just focused on the number of homes passed but are also keen to offer tailored broadband services by integrating artificial intelligence (AI) and automation tools.

The Driving Forces Behind Growth

One of the key elements of this growth is the shift towards fiber optic connections, which are becoming integral in meeting the increasing demand for faster internet speeds and more reliable connections. Notably, revenue from Passive Optical Network (PON) equipment alone is expected to jump from $10.7 billion in 2024 to approximately $12.6 billion by 2029. This surge is primarily attributable to the deployment of XGS-PON technology across North America, Europe, the Middle East, and emerging markets in Latin America.

Another noteworthy observation is the expected peak of Cable Distributed Access Equipment contributions, which is projected to reach $1.2 billion in 2028. This growth coincides with the gradual rollout of DOCSIS 4.0 technology, marking a pivotal shift in broadband capabilities.

Moreover, Fixed Wireless Customer Premises Equipment (CPE) revenues are set to peak around 2025 and 2026, predominantly driven by the proliferation of 5G deployments.

The Rise of Wi-Fi 7

As consumer demands evolve, so too does the technology utilized to meet those needs. The introduction of Wi-Fi 7 routers is expected to reshape residential broadband setups, with a projected revenue of $8.6 billion by 2029. This advanced technology will be rapidly adopted as service providers begin to offer the latest in home networking solutions.

Conclusion

The insights provided by the Dell'Oro Group underline a dynamic shift in the broadband equipment market, one that is increasingly influenced by enhanced technologies and consumer demands for speed, reliability, and flexibility. As ISPs adapt to these challenges, they will not only expand their coverage areas but also improve the overall service quality through innovative technological applications.

For those interested in the future of broadband access and the significant advancements on the horizon, the Dell'Oro Group's comprehensive reports will serve as an invaluable resource for understanding market dynamics and emerging trends.

For further information, please visit Dell'Oro Group.