#United States #Redwood City #Dell'Oro Group #DOCSIS 4.0 #Broadband Equipment

Overview of Broadband Equipment Spending

A recent analysis from the Dell'Oro Group, a reputable market research firm specializing in telecommunications, reveals an optimistic outlook for the broadband equipment industry. The report forecasts that spending in this sector is expected to peak at an impressive $19.2 billion by 2028. This growth is primarily attributed to ongoing DOCSIS 4.0 implementations and significant investments in rural broadband expansion projects.

The Evolution of Broadband Networks

Broadband access networks are transforming rapidly, evolving into expansive edge computing platforms capable of facilitating service convergence more efficiently than ever before. According to Jeff Heynen, Vice President at Dell'Oro Group, this transformation indicates a notable shift in revenue dynamics. Traditional hardware and software investments are being supplemented by expenditures on AI and machine learning tools. These advancements will enhance service reliability and pave the way for improved convergence.

Key Market Drivers

The report presents several crucial insights into specific segments of the broadband access market:
1. PON Equipment: Revenue in this sector is projected to grow from $10.5 billion in 2024 to $12.1 billion in 2029, largely fueled by XGS-PON deployments across North America, EMEA, and CALA regions. Additionally, initiatives like FTTR (Fiber to the Room) and 50 Gbps projects in China contribute to this increase.
2. Cable Distributed Access Equipment: This segment is set to peak at $1.3 billion in 2028, driven by operators advancing their DOCSIS 4.0 efforts and initial fiber deployments.
3. Fixed Wireless CPE: Projected to reach its peak in 2025 and 2026, this area will be dominated by shipments of 5G sub-6 GHz and an increasing array of 5G millimeter wave units.
4. Wi-Fi 7: The revenue generated from residential routers and broadband CPE, incorporating Wi-Fi 7 technologies, is expected to escalate to $8.9 billion by 2029, reflecting swift adoption among consumers and service providers alike.

Future Insights

The advancements in broadband technology indicate a trend toward greater accessibility and improved services. As companies complete the DOCSIS 4.0 framework and ramp up rural broadband expansions, the telecommunications landscape is set to be reshaped significantly.

This report by Dell'Oro Group not only sheds light on financial forecasts but also emphasizes the pivotal role these developments will play in global broadband access. As the market continues to advance, staying abreast of trends like AI integration and equipment improvements will be essential for stakeholders.

For those looking to delve deeper into these findings, the Dell'Oro Group Broadband Access Home Networking 5-Year Forecast Report serves as a comprehensive resource detailing manufacturers' revenue, pricing trends, and volume shipments related to PON, cable, and fixed wireless equipment.

About Dell'Oro Group

Dell'Oro Group stands as a leading market research firm, providing strategic insights and competitive analysis in the telecommunications, security, enterprise networks, and data center infrastructure markets. With a commitment to delivering quantitative and qualitative data, they empower key business decisions in the telecommunications sector. Visit Dell'Oro's website for more information.