#United States #Redwood City #Dell'Oro Group #Broadband Growth #Wireless CPE

Anticipated Resurgence in Broadband Access Equipment Growth

The broadband access equipment market is set for a resurgence in growth, according to a recent analysis by the Dell'Oro Group. This esteemed market research firm, which specializes in telecommunications and networking data, reports a promising forecast for the industry in 2026. Following a period of tighter spending, the market witnessed a total revenue bump up to $4.8 billion in the fourth quarter of 2025, marking a 7% increase compared to previous quarters and a 2% rise year-over-year.

Despite the optimistic closure of 2025, it cannot be overlooked that the year represented the conclusion of a three-year phase characterized by a reduction in equipment spending. Dell'Oro's Vice President, Jeff Heynen, noted how broadband service providers had shifted their focus towards subscriber acquisition and careful geographical expansions, thereby redirecting expenditures from infrastructure to Customer Premises Equipment (CPE).

Key Highlights from the 4Q 2025 Report

The report outlines additional significant insights into the 4Q 2025 performance:

• - PON ONT Unit Shipments Revealed: A record of 158 million PON Optical Network Terminal (ONT) units were shipped, reflecting marked year-over-year gains across nearly all geographic regions. This growth is essential for supporting the ongoing demand for new subscribers.
• - Decline in DOCSIS Infrastructure Spending: There was a reported 21% decline in overall spending on DOCSIS infrastructure compared to 2024, while Remote PHY Devices saw an even larger fall, with a staggering 47% decrease over the same period. However, 2026 is expected to witness a considerable uptick in spending as leading Multiple System Operators (MSOs) accelerate their initiatives for Distributed Access Architectures (DAA) and upgrades to DOCSIS 4.0.
• - Wi-Fi 7 Router Shipments: A breakout growth was experienced for residential Wi-Fi 7 routers, which soared by 211% in 2025. This surge has been attributed to the widespread availability of more affordable dual-band units from manufacturers in China and Southeast Asia, making them accessible to a broader range of consumers.

About the Dell'Oro Group

The Dell'Oro Group continues to provide invaluable insights through its quarterly reports on the broadband access and home networking sector. Their comprehensive analysis includes crucial data points such as manufacturer revenue, average selling prices, and shipment statistics for various technologies like Cable, DSL, and PON equipment.

Overall, the predictions from the Dell'Oro Group signal a noteworthy rebound in broadband access equipment spending in 2026, offering a promising glimpse into the future for telecommunications and network infrastructure markets. Armed with this knowledge, stakeholders can make informed decisions that will shape the industry's trajectory in the coming years.