According to a newly published report by Dell’Oro Group, it is predicted that the broadband access equipment market is forecasted to grow 2% on average for the next five years (2024-2028) due in part to lower spending in 2024 as operators continue to absorb excess inventory and, in the case of Tier 1 cable operators, dramatically slow their purchases of new DOCSIS CPE.

“Most service providers are taking a conservative approach to 2024, choosing to rely on existing inventory as they receive mixed signals on inflation, consumer spending, and new home construction,” said Jeff Heynen, vice president at Dell’Oro Group. “2025 is shaping up to be a rebound year for spending, driven by ongoing fiber network expansions as well as cable DAA upgrades,” added Heynen.

Additional highlights from the Broadband Access & Home Networking 5-Year July 2024 Forecast Report:

• PON equipment revenue is expected to grow from $11.1 billion in 2023 to $12.9 billion in 2028, driven largely by XGS-PON deployments in North America, EMEA and CALA, as well as fiber to the room and 50 Gbps deployments in China
• Revenue for Cable Distributed Access Equipment (Virtual CCAP, Remote PHY Devices, Remote MACPHY Devices and Remote OLTs) is expected to peak at $1.2 billion in 2027, as operators continue their DOCSIS 4.0 and early fiber deployments
• Revenue for Fixed Wireless CPE is expected to reach $2.6 billion by 2028, led by shipments of 5G sub-6 GHz and a growing number of 5G mmWave units
• Revenue for Wi-Fi 7 residential routers and broadband CPE with WLAN will reach $8.4 billion by 2028, as the technology is rapidly adopted by consumers and service providers alike.