According to a Dell’Oro Group forecast, worldwide sales of PON equipment for fiber-to-the-home deployments, cable broadband access equipment, and fixed wireless CPE will all increase from 2022 to 2027, as service providers continue to expand their fiber, DOCSIS 4.0 and FWA networks, while expanding the types of services they deliver to residential subscribers.
“Service providers around the world continue to transition their broadband networks to fiber and retire their existing copper and DSL networks,” Jeff Heynen, Dell’Oro Group vice president, said in a prepared statement about the cable, FWA and fiber equipment forecast. “With markets expected to become more competitive, broadband providers will have to continue spending in order to differentiate their services not only by increasing advertised speeds, but also improving latency and expanding managed Wi-Fi services.”
PON equipment revenue will grow from $11 billion in 2022 to $13.2 billion in 2027, driven largely by XGS-PON deployments, according to the report. North American sales will be a key driver.
Revenue for Cable Distributed Access Equipment (Virtual CCAP, Remote PHY Devices, Remote MACPHY Devices, and Remote OLTs) will reach $1.5 billion by 2027, as operators ramp their DOCSIS 4.0 and fiber deployments.
Revenue for Fixed Wireless CPE will grow to $2.2 billion by 2027, led by shipments of 5G sub-6GHz and 5G Millimeter Wave units.
The Dell’Oro Group report is one of many that point to continued broadband equipment and services growth.
A U.S. fiber investment forecast from RVA LLC calls for service providers to spend $125 billion over the next five years, exceeding the total amount that has been invested in fiber since providers first began deploying it.
According to Omdia, global revenue from mobile and fixed broadband services will grow 14% between 2022 and 2027 and reach just under $1.2 trillion. The firm said that monthly average revenue per user (ARPU) will fall 4.2% from $7.30 to $7.00 during that period, however.