Broadband spending to reach $23.4 billion in 2026: Dell’Oro

July 28, 2022
“We’ve made significant upward revisions to our long-term broadband and home networking forecast,” commented Jeff Heynen, vice president at Dell’Oro and author of the report.

The rising tide of funding is expected to float most broadband equipment boats, according to Dell’Oro Group. The market research firm states in its new Broadband Access & Home Networking 5-Year Forecast Report that sales of PON and cable broadband gear, alongside fixed wireless access CPE, should all drive significant revenue growth through 2026.

PON equipment will lead the way, with from sales rising from $9.3 billion in 2021 to $13.6 billion in 2026. XGS-PON deployments in North America, EMEA, and the Caribbean/Latin America region will provide the major catalyst. Meanwhile, cable MSOs are expected to upgrade their hybrid fiber/coax networks to keep pace with competitors’ XGS-PON deployments. Spending on such cable distributed access equipment as virtual Converged Cable Access Platforms (CCAP), Remote PHY devices and Remote MACPHY devices for Distributed Access Architectures (DAA), and remote OLTs are forecasted to reach nearly $1.3 billion by 2026.

Finally, fixed wireless CPE spending will increase to $5.1 billion by 2026, thanks in large part to use of 5G sub-6-GHz and 5G millimeter-wave units. Overall, worldwide broadband access network equipment spending should reach $23.4 billion by 2026, according to Dell’Oro.

“We’ve made significant upward revisions to our long-term broadband and home networking forecast,” commented Jeff Heynen, vice president at Dell’Oro and author of the report. “Fiber infrastructure buildouts are resulting in more new subscribers and more CPE with advanced WiFi technologies as service providers look to differentiate their services in increasingly crowded markets.”

Dell’Oro’s Broadband Access & Home Networking 5-Year Forecast Report provides an overview of the broadband access market with tables covering manufacturers’ revenue, average selling prices, and port/unit shipments for cable, DSL, PON, and fixed wireless equipment. Covered equipment includes CCAP; DAA; DSL access multiplexers (DSLAMs); PON optical line terminals; CPE for cable, DSL, PON, and fixed wireless; and residential WLAN equipment, including mesh routers.

[The total market size for cable distributed access equipment was changed from $1.3 million in the original version of this story to $1.3 billion after Dell'Oro provided updated information.]

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About the Author

Stephen Hardy | Editorial Director and Associate Publisher, Lightwave

Stephen Hardy is editorial director and associate publisher of Lightwave and Broadband Technology Report, part of the Lighting & Technology Group at Endeavor Business Media. Stephen is responsible for establishing and executing editorial strategy across the both brands’ websites, email newsletters, events, and other information products. He has covered the fiber-optics space for more than 20 years, and communications and technology for more than 35 years. During his tenure, Lightwave has received awards from Folio: and the American Society of Business Press Editors (ASBPE) for editorial excellence. Prior to joining Lightwave in 1997, Stephen worked for Telecommunications magazine and the Journal of Electronic Defense.

Stephen has moderated panels at numerous events, including the Optica Executive Forum, ECOC, and SCTE Cable-Tec Expo. He also is program director for the Lightwave Innovation Reviews and the Diamond Technology Reviews.

He has written numerous articles in all aspects of optical communications and fiber-optic networks, including fiber to the home (FTTH), PON, optical components, DWDM, fiber cables, packet optical transport, optical transceivers, lasers, fiber optic testing, and more.

You can connect with Stephen on LinkedIn as well as Twitter.

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