Global PON Equipment Revenue in 2027

Recently, market research firm Dell'Oro Group released a new report stating that as service providers continue to expand their fiber networks and DOCSIS 3.1/4.0 networks while improving the reliability and sustainability of their broadband access networks, sales of PON equipment, Cable broadband access equipment, and fixed wireless CPE for FTTH deployment will show a compound annual growth rate of 0.2% between 2022 and 2027. According to forecasts, although the growth rate will slow in 2023, the cumulative spending on broadband equipment is expected to exceed US$120 billion between 2022 and 2027.

"After three consecutive years of massive broadband network expansion and upgrades, a return to normal spending levels is expected in 2023," said Jeff Heynen, vice president of research for Broadband Access and Home Networks at Dell'Oro Group. "After 2023, spending is expected to increase in 2026 and 2027, driven by 25Gbps and 50Gbps PON, fixed wireless CPE, and DAA and DOCSIS 4.0 deployments."

Other highlights from the July 2023 Broadband Access and Home Networks Five-Year Forecast report include:

· PON equipment revenues are expected to grow from $11.8 billion in 2022 to $13.3 billion in 2027, driven primarily by XGS-PON deployments in North America, Europe, the Middle East and Africa (EMEA), and the Caribbean and Latin America (CALA).

· Cable distributed access equipment (virtualized CCAP, remote PHY equipment, remote MACPHY equipment, and remote OLT) revenue is expected to reach $1.6 billion by 2027 as operators increase DOCSIS 4.0 and fiber deployment.

· Fixed wireless CPE revenue will reach $2.7 billion by 2027, led by 5G sub-6GHz and 5G mmWave shipments.

· Residential Wi-Fi router revenue will exceed $5.2 billion in 2027, driven by strong shipments of Wi-Fi 7 devices.