The total global revenue for the Broadband Access equipment market reached $4.7 billion in the second quarter of 2023. This figure represents a 3 percent year-over-year decrease, reflecting evolving trends in the industry, according to a recent report by Dell’Oro Group.
While global revenue dipped, regions outside of North America continued to show resilience in their spending on Passive Optical Network (PON) equipment and Fixed Wireless Customer Premises Equipment (CPE). However, this growth was insufficient to counterbalance the decline in purchases of both Cable and Digital Subscriber Line (DSL) CPE.
Jeff Heynen, Vice President with Dell’Oro Group, highlighted the trend in North America, stating, “North American service providers are clearly seeing the impact of slowing subscriber growth by reducing their purchases of new DOCSIS, PON, and even Fixed Wireless CPE.” He further explained, “Meanwhile, infrastructure purchases in the region are more mixed, with Cable Access Concentrator spending up sharply and PON Optical Line Terminal (OLT) purchases only slightly down.”
The report also noted that the total number of residential Wireless LAN units declined by 6 percent Y/Y. This decline was attributed to a combination of seasonal factors and reduced growth in broadband subscribers, which led to decreased unit purchases in the quarter. However, Dell’Oro Group anticipates a return to growth in both unit shipments and revenue during the third quarter, which typically witnesses increased demand.
One notable highlight in the report was the substantial growth in total cable access concentrator revenue, which saw a 15 percent Y/Y increase, reaching $270 million. This surge was driven by the adoption of Remote PHY devices, Remote OLTs, and Virtual Cable Modem Termination System (CMTS) platforms. Cable operators are actively expanding their Distributed Access Architecture (DAA) and fiber initiatives, contributing to this significant growth.
As the broadband access equipment market continues to evolve, industry players are adapting to changing subscriber demands and technological advancements. While challenges persist, opportunities for growth and innovation remain, shaping the future landscape of the broadband industry.