PON Equipment and Broadband Access to Show Steady Growth Until 2027

According to a recent report from Dell’Oro Group, the sales of PON (Passive Optical Network) equipment for fiber-to-the-home (FTTH) deployments, cable broadband access equipment, and fixed wireless CPE (Customer Premises Equipment) are expected to experience a Compounded Annual Growth Rate (CAGR) of 0.2 percent from 2022 to 2027. This comes after a remarkable period of broadband network expansions and upgrades in the preceding years.
Swisscom optical fiber businessThe report suggests that the spending on these technologies will continue to increase in the years 2026 and 2027, driven mainly by the deployment of advanced technologies such as 25 Gbps and 50 Gbps PON, Fixed Wireless CPE, and the adoption of Distributed Access Architecture (DAA) and DOCSIS 4.0.

Jeff Heynen, Vice President of Broadband Access and Home Networking research at Dell’Oro Group, expressed optimism about the future growth, stating, “After 2023, spending is expected to increase through 2026 and 2027, driven by 25 Gbps and 50 Gbps PON, Fixed Wireless CPE, as well as DAA and DOCSIS 4.0 deployments.”

PON equipment revenue is projected to rise from $11.8 billion in 2022 to $13.3 billion in 2027. The growth will be primarily propelled by the widespread deployment of XGS-PON (10 Gigabit Symmetrical Passive Optical Network) in regions like North America, EMEA (Europe, Middle East, and Africa), and CALA (Caribbean and Latin America).

The report also highlights that revenue for Cable Distributed Access Equipment, including Virtual CCAP (Converged Cable Access Platform), Remote PHY Devices, Remote MACPHY Devices, and Remote OLTs (Optical Line Terminals), is expected to reach $1.6 billion by 2027. This growth is attributed to operators scaling their DOCSIS 4.0 and fiber deployments.

In addition, Fixed Wireless CPE revenue is projected to reach $2.7 billion by 2027, driven mainly by the increasing demand for 5G sub-6GHz and 5G Millimeter Wave units.

The report indicates a promising outlook for Residential Wi-Fi Routers, with revenue anticipated to surpass $5.2 billion in 2027. This growth can be attributed to the high demand for Wi-Fi 7 units, resulting in massive shipments to meet consumer needs.

Overall, the tech market research points towards a positive trajectory for the broadband access industry, with steady growth and advancements in various technologies shaping the landscape until 2027.