PON equipment revenue is expected to grow from $9.3 billion in 2021 to $13.6 billion in 2026, driven largely by XGS-PON deployments in North America, EMEA, and CALA, according to Dell’Oro Group.

The increase in the sales of PON equipment for fiber-to-the-home deployments, cable broadband access equipment, and fixed wireless CPE during 2022-2026 is because service providers look to expand both the reach of their fixed broadband services to customers’ homes as well as the quality and reliability of Internet services within their homes.

“Fiber infrastructure buildouts are resulting in more new subscribers and more CPE with advanced Wi-Fi technologies as service providers look to differentiate their services in increasingly crowded markets,” said Jeff Heynen, Vice President at Dell’Oro Group, in a report.

Revenue for Fixed Wireless CPE is expected to reach $5.1 billion by 2026, led by shipments of 5G sub-6GHz and 5G Millimeter Wave units.

Revenue for Cable Distributed Access Equipment (Virtual CCAP, Remote PHY Devices, Remote MACPHY Devices, and Remote OLTs) is expected to reach nearly $1.3 million by 2026, as Internet operators ramp their DOCSIS 4.0 and fiber deployments.