Broadband Equipment Spending Drops 9 Percent in 2023, According to Dell'Oro Group

Cable Operators Continue Shift to Distributed Access Architectures

REDWOOD CITY, Calif., March 14, 2024 /PRNewswire/ -- According to a recently published report from Dell'Oro Group, the trusted source for market information about the telecommunications, security, networks, and data center industries, total global revenue for the Broadband Access equipment market decreased to $17.5 B in 2023, down 9 percent year-over-year (Y/Y). Spending on Cable equipment dropped 3 percent overall, though spending on Remote PHY Devices (RPDs) jumped 21 percent, following a 99 percent Y/Y increase in 2022.

"Cable operators continue to modernize their networks through the deployment of Distributed Access Architectures," said Jeff Heynen, Vice President with Dell'Oro Group. "Though macroeconomic and supply chain issues continue to cloud the short-term horizon, there is no question that the goals of delivering more bandwidth and pushing edge processing and automation closer to subscribers are driving cable operator spending," explained Heynen.

Additional highlights from the 4Q 2023 Broadband Access and Home Networking quarterly report:

• Total PON equipment spending was down 7 percent from 022, driven by a 10 percent decline in spending on PON OLTs.
• Spending on Fixed Wireless CPE increased 7 percent in 2023, driven once again by 5G Sub-6 GHz unit shipments in North America.
• Total Wi-Fi 6E and Wi-Fi 7 Router and Broadband CPE unit shipments reached 10 M in 2023, with a significant ramp expected for Wi-Fi 7 units in 2024.

The Dell'Oro Group Broadband Access and Home Networking Quarterly Report provides a complete overview of the Broadband Access market with tables covering manufacturers' revenue, average selling prices, and port/unit shipments for Cable, DSL, and PON equipment. Covered equipment includes Converged Cable Access Platforms (CCAP) and Distributed Access Architectures (DAA); Digital Subscriber Line Access Multiplexers ([DSLAMs] by technology VDSL, VDSL Profile 35b, and G.FAST); PON Optical Line Terminals (OLTs), Cable, DSL, and PON CPE (Customer Premises Equipment); Fixed Wireless Access (FWA) CPE; and Residential WLAN Equipment, including Mesh Routers. For more information about the report, please contact [email protected].

About Dell'Oro Group

Dell'Oro Group is a market research firm that specializes in strategic competitive analysis in the telecommunications, security, enterprise networks, data center infrastructure, and network security markets. Our firm provides in-depth quantitative data and qualitative analysis to facilitate critical, fact-based business decisions. For more information, contact Dell'Oro Group at +1.650.622.9400 or visit https://www.delloro.com.

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SOURCE Dell'Oro Group

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