The global broadband equipment market reached $4.5 billion in Q2 2026, declining 3 percent year over year, as Huawei, Nokia, ZTE, Calix and Adtran competed for fiber broadband infrastructure contracts. Despite the overall contraction, North American operators increased spending on passive optical network (PON) equipment by 26 percent, reflecting continued investment in fiber broadband expansion.
Credit: Freepik
Demand for XGS-PON, 50G PON, Wi-Fi 7 routers and fiber customer premises equipment is creating new opportunities for network suppliers. However, slower telecom capital expenditure in China and rising component costs are affecting equipment purchasing decisions.
Global Broadband Equipment Market: Key Figures for 2026
According to Dell’Oro Group, broadband equipment revenue declined in Q2 after increasing 2 percent to $4.4 billion in Q1 2026.
| Market indicator | Reported performance |
| Global broadband equipment revenue, Q2 2026 | $4.5 billion |
| Global revenue growth, Q2 2026 | −3% YoY |
| North American PON equipment spending | +26% YoY |
| Cable Remote PHY and Remote OLT spending | +63% YoY |
| Residential Wi-Fi 7 router shipments | +62% YoY |
| FWA customer premises equipment shipments | −12% YoY |
| Global PON OLT spending, Q1 2026 | +6% YoY |
The Dell’Oro Group broadband equipment market research highlights the strength of North American fiber investment.
The 26 percent increase in PON spending suggests that broadband operators are continuing network expansion and upgrades despite the wider market slowdown.
Cable operators are also investing in distributed access architectures, while Wi-Fi 7 adoption creates additional demand for customer equipment.
Broadband Equipment Market Share: Huawei, Nokia, ZTE, Calix and Adtran
The five suppliers compete across different broadband access technologies and geographic markets.
| Vendor | Key 2026 financial or market indicator | Broadband equipment strength |
| Huawei | Largest supplier in broader telecom equipment market | GPON, XGS-PON, optical access |
| Nokia | Network Infrastructure revenue +12% | Fiber access, XGS-PON, optical networking |
| ZTE | Claims 34% cumulative 10G PON share | PON equipment, ONTs, home gateways |
| Calix | Q2 revenue $293.3 million, +21% | Broadband access appliances, software |
| Adtran | Q2 revenue $281.1 million, +6.1% | Optical access, XGS-PON, network management |
These figures use different measures and are not directly comparable vendor shares of the $4.5 billion broadband access market. Detailed comparable market-share rankings are available through Omdia’s subscription research.
Huawei: Global Telecom Equipment Leadership Supports Fiber Business
Huawei retained its position as the largest telecom equipment supplier during the first half of 2026, according to Dell’Oro Group.
Across six major telecom equipment categories, global revenue increased 5 percent year over year.
Huawei and Cisco gained market share outside China, while Nokia and Ericsson’s combined share declined approximately three percentage points.
These results cover the broader telecom equipment industry, not broadband access equipment alone.
Huawei’s broadband portfolio includes GPON, XGS-PON, optical line terminals, optical network terminals and home gateways.
Its established relationships with telecom operators support competition for fiber expansion and network modernisation contracts.
However, China’s three major telecom operators planned a 24 percent reduction in traditional connectivity capital expenditure during 2026.
Their computing-related capital expenditure was expected to increase 40 percent, indicating a shift toward cloud and AI infrastructure.
This change could constrain domestic demand for conventional broadband access equipment.
Nokia: Network Infrastructure Revenue Grows 12%
Nokia reported 12 percent year-over-year growth in Network Infrastructure revenue on a constant-currency basis during Q2 2026.
Optical Networks revenue increased 20 percent, while IP Networks grew 16 percent.
Sales to AI and cloud customers increased 105 percent, supported by demand for high-capacity connectivity.
Nokia also reported €2.8 billion in AI and cloud orders, with approximately half expected to convert into revenue within 12 months.
According to Nokia’s Q2 2026 financial results, group comparable gross margin increased 70 basis points to 46 percent.
These financial indicators reflect Nokia’s wider business rather than fiber access revenue alone.
In broadband, Nokia competes through XGS-PON and higher-capacity PON platforms that enable telecom operators to offer multi-gigabit services.
Its opportunity includes replacing older GPON equipment and supporting network upgrades in Europe, North America and other fiber markets.
ZTE: 34% 10G PON Share and 100 Million Home Terminals
ZTE reported revenue of RMB 78.03 billion in H1 2026, increasing 9 percent year over year.
Its Operator Network business generated RMB 31.77 billion, representing 40.7 percent of total revenue.
International revenue increased 33.1 percent, reflecting expansion beyond its domestic market.
ZTE reported home terminal shipments exceeding 100 million units for the second consecutive year.
The company also claimed a cumulative 34 percent global share of 10G PON and a top-two position in that segment.
These are company-reported indicators, not independently established Q2 2026 shares of the entire broadband access market.
ZTE’s home router brand recorded 16 percent online market share, while Wi-Fi 7 products expanded in Europe and Asia.
According to ZTE’s H1 2026 financial announcement, the company benefited from operator networks and computing infrastructure investment.
A practical example is Peru’s MiFibra, which used ZTE’s XGS-PON technology to upgrade broadband packages from 800 Mbps or 1 Gbps to 2 Gbps.
This illustrates how fiber equipment suppliers can generate demand by enabling operators to introduce higher-speed retail broadband plans.
Calix: Broadband Equipment Revenue Increases 21%
Calix reported Q2 2026 revenue of $293.3 million, representing 21 percent year-over-year growth.
Its appliance revenue increased 23 percent to $242.8 million.
Software and services revenue grew 16 percent to $50.5 million.
| Calix financial indicator | Q2 2026 |
| Total revenue | $293.3 million |
| Appliance revenue | $242.8 million |
| Software and services revenue | $50.5 million |
| Gross margin | 54.6% |
| Remaining performance obligations | $386.4 million |
| New broadband provider customers | 14 |
The United States accounted for 95 percent of Calix’s quarterly revenue, highlighting its concentration in the North American broadband market.
US revenue increased 27 percent year over year.
Calix projected Q3 revenue of $301 million to $307 million and expected full-year growth toward the upper end of its 15–20 percent forecast.
The company’s performance reflects demand for broadband access appliances, subscriber management software and managed connectivity services.
Adtran: Revenue Reaches $281 Million
Adtran reported Q2 2026 revenue of $281.1 million, increasing 6.1 percent year over year.
GAAP gross margin reached 37 percent, while non-GAAP gross margin was 40.7 percent.
Operating cash flow totaled $25.9 million.
Revenue from cloud providers, enterprises and government customers increased 47 percent year over year.
Adtran projected Q3 revenue between $275 million and $295 million, with a non-GAAP operating margin of 1.5–5.5 percent.
Its broadband equipment strategy focuses on optical access platforms, software-defined network management and fiber modernisation.
Adtran also participated in a 50G PON trial with Japan’s TOHKnet on a live network in August 2026.
The trial demonstrates the company’s efforts to compete in next-generation fiber access technology beyond existing 10G PON deployments.
XGS-PON and 50G PON Create New Equipment Opportunities
XGS-PON remains a major technology for operators upgrading from traditional GPON networks.
It supports symmetrical 10 Gbps-class shared optical access capacity, allowing operators to introduce multi-gigabit broadband packages.
Huawei, Nokia, ZTE, Calix and Adtran compete through combinations of optical line terminals, customer premises equipment, software and network management.
50G PON represents the next capacity upgrade.
Dell’Oro reported that Chinese vendors began shipping 50G PON OLT ports and optical network terminals in Q1 2026.
More than 150 pilot projects covered manufacturing facilities, enterprise campuses and premium residential developments.
These trials indicate growing interest in higher-capacity fiber access, although commercial adoption remains less mature than XGS-PON.
Wi-Fi 7 and Broadband Equipment Costs
Wi-Fi 7 is another important equipment growth opportunity.
Residential Wi-Fi 7 router shipments increased 62 percent year over year in Q2 2026.
Broadband operators are deploying newer home gateways to support faster wireless connectivity, improved capacity and higher-speed fiber subscriptions.
However, rising memory and component prices are increasing equipment costs.
Dell’Oro reported that North American operators accelerated purchases of optical line terminals and optical network terminals during Q2 to manage expected price increases.
This purchasing behaviour can support short-term equipment shipments but may also shift demand between quarters.
Broadband Equipment Market Outlook for 2026
The broadband equipment market is developing along three distinct competitive lines.
Huawei and ZTE remain important suppliers of large-scale optical access infrastructure, while Nokia competes through fiber access technology and broader network infrastructure capabilities.
Calix is benefiting from North American broadband investment and software-enabled subscriber services.
Adtran is targeting fiber modernisation, optical access upgrades and emerging 50G PON opportunities.
Dell’Oro forecasts 3–5 percent growth in the broader global telecom equipment market during 2026, although this should not be interpreted as a specific broadband access equipment forecast.
The central growth opportunity for broadband equipment suppliers is the transition from legacy fiber networks to XGS-PON, followed by selective 50G PON deployment and wider Wi-Fi 7 adoption.
Suppliers that combine competitive equipment pricing, reliable optical access technology and strong operator relationships are best positioned to benefit from future broadband infrastructure investment.
FASNA SHABEER
