Broadband Access Equipment Market Revenue Drops 9% to $17.5 bn in 2023: Dell’Oro

Dell’Oro Group said that revenue for the Broadband equipment market experienced 9 percent decrease, totaling $17.5 billion in 2023.
gigabit broadbandThe report indicates that spending on cable equipment witnessed a decline of 3 percent, reflecting a cautious approach among stakeholders.

However, there was a remarkable surge in spending on Remote PHY Devices (RPDs), with a notable 21 percent increase, following a staggering 99 percent rise in 2022. This trend underscores the growing significance of remote access solutions in enhancing network capabilities.

Despite the overall decline in PON (Passive Optical Network) equipment spending, which was down 7 percent from 2022, the report highlights a substantial 10 percent decrease in spending on PON Optical Line Terminals (OLTs). This indicates a strategic shift in investment priorities within the broadband access segment.

On a positive note, spending on Fixed Wireless Customer Premises Equipment (CPE) experienced a healthy 7 percent increase in 2023. This growth was primarily fueled by robust unit shipments of 5G Sub-6 GHz devices in the North American market, reaffirming the region’s role as a key driver of innovation and adoption.

Furthermore, the report unveils a significant milestone in the deployment of Wi-Fi 6E and Wi-Fi 7 Router and Broadband CPE units, reaching a cumulative total of 10 million shipments in 2023. With a promising outlook, a substantial ramp-up in Wi-Fi 7 unit shipments is anticipated for 2024, underscoring the industry’s commitment to advancing wireless connectivity standards.

Jeff Heynen, Vice President at Dell’Oro Group, emphasized the ongoing modernization efforts among cable operators through the deployment of Distributed Access Architectures. He noted that the objectives of delivering enhanced bandwidth and optimizing edge processing and automation capabilities are driving sustained investment in this segment.

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