Spending on Fixed Wireless Access Equipment to Exceed $40 bn in Next Five Years

Research firm Dell’Oro Group anticipates that spending on Fixed Wireless Access (FWA) equipment will surpass $40 billion over the next five years. The research report also indicates a substantial growth forecast for spending on 4G and 5G-enabled enterprise routers and gateways, reaching $4 billion by 2027.
gigabit broadbandInvestment in FWA has experienced a notable surge in recent years, driven by its ease of deployment and the increased availability of 4G LTE and 5G Sub-6GHz networks. This technology has become instrumental in supporting both residential and enterprise connectivity.

The findings of the report suggest that total FWA revenues, encompassing Radio Access Network (RAN) equipment, residential Customer Premises Equipment (CPE), and enterprise router and gateway revenue, are set to advance by 27 percent in 2023. This growth is predominantly fueled by the increase in residential subscribers in North America and the expanding connectivity of branch offices globally.

Jeff Heynen, Vice President and analyst with the Dell’Oro Group, emphasized the versatility of Fixed Wireless Access, stating, “Fixed Wireless Access has proven that it can provide connectivity both in rural and underserved markets while also competing head-to-head with fixed broadband technologies in urban and suburban markets.”

Beyond residential applications, enterprises are increasingly relying on FWA-enabled routers and gateways for connecting branch offices, vehicles, and kiosks as part of their private wireless initiatives, according to Heynen.

The global FWA revenues are projected to surpass $9 billion by 2027, reflecting sustained investment and subscriber growth in both 3GPP- and non-3GPP-based network deployments. The North American market is identified as the most dynamic, showcasing growth in various FWA technology options, including Citizens Broadband Radio Service (CBRS), sub-6GHz options, 5G New Radio (NR), and 60 GHz options.

Long-term subscriber growth is anticipated in emerging markets in Southeast Asia and the Middle East and Africa (MEA), driven by network upgrades to existing 3G and LTE technologies and the economic necessity of connecting subscribers.

The report also highlights the significant role of Satellite Broadband in enabling broadband connectivity in emerging markets. Low Earth Orbit Satellite (LEOS)-based providers such as Starlink, OneWeb, and Project Kuiper are expected to play a key role in expanding connectivity in these regions.

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