The global broadband equipment market experienced moderate growth in the fourth quarter of 2024, with total revenue reaching $4.8 billion, marking a 3 percent increase quarter-over-quarter and a 5 percent rise year-over-year.
Despite the positive momentum in the second half of the year, these gains were insufficient to propel full-year 2024 spending into positive territory, resulting in flat growth compared to 2023. The first half of 2024 was characterized by continued inventory corrections following the supply chain disruptions of 2023, while the latter half of the year saw a return to more stable and predictable purchasing patterns, Jeff Heynen, Vice President with Dell’Oro Group, said.
The outlook for broadband equipment market for 2025 initially indicated strong growth, but several challenges threaten to temper market expansion. High capital and labor costs continue to place financial pressure on service providers, while global economic uncertainty adds an additional layer of risk to investment decisions.
Furthermore, delays in DOCSIS infrastructure equipment deployment have slowed the anticipated transition to more advanced broadband technologies, affecting operators’ upgrade cycles and overall spending trends.
Among the key growth drivers in the broadband equipment market, Passive Optical Network (PON) Optical Network Terminal (ONT) unit shipments exceeded 150 million for the first time, with significant year-over-year increases across all regions. This surge highlights the ongoing global demand for fiber-based broadband services as operators expand their fiber-to-the-home (FTTH) initiatives to meet rising consumer and enterprise connectivity needs. Investments in PON technology remain a priority as broadband providers look to future-proof their networks and offer higher-speed services to subscribers.
Conversely, spending on DOCSIS infrastructure declined by 6 percent from 2023, reflecting the ongoing shift from legacy cable-based broadband solutions to fiber-based alternatives. However, within the cable broadband segment, spending on Distributed Access Architecture (DAA) equipment and virtualized Cable Modem Termination System (vCMTS) platforms saw substantial growth, increasing by 19 percent and 24 percent, respectively. These investments indicate that while traditional DOCSIS spending is contracting, operators are still investing in modernizing their cable networks with more flexible, software-driven infrastructure to remain competitive in the broadband market.
In the home networking segment, residential Wi-Fi router shipments remained flat year-over-year. However, there was a remarkable surge in Wi-Fi 7 unit shipments, which grew by an astonishing 8,155 percent. This growth was largely driven by the mass adoption of lower-cost dual-band Wi-Fi 7 routers in China, where consumer demand for next-generation home networking solutions remains robust. As Wi-Fi 7 technology gains traction globally, it is expected to play a critical role in enhancing home connectivity and improving the user experience in increasingly device-dense household environments.
While the broadband equipment market faces near-term headwinds, long-term prospects remain strong as operators continue to upgrade their networks to support higher speeds, lower latency, and increased capacity. Government initiatives, such as broadband stimulus programs and rural connectivity projects, are expected to provide additional tailwinds for the market.
Service providers will need to navigate economic and technological challenges strategically, balancing capital expenditures with the need to stay ahead of evolving consumer and enterprise connectivity demands. As fiber and advanced wireless solutions gain prominence, the broadband equipment market will continue evolving, with PON and Wi-Fi technologies playing central roles in shaping the next phase of broadband innovation.
Baburajan Kizhakedath
