Industry News
Broadband equipment market is picking up
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Author : JIUZHOU
Update time : 2025-04-02 17:20:04
The global broadband equipment market in 2024 is flat compared to 2023. In 2025, the broadband market should grow. However, high costs for labor and materials may slow this growth. Global economic uncertainty and delays in delivering DOCSIS equipment could also be problems.
In the fourth quarter of 2024, the global market for broadband access equipment made $4.8 billion. This is a 3% increase from the last quarter and a 5% rise compared to last year. Despite growth in the second half of the year, total 2024 spending remained flat compared to 2023.
Research Group Vice President said:
"During the initial six months of 2024, the market persisted in absorbing the 2023 inventory adjustment."
"In the second half of 2024, a more stable and predictable purchasing rhythm was restored."
"The broadband market is expected to expand in 2025."
"However, high costs, economic uncertainty, and DOCSIS equipment delays may slow growth.
Other highlights in the fourth quarter of 2024
PON ONT equipment shipments reached over 150 million units for the first time. All regions saw strong year-on-year growth to support new user growth.
Spending on DOCSIS infrastructure dropped by 6% compared to last year. However, spending on DAA equipment rose by 19%. Spending on the vCMTS platform increased by 24%.
Home Wi-Fi router shipments stayed the same compared to last year. However, Wi-Fi 7 device shipments jumped by 8155%. This increase was mainly because of low-priced dual-band devices sold in China.
Market Review: From the Trough to Recovery
Global spending on broadband equipment dropped 10% from last year to $10.8 billion in 2023. This decline was mainly because operators reduced their inventory.
The downturn continued into the first quarter of 2024. Global revenue from broadband access equipment fell 12% compared to last year. It reached $4.1 billion, which is a two-year low.
The North American market faced user loss, too much inventory, and high labor costs. This led to a 25% drop in operator spending compared to last year. Total spending on PON equipment also fell by 9% year-on-year. This decline was mainly due to a 22% drop in OLT spending.
Revenue rose a bit to $4.2 billion in the second quarter of 2024. North American cable TV companies are feeling pressure from fiber ISPs and fixed wireless providers. Many residential users are switching away from their services.
Fixed wireless CPE shipments have grown for four straight quarters. In contrast, cable TV CPE purchases have dropped to a record low. PON equipment spending fell 6% year-on-year, mainly due to an 18% drop in OLT spending.
The turning point happened in the third quarter. It also rose by 5% compared to last year, reaching US$4.6 billion.
Fixed wireless CPE shipments grew for the fifth straight quarter, while PON equipment spending rose 6% year-over-year, with ONT spending up 11%. North American ONT shipments exceeded 2 million units for the first time since the first quarter of 2023.
Full-year performance: inventory digestion and structural adjustment
In 2024, the market started slow due to inventory adjustments but stabilized in the second half. Q4 revenue hit $4.8 billion, and PON ONT shipments topped 150 million units, yet annual spending remained unchanged from 2023.
Future Challenges and Transformation Opportunities
The VP stated, "2025 was expected to grow, but high costs, economic uncertainty, and DOCSIS 4.0 delays created obstacles."
The agency's 2024-2029 forecast, released in February 2025, predicts 0.8% annual growth, with revenue peaking in 2028. This depends on DOCSIS 4.0 upgrades and rural broadband expansion.
Market Segment Outlook
PON equipment: Revenue is projected to increase from $10.5 billion in 2024 to $12.1 billion by 2029. This growth will be driven by China's FTTR deployment, 50Gbps technology, and the use of XGS-PON.
Technology replacement trend: Fixed wireless access is attracting cable TV users. However, spending on DAA and vCMTS will rise by 19% and 24%, respectively.
Terminal equipment: Wi-Fi 7 router shipments jumped 8155% because of cheap dual-band models in China. However, total home Wi-Fi shipments in 2024 stayed the same as last year. This shows that consumers are not upgrading their equipment much.
In the fourth quarter of 2024, the global market for broadband access equipment made $4.8 billion. This is a 3% increase from the last quarter and a 5% rise compared to last year. Despite growth in the second half of the year, total 2024 spending remained flat compared to 2023.
Research Group Vice President said:
"During the initial six months of 2024, the market persisted in absorbing the 2023 inventory adjustment."
"In the second half of 2024, a more stable and predictable purchasing rhythm was restored."
"The broadband market is expected to expand in 2025."
"However, high costs, economic uncertainty, and DOCSIS equipment delays may slow growth.
Other highlights in the fourth quarter of 2024
PON ONT equipment shipments reached over 150 million units for the first time. All regions saw strong year-on-year growth to support new user growth.
Spending on DOCSIS infrastructure dropped by 6% compared to last year. However, spending on DAA equipment rose by 19%. Spending on the vCMTS platform increased by 24%.
Home Wi-Fi router shipments stayed the same compared to last year. However, Wi-Fi 7 device shipments jumped by 8155%. This increase was mainly because of low-priced dual-band devices sold in China.
Market Review: From the Trough to Recovery
Global spending on broadband equipment dropped 10% from last year to $10.8 billion in 2023. This decline was mainly because operators reduced their inventory.
The downturn continued into the first quarter of 2024. Global revenue from broadband access equipment fell 12% compared to last year. It reached $4.1 billion, which is a two-year low.
The North American market faced user loss, too much inventory, and high labor costs. This led to a 25% drop in operator spending compared to last year. Total spending on PON equipment also fell by 9% year-on-year. This decline was mainly due to a 22% drop in OLT spending.
Revenue rose a bit to $4.2 billion in the second quarter of 2024. North American cable TV companies are feeling pressure from fiber ISPs and fixed wireless providers. Many residential users are switching away from their services.
Fixed wireless CPE shipments have grown for four straight quarters. In contrast, cable TV CPE purchases have dropped to a record low. PON equipment spending fell 6% year-on-year, mainly due to an 18% drop in OLT spending.
The turning point happened in the third quarter. It also rose by 5% compared to last year, reaching US$4.6 billion.
Fixed wireless CPE shipments grew for the fifth straight quarter, while PON equipment spending rose 6% year-over-year, with ONT spending up 11%. North American ONT shipments exceeded 2 million units for the first time since the first quarter of 2023.
Full-year performance: inventory digestion and structural adjustment
In 2024, the market started slow due to inventory adjustments but stabilized in the second half. Q4 revenue hit $4.8 billion, and PON ONT shipments topped 150 million units, yet annual spending remained unchanged from 2023.
Future Challenges and Transformation Opportunities
The VP stated, "2025 was expected to grow, but high costs, economic uncertainty, and DOCSIS 4.0 delays created obstacles."
The agency's 2024-2029 forecast, released in February 2025, predicts 0.8% annual growth, with revenue peaking in 2028. This depends on DOCSIS 4.0 upgrades and rural broadband expansion.
Market Segment Outlook
PON equipment: Revenue is projected to increase from $10.5 billion in 2024 to $12.1 billion by 2029. This growth will be driven by China's FTTR deployment, 50Gbps technology, and the use of XGS-PON.
Technology replacement trend: Fixed wireless access is attracting cable TV users. However, spending on DAA and vCMTS will rise by 19% and 24%, respectively.
Terminal equipment: Wi-Fi 7 router shipments jumped 8155% because of cheap dual-band models in China. However, total home Wi-Fi shipments in 2024 stayed the same as last year. This shows that consumers are not upgrading their equipment much.
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