Broadband equipment market grew 7% to $3.6 bn in Q2

Accelerating Fiber Deployments Fuel Growth for Broadband Equipment

Broadband access equipment includes wire line broadband access equipment and wireless broadband access equipment.

Global revenue for the broadband access equipment market increased 7 percent to $3.6 billion in Q2 2021 – fuelled by spending on both cable and PON infrastructure, according to Dell’Oro Group.

Growth came from spending on both Cable and PON infrastructure.

“Fiber buildouts for residential, business, and mobile transport applications show no signs of slowing,” noted Jeff Heynen, Vice President, Broadband Access and Home Networking at Dell’Oro Group. “Despite supply chain constraints and increased costs, operators continue to prioritize spending on their broadband access networks,” explained Heynen.

Additional highlights from the 2Q 2021 Broadband Access and Home Networking quarterly report:

  • Total cable access concentrator revenue increased 12 percent Y/Y to $247 M. Node splitting activity continues, resulting in increased DOCSIS licenses as well as new DAA node purchases.
  • Total DSL Access Concentrator revenue was down 51 percent Y/Y, driven by slower port shipments worldwide as more operators shift their spending to fiber.
  • Total PON ONT unit shipments exceeded 35 M for the second time in three quarters.

The capability of broadband to serve high-end requirements of Internet Protocol Television (IPTV), internet gaming, and voice & video conferencing may provide avenues for market growth. Furthermore, innovation, speed, and agility are key trends that drive market demand, Grand View Research reports.

The North American broadband access equipment market accounted for majority of share owing to high demand for Fiber to the Home (FTTH) and gigabits services in the commercial and residential sector. The Latin America market is expected to witness major transition to fiber network owing to increased spending on Gigabit capable Passive Optical Networks (GPON) and Ethernet FTTH broadband access equipment. The Asia Pacific market may witness growth in the next seven years, which may be attributed to rapid IT infrastructure development in this region.

Key industry participants include ZTE, Tellabs, Samsung Electronics, Huawei Technologies, Cisco Systems, Allied Telesis, Alcatel Lucent, Adtran, Calix Networks, Ericsson, Fujitsu, and Nippon Electric Company. The prominent market participants are expected to capitalize on new product development to cater to the current market demand or to enter new markets. Industry consolidation may be another strategy adopted by the companies to compete and survive in the broadband access equipment market.

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