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Global broadband spending accelerates in the next five years

Date:2021-09-09 16:59:00

Dell'Oro: Global broadband spending accelerates in the next five years

Dell'Oro predicts that from 2020 to 2025, global broadband access equipment and CPE spending is expected to achieve a compound annual growth rate of 3%. (5-Year Forecast: Full Speed Ahead for Broadband Spending - Dell'Oro Group ( on the acceleration of fiber broadband upgrades worldwide, the analysis agency once again raised the five-year compound annual growth rate of PON equipment, from less than 1% to 3% at the beginning of the year, and this time from 3% to 5%.

Continuous user growth and bandwidth consumption are still key catalysts From 2020 to 2025, global broadband access equipment and CPE (Customer Premise Equipment) expenditures are expected to achieve a compound annual growth rate of 3%, which is an increase of 3 percentage points from the five-year forecast released in January 2021 . Global broadband providers pointed out that the combination of continued growth in residential users and increased capacity utilization will be sufficient to offset the negative effects of component shortages and labor restrictions.   
As the Delta variant continues to restrict employees from returning to the office and expand the blended learning environment for students, broadband users continue to grow at an alarming rate across the world. Even if user growth does slow down later this year, broadband penetration and the total addressable market for broadband service providers have expanded significantly in the past year. The growth of users has also increased the revenue and gross profit margin of service providers. Therefore, service providers are advancing some of their upgrade projects, including those that involve upgrading from copper cables to optical fibers.  
After the increase in investment levels in 2020, as operators respond to increasing users and competitors increase investment in optical fiber, HFC and fixed wireless networks, Dell'Oro expects global broadband spending will continue to grow this year.

This survey article highlight a product:PON


● PON equipment spending is expected to remain stable

Dell'Oro increased the five-year compound annual growth rate of the PON equipment market from 3% to 5% again. 1% raised to 3%). The Chinese market has historically accounted for 65-80% of the total global PON equipment expenditure, and the number of ONTs(Network interface device - Wikipedia) consumed each year has reached its peak. China's FTTH market has matured, and the broadband penetration rate is close to 80%. Although the growth of broadband users in the Chinese market is slowing down, the upgrade of its existing broadband users will continue to require new ONTs.

Although the demand for ONTs in the Chinese market has declined compared with the peaks in 2017 and 2018, it is expected that the demand in other regions of the world (especially North America and Western Europe) will further increase. In North America, the FCC’s $20 billion Rural Digital Opportunity Fund (RDOF) program will help a large number of rural areas transition to fiber optics in the next 5-7 years. In Western Europe, major operators such as Orange in France, Deutsche Telekom, BT OpenReach in the UK, and Proximus in Belgium are all expanding fiber deployment, and even quickly turning to XGS-PON to provide symmetric 10G services.



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