The latest forecast from Dell'Oro Group anticipates an average annual growth rate of 0.5 percent for the broadband access equipment market through 2030. While the outlook remains positive, inflation in the bill-of-materials for residential customer premises equipment (CPE) is forcing service providers to rethink their procurement strategies. Jeff Heynen, vice president at Dell'Oro Group, noted that ISPs are currently scrutinizing every option, from scaling back on high-end Wi-Fi 7 gateways to ramping up equipment refurbishment programs to protect their margins.
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Broadband Spending Set for Three-Year Growth Cycle Through 2028
Fiber and cable operators are entering a fresh three-year investment cycle, with total market revenue projected to hit its apex in 2028. Driven by aggressive DOCSIS 4.0 and XGS-PON upgrades, the sector faces a delicate balancing act as rising equipment costs threaten to stall expansion into new homes.
Infrastructure momentum remains concentrated in XGS-PON deployments across North America, EMEA, and CALA, alongside significant Fiber to the Room (FTTR) investments in China. Meanwhile, cable operators are prioritizing distributed access architectures, with revenue for virtual CCAP and remote PHY devices expected to peak alongside broader fiber rollout timelines in 2028 and 2029. Although unit shipments for residential routers are softening, higher average selling prices for Wi-Fi 7 hardware will likely sustain steady revenue growth through the end of the decade.
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