Forecast: Cable OSP equipment revenue at $2bn in 2027
June 20, 2024
According to a report from Dell’Oro Group, a source for market information about the telecommunications, security, networks and data centre industries, total Cable Outside Plant (OSP) quipment revenues are expected to increase to $972 million (€906.6m) in 2024, up 15 per cent year-over-year (Y/Y), driven largely by continued mid- and high-split DOCSIS 3.1 and DAA (Distributed Access Architecture) projects in the North American market, which are driving purchases of new DAA Nodes to support Remote PHY deployments.
The market will heat up later this year as Full Duplex 1.2 GHz and 1.8 GHz amplifiers will begin shipping, with significant volumes expected in 2025.
“The current focus on Remote PHY and band splitting will lead to longer-term DOCSIS 4.0 upgrades, particularly in the North American and select European markets, where operators are looking to increase capacity and keep pace with fibre ISPs,” said Jeff Heynen, Vice President of Broadband Access and Home Networking market research at Dell’Oro Group. “These upgrades will result in a significant increase in spending on optical nodes, amplifiers, and passive equipment, including taps and hardline splitters, through 2028.”
Additional highlights from the Cable Outside Plant Equipment Advanced Research Report:
- Global Cable OSP Equipment revenues are projected to peak at $2 billion in 2027, when the largest number of tier one operators in North America are expected to be in the middle of their amplifier and node upgrades for DOCSIS 4.0.
- The North American market will remain the largest region for Cable OSP Equipment revenue, as operators in other regions either continue with DOCSIS 3.1 or increasingly overbuild with fibre.
- The DOCSIS 4.0 upgrade cycle will continue through 2030 as operators consistently expand their footprint using 1.8 GHz amplifiers, Full Duplex 1.2 GHz amplifiers, and 2 GHz taps where necessary.
- Generic Access Platform (GAP) Nodes are expected to ramp up in the North American market, with unit shipments peaking in 2029.