IHS Infonetics has upgraded its projections for growth in the broadband customer premises equipment (CPE) market, which includes DSL, cable, fiber-to-the-home (FTTH), residential gateways and mobile broadband CPE. The company has projected that its 2019 worldwide broadband CPE forecast will value the CPE market at $12.4 billion.
“The primary source for raising our global broadband CPE forecast is the massive investment currently ongoing in China. Despite reported economic headwinds, the Chinese government continues to subsidize telco investments in fiber infrastructure to expand accessibility and throughput. The result is heavy spending on GPON and EPON ONTs,” Jeff Heynen, research director for broadband access and pay TV at IHS, said in a statement.
The big area for growth is FTTH optical network terminals, which doubled from 9.8 million unit shipments in 2014 to over 20 million this year. Fiber rollouts in China should increase demand for CPEs, which lead to the increased projections.