5G FWA CPE shipments 37m by 2029
The 5G network roll-out for Mobile Network Operators ( MNOs ) continues to progress , and Fixed Wireless Access ( FWA ) has been a masterstroke for network monetisation . This has made growing their total FWA connections for consumer and enterprise markets a key strategy for Mobile Network Operators ( MNOs ). According to global technology intelligence firm ABI Research , 5G FWA Customer Premises Equipment ( CPE ) shipments will increase from 10.7m in 2023 to 36.8m in 2029 at a Compound Annual Growth Rate of 22.9 %.
“ The US market has been a great success story for 5G FWA . All three major MNOs are on track to hit their targets for total FWA connections , achieved by serving customers with a multi-vendor portfolio of CPEs for their varying requirements ,” explains Larbi Belkhit , industry analyst at ABI Research . “ Traction for this technology is picking up globally , with India ’ s Reliance Jio aiming to serve 100 million residential and enterprise connections through 5G FWA . In fact , most major service providers worldwide are triumphantly growing their FWA connections .”
Innovations within the 5G CPEs are being unveiled , not just proof of concept but also commercial solutions . At Mobile World Congress ( MWC ) 2024 in Barcelona , stc Kuwait , in partnership with Huawei , unveiled the commercial deployment of 5G RedCap FWA , module vendors MeiG and Fibocom separately showcased their latest RedCap modules , and Tozed Kangwei presented a RedCap CPE . At the same show , ZTE unveiled the industry ’ s first AI-enabled 5G CPE for better bandwidth utilisation and Nokia unveiled its latest innovations with 5G mmWave indoor and outdoor CPEs .
Furthermore , enterprise FWA announcements have also gained traction in 2024 , especially in the U . S . market as MNOs diversify their offerings , with Askey and Cisco added to AT & T ’ s Business Service , and Cradlepoint added to T-Mobile ’ s Connected Workplace service .
“ The enterprise market , especially Small to Medium-Sized Businesses ( SMBs ), is a fast-growing opportunity for FWA , especially in the US . The faster deployment and scalability it offers makes it particularly attractive for SMBs , but they have more nuanced requirements than simply just performance and price , so CPE vendors diversifying offerings to serve this market is key to success ,” Belkhit concludes .
EVOLUTION . “ This permanently anchored AI platform , which we believe , starts with the broadband gateway and is augmented by its supporting AI powered Wi-Fi Mesh and set-top box . We should take a moment to highlight the set-top box in this new AI evolution potential . Traditionally , the set-top box has been seen as an entertainment device for finding and displaying video content on TV screens . However , with the rise of multimodal Generative AI , its role is set to expand dramatically . Equipped with natural voice inputs , audio outputs , visual screen outputs , and various inputs from cameras and sensors , the set-top box will become a central hub for Generative AI engagement ,” he predicts .
“ Imagine using natural language commands through Far Field Voice sensors to drive LLM and SLM solutions , performing actions on your TV screen and home speakers ,” he ponders . “ This evolution will open up new ways for consumers to interact with their devices , from searching for information and content to leveraging powerful AI assistants to help with all aspects of their home life such as tutoring children and managing elderly care .” 5G FWA . 5G Fixed Wireless Access has the potential to help close the digital divide and bring better quality broadband . What are the implications for CPE ? What new services are coming to market and how are these monetisable ? “ CSPs need common subscriber management , a wide service portfolio and QoE regardless of how the customer connects to the wider Internet and cloud infrastructure ” notes Thomas . “ This enables a CSP to enhance operational efficiencies , reduce costs , be agile , and most importantly , provide the QoE expected by the customer . The Broadband Forum , 3GPP , prpl Foundation and other opensource software initiatives are driving industry wide standards and architecture that assures a common approach to CPE and subscriber management whether a CPE is connected via a fixed broadband , Fixed
Broadband Access Equipment market to grow 2 % CAGR to 2029
According to market information source Dell ’ Oro Group , Broadband Access Equipment market is forecast to grow 2 % on average for the next five years ( 2024-2028 ) in part as a result of lower spending in 2024 as operators continue to absorb excess inventory and , in the case of Tier 1 cable operators , dramatically slow their purchases of new
DOCSIS CPE .
“ Most service providers are taking a conservative approach to 2024 , choosing to rely on existing inventory as they receive mixed signals on inflation , consumer spending , and new home construction ,” said Jeff Heynen , vice president at Dell ’ Oro Group . “ 2025 is shaping up to be a rebound year for spending , driven by ongoing fibre network expansions as well as cable DAA upgrades ,” added Heynen .
Additional highlights from the Broadband Access & Home Networking 5-Year July 2024 Forecast Report :
• PON equipment revenue is expected to grow from $ 11.1 billion in 2023 to $ 12.9 billion in 2028 , driven largely by XGS-PON deployments in North America , EMEA , and CALA , as well as FTTR ( Fiber to the Room ) and 50 Gbps deployments in China .
• Revenue for Cable Distributed Access Equipment ( Virtual CCAP , Remote PHY Devices , Remote MACPHY Devices , and Remote OLTs ) is expected to peak at $ 1.2 billion in 2027 , as operators continue their DOCSIS 4.0 and early fibre deployments
• Revenue for Fixed Wireless CPE is expected to reach $ 2.6 billion by 2028 , led by shipments of 5G sub-6 GHz and a growing number of 5G millimetre wave units .
• Revenue for Wi-Fi 7 residential routers and broadband CPE with WLAN will reach $ 8.4 billion by 2028 , as the technology is rapidly adopted by consumers and service providers alike .
“ As FWA deployments grow , it will be even more critical to have smart gateway software that can ensure devices and applications are optimised .” - Metin Taskin , Airties
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