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Broadband CPE Market Expands 5% in Q2

The global broadband CPE (consumer premises equipment) market rose 5% in Q2 2015 versus the previous quarter, to $2.9 billion, as unit shipments climbed 11%, to 61 million, IHS found in a new report.

FTTH optical network terminals in China moved the needle, as unit shipments there more than doubled year-over-year --  from 9.8 million to more than 20 million.

Global broadband CPE revenues rose 7% from the year-ago quarter.

Among other categories, DSL CPE unit shipments dropped 1%, to 23 million, while cable CPE  units inched up 1%, to 11.6 million. DOCSIS 3.0 modems, at 13%, posted the highest growth in the cable CPE category, per IHS.

Fixed LTE CPE shipments jumped 4%.

Based on big investments underway in China, IHS also upped its 2019 global broadband CPE forecast by 8%, to $12.4 billion (see chart).

“The primary source for raising our global broadband CPE forecast is the massive investment currently ongoing in China,” Jeff Heynen, research director for broadband access and pay TV at IHS, said in a statement. “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.”