Huawei Widens Lead in Strong Broadband CPE Market

CAMPBELL, CA - The broadband CPE market had another strong quarter due to better than expected sales of higher-end cable CPE, including headed and headless video gateways being sold in North America and Europe, according to market research firm Infonetics Research in excerpts released from its 1Q13 "Broadband CPE and Subscribers: PON, FTTH, Cable, and DSL Market Share, Size and Forecasts" report. This report tracks digital subscriber line (DSL), cable and fiber to the home (FTTH) customer premises equipment (CPE), residential gateways and broadband subscribers.

Broadband CPE share leader Huawei pulled farther away from the pack in 1Q13, thanks to a 26 percent spike in revenue coming mostly from China, Singapore and Malaysia, where it is the primary supplier of GPON ONTs and ADSL CPE

"Operators across multiple verticals are in the middle of a long-term transition to higher-speed broadband technologies like FTTH, DOCSIS 3.0 and VDSL2 to keep up with subscriber demand for multiscreen video," notes Jeff Heynen, principal analyst for broadband access and pay TV at Infonetics Research.

1Q13 Broadband CPE Market Highlights

Owing to the continued strong growth of FTTH and cable CPE, the global broadband CPE market hit $2.2 billion in 1Q13, an increase of 6 percent sequentially and 17 percent from the year-ago quarter

Though the overall DSL CPE market is slowing on an annual basis, VDSL CPE continues to enjoy strong growth (+30 percent YoY), particularly in North America and EMEA (Europe, Middle East, Africa)

Former #2 ZTE slipped to 4th place, leapfrogged by Technicolor and Arris

Pace's share of the broadband CPE market continues to grow, and Infonetics expects it to challenge for a place in the top 3 this year

Headless video gateways are forecast by Infonetics to grow at a 117 percent compound annual growth rate (CAGR) from 2012 to 2017