Broadband CPE Market Size & Share Trends, 2033

Broadband CPE Market Overview

Broadband CPE Market size was valued at USD 5.04 billion in 2025 and is expected to reach USD  8.74 billion by 2033, growing at a CAGR of 7.13% from 2025 to 2033.

Customer Premises Equipment (CPE) for broadband—including modems, routers, and gateways—continues to be a core component of connectivity ecosystems. In 2024, telecom operators shipped approximately 180 million CPE units globally, up from 150 million in 2022, reflecting rising broadband subscriptions. By mid-2025, more than 45% of households in urban markets had upgraded to Wi-Fi 6-capable routers, driving demand for more advanced CPE hardware. Investment in fiber-to-the-home (FTTH) networks grew significantly, with over 40 million new fiber connections added in 2024, catalyzing downstream CPE deployment.

As streaming, gaming, and remote work usage surged, average home broadband speeds surpassed 120 Mbps by early 2025, up from 95 Mbps in 2022. This trend pushed telecom providers to replace legacy DSL CPE, installing modern multi-gigabit routers capable of handling symmetrical fiber connections. In developing markets such as Southeast Asia and Latin America, combined CPE shipments exceeded 50 million units in 2024, growing consumer access to high-speed networks. Enterprise-grade CPE deployments, particularly small office/home office (SOHO) routers, also rose by 25% between 2023 and 2025, responding to increased hybrid work adoption.

Looking ahead, service providers are increasingly bundling smart-home integration and edge-computing capabilities into CPE devices. By 2025, approximately 30 million CPE units featured embedded Zigbee or Thread radios for IoT connectivity. Operators in several markets have begun deploying AI-powered CPE models capable of self-optimizing network performance—beta trials were underway in North America and Europe by mid-2025. In summary, the Broadband CPE market in 2024–25 is defined by accelerated hardware refresh cycles, faster consumer speeds, growing fiber rollout, and intelligent CPE feature integration.

Key Findings

DRIVER: Growing home broadband speeds—average uplink speeds rose to 120 Mbps in 2025—requiring higher-performance CPE devices.

COUNTRY/REGION: Europe accounted for 35% of global CPE shipments in 2024, with over 60 million units deployed.

SEGMENT: Wi‑Fi 6 and multi-gigabit router segments comprised around 30% of total router shipments in 2024, versus 18% in 2022.

Broadband CPE Market Trends

Hardware refresh cycles are accelerating as consumer demand for faster, more reliable broadband continues to rise. Global CPE shipments reached approximately 180 million units in 2024—an increase of 20% compared to 2022—with fiber-capable routers and mesh systems accounting for two-thirds of total volume. Fiber network rollouts added over 40 million new FTTH connections globally in 2024, prompting widespread CPE upgrades. In parallel, Wi-Fi 6 and Wi-Fi 6E support expanded from early adopters to become mainstream: more than 45% of households in developed markets now own compatible routers. Beyond speed, CPE manufacturers are integrating smart-home capabilities; embedded IoT radios (Zigbee/Thread) were included in around 30 million units by 2025. Operators are trialing AI-driven firmware to automatically optimize signal strength and bandwidth allocation, increasing average throughput by 15%. Mesh networking adoption is also on the rise, with mesh systems representing nearly 25% of new CPE deployments in North America and Europe by mid‑2025. Businesses and SOHO markets drove growth in secure routers and VPN-capable devices, which saw unit growth of 25% between 2023 and 2025. Meanwhile, emerging economies saw strong uptake of low-cost LTE and 5G CPE models—over 30 million such units shipped across Asia-Pacific between 2023 and 2025, extending broadband to rural and underserved communities. Overall, hardware modernization, multi-gigabit migration, smart-home and IoT integration, plus rural broadband expansion are defining the current market landscape.

Broadband CPE Market Dynamics

The Broadband CPE market is being influenced by several factors shaping both demand and supply-side dynamics. Uptake of fiber-to-the-home (FTTH) networks remains the primary force driving router and gateway deployment: 2024 saw more than 40 million new fiber connections globally, prompting telcos to upgrade CPE hardware accordingly. Simultaneously, average home broadband speeds reached 120 Mbps in 2025, pushing customers toward capable routers supporting QoS, MU-MIMO, and OFDMA. Elsewhere, smart-home integration is accelerating CPE feature sets; by mid-2025, approximately 30 million CPE units shipped with native IoT radios. On the supply front, manufacturers are benefiting from scale but are also facing higher component costs. Between 2023 and 2025, average router BOM costs rose by an estimated 12%, due in part to semiconductor shortages. Telcos in Asia-Pacific and Latin America deployed more than 30 million LTE/5G CPE modems over the same timeframe, expanding connectivity in rural regions. Service providers are also trialing AI-powered CPE, aiming to improve reliability and reduce support call volumes. However, challenges such as code fragmentation between vendor platforms, backward compatibility with legacy networks, and pressure on upgrade pricing are moderating profit expansion. Additionally, mesh networking is capturing share—accounting for 25% of new CPE shipments in 2025—requiring manufacturers to redesign hardware and software ecosystems. In essence, accelerated network evolution, consumer expectations for connectivity richness, rising hardware costs, and increasing software complexity define the current market dynamics.

DRIVER

Accelerated fiber broadband rollouts

Global FTTH connections exceeded 40 million in 2024. This expansion required broadband providers to deploy new CPE hardware—including gigabit routers and gateways—to capitalize on subscriber speed upgrades and enhance customer experience.

RESTRAINT

Rising component and logistics costs

Between 2023 and 2025, average CPE bill-of-materials costs increased by approximately 12%, fueled by semiconductor shortages and shipping constraints—pressuring manufacturer margins and sometimes slowing volume deployments in emerging markets.

OPPORTUNITY

Smart-home and IoT integration

By 2025, around 30 million CPE units shipped with embedded Zigbee or Thread radios. Integrating IoT hub functionality offers operators upsell opportunities through smart-home service bundles and recurring connectivity revenue.

CHALLENGE

Fragmented standards and backward compatibility

The Broadband CPE market faces challenges like rapid tech changes and high upgrade costs. Around 35% of existing devices become outdated within 3–5 years. Supply chain disruptions can delay shipments by 20%. Compatibility issues with new network standards affect 25% of users. Intense price competition cuts profit margins by 10–15%.

Broadband CPE Market Segmentation

The Broadband CPE market is structured by product type—modems and routers—and by application—telecom service providers and residential end-users. In 2024, modem shipments (including cable, DSL, and LTE) reached approximately 75 million units, with LTE/5G CPE comprising about 20 million of these. Router shipments—including standalone and integrated gateways—totaled 105 million units, of which nearly 35 million were dual-band Wi-Fi 6 or mesh-capable models. Telecom operators deployed over 40 million units in 2024 alone, subsidizing CPE as part of broadband plans. Meanwhile, consumer self-install router purchases rose by 18% from 2022 to 2024, driven by smart-home and gaming needs. Mesh router systems soared, representing 25% of router shipments in North America and Europe by mid‑2025. In the telecom segment, operators in developed markets focused on gateway upgrades with 2.5 Gbps WAN ports and advanced Wi-Fi radios. In contrast, budget LTE/5G modems—around 30 million shipped—served rural and emerging markets, bridging gaps where fiber is unavailable. Residential users also purchased multi-gigabit, Wi-Fi 6E routers—surpassing 25 million units by mid-2025—fuelled by work-from-home requirements. Overall, segmentation highlights simultaneous strength in traditional broadband through operator channels and fast-growing consumer upgrades driven by new services and network speeds.

By Type

Modems: In 2024, global modem deployments—encompassing cable, DSL, and LTE/5G—totaled approximately 75 million units. LTE/5G CPE made up about 20 million of these, driven by rural connectivity initiatives in Asia-Pacific and Africa. Modems are vital in bridging access gaps where fiber or cable is limited.
Routers: Router shipments reached 105 million units in 2024, with dual‑band Wi‑Fi 6 and mesh systems accounting for nearly 35 million units. Growth was propelled by consumer demand for better home Wi-Fi performance, gaming, and IoT integration. SOHO and enterprise-grade routers surged by 25% in production volume.

By Application

Telecom: Telecom operators were responsible for deploying over 40 million CPE units in 2024, bundling them with fiber or DSL subscriptions. In regions like Europe and North America, over 60% of FTTH subscribers received operator-supplied gateways featuring Wi-Fi 6 and managed firmware.
Residential: Residential users purchased roughly 30 million self-install routers in 2024, with a strong uptake of mesh and multi-gigabit models. High-demand users—such as gamers, streamers, and WFH professionals—drove the consumer CPE upgrade wave, representing nearly 30% of total router volumes.

Regional Outlook of the Broadband CPE Market

The regional landscape for broadband Customer Premises Equipment (CPE) reveals a fragmented yet dynamic market shaped by infrastructure maturity, technology adoption, and government initiatives, with Asia-Pacific commanding the largest share at around 41%—home to over 280 million installed CPE devices in 2023, largely driven by China, Japan, South Korea, India, and Australia; North America follows with approximately 30–35% of global demand, where nearly 49% of households use Wi‑Fi 6 routers or mesh systems and installed over 21 million CPE units in homes and businesses; Europe represents 21–30% share, supported by strong fiber expansion—over 29 million CPE deployments in 2023—and 38% of users shifting from DSL to fiber, prompting a 27% jump in FTTH-compatible device demand; Latin America and Middle East & Africa collectively account for around 13–14% of market share, with mobile broadband CPE adoption high (34% in Asia-Pacific, 36% in MEA), and regions like Saudi Arabia, UAE, Brazil, Mexico, and South Africa driving mobile-first and fixed-wireless access; while North American cable CPE investment dipped 25% year-over-year in Q1 2024 due to subscriber churn and inventory pressure, fixed wireless access (FWA) CPE shipments overtook cable in Q2 2024, with 5G mmWave FWA projected to grow by 22%. Regional differences in suburban vs. rural deployment, regulatory support, and tech maturity continue to influence product types—fiber, DSL, wireless—and drive demand for smart, energy-efficient, multi-band, and 5G-capable CPE devices in households, enterprises, and public sectors.

North America

North America represented approximately 28% of global CPE shipments in 2024, with 50 million units deployed. A surge in Wi-Fi 6 routers saw household penetration rise to 42%. Telecom operators added over 8 million FTTH lines in 2024, driving new equipment deployment.

Europe

Europe accounted for 35% of CPE shipments in 2024—around 63 million units. Robust broadband policy and fiber rollouts supported widespread deployment of multi-gigabit routers. Mesh systems made up nearly 28% of router shipments in top-five EU countries.

Asia-Pacific

Asia-Pacific recorded approximately 30% of global CPE units in 2024—about 54 million. LTE/5G CPE solutions dominated rural deployments, with over 18 million units shipped. Fiber broadband expansion in China and India added 15 million new households, spurring commercial-grade CPE adoption.

Middle East & Africa

Middle East & Africa accounted for 7% of shipments—roughly 13 million units in 2024. Subsidized LTE 4G/5G CPE accounted for 60% of regional deployment. Pipeline fiber projects in Gulf states and South Africa are expected to expand operator-supplied gateway installations over the next five years.

List of Top Broadband CPE Market Companies

Huawei (China)
CommScope (USA)
ZTE (China)
Nokia (Finland)
Technicolor (France)
Sagemcom (France)
Motorola (USA)
Gemtek (China - Taiwan)
TP-Link (China)
Fiberhome (China)

Huawei: A global leader in both fixed and wireless CPE solutions, Huawei shipped over 35 million home gateways and enterprise routers in 2024. Their fiber, DSL, and LTE/5G portfolio is deployed with major operators across Asia, Europe, and Africa.

CommScope: A major U.S.-based provider of broadband CPE hardware and infrastructure, CommScope delivered more than 18 million fixed CPE units worldwide in 2024, including DOCSIS 3.1 cable modems and GPON gateways, supporting large North American and Latin American ISP deployments.

Investment Analysis and Opportunities

Investment in broadband CPE is directly correlated to network rollouts and consumer upgrade cycles. Between 2022 and 2025, telecom operators and device manufacturers allocated over USD 35 billion toward hardware upgrades, focusing on Wi-Fi 6, multi-gigabit capabilities, and mesh networking. Notably, private equity and venture investment in smart-CPE startups reached USD 250 million between 2023 and 2025. With FTTH expansions adding over 40 million new fiber connects in 2024, operators are incentivized to subsidize higher-end CPE to support premium plans. Similarly, rural connectivity programs in emerging nations have driven deployments of over 30 million LTE/5G modems in the same period. Bundling IoT and edge-compute features into CPE unlocks new service revenue and tariff tiers. Furthermore, AI-powered self-optimizing routers are attracting interest, with several trials underway in North America and Europe; early trials show up to 15% performance gain and 30% fewer support calls. Mesh networking adoption offers opportunities for upselling multi-unit systems, with a growing base of premium residential customers. However, margin pressure from rising component and freight costs, as well as increasing competition in ODM space, present challenges. Software differentiation via dashboard, app integration, and security features are key differentiators and investment focus areas. Finally, industrial and SOHO CPE—such as VPN-capable routers—offers growth around hybrid work infrastructure. Overall, investment linked to connectivity upgrades, smart-service bundling, and emerging form factors will underpin future CPE innovation and revenue.

New Product Development

Between 2023 and mid‑2025, the broadband CPE market saw notable product innovation focused on performance, intelligence, and service versatility. Leading manufacturers introduced tri-band Wi‑Fi 6E routers, with embedded 2.5 Gbps WAN ports and 8‑stream radios, hitting over 10 million units shipped in 2024. Mesh systems with automatic channel steering and app-based installation now represent nearly 25% of advanced router sales. LTE/5G CPE devices incorporating SIM slots and Wi-Fi 6 are empowering rural broadband solutions, with over 12 million units shipped across Asia-Pacific by 2025. AI-enhanced firmware rolled out in limited consumer trials, showing a 15% improvement in throughput and latency. Smart-home hub integration with Zigbee/Thread radios became standard in about 30 million units, enabling providers to bundle IoT services. Meanwhile, edge-computing capable CPE gateways—including ARM-based SoCs and docker container support—were piloted by telecom operators, enabling localized content delivery and analytics. VPN-enabled SOHO routers with built-in security features saw 25% shipment growth. Self-installed multi-gigabit gateways captured high-end segment share, with around 5 million units deployed by early 2025. Collectively, these innovations reflect the drive toward high-speed, intelligent, and converged CPE solutions.

Five Recent Developments

Huawei introduced a tri-band Wi‑Fi 6E gateway with embedded AI QoS firmware in early 2025.
CommScope launched DOCSIS 4.0-compatible modem models in 2024, supporting 10 Gbps downstream.
ZTE shipped 8 million LTE/5G CPE units across Southeast Asia in mid‑2024.
Technicolor rolled out mass-market mesh router kits in Europe, driving a 28% share of mesh deployments.
TP‑Link launched its first edge‑compute capable router platform with IoT SDK support in 2025.

Report Coverage of Broadband CPE Market

This comprehensive report tracks broadband CPE market developments from 2024 to 2033. It details shipment metrics—180 million CPE units in 2024, including 75 million modems and 105 million routers—alongside regional deployment (Europe 63 million units, Asia-Pacific 54 million, North America 50 million, MEA 13 million). It examines technology transitions to fiber and Wi-Fi 6 platforms, operator hardware upgrade cycles, and emerging LTE/5G use cases. Innovation coverage includes tri-band routers, mesh platforms, smart-home integration, AI-powered firmware, and edge‑compute gateways. Financial analysis outlines a USD 35 billion investment from 2022 to 2025 in CPE hardware and software development. Regulatory and policy factors driving rural broadband deployment are described. Company profiles highlight top providers and ODM dynamics. Segment-level insights include telecom vs residential adoption, customer-owned vs operator‑supplied equipment, and SOHO vs consumer-grade hardware. The report also addresses challenges such as rising component costs, supply-chain bottlenecks, standard fragmentation, and competitive pricing pressure. Finally, future outlook considers AI-based CPE firmware, modular hardware architecture, Internet of Things integration, and multi-gigabit subscription plans through 2033.