Capital expenditure (CAPEX) reduction and efficient wavelength allocation are critical for the future access networks. Elastic lambda aggregation network (EλAN) based on WDM and OFDM technologies is expected to realize efficient wavelength allocation. In this paper, we propose adaptive bandwidth allocation (ABA) algorithm for EλAN under the conditions of crowded networks, in which modulation format, symbol rate and the number of sub-carriers are adaptively decided based on the distance of PON-section, QoS and bandwidth demand of each ONU. Network simulation results show that the proposed algorithm can effectively reduce the total bandwidth and achieve steady high spectrum efficiency and contribute to the further reduction of CAPEX of future optical access networks.