The global Passive Optical Network (PON) market is expected to reach USD 43.43 billion by 2025, according to a new report conducted by Grand View Research, Inc. Passive optical network equipment offers higher efficiency with better bandwidth and utilizes larger variable length packets. The telecom operators in the industry are transitioning their switches from fiber to the business to the fiber to the home and fiber to the building rollouts leading to the growth of PON equipment.
The equipment market is consolidated in nature with few major players dominating their presence in the market. Hence, mergers and acquisitions and strategic alliances are formed to recognize the transformational value of the products associated. The advancements in the networking technologies have led to the development and adoption of optical network services.
Furthermore, the increasing focus of players on upgrading the existing networks to PON for higher broadband speed and the growing number of connected devices both outside and inside the residential complexes is anticipated to proliferate the industry.
The increasing demand for energy conservation and strong optical network setup is expected to fuel the market growth. Emerging regional markets, such as Asia Pacific, offer strong growth opportunities for the technology owing to intensive bandwidth applications.
Increasing R&D and investments from private and public sectors along with factors such as exceeding data traffic are projected to be the key drivers for the industry. The North American and European regions captured a market share of over 50% owing to increasing use of passive optical network equipment.
However, short range on the operator’s premises and high installation cost at the are likely to hinder the market growth over the forecast period.
Further key findings from the report suggest:
- Passive optical network is gaining attention in the market owing to the ability to implement a point-to-multipoint architecture
- The GPON based equipment is projected to dominate the market with a CAGR of over 20% over the forecast period
- Fiber-to-the-home (FTTH) applications of the market are gaining traction owing to the increasing adoption among the telecom carriers
- The Asia Pacific market is expected to witness significant growth owing to increasing investments in research infrastructure
- The major industry players in the PON market include Huawei Technologies Co. Ltd., Calix Inc., Alcatel-Lucent S.A., and ZTE Corporation