Albany, NY -- (SBWIRE) -- 09/30/2015 -- Passive optical networks are a telecommunication structure. It is a fiber for FFTH/FFTP architecture that serves multi-premises by the medium of optical splitters and a single optical fiber. Optical fiber splitters do not need electricity for transmission of signals, which makes it an energy-efficient technology. In addition, reliability, security, higher bandwidth, and eco-friendly features are the key advantages provided by this technology.

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In 2013, the global passive optical network (PON) equipment market was valued at US$3.97 billion and is estimated to touch US$13.57 billion by the end of 2019. The global PON equipment market is projected to grow remarkably at a 22.7% CAGR between 2013 and 2019.

The safe, simple, and reliable network operations, green network solutions, growth of the PON equipment market in Asia Pacific and Europe, low cost of ownership, and the high return on investment are some of the factors anticipated to boost the demand from the global passive optical network equipment market in the coming years. On the flip side, operational hurdles and the high cost of installation are the restraining factors for the growth of the PON equipments market in the near future.

GPON to Lead the Global PON Equipment Market in the Near Future Due to Low Power Consumption

On the basis of structure, the global passive optical network equipment market has been divided into ethernet passive optical network and gigabit passive optical network.

In 2013, gigabit passive optical network held the largest market share. The dominance of this segment can be attributed to several benefits associated with it, such as low power consumption and higher bandwidth allocation. Moreover, gigabit passive optical network equipment provides additional benefits such as advance security and few active switching devices. As a result, the gigabit passive optical network segment is anticipated to grow substantially between 2013 and 2019.

Furthermore, both ethernet and gigabit passive optical network equipments markets have been segmented into optical line terminal (OLT) and optical network terminal (ONT).

In 2013, the ONT segment held the largest market share due to the growth of the gigabyte passive optical network market across the globe. As ONTs are components located at the subscriber's end, the number of subscribers is equivalent to the number of ONTs. In 2013, gigabit passive optical network was an innovative and advanced networking technology, owing to which the ONTs associated with it accounted for the largest market share.

Asia Pacific Led the Global PON Equipment Market in 2013 Due to High Internet Penetration

The global passive optical network equipment market has been geographically segmented into broad regions such as Asia Pacific, Europe, North America, and RoW (Rest of the World).

In 2013, Asia Pacific dominated the global passive optical network equipment market in terms of revenue, owing to the increasing internet penetration in several countries such as Japan, Taiwan, India, and China. The bandwidth demand in these countries has increased massively in the last few years. Moreover, the development of infrastructure and huge investment in research and development in the area of PON equipment market is propelling the growth of this market in the near future.

Europe and North America account for more than half of the global passive optical network equipment market, owing to the increased use of PON equipment and strong optical network setup in these two regions.

The prominent players operating in the global passive optical network equipment market include Ericsson Inc., Calix Inc., Huawei Technologies Comp., Freescale Semiconductor, Inc., AT & T Inc., Verizon Communications Inc., Mitsubishi Electric Corporation, Motorola Solutions, Inc., Broadcom Corporation, Inc., Adtran Inc., ECI Telecom, Alcatel-Lucent S.A., amd Hitachi Communication Technologies, Inc.

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