Passive Optical Network (PON) Equipment Industry and Market Studies Research Report by 2023

The report segments the market based on components which includes optical cables, optical power splitters, optical filters and wavelength division multiplexer/de-multiplexer.


Albany, NY -- (SBWIRE) -- 11/01/2016 -- Global passive optical network (PON) equipment market was valued at USD 24.81 billion in 2014, increasing at a CAGR of 20.7% from 2015 to 2023. PON is a fiber optic network which provides connection from one point to multiple points. PON is a fiber to the premises network which offers several connections through a distinct optical fiber and unpowered splitters. Optical splitters are energy efficient and do not necessitate power for transmission of signal. The split ratio of passive optical network depends on its usage in terms of its structure such as Ethernet passive optical network (EPON) and Gigabit passive optical network (GPON).

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The major driving factors of the global passive optical network equipment market are low cost of ownership and the high return on investments. In addition, higher bandwidth, unmatched security and greater reliability are set to bolster the growth of PON globally. Moreover, increasing digitization, coupled with mass adoption of smart and connected digital devices by businesses, governments and consumers is set to boost the growth of this market. Increasing advancements in networking technologies coupled with growing awareness regarding eco-friendly solutions in Asia Pacific is expected to create significant opportunity for the growth of PON equipment market in the future. However, high initial investments and high component cost at operator's interface is set to restrain the growth of the market.

The global PON equipment market has been segmented on the basis of components into optical cables, optical power splitters, optical filters and wavelength division multiplexer/de-multiplexer. Wavelength division multiplexer/de-multiplexer accounted for the highest market share of 48.67% in 2014.

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Gigabit passive optical network (GPON) equipment is anticipated to attain larger revenue, vis-à-vis Ethernet passive network (EPON). GPON offers lower consumption of power, advanced security and higher bandwidth allocation. Moreover, less number of active switching devices are used in the GPON network. The maximum downstream rate provided by GPON equipment is 2.4 Gbps and is largely used for government projects. Thus, GPON is expected to witness significant growth rate over the forecast period from 2015 to 2023.

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GPON optical network terminals (ONTs) held the highest market share in 2014 due to massive growth in gigabit passive optical network. GPON's efficient and advanced networking technology has driven the demands for its components: ONT and OLT.