Passive Optical Network (PON) Market Report

Passive Optical Network (PON) Market Analysis By Structure (GPON, EPON, WDM-PON), By Component (OLT, ONT), By Application (FTTx, Mobile Backhaul), By Region (North America, Europe, Asia Pacific, Latin America, MEA), And Segment Forecasts, 2014 - 2025

Published: December 2016  |  95 Pages  |  Format: PDF  |  Report ID: 978-1-68038-853-4

Industry Insights

The global Passive Optical Network (PON) market size was valued at USD 5.83 billion in 2015. Increasing development in the network technologies and the growing need for a faster network are expected to fuel the market growth in 4G carriage services.

The increasing penetration of telecom and internet services with the growing demand for bandwidth has enhanced the demand for Gigabyte Passive Optical Network (GPON) equipment over the forecast period. Data-intensive services, such as video on demand, videoconferencing, and Voice over Internet Protocol (VoIP), are expected to boost the requirement for developing Ethernet Passive Optical Network (EPON) equipment.

Germany PON market by application, 2014 - 2025 (USD Billion)

Germany PON market

The growing awareness on global warming has led to an increased demand for eco-friendly solutions in worldwide as compared to other traditional networks. Furthermore, the rising demand for safe, secure and reliable operation and increasing digitization are also expected to contribute to the market demand.

Increasing fiber-to-the-home deployments for fast access to data, videos, voice and services, and the growing demand for the high-speed network at home for accessing smart systems are also contributing to the growth. The growing penetration of smart grids, e-governance service, and cloud computing is further expected to drive demand over the forecast period.

However, the high installation cost at the operator’s interface and short range of technology can hamper the industry growth over the forecast period. Furthermore, the bandwidth of data is not declared to the individuals, which can slow down the transmission speed during the peak usage times.

Structure Insights

Based on the structure, the market is segmented into GPON, EPON, and WDM-PON. GPON utilizes the optical wavelength division multiplexing and a single fiber can be used for both upstream and downstream data. The segment is expected to witness growth over a CAGR of 20% over the forecast period.

EPON utilizes Ethernet packets and is the primary networking technology that is utilized in LANs and is expected to grow significantly over the forecast period. WDM-PON is a non-standard optical network, which is developed to separate Optical Network Units (ONUs) into various virtual networks existing on same physical infrastructure.

Component Insights

The component segment is categorized into Optical Line Terminal (OLT) and ONT. The ONT segment is further segregated into ONU and splitters. OLT is the endpoint hardware device and contains a central processing unit, gateway router, passive optical network cards, and voice gateway. OLT is utilized to transfer a data signal of 1490nm to users and can serve up to 128 ONT at a range of up to 12.5 miles using optical splitters.

The ONT segment is projected to witness a significant growth of over a CAGR of 21% from 2016 to 2024. While OLT is placed at the central site of the service provider, ONT is placed at the end-user premises. EPON and GPON both use ONT and OLT.

Application Insights

The PON market application segment is categorized into Fiber to the x (FTTx) and mobile backhaul. Fiber to the x (FTTx) is a term used for broadband network architecture using the optical fiber deployment. Furthermore, FTTx is segmented into Fiber-to-the-home (FTTH), Fiber-to-the-building (FTTB), and Fiber-to-the-curb/cabinet (FTTC). The growing demand for high-speed internet at home for accessing smart systems as well as the growing penetration of smart grids, e-governance service, and cloud computing are expected to drive demand over the forecast period.

The market for mobile backhaul is expected to grow significantly over the forecast period. The mobile backhaul solutions are developed and implemented through satellite communication infrastructure.

PON market by application, 2015

PON market

Regional Insights

The European market is expected to contribute significantly to the growth of PON industry over the forecast period. The growth is attributed to the governmental involvement in the region as a financial backer as well as a partner. The regional government plays an important role in the development of a robust ecosystem of industry players, products, and services in addition to creating awareness for PON services.

The Asia Pacific PON market is also expected to witness significant growth over a CAGR of 20% over the forecast period owing to increasing demand for higher bandwidth from countries such as Japan, India, and China. Increasing research and development investment and internet data usage are also anticipated to fuel the regional growth.

Competitive Insights

The service providers in the industry are majorly focused on developing technology for improved quality fiber used in the network architecture. With increasing competition in the industry, the industry players are engaged in offering simplified operations for further industry growth. The major competitors include Mitsubishi Electric Corp., Tellabs Inc., Hitachi Ltd., Verizon Communications Inc., Freescale Semiconductor Inc., and Sumitomo Electric Networks Inc.

Report Scope

Attribute

Details

Base year for estimation

2015

Actual estimates/Historical data

2014 - 2015

Forecast period

2016 - 2025

Market representation

Revenue in USD Billion & CAGR from 2016 to 2025

Regional scope

North America, Europe, Asia Pacific, Latin America & MEA

Country scope

U.S., Canada, UK, Germany, Japan, China, India, Brazil, Mexico

Report coverage

Revenue forecast, company share, competitive landscape, growth factors and trends

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Segments Covered in the Report

This report forecasts revenue growth at global, regional & country levels and provides an analysis of the latest trends and opportunities in each of the sub-segments from 2014 to 2024. For the purpose of this study, Grand View Research has segmented the passive optical network market on the basis of structure, component, application and region:

  • Structure Outlook (Revenue, USD Billion; 2014 - 2025)

    • GPON

    • EPON

    • WDM-PON

  • Component Outlook (Revenue, USD Billion; 2014 - 2025)

    • ONT

    • OLT

  • Application Outlook (Revenue, USD Billion; 2014 - 2025)

    • FTTx

    • Mobile Backhaul

  • Region Outlook (Revenue, USD Billion; 2014 - 2025)

    • North America

      • U.S.

      • Canada

    • Europe

      • Germany

      • UK

    • Asia Pacific

      • China

      • Japan

      • India

    • Latin America

      • Mexico

      • Brazil

    • Middle East and Africa

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