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The global passive optical network (PON) equipment market is led by some of the leading companies including Huawei Technologies Co., Ltd., Alcatel-Lucent S.A., Calix, Inc, and ZTE Corporation. In 2014, these four leading companies collectively accounted for nearly 80% of the global passive optical network (PON) equipment market. This global market has been consistently dominated by the top four leading companies, which is why the market has become consolidated in nature. A majority of the leading companies operating in the global passive optical network (PON) equipment market are focusing on the emerging economies to implement enhanced connectivity solutions. Transparency Market Research, in its new report, states that key manufacturers of passive optical network equipment are currently focusing on minimizing the cost of deployment of the PON equipment. Companies are also focusing on the growth of various access networks for improved revenue generation avenues.The global passive optical network (PON) equipment market is predicted to reach US$163.50 bn by 2023. By region, Asia Pacific is predicted to dominate the demand for passive optical network equipment. “The Asia Pacific passive optical network equipment market is expected to reach US$63.01 bn by 2023,” reports a TMR analyst. The demand for PON structures is expected to increase in Asia Pacific owing to the network implementations of India and China. Particularly, in the recent years, China has played the leading role in generating the demand for PON equipment. The increasing volumes of information that are being transferred across numerous networks allowed China to generate the maximum demand for PON equipment.
GPON to Favor over EPON in Future
By structure, the gigabit passive optical network segment is expected to lead the global passive optical network (PON) equipment market in the coming years. This segment is predicted to hold 70.24% of the global passive optical network (PON) equipment market by 2023, states a TMR analyst. Based on component, the global passive optical network (PON) equipment market was dominated by the wavelength division multiplexer/ de-multiplexer (WDM/WDDM) segment. This segment is expected to reach US$78 bn by 2023.
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Demand for Eco-friendly Networks Continues to Increase
As the awareness of global warming has spread geographically across all emerging nations, the demand for the environment-friendly solution is consistently increasing. The demand for eco-friendly substitutes is expected to increase as compared to the other traditional networks. The increasing digitization and the rising demand for secure, safe, and reliable network operation are two of the other factors expected to contribute towards the growth of the global passive optical network (PON) equipment market.
Component Cost to Remain High for a Few Operators
High cost linked with the operators’ component still remains as the primary factor that could restrict the growth of the global passive optical network (PON) equipment market throughout the forecast period. The more the PON equipment get developed, higher will be the initial cost. Fiber trenching also grabs a significant chunk of the total investment of service providers and requires a high initial capital investment, which is another factor expected to hamper the growth of the global passive optical network (PON) equipment market. However, investing high cost initially on the deployment of PON equipment can prove beneficial in the future.
Growth of Use of PON Equipment in Emerging Nations to Benefit Key Companies
The growing use of passive optical network equipment in most of the emerging nations is likely to benefit the global passive optical network (PON) equipment market over a period of time. The significant growth of the adoption of PON equipment in Asia Pacific is a key boost for the global market.
This information is based on the findings of a report published by Transparency Market Research titled “Passive Optical Network (PON) Equipment Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2015-2023.”
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The global passive optical network (PON) equipment market is segmented as follows:
Global passive optical network (PON) equipment market: by components
Optical cables
Optical power splitters
Optical filters
Wavelength division multiplexer/de-multiplexer
Global passive optical network (PON) equipment market: by structure
Gigabit passive optical network (GPON)
Ethernet passive optical network (EPON)
Global gigabit passive optical network (GPON) equipment market: by components
Optical Network Terminal (ONT)
Optical Line Terminal (OLT)
Global Ethernet passive optical network (EPON) equipment market: by components
Optical Network Terminal (ONT)
Optical Line Terminal (OLT)
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