GPON (Gigabit Passive Optical Network) Equipment Market to 2024 with Huawei, Alcatel-Lucent, ZTE, Cisco, Fiber Optic Telecom, Calix, Zhone Technologies, Hitachi, Motorola Solutions, Ericsson, Ubiquoss, Mitsubishi dominating

The Asia Pacific region dominated the GPON equipment market in 2017 due to the rising adoption of the internet from countries, mainly including Japan, China, and India. There is also a higher bandwidth requirement along with enhanced investments in R&D, driving the market growth. North America is also a leading region in the global GPON equipment market. A highly developed optical network infrastructure and the rising adoption of the FTTx applications are the major factors supporting the market.

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The GPON equipment market has penetration into different types including the optical line terminal, optical network terminal, and passive optical splitters. The optical network terminal is projected to hold the highest market share as it is an essential hardware connected at the user’s premise for transmitting data through GPON. The growing demand for internet along with an increase in IP traffic has augmented the growth of optical network terminal in the GPON equipment market.

GPON Equipment Market size is growing at a fast rate in the coming years due to advancements in the GPON technology and the growing adoption of Next-Generation Passive Optical Network 2 (NG-PON2) for 5G-based mobile networks. The demand for a higher bandwidth is mounting rapidly due to increasing adoption of online gaming, video streaming, content sharing, and social media, pushing the requirement for higher bit rates. GPON has 1.2 Gbps upstream capacity and 2.4 Gbps downstream capacity, enabling variable length larger packets to transmit the data and provide a higher quality to video and voice traffic.

GPON equipment consists of passive optical splitters for providing enhanced network connectivity and lowering the network cost & power consumption. It allows a single fiber to split into numerous different signals, making it cheaper and easier to construct. It is a cost-effective technology used for the deployment of Fiber to the Home (FTTH), Fiber to the Business and Fiber to the Building (FTTB), offering a higher efficiency and bandwidth as compared to the Passive Optical Network (PON). Furthermore, it also supports triple play services including voice, data, and video. It is developed to carry both data services and analog Plain Old Telephone Networks (PTOS), delivering high speed, security, long life, and low-cost network infrastructure, driving the demand.

Mobile networks have become a popular source for accessing remote content, making the mobile backhaul networks critical for maintaining the health of the entire mobile network infrastructure. The GPON mobile backhaul network provides frequency synchronization capabilities due to its point to multipoint architecture. One Optical Line Terminal (OLT) port can control up to 64 Optical Network Terminals (ONTs), reducing power and space utilization, thereby enhancing the usage of GPON equipment.

Despite the strong inclination of the customers toward the GPON equipment market, there are still certain issues, which will hamper the growth. The equipment has a lesser range compared to the active optical networks, necessitating the users to be nearer to the connection point. The data transmission speed is also projected to reduce during the peak usage period, creating challenges to video and audio streaming. Moreover, complexities related to the deployment and integration can also restrict the GPON equipment market growth.

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GPON equipment solutions are adopted in various application verticals including healthcare, telecommunication, transportation, residential, energy and utilities, and commercial industries. The telecommunication segment is anticipated to hold a high market share due to the growing high-capacity requirements. Various companies are also investing funds in the space to enhance their product offerings and serve a larger industrial base. For instance, Moscow’s landline telecom provider, MGTS has invested USD 2 billion in its GPON network. In June 2016, MGTS entered into an agreement with Russia Towers to connect its base stations to the MGTS GPON.

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The GPON equipment market is characterized by the presence of both multinational and regional players. The key players operating in the market include Huawei, Alcatel-Lucent, ZTE, Cisco, Fiber Optic Telecom, Calix, Zhone Technologies, Hitachi, Motorola Solutions, Ericsson, Ubiquoss, and Mitsubishi. The companies are investing funds in the R&D to expand their product offerings and deliver an enhanced customer experience. For instance, in January 2018, Tejas Networks, an India-based data networking and optical products company, installed GPON equipment in around 40,000 Indian local government institutions to provide enhanced speed broadband connectivity to around 250,000-gram panchayats throughout the country. The company has made significant investments in the R&D to develop products precisely suited for India and other developing regions.

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