Passive Optical Network (PON) Market 2014 Analysis and Technological Innovation by Leading Key Players 2025

The global Passive Optical Network (PON) market was estimated at USD 5.83 Billion in 2015 and is projected to grow significantly over the forecast period. Growing demand for digitization and secure and reliable network operation is expected to drive the market growth.

Increasing requirement for faster and uninterrupted network and rising expansion in the network technologies is further projected to augment the industry growth.

Furthermore, growing demand for optimized bandwidth connectivity and increasing penetration of internet and telecom services will positively benefit the industry growth over the forecast period. This will further boost the gigabyte PON technology in the industry.

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Growing FTTH deployments for faster access to videos, voice and other services and increasing demand high-speed network for accessing smart systems at home is also projected to enhance the market growth.

Furthermore, the increasing penetration of e-governance service, smart grids, and cloud computing will fuel the industry growth over the forecast period.

Few other factors accountable for the technology growth in the market includes growing fiber to the home (FTTH) requirements, high return on investments, rising growth in IP traffic, and low cost of ownership.

The technology assists in reducing the operating expenses since it needs less installation time, with higher reliability and also helps the telecom companies for faster voice, data and other services.
The market is categorized into structure, component and application.

Based on the structure, PON is segregated into Gigabyte Passive Optical Network (GPON), Ethernet Passive Optical Network (EPON) and Wavelength Division Multiplexing Passive Optical Network (WDM-PON).

GPON is estimated to acquire the share of over 60% of the market in 2015 and is expected to grow steadily over the forecast period.
GPON utilizes the encapsulation method and a single fiber can be used for downstream and upstream data.

Based on the component, the industry is segregated into Optical Line Terminal (OLT) and Optical Network Terminal (ONT).
ONT is further categorized into Optical Network Unit (ONU) and splitters. ONT is accounted for major share in the market and is also expected to witness enormous growth over the forecast period.

ONT is placed at the end-user premises and while OLT is placed at the central site of the service provider.
Global PON Market Revenue, By Structure, 2014– 2025 (USD Billion)

The PON market application is segregated into Fiber to the x (FTTx), mobile backhaul. FTTX is further categorized to Fiber to the home (FTTH), Fiber to the building (FTTB), and Fiber to the cabinet/curb (FTTC).
FTTx is used for broadband network architecture for optical fiber deployment. FTTH applications is attaining major share within telecommunication operators and is projected to boost the industry growth.

Increasing data traffic has led to the advancement in technology structure for enabling higher capabilities and is anticipated to spur the industry demand. Additionally, the presence of robust optical network setup and increasing demand for conservation of energy are expected to drive the market growth.

Increasing investments in R&D from both the public and private entities for enhancing the efficiency and connectivity will also enhance the market growth.
Europe PON market region is estimated to acquire significant market share owing to increasing investments from government, and rising demand for passive optical network equipment is further projected to enhance the market growth.

Asia Pacific region is also projected to grow significantly over the forecast period. The factors attributing growth of the region include increasing number of internet users, rapid network implementations in India and China, and increasing demand for greater bandwidth in the emerging economies such as Japan, India and China.

Key competitors include Freescale Semiconductor, Inc., Mitsubishi Electric Corporation, Adtran Inc., Ericsson Inc., Verizon Communications, Inc., and Huawei Technologies Co., Ltd.

The key players adopt various strategies to maintain the position in the industry. The strategies include partnership & collaboration, product launch, acquisition, R&D and expansion.

Merger & acquisition is considered to be one of the most adopted strategies amongst the players which further help in expanding the market share.• Electronics

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