Passive Optical Network (PON) Vendors to Capitalize on Growing Need for Higher Bandwidth, GPON To Be The Future

Passive optical network (PON) is a fiber to the premises (FTTP) network structure. The goal of the network is to provide a solution which is easy to install, maintain and upgrade. This is done by using optical splitters in PON which enables a single fiber to deliver services to multiple premises. PON comprises an optical line terminal at the site of the service provider and numerous optical network units near end users. It is considered an eco-friendly alternative vis-à-vis conventional network, due to usage of unpowered optical splitters.

GPON devices provide high-speed video, data and voice services to residential and business subscribers. Reliability and long-reach connectivity further strengthens the extremely high bandwidth of GPON technology. It also reduces the number of active switching devices implemented in a computer network. Moreover, GPON has been a major advancement for defense services, primarily due to advanced security and high bandwidth provided by the network.

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About 80% of the PON equipment revenue generated in 2014 was taken up by Huawei Technologies Co., Ltd., ZTE Corporation, Alcatel-Lucent S.A., and Calix, Inc, reports Transparency Market Research (TMR) in a new study. These companies have consistently dominated the PON equipment scenario, thus creating a highly consolidated market.

Most of the key players are currently looking towards emerging economies for the implementation of better connectivity solutions. Other aspects they are promoting are cost reductions in deployment and the growth of access networks for better revenue generation avenues.

TMR states that a lot of the player focus is also driven towards GPON equipment because the GPON structure presents several advantages over the EPON structure as well as multiprotocol transport support. EPON technology, however, still offers a more cost-effective solution for many regional players in emerging economies.

APAC Holds Key Opportunities in PON Equipment Through Improved Connectivity Initiatives

“Asia Pacific is currently a hotbed of activities in networking and connectivity,” states a TMR analyst. “China and India especially are showing a very high demand for passive optical networks. India for instance is planning to introduce OFC connectivity between all its villages. The spread of dark fiber across the Indian network is set to generate significant opportunities for regional and global players alike.”

China is currently going through a very high adoption rate of electronic devices, thereby creating high volumes of data being transmitted across networks. This high volume data traffic is actually causing users to switch from their currently wireless modes to wired – specifically optically wired – networks.

APAC PON Demand at All-time High, will Continue to Grow

The global passive optical network (PON) equipment revenue generation is expected to progress at a highly positive CAGR of 20.7% within a forecast period from 2015 to 2023. The revenue is expected to reach US$163.50 bn by the end of 2023.

WDM/WDDM is currently the largest PON equipment component and is expected to generate a revenue of US$78 bn by the end of 2023 while still retaining its market leadership. Both GPON and EPON structures are expected to grow at an extremely fast rate with GPON being the more preferred structure. It is expected to reach US$114.84 bn by the end of 2023.

The information presented in this review is based on a Transparency Market Research report, titled, “Passive Optical Network (PON) Equipment Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2015 – 2023.”
Report - http://www.transparencymarketresearch.com/pon-equipment-market.html

Asia Pacific will consistently generate the highest demand for PON equipment between 2016 and 2023. By the end of 2023, it is expected to reach US$63.01 bn, marking itself as the region with the most opportunities.

Key Takeaways:

Asia Pacific PON revenue expected to reach a sizeable US$63.01 bn by 2023.
GPON revenue expected to be more than twice that of EPON, to reach US$114.84 bn by 2023.
Heavy preference for WDM/WDDM expected to set its revenue on track to touch US$78 bn by 2023.

Transparency Market Research (TMR) is a global market intelligence company, providing global business information reports and services. Our exclusive blend of quantitative forecasting and trends analysis provides forward-looking insight for thousands of decision makers. TMR’s experienced team of Analysts, Researchers, and Consultants, use proprietary data sources and various tools and techniques to gather and analyze information.

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This release was published on openPR.