Passive Optical Network Equipment Market is to grow at a 10.27 % CAGR, with the United States leading the market through 2030

Passive Optical Network Equipment Market to Hit USD 58.25 Bn by 2030

The Passive Optical Network Equipment Market was USD 29.38 Bn in 2023 and is expected to expand at a compound annual growth rate (CAGR) of 10.27 % from 2023 to 2030, reaching USD 58.25 Bn by 2030. PON technologies like GPON (Gigabit Passive Optical Network) and XG-PON (10 Gigabit Passive Optical Network) can provide scalable, high-speed, and low-latency broadband connections, they are being used more and more to meet customer demands for faster internet speeds. The market is being driven by the introduction of NG-PON technologies like TWDM-PON and XGS-PON. North America accounted for around 36.7% of the worldwide PON equipment market share in 2024, with the US and Canada being the two biggest contributors.

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Passive Optical Network Equipment Market Segmentation

By Structure: Based on the Ethernet standard, EPON is a high-performance fiber-optic access solution. EPON can transmit data at high speeds, it may be used in the home, office, and commercial settings. In PON networks, GPON is another well-known technology that is utilized to provide end customers with high-speed broadband services including phone, video, and the internet. Data speeds of up to 1.25 Gbps upstream and 2.5 Gbps downstream are supported by GPON.

By Component: WDM technology allows several data streams to flow concurrently on a single fiber, increasing the capacity of optical fibers. Optical filters reduce noise and filter out undesirable wavelengths to assist retain high-quality transmissions. The optical signal is broken up into several output signals by optical power splitters. Optical cables offer much higher bandwidth than copper cables.

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Passive Optical Network Equipment Market Regional Analysis

The United States PON market was estimated to be worth USD 14.07 billion in 2023 and is expected to grow at a CAGR of 14.6% from 2024 to 2032, reaching USD 47.96 billion. The United States is a major player in the worldwide PON market, with a projected 34.5% market share in 2023. Cisco Systems, Inc., Huawei Technologies Co., Ltd., and Nokia Corporation are the key players that dominate the market.

Germany is seeing a move toward more sophisticated PON technologies, such as 10G-EPON and Gigabit Passive Optical Network (GPON). Initiatives like "Digital Germany 2025" and the German government's emphasis on digital infrastructure are meant to improve broadband access throughout the nation by encouraging the use of PON and fiber-optic networks.

Taiwanese multinational corporation involved in the telecom and networking industries is Acer. As part of its broadband offerings, Chunghwa Telecom, one of Taiwan's top telecom providers, offers PON solutions. The Japanese manufacturer and supplier of PON is Fujitsu, which has a significant presence in Taiwan.

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Passive Optical Network Equipment Market Competitive Landscape

Huawei Technologies Co., Ltd.: Huawei made a big acquisition when it bought the bulk of the U.S. networking business 3Com. Huawei acquired the UK-based business Tideway. To develop 5G technology, Huawei partnered with Deutsche Telekom.

ZTE Corporation: New Jinan Optoelectronics Technology was acquired by ZTE. ZTE acquired Telsima, a company that offers wireless broadband solutions. ZTE invested in Huaxia ZTE, a division dedicated to creating cutting-edge integrated circuit (IC) designs.

Conclusion

PON will be essential in supplying the backhaul and last-mile connection required for 5G and smart city projects as they spread around the world.
The market for PON equipment is expanding and has profitable prospects for suppliers, service providers, and investors.

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