Press release
Global PON Equipment Market forecast to grow at 20% CAGR from 2016 to 2024
Global Market Insights, Inc.
The increased transmission capability of the telecommunication network in the form of optical signals is a major driving force for adoption. The broader bandwidth and increased transmission speeds coupled with secure and reliable network operation between the end points will present significant growth opportunities. Gigabit passive optical network (GPON) has provided effective solutions to the increasing bandwidth demand of increasing telecom and internet services.
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The GPON architecture comprises a single optical fiber to serve multiple end point users with the use of passive optical splitters without the loss of information. Owing to its intensive bandwidth applications for internet and digital transmission, GPON is projected to witness substantial growth in the forecast timeline.
The passive transmission capabilities provide more environment friendly solutions as compared to the traditional networks used in the commercial and residential sectors. The growing change of telecom providers to fiber to the home (FTTH) deployments due to its optimized cost solution will favorably impact passive optical network equipment market. The demand for wireless access services such as 4G and 5G technology to compensate for the rising number of household and mobile internet users is also projected to drive the industry over the forecast period.
Frequency division multiplexing has resulted in effective network solutions for data traffic, which is expected to bring in more public and private investments. High return on investments to network providers will propel passive optical network equipment market share. Stringent regulations in major regional segments against installation of equipment and laying of cables may hamper the growth through the forecast.
PON equipment market penetration is expected to be majorly restrained by the high initial cost of components for operators interfacing and is unlikely to be dealt with, in the forecast span. Small industry participants may find it difficult to adopt these industry solutions.
North America and Europe passive optical network equipment market operate at an average of 12 percent to 18 percent of their digital potential. The GPON and EPON (Ethernet passive optical network) segments are projected to have provide opportunities in the forecast period owing to the unevenly increasing digitization of the global economies. Intensive data services such as Voice over Internet Protocol (VoIP), video on demand and video conferencing are projected to leverage growth.
By structure, the global passive optical network equipment market is segmented into GPON and EPON. The former segment is expected to expand at a higher CAGR till 2024 due to the key telecom players transitioning to GPON based FTTH rollouts from FTTB. The industry can be diversified based on the components into optical cables, power splitters, filters and wavelength division multiplexers & demultiplexers.
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Structural equipment include bifurcation of components placed at the office premises and subscriber locations such as optical line terminal (OLT) & Optical network terminal (ONT). The ONT component placed at the office premises, used as LAN combination unit for incorporating voice, data and video in GPON is forecast to witness considerable demands. OLT is installed on subscriber locations and provides interfacing to the local services.
Asia Pacific PON equipment market share is projected to provide attractive growth opportunities owing to its steadily developing economies and increasing digitization in the regions. Increasing penetration of internet and infrastructural R&D investments in countries such as Japan, China and India, is expected to drive regional demand. The growth of the industry is backed up by the increasing demands of digitization in Europe and North America in the forecast timeframe.
Key participants in the industry include Alcatel-Lucent, Adtran, Huawei Technologies Co., Ericson, Motorola Solutions, ZTE Corp., Mitsubishi Electric Corp. and Calix. Strategic business alliances, mergers & acquisitions are likely to fuel the development of new technologies and products till 2024. The need for rising participants consolidated industry growth will result in huge investments in the R&D space.
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About Global Market Insights
Global Market Insights, Inc., headquartered in Delaware, U.S., is a global market research and consulting service provider; offering syndicated and custom research reports along with growth consulting services. Our business intelligence and industry research reports offer clients with penetrative insights and actionable market data specially designed and presented to aid strategic decision making. These exhaustive reports are designed via a proprietary research methodology and are available for key industries such as chemicals, advanced materials, technology, renewable energy and biotechnology.
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