Passive Optical LAN (POL) Market: Pin-Point Analysis For Changing Competitive Dynamics

The market for passive optical LAN (POL) is led by Huawei Technologies Co., Ltd., ZTE Corporation, and Alcatel-Lucent S.A. These three companies accounted for a combined share of over 75% in the overall POL market in 2015, indicating the high degree of consolidation. Transparency Market Research finds that most of these companies are focusing on business expansion to increase their consumer base and new product development and technological enhancement to deliver value enhancements to customers.

An increasing number of companies in the passive optical LAN market are also focusing on innovative and technological advancements and R&D efforts in passive optical networks (PON). Acquisitions are another way of expanding customer base and reducing competition.

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Some of the other key companies in the POL market are Ericsson Inc., Adtran Inc, Freescale Semiconductor Inc., Motorola Solutions Inc., Mitsubishi Electric Corporation, and Verizon Communications Inc. Staying on the crest of the technology wave is becoming a success imperative, as can be seen with developments such as the rolling out of Huawei’s 4G ultra broadband networks. The company endeavors to gain an advantage in markets such as Rio de Janeiro (Brazil), Bangalore (India), and Stockholm (Sweden) with the move.

“The growing need for higher bandwidth is a major opportunity for players in the passive optical LAN market,” states the lead analyst. IT professionals have declared that the demand for higher bandwidth is presently large and is likely to grow in the near future owing to the increasing number of subscribers using a greater number of connected devices and data-dense services. “Africa and Asia are likely to witness a sudden surge in the demand for bandwidth, rising at a CAGR of more than 38%,” the analyst predicts.

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Moreover, POL solutions are greener than conventional copper-based Ethernet local area networks. This is expected to further bolster the passive optical LAN market over the forecast period. TMR predicts that the impact of this factor will remain high over the coming years.

In contrast, various technical and operational issues such as data and signal losses, dispersion, and attenuation threaten to impede the global passive optical LAN market.

The opportunity in the global passive optical LAN market is projected to be worth US$103.4 bn by 2024, rising from US$14.1 bn in 2015. The market is expected to expand at an impressive CAGR of 22.9% during the forecast period of 2016 to 2024. By component, the wavelength division multiplexers/de-multiplexers segment accounted for 12.0% of the global passive optical LAN market revenue in 2015, emerging as the leading contributor. This segment is expected to grow at a CAGR of 22.3% over the forecast period of 2016 to 2024. Optical amplifiers, on the other hand, are poised to register the highest CAGR of 24.0% during the same period.

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On the basis of application, the passive optical LAN market is led by the synchronous optical network (SONET) and synchronous digital hierarchy (SDH) segments and they are likely to continue their dominance throughout the forecast period.

This review is based on the findings of a TMR report titled “Passive Optical LAN (POL) Market: Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2016 - 2024.”

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