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Impact Analysis of Covid-19

The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.

A passive optical network (PON) is a fiber-optic telecommunications technology for delivering broadband network access to end users. The primary objective of the network is to provide a solution, which is easy to install, maintain, and upgrade. This is done by using unpowered optical splitters is PON that allows a single fiber to deliver services to multiple premises. Passive optical network is considered an environment-friendly (green) solution, as compared to traditional networks, owing to the usage of unpowered optical splitters. Optical splitters collect and separate optical signals, as they travel in the network. The necessity of the powered equipment is only at the receiving end and it is a source of the signal, unlike the traditional network.

The global passive optical network (PON) equipment market is estimated to be valued at US$ 17.8 million in 2021 and is expected to exhibit a CAGR of 22.0% over the forecast period (2021-2028).

Recent Developments:

  • In August 2021, CommScope, a U.S. based infrastructure provider company launched coexistence portfolio to upgrade their PON networks to increase data speeds and deliver additional services without having to replace or add fiber to their existing PON infrastructure.
  • In May 2021, AirFiber Networks, India based internet service provider company to launch data services using Gigabit Passive Optical Networking (GPON). The Nokia’s GPON solution will enable AirFiber Networks to provide high-speed broadband services in Bangalore and underpenetrated areas across the state of Tamil Nadu, aiming to reach over 100,000 subscribers in a year.
  • In November 2020, Nokia, a Finland based telecommunication company launched 5G PON technology is the next step in PON (passive optical network) evolution and enables the converging of high-end services on a single fiber infrastructure.

Statistics:

Figure 1. Global Passive Optical Network (PON) Equipment Market Value (US$ Mn), by Region, 2020

Passive Optical Network (PON) Equipment  | Coherent Market Insights

Asia Pacific region held dominant position in the global passive optical network (PON) equipment market in 2020, accounting for 45.6% share in terms of volume, followed by North America and Europe, respectively.

Market Dynamics- Drivers

Increasing need for green network solution is expected to drive growth of the global passive network (PON) equipment market during the forecast period. Passive optical local area network (POL) solutions are more eco-friendly than conventional copper-based Ethernet local area network. POL removes the use of workgroup switches and instead uses optical splitters. As a result of this, it complies with HVAC standards since it eradicates the usage of thousands of KW energy and acts as a more-cost effective option. Furthermore, there is no requirement for rack mount switches which in turn reduces the usage of non-renewable electrical equipment and lowers power consumption. Passive optical network (PON) uses a single fiber, single type optic to the WGT. In addition, PON uses small passive optical splitters, which are located in the enclosures in a building, usually on every floor. Therefore, PON produces no heat, requires no power, and can even be mounted in electrical closets. 

Low cost of ownership and high return on investment is expected to propel the global passive optical network (PON) equipment market during the forecast period. Passive optical network (PON) aids in saving the total cost of ownership (TCO) by a large amount since the cost of installation of equipment is low. Moreover, the highly-efficient equipment can offer high return on investments. This low cost of ownership is achieved with PON using a highly-centralized distribution network, which is passive in nature. Furthermore, PON saves a significant amount in the total cost of ownership, owing to savings in both capital and operating expenditure. The major chunk of capital expenditure in the traditional network was taken by the riser closets and workgroup switches. In a passive optical network, the closet and switches can be mounted on the smallest of spaces available, in turn saving 45% of the capital expenditure.

Market Opportunities

High growth of PON Asia Pacific region can present lucrative growth opportunities in the global passive optical network (PON) market. Rising demand for passive optical network in the Asia Pacific region, especially in China, proves to be one of the driving forces for the market. The China market is undergoing transition from wireless to wired optical communication. The mass adoption of electronic gadgets and the creation of a high volume of data traffic by a large number of customers further drives the end-users in China to switch to a wired optical medium from a wireless medium. Currently in India, optical fiber cable (OFC) connectivity is offered from all districts and state capitals to the block level. However, there is a proposal to connect all the 250,000 Gram Panchayats present in the country. Thus, a dark fiber network would be created which would be abided by appropriate technology leading to generation of sufficient bandwidth at the Gram Panchayat level.

Increasing bandwidth requirement can provide major business opportunities in the global passive optical network (PON) market. Growing requirement for higher bandwidths serves as one of the major opportunities for the PON market. According to a study conducted with IT professionals as respondents, about 81% admitted that the demand for higher bandwidth is expected to grow in future and is one of the major concerns for data centers. Rising number of subscribers bring in more number of devices that connect to networks and more data-dense services to ride over the networks.

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Passive Optical Network (PON) Equipment Market Report Coverage

Report Coverage Details
Base Year: 2020 Market Size in 2021: US$ 15.4 Mn
Historical Data for: 2017 to 2020 Forecast Period: 2021 to 2028
Forecast Period 2021 to 2028 CAGR: 22.0% 2028 Value Projection: US$ 71.7 Mn
Geographies covered:
  • North America: U.S. and Canada
  • Latin America: Brazil, Argentina, Mexico, and Rest of Latin America
  • Europe: Germany, U.K., Spain, France, Italy, Russia, and Rest of Europe
  • Asia Pacific: China, India, Japan, Australia, South Korea, ASEAN, and Rest of Asia Pacific
  • Middle East: GCC Countries, Israel, and Rest of Middle East
  • Africa: South Africa, North Africa, and Central Africa
Segments covered:
  • By Structure: GPON, EPON
  • By Component: OLT, ONT
Companies covered:

Adtran Inc., Huawei Technologies Co. Ltd., Alcatel-Lucent S.A., Hitachi Communication Technologies, Inc., AT & T Inc., Freescale Semiconductor, Inc., Broadcom Corporation, Inc., Ericsson Inc., Calix Inc., and ECI Telecom, Ltd

Growth Drivers:
  • Increasing need for green network solution
  • Low cost of ownership and high return on investment
Restraints & Challenges:
  • High installation cost at operators interface and operational challenges
  • Availability of substitute technologies

Market Trends

Key players in the market are focused on research and development activities, in order to gain a competitive edge in the market. For instance, in October 2013, Broadcom Corporation Inc. launched a series of gigabit passive optical networks and Ethernet passive optical networks device for broadband connectivity at home. In October 2013, Alcatel-Lucent launched EPON solutions, which would help cable operators to focus on the growing business market, as the EPON (Ethernet Passive Optical Networking) solution uses the highest capacity fiber platform.

Major market players are involved in merger and acquisition activities, in order to enhance the market presence. For instance, in March 2012, Broadcom Corporation Inc. acquired BroadLight Inc. for US$ 195 million.  In November 2012, Calix Inc. acquired Ericsson’s fiber access assets along with the optical network terminal (ONT) and EDA 1500 GPON solution.

Figure 2. Global Passive Optical Network (PON) Equipment Market Share, By Component, 2020

Passive Optical Network (PON) Equipment  | Coherent Market Insights

Key Takeaways of the Graph:

  • The ONT segment held dominant position in the market and accounted for 62.4% share in the global passive optical network (PON) equipment market in 2020. The segment is expected to reach US$ 52.37 million in 2028, owing to increasing adoption of ONT from EPON and GPON
  • In 2020, the GPON segment accounted for the largest share of 81% in the global passive optical network (PON) equipment market and is expected to be valued at US$ 89.35 million by 2028. This is owing to LMN factors.

Market Dynamics- Restraints

High installation cost at operators interface and operational challenges are expected to restrain growth of the global passive optical network (PON) equipment market during the forecast period. Although PON equipment offers numerous benefits, its high installation cost remains the major restraining factor. According to a study conducted on behalf of the Broadband Forum, 53% of the respondents said that interoperability issues caused complications associated with their internal testing burden. 44% stated issues with network performance, and 41% mentioned issues with greater management overhead. Furthermore, a gigabyte passive optical network (GPON), which is one of the most advanced technologies in PON, costs US$ 6.69 million. The equipment cost is very low when compared with other costs, as the raw material required at the service providers' end is less complex and technologically advanced.

Availability of substitute technologies is expected to hamper the global passive optical network (PON) equipment market growth over the forecast period.  Presence of alternative technologies such as XGS-PON is a major hindering factor for market players. XGS-PON is an updated standard for passive optical networks that can support higher-speed 10 Gbps symmetrical data transfer. Many end users are more inclined towards such advanced technologies.

Competitive Section

Major companies operating in the global passive optical network (PON) equipment market are Adtran Inc., Huawei Technologies Co. Ltd., Alcatel-Lucent S.A., Hitachi Communication Technologies, Inc., AT & T Inc., Freescale Semiconductor, Inc., Broadcom Corporation, Inc., Ericsson Inc., Calix Inc., and ECI Telecom, Ltd.

Key Developments

  1. Key players are focused on product launches, in order to expand the product portfolio. For instance, in August 2019, Adtran Inc. launched SDX 620s & 640s XGS-PON and 10G EPON SFP+ ONUs at 2019 CONNECT Press & Analyst Event.
  2. Major companies are involved in product launches, in order to gain a competitive edge in the market. For instance, in March 2019, Huawei Technologies Co. Ltd. launched a 50G PON prototype at Mobile World Congress 2019.

A passive optical network is simply a fiber-optic communications technology for transmitting broadband optical network connections to end users. It can be considered as an alternative to the more commonly used digital-to-analog (DTA) switches and is gaining more popularity among end users as it provides greater faultless and robust connectivity to both voice and data networks at a lower cost. However, like any other technology, its scope of service is limited by inherent physical and environmental factors, as well as the ability of the infrastructure to accommodate large volumes of data transmitted over long distances. The most conventional use of a passive optical network is its usage in the central office. The system consists of a series of optical fiber nodes (also known as optical end-users), which are arranged in a pattern in close proximity to one another.

Market Dynamics

Eco-friendly alternative as compared to conventional networks is expected to boost the global passive optical network (PON) equipment market growth over the forecast period. With rising awareness regarding global warming, the demand for eco-friendly solutions has increased constantly in the recent past. Rising digitalization and increasing demand for secure and safe network operation have led to the high adoption of PON equipment.

Moreover, growing focus on upgrading the existing networks to PON for higher broadband speed is expected to accelerate growth of the global passive optical network (PON) equipment market in the near future.

Key features of the study:

  • This report provides in-depth analysis of the passive optical network (PON) equipment  market, and provides market size (US$ Million) and compound annual growth rate (CAGR%) for the forecast period (2021–2028), considering 2020 as the base year
  • It elucidates potential revenue opportunities across different segments and explains attractive investment proposition matrices for this market
  • This study also provides key insights about market drivers, restraints, opportunities, new product launches or approval, market trends,  regional outlook, and competitive strategies adopted by key players
  • It profiles key players in the global passive optical network (PON) equipment  market based on the following parameters – company highlights, products portfolio, key highlights, financial performance, and strategies
  • Key companies covered as a part of this study include Adtran Inc., Huawei Technologies Co. Ltd., Alcatel-Lucent S.A., Hitachi Communication Technologies, Inc., AT & T Inc., Freescale Semiconductor, Inc., Broadcom Corporation, Inc., Ericsson Inc., Calix Inc., and ECI Telecom, Ltd.
  • Insights from this report would allow marketers and the management authorities of the companies to make informed decisions regarding their future product launches, type up-gradation, market expansion, and marketing tactics
  • The global passive optical network (PON) equipment  market report caters to various stakeholders in this industry including investors, suppliers, product manufacturers, distributors, new entrants, and financial analysts
  • Stakeholders would have ease in decision-making through various strategy matrices used in analyzing the global passive optical network (PON) equipment  market

Detail Segmentation

  • Global Passive Optical Network (PON) Market, By Structure:
    • GPON
    • EPON
  • Global Passive Optical Network (PON) Market, By Component:
    • ONT
    • OLT
  • Global Passive Optical Network (PON) Market, By Region:
    • North America
    • Europe
    • Asia Pacific
    • Latin America
    • Middle East and Africa
  • Company Profiles
    • Adtran Inc.*
      • Company Overview
      • Product Portfolio
      • Financial Performance
      • Key Strategies
      • Recent Developments
      • Future Plans
    • Huawei Technologies Co. Ltd.
    • Alcatel-Lucent S.A.
    •  Hitachi Communication Technologies, Inc.
    •  AT & T Inc.
    •  Freescale Semiconductor, Inc.
    •  Broadcom Corporation, Inc.
    •  Ericsson Inc.
    •  Calix Inc.
    •  ECI Telecom, Ltd.

*Browse all the market data tables and figures on “Global Passive Optical Network (PON) Market- Forecast to 2028”

Table of Contents

  1. Research Objectives and Assumptions
    • Research Objectives
    • Assumptions
    • Abbreviations
  2. Market Purview
    • Report Description
      • Market Definition and Scope
    • Executive Summary
      • Market Snippet, By Structure
      • Market Snippet, By Component
      • Market Snippet, By Region
    • Coherent Opportunity Map (COM)
  3. Market Dynamics, Regulations, and Trends Analysis
    • Market Dynamics
      • Drivers
      • Restraints
      • Market Opportunities
    • Regulatory Scenario
    • Industry Trend
    • Merger and Acquisitions
    • New system Launch/Approvals
  4. Global Passive Optical Network (PON) Market, By Structure, 2017-2028 (US$ Million)
    • Introduction
      • Market Share Analysis, 2020 and 2028 (%)
      • Segment Trends
    • EPON
      • Introduction
      • Market Size and Forecast, 2017–2028, (US$ Million)
    • GPON
      • Introduction
      • Market Size and Forecast, 2017–2028, (US$ Million)
  5. Global Passive Optical Network (PON) Market, By Component, 2017-2028 (US$ Million)
    • Introduction
      • Market Share Analysis, 2020 and 2028 (%)
      • Segment Trends
    • ONT
      • Introduction
      • Market Size and Forecast, 2017–2028, (US$ Million)
    • OLT
      • Introduction
  6. Global Passive Optical Network (PON)Market, By Region, 2017-2028 (US$ Million)
    • Introduction
      • Market Share Analysis, By Region, 2020 and 2028 (%)
    • North America
      • Regional Trends
      • Market Size and Forecast, By Structure, 2017–2028 (US$ Million)
      • Market Size and Forecast, By Component, 2017–2028 (US$ Million)
      • Market Share Analysis, By Country, 2020 and 2028 (%)
        • U.S.
        • Canada
    • Western Europe
      • Regional Trends
      • Market Size and Forecast, By Structure, 2017–2028 (US$ Million)
      • Market Size and Forecast, By Component, 2017–2028 (US$ Million)
      • Market Share Analysis, By Country, 2020 and 2028 (%)
        • U.K.
        • Germany
        • Italy
        • France
        • Rest of Europe
    • Eastern Europe
      • Regional Trends
      • Market Size and Forecast, By Structure, 2017–2028 (US$ Million)
      • Market Size and Forecast, By Component, 2017–2028 (US$ Million)
      • Market Share Analysis, By Country, 2020 and 2028 (%)
        • Poland
        • Russia
        • Rest of Eastern Europe
    • Asia Pacific
      • Regional Trends
      • Market Size and Forecast, By Structure, 2017–2028 (US$ Million)
      • Market Size and Forecast, By Component, 2017–2028 (US$ Million)
      • Market Share Analysis, By Country, 2020 and 2028 (%)
        • China
        • India
        • Japan
        • ASEAN
        • Australia
        • South Korea
        • Rest of Asia Pacific
    • Latin America
      • Regional Trends
      • Market Size and Forecast, By Structure, 2017–2028 (US$ Million)
      • Market Size and Forecast, By Component, 2017–2028 (US$ Million)
      • Market Share Analysis, By Country, 2020 and 2028 (%)
        • Brazil
        • Argentina
        • Mexico
        • Rest of Latin America
    • Middle East and Africa
      • Regional Trends
      • Market Size and Forecast, By Structure, 2017–2028 (US$ Million)
      • Market Size and Forecast, By Component, 2017–2028 (US$ Million)
      • Market Share Analysis, By Country, 2020 and 2028 (%)
        • GCC Countries
        • South Africa
        • Rest of the Middle East and Africa
  7. Competitive Landscape
    • Company Profiles
      • Adtran Inc.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Huawei Technologies Co. Ltd.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Alcatel-Lucent S.A.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Hitachi Communication Technologies, Inc.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • AT & T Inc.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Freescale Semiconductor, Inc.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Broadcom Corporation, Inc.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Ericsson Inc.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Calix Inc.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • ECI Telecom, Ltd.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
  8. Section
    • References
    • Research Methodology
    • About us and Sales Contact

*Browse XX market data tables and XX figures on “Global Passive Optical Network (PON) Market-forecast to 2028”.

FAQgrowicon

Frequently Asked Questions

APAC held dominant position in the global passive optical network (PON) equipment market in 2020, accounting for 45.6% share in terms of volume.
In 2020, the GPON accounted for the largest share of 81.0% in the market and is expected to be valued at US$ 89.35 million by 2028.
Low cost of ownership and high return on investment is expected to propel the market during the forecast period.
Availability of substitute technologies is expected to hamper the market growth over the forecast period.
Research and development activities among market players is one of the emerging trends market.
Major companies operating in the market are Adtran Inc., Huawei Technologies Co. Ltd., Alcatel-Lucent S.A., Hitachi Communication Technologies, Inc., AT & T Inc., Freescale Semiconductor, Inc., Broadcom Corporation, Inc., Ericsson Inc., Calix Inc., and ECI Telecom, Ltd.
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