Passive Optical Component Market to CAGR Of 19.3% till 2028

Global passive optical components market, By Components (Optical cables, Optical power splitters, Optical couplers, Optical encoders, Optical connectors, Patch cords and pigtails, Optical amplifiers, Fixed and variable optical attenuators, Optical transceivers, Optical circulators, Optical filters, Wavelength Division Multiplexers/De-multiplexers Others), By Application (Interoffice, Loop feeder, Fiber In The Loop (FITL), Hybrid Fiber-Coaxial Cable (HFC),Synchronous Optical Network (SONET), Synchronous Digital Hierarchy (SDH) systems), and By Region (North America, Europe, Asia Pacific, and Rest of the World) - Global Forecast to 2028, is expected to be valued at US$ 190.1 billion by 2028, exhibiting a CAGR of 19.3 % during the forecast period (2021-2028), as highlighted in a report published by Coherent Market Insights.

Overview

Passive components basic components of an optical network system. These components are used in fiber in the loop (FTL), synchronous digital hierarchy (SDH) systems, loop feeder, hybrid fiber-coaxial cable (HFC), interoffice, and more. The global passive optical components market focuses on four regions namely North America, Europe, Asia Pacific, and Rest of the World.

The global passive optical components market is estimated to account for US$ 190.1 Bn in terms of value by the end of 2028.

Market Driver

High growth PON in Asia Pacific region is expected to propel the global passive optical components market growth over the forecast period

Currently, there is massive demand for a passive optical network in Asia Pacific, particularly in China. The mass adoption of electronic gadgets and the creation of 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 countrywide. Therefore, these factors are expected to drive growth of the optical components market during the forecast period.

Market Opportunity

Mergers and acquisitions can provide major growth opportunities in the global passive optical components market

Major companies are focused on mergers and acquisitions, in order to gain a competitive edge in the market. For instance, in March 2012, Broadcom Corporation Inc. acquired BroadLight Inc. for US$ 195 million. The acquisition enabled the company to grow its networking capabilities and enhance its broadband access portfolio through the addition of passive optical network (PON) processors offered by BroadLight Inc.

Market Restraint

Dispersion of data is expected to hamper the global passive optical components market growth over the forecast period

Dispersion of data remains a major challenge in the passive optical components. The total dispersion must be less than the limits specified for the type of link in the International Telecommunications Union (ITU) document G.957 and the Telcordia Technologies document GR-253-CORE (Section 4.3). Thus, factors such as attenuation, dispersion, data, and signal losses due to low bend radius. Hence, these factors are expected to restrain growth of the global passive optical components market in the near future.

Market Trends

North America Trends

Among regions, North America is expected to witness significant growth in the global optical components market during the forecast period. This is owing to presence of major market players such as AT & T Inc., Broadcom Corporation, Inc., and Cortina Systems, Inc. Furthermore, growing penetration of smartphones and government incentives are expected to propel the regional market growth over the forecast period.

Europe Trends

Europe is expected to register a robust growth rate in the global passive optical components market over the forecast period. This is owing to rising implementation of IoT in the automotive and manufacturing sectors across the region. Moreover, the advent of 5G technologies is expected to accelerate growth of the regional market during the forecast period.

Global passive optical components market- Impact of Coronavirus (COVID-19) Pandemic

Due to Covid-19 pandemic, many industries witnessed significant shift in their business. As consumers are forced to stay at home, the demand for popular OTT service providers such as Netflix, Amazon Prime, etc. or renewing/enhancing their existing Pay TV packages, procuring IPTV subscriptions, etc. increased. In addition, the COVID-19 has increased the demand for video-on-demand (VOD) streaming services thus increasing pressure on the network. VOD streaming services such as Hulu, Netflix, Amazon Prime Video, HBO, Disney Plus, and similar other services have recorded a notable rise in their paid subscribers. For instance, according to Coherent Market Insight Analysis, revenue of video streaming segment is expected to reach 71,238 million in 2021. These VOD streaming services provide ad-free, high-quality content at affordable subscription fees. This in turn has positively impacted the passive optical components market growth.

Competitive Section

Key players operating in the global passive optical components market are Adtran, Inc., Hitachi Communication Technologies America Inc., Alcatel-Lucent, Freescale Semiconductor, Inc., Alliance Fiber Optic Products, Inc., Freescale Semiconductor, Inc., AT & T Inc., Ericsson, Inc., Broadcom Corporation, Inc., ECI Telecom, Ltd., Calix, Inc., and Cortina Systems, Inc.

Segmentation

Market Taxonomy: