A passive optical LAN (POL) is a point-to-multipoint network architecture wherein data, video, and voice services are transported at gigabit speeds via single optical fiber to serve various users. There are different components involved in passive optical LAN (POL) including optical connectors, optical cables, optical circulators, optical encoders, optical power splitters, optical transceivers, optical couplers, and optical filters. It finds applications in interoffice, loop feeder, the fiber in the loop (FITL), a synchronous optical network (SONET), hybrid fiber-coaxial cable (HFC), and synchronous digital hierarchy (SDH) systems.
The global passive optical LAN (POL) market is expected to surpass US$ 200.7 Mn in terms of value by the end of 2028.
Global Passive Optical LAN (POL) Market: Drivers
Low cost of ownership and high ROI is expected to accelerate growth of the global passive optical LAN (POL) market during the forecast period
Passive optical LAN (POL) helps to save the total cost of ownership by a significant amount since the cost of installation of equipment is very low. This low cost of ownership is achieved with POL using a highly-centralized distribution network, which is passive in nature. With the savings in both capital and operating expenditure, POL amounts to a considerable saving in the total cost of ownership. The major chunk of capital expenditure in the traditional network was taken by the riser closets and workgroup switches. In passive optical network, the closet and switches can be mounted on the smallest of spaces available, in turn saving 45% of the capital expenditure. Therefore, these factors are expected to drive growth of the global passive optical LAN (POL) market during the forecast period.
Global Passive Optical LAN (POL) Market: Opportunities
High growth of POL in Asia Pacific can present major business opportunities in the global passive optical LAN (POL) market
Currently, there is high demand for POL in emerging economies from Asia Pacific such as China, as the Chinese market is undergoing a transition from wireless to wired optical communication. 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. Major companies in the market can capitalize on these opportunities by providing competitive products and gain a significant advantage in the market.
Global Passive Optical LAN (POL) Market: Restraints
Issues regarding data losses are expected to hinder the global passive optical LAN (POL) market growth
Optical fiber cables have a limited bend radius of about 30 mm, so bending beyond the limit could lead to signal/data loss to some extent. Data carried by the cables can be hacked from leaked signals. Though bending optical cables is difficult, it can be done, as they are not totally tamper-proof. This leakage is known as bend loss, which is the loss of signal strength which could compromise the integrity of data transmitted. The standards set by TIA/ANSI/EIA-568B.3 for a fiber optic cable is a two-inch cable bend radius, which offers significant advantages over those with tighter bend radii. Therefore, these factors are expected to hinder the global passive optical LAN (POL) market growth in the near future.
Global Passive Optical LAN (POL) Market - Impact of Coronavirus (Covid-19) Pandemic
Globally, as of 3:58pm CEST, 13 October 2021, there have been 238,521,855 confirmed cases of COVID-19, including 4,863,818 deaths, reported to WHO. As of 10 October 2021, a total of 6,364,021,792 vaccine doses have been administered. The pandemic has led to several restrictions imposed by governments, which in turn have encouraged adoption of various internet services. Such scenario is expected to boost demand for higher bandwidths as more number of devices are connected to networks and more data-dense services are on the rise.
North America Trends
Among regions, North America is expected to witness significant growth in the global passive optical LAN (POL) market during the forecast period. This is owing to presence of major market players such as 3M, AT&T Inc., etc. across the region. Furthermore, growing penetration of smartphones and government incentives are expected to propel the global passive optical LAN (POL) market growth in the near future.
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Europe is expected to register a robust growth rate in the global passive optical LAN (POL) market over the forecast period. This is owing to rising implementation of IoT in the automotive and manufacturing sectors across the region. Moreover, advent of 5G technologies is expected to accelerate growth of the regional market during the forecast period.
Global Passive Optical LAN (POL) Market: Competitive Landscape
Key companies operating in the global passive optical LAN (POL) market are 3M Company, Freescale Semiconductor, Inc., Adtran, Inc., Ericsson, Inc., Alcatel-Lucent, Broadcom Corporation, Inc., and AT&T Inc.
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