PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1273627
PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1273627
According to Stratistics MRC, the Global Passive Optical Network (PON) Market is accounted for $12.27 billion in 2022 and is expected to reach $30.67 billion by 2028 growing at a CAGR of 16.5% during the forecast period. A Passive Optical Network (PON) is a system commonly used by telecommunications network providers that brings fiber optic Cabling and signals all or most of the way to the end user. Depending on where the PON terminates, the system can be described as fiber to the curb, fiber to the building or fiber to the home. A PON system consists of an optical line terminal (OLT) at the communication company's central office and several optical network units (ONUs) near end users. Typically, up to 32 ONUs can be connected to a single OLT. The word passive simply describes the fact that optical transmission has no power requirements or active electronic parts once the signal is being transmitted across the network. This is in contrast to active optical networks, which require electrically powered switching hardware to pass cells or frames across the fiber cabling.
According to a report by the Mobile Economy Latin America, the mobile subscribers count in the Latin America region is estimated to be 485 million by 2025, from 450 million in 2021.
The global passive optical network (PON) equipment market is anticipated to grow significantly over the forecast period due to low cost of ownership and good return on investment. Given that the cost of equipment installation is cheap, passive optical networks (PON) help reduce total cost of ownership (TCO) by a significant amount. The highly efficient machinery can also provide a high rate of return on investment. With PON, a highly-centralized, passive distribution network is used to accomplish this low cost of ownership. Additionally, PON reduces the total cost of ownership by a sizeable amount because it spends less on both capital and operating expenses.
Due to rigorous energy regulations and growing premium costs, end customers in the network sector want for equipment that uses less energy. At the same time, customers are drawn to new competitors by existing businesses' complex product offers and unclear bandwidth. Market competitors provide simple optical devices that satisfactorily meet consumer expectations, enabling them to consistently increase their market share for passive optical networks. During the projected period, challenges are brought on by the competitors' wide range of product offerings and the entry of new players in the optical network equipment market.
The global market for passive network (PON) equipment is anticipated to increase over the forecast period due to rising demand for green network solutions. POL solutions are more environmentally friendly than traditional Ethernet local area networks built on copper. Optically splitters are used in POL in place of workgroup switches. Due to the elimination of the need for hundreds of KW of energy and its role as a more affordable alternative, it complies with HVAC standards. Additionally, there is no need for rack mount switches, which lowers the amount of non-renewable electrical equipment used and the amount of power consumed.
The expansion of the global passive optical network (PON) equipment market is expected to be constrained during the projected period by high installation costs at the operators interface and operational difficulties. Even though PON technology has several advantages, the biggest barrier is still expensive installation cost. Thus, it is anticipated that the aforementioned factors will limit market growth throughout the forecast period.
The global market witnessed steady growth during the COVID-19 pandemic. Contrarily, several industry participants have noticed an increase in raw material costs as a result of supply issues with elements like silicon and copper, which had an impact on the production environment and costs of PON equipment internationally. But by the end of 2020, the market had exploded due to rising internet usage and a need for PON gear in the telecom industry. The use of PON equipment in the FTTx Deployment is being cemented at the same time by consumers' accelerated transition from copper-based data services to cutting-edge optical technology.
Due to the rapid rise of mobile and residential applications brought on by digitization, the need for PON equipment expanded substantially. In response to the epidemic, technological solutions such as optical fibre to the X have emerged due to consumer internet dependence and ongoing consumption. During the projection period, they are anticipated to hold the biggest market share in the optical fibre and broadband sectors. Additionally, offerings by industry participants under FTTX have made the product portfolio easier to handle and customize.
Telecom operators are actively advancing the next stage of fibre rollouts together with the GPON network's increasing global rollout. Over the next five years, optical access networks will quickly transition into the gigabyte age. The 10G PON passive optical network's high bandwidth and extensive coverage set it apart from competing technologies. Operators all over the world use this technology when setting up high-speed optical access networks since it may provide gigabyte access to 30-40 homes on a single system propelling the segment growth.
Asia Pacific is estimated to hold largest share in the market and is projected to progress at a substantial pace throughout the forecast period. Due to targeted government activities and policies on increasing digital capabilities and breakthroughs in nations like China, India, and Japan, Asia Pacific is predicted to have the highest share. The presence of a major player is anticipated to simultaneously secure a respectable growth rate due to the rising demand for ONT products and FTTX solutions in office buildings, homes, and data centre facilities.
Over the course of the forecast period, it is anticipated that demand for passive optical network devices in North America would increase gradually. This is due to the market's dominance of equipment like OLT, which increases internet speed both upstream and downstream. In addition, market research shows that end customers contribute significantly to PON device R&D. The development of optical network infrastructure is also supported by rising government spending and investment. The need for PON equipment has increased as a result of the U.S. deployment of Fibre to the Home (FTTH) technology.
Some of the key players in Passive Optical Network (PON) market include: ADTRAN, Inc., AirFiber Networks, Calix, Inc., CommScope, Huawei Technologies Co., Ltd., Mitsubishi, Electric Corporation, Motorola Solutions, Inc., Nokia Corporation, Telefonaktiebolaget LM Ericsson, Tellabs, Inc., Verizon Communications, Inc., ZTE Corporation and Vecima Networks Inc.
In October 2022, ZTE introduced the telecommunication industry's one-of-a-kind Combo PON solution products that apply both XG-PON and GPON for the FTTX. This solution has become popular among service providers due to its quality, compatibility, and ease of use.
In September 2022, Vecima Networks Inc., a leading network solution provider, has expanded its product portfolio by launching its Entra EXS1610 All-PON 10G solution. The EXS1610 supports widely deployed products of PON standards, which include EPON, GPON, 10G-EPON, and XGS-PON.
In May 2022, At the FTTH Conference in Austria, ZTE Corporation, a significant global supplier of telecoms, enterprise, and consumer technology solutions for the mobile internet, declared that it had unveiled the prototype of the first Optical Network Unit (ONU) in the industry to offer both 50-Gigabit-Capable Passive Optical Networking (50G PON) and Wi-Fi 7 technologies.