PUBLISHER: The Business Research Company | PRODUCT CODE: 1436569
PUBLISHER: The Business Research Company | PRODUCT CODE: 1436569
A passive optical network (PON) is a fiber-optic network employing a point-to-multipoint structure with optical splitters to distribute data from a single transmission source to multiple user endpoints. The term "passive" denotes the unpowered nature of the fiber and the splitting/combining components within this network architecture.
The primary components of a passive optical network (PON) consist of optical power splitters, optical filters, and wavelength division multiplexer/De-Multiplexer. Optical power splitters play a fundamental role in photonic integrated circuits (PICs). In the context of Fiber to the Home (FTTH) networks, splitters for passive optical networks (PONs) are crucial as they enable a single PON network interface to be shared among multiple customers. Various passive optical network structures, including Ethernet Passive Optical Networks (EPON), Optical Network Terminal (ONT), Optical Line Terminal (OLT), Gigabit Passive Optical Network (GPON), are employed in applications such as residential service (FTTH), business service (Other FTTx), and mobile backhaul.
The passive optical network market research report is one of a series of new reports from The Business Research Company that provides passive optical network market statistics, including passive optical network industry global market size, regional shares, competitors with a passive optical network market share, detailed passive optical network market segments, market trends and opportunities, and any further data you may need to thrive in the passive optical network industry. This passive optical network market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The passive optical network market size has grown rapidly in recent years. It will grow from $19.35 billion in 2023 to $22.64 billion in 2024 at a compound annual growth rate (CAGR) of 17.0%. The growth observed in the historical period can be attributed to the increasing demand for bandwidth, expansion of fiber optic networks, cost-efficiency measures, upgrades in telecommunication networks, and the rise in internet penetration.
The passive optical network market size is expected to see rapid growth in the next few years. It will grow to $43.47 billion in 2028 at a compound annual growth rate (CAGR) of 17.7%. The anticipated growth in the forecast period can be attributed to the integration of 5G networks, the expansion of smart cities and IoT, initiatives for rural broadband, and a focus on environmental sustainability. Major trends in the forecast period include the prevalence of remote work and digitalization, ongoing technological advancements, the adoption of network virtualization and software-defined networking, and the implementation of next-generation PON (Passive Optical Network) standards.
The growth of the passive optical network market is being propelled by the widespread adoption of telecom and internet services. This surge is attributed to the escalating demand for bandwidth, driven by the increased prevalence of data-intensive applications such as video on demand, videoconferencing, and Voice over Internet Protocol (VoIP). The market anticipates a surge in demand for ethernet passive optical network (EPON) equipment, aligning with the rising popularity of these data-driven applications. Notably, in April 2022, We Are Social, a UK-based socially-led creative agency, reported a global internet user count of 5 billion, indicating a substantial increase of almost 200 million compared to the previous year, 2021. This upward trend underscores the heightened demand for passive optical networks, affirming their integral role in accommodating the expanding reach of telecom and internet services.
The growth of the passive optical network market is directly correlated with the escalating volume of data traffic. Data traffic, defined as the amount of digital information transmitted over a network within a specific timeframe, is a key driver for the expansion of passive optical networks (PONs). These networks effectively manage data traffic through the utilization of Wavelength Division Multiplexing (WDM) technology. WDM enables the transmission of data on distinct wavelengths within the same fiber, facilitating simultaneous downstream and upstream communication without interference. For example, in September 2023, data from Demandsage, a US-based data-driven marketing solution provider, revealed that global data creation had reached 120 zettabytes. Projections indicate an anticipated surge to 181 zettabytes by the conclusion of 2025. This substantial increase underscores the vital role of passive optical networks in addressing the surge in data traffic. The growth in data traffic is expected to parallel the expanding penetration of telecom and internet services.
Companies operating in the passive optical network market are actively focusing on technological advancements to enhance the speed and efficiency of networks. This involves a shift from the current gigabit Ethernet passive optical network (GPON) standards with data rates of 2.5Gbit/s and 1.25Gbit/s to higher-performance options such as XGS-PON, which offers maximum symmetric speeds of 10Gbit/s. Additionally, companies are exploring technologies such as Next-Generation Passive Optical Network 2 (NGPON2) and 25 Gigabit Symmetrical Passive Optical Network (25GS-PON). As an example, in 2021, Nokia took a proactive step by establishing the 25GS-PON MSA Group. This initiative brings together optical network operators, leading system providers, and component vendors to collaborate, promote, and expedite the development and deployment of 25GS-PON technology in the industry.
Major companies operating in the passive optical network market are concentrating their efforts on developing innovative solutions, particularly in the realm of end-to-end Passive Optical Network (PON) access solutions. An end-to-end PON access solution encompasses a comprehensive and integrated set of components and technologies that facilitate the seamless deployment of a PON system, extending from the central office or data center to the end-user premises. As a noteworthy example, in September 2023, Precision Optical Technologies Inc., a US-based system engineering and integration company, unveiled the 'OpenPath.' This groundbreaking solution incorporates essential elements of a PON network, including Optical Line Terminals (OLTs), optical components, splitters, Optical Network Units (ONUs), and advanced controller software. 'OpenPath' empowers network operators to efficiently deploy their own passive optical networks within the required timelines, providing a versatile and integrated solution for enhanced PON access.
In November 2021, Verizon Communications, a US-based telecommunications company, successfully acquired TracFone Wireless, Inc., for an undisclosed amount. This strategic acquisition is designed to broaden Verizon's portfolio and provide access to its industry-leading wireless network. The move allows Verizon to offer a comprehensive suite of mobility products and services to a new customer base. TracFone Wireless, Inc., is a US-based prepaid, no-contract mobile phone provider.
Major companies operating in the passive optical network market report are Verizon Communications Inc., Huawei Technologies Co Ltd., Hitachi Ltd., Cisco Systems Inc., Mitsubishi Electric Corporation, Broadcom Corporation Inc., Fujitsu Ltd., Telefonaktiebolaget LM Ericsson, Nokia Corporation, Sumitomo Electric Industries Ltd., NEC Corporation, ZTE Corporation, Corning Inc., Freescale Semiconductor Inc., NXP Semiconductors, Motorola Solutions Inc., FiberHome Technologies Group, Ciena Corporation, Lumentum Operations LLC, Infinera Corporation, Finisar Corporation, ADTRAN Inc., Calix Inc., Tellabs Inc., Acacia Communications Inc., ADVA Optical Networking SE, Oclaro Inc., NeoPhotonics Corporation, Source Photonics Inc., Alphion Corporation, TP-Link Technologies Co Ltd.
North America was the largest region in the passive optical network market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the passive optical network market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the passive optical network market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The passive optical network market includes revenues earned by entities by providing services such as APON (ATM Passive Optical Networks), BPON (Broadband PON), EPON (Ethernet PON), GE-PON (for Gigabit Ethernet PON), GPON (Gigabit Ethernet PON). The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Passive Optical Network Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on passive optical network market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for passive optical network ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The passive optical network market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
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