Global Passive Optical Network Market Size, Share & Industry Trends Analysis Report By Application (FTTX, and Mobile Backhaul), By Component, By Type (EPON, GPON, and Others), By Regional Outlook and Forecast, 2023 - 2030

Global Passive Optical Network Market Size, Share & Industry Trends Analysis Report By Application (FTTX, and Mobile Backhaul), By Component, By Type (EPON, GPON, and Others), By Regional Outlook and Forecast, 2023 - 2030

The Global Passive Optical Network Market size is expected to reach $31.1 billion by 2030, rising at a market growth of 13.4% CAGR during the forecast period.

North American countries are still expanding the PON coverage to unserved areas as it provides wide coverage with minimal signal loss. Thus, the region would account for nearly, 27% of the total market share by 2030. North America has seen increased investments in fiber optic infrastructure. Fiber optics, the foundation of PONs, provide reliable and high-speed connectivity. As these networks expand, so does the demand for PON solutions. Owing to these factors, the segment will grow rapidly in the upcoming years.

The major strategies followed by the market participants are Partnerships as the key developmental strategy to keep pace with the changing demands of end users. For instance, in March, 2022, ZTE Corporation has announced a strategic collaboration with Converge ICT Solutions Inc. Under this partnership, ZTE Corporation is set to introduce a commercial 10-Gigabit-capable symmetric passive optical network (XGS-PON) infrastructure in the South Luzon and Visayas regions of the Philippines. Moreover, in 2020, February, Infinera CorporationTeamed up with Lumentum Holdings Inc. Under this collaboration infinera would launch XR optics-based networking solution which is powered by infinera's low -power DSP technology.

Based on the Analysis presented in the KBV Cardinal matrix; Cisco Systems, Inc. is the forerunner in the Market. Companies such as Huawei Technologies Co., Ltd, Nokia Corporation, Ericsson AB are some of the key innovators in Market. In December, 2022, Nokia Corporation joined forces with Etisalat UAE, operating under the brand name "Etisalat by e&," the largest telecommunications provider in the GCC region. This partnership showcased the highest Passive Optical Network (PON) speeds in the Middle East and Africa.

Market Growth Factors

Increasing worldwide demand for high-speed Internet and data services

High-speed Internet is a fundamental requirement for today's digital world, and it's only expected to grow in importance. As more users and businesses seek faster and more reliable connections, the demand for PON technology increases. This drives market growth, resulting in more investments, innovation, and competition within the market. Service providers and network operators are motivated to adopt PON technology to meet the growing bandwidth demands of their customers. They chose PON because it offers a scalable and cost-effective solution for high-speed internet access. This increased adoption expands the market's reach.

Rising government policies and incentives for deploying PONs

Government incentives and funding for fiber optics and PON deployments can stimulate greater public and private investment. This increased investment leads to more extensive network infrastructure, benefiting the market. Government initiatives often focus on underserved or remote areas where private companies may be less inclined to invest due to the higher costs. Additionally, policies to bridge the digital divide prioritize ensuring all citizens have high-speed Internet access. This leads to the deployment of PON networks in rural and underserved areas, bringing the benefits of PON technology to a broader population. As a result, more customers gain access to PON services, increasing the user base. Owing to these factors, the market will grow rapidly in the future.

Market Restraining Factors

High initial cost of deploying PON infrastructure

For new and smaller service providers, the considerable expenditure needed to construct PON infrastructure can be a significant barrier to entry. This can limit competition in the market, reducing choices for consumers and potentially leading to higher prices for PON services. The cost of deployment may lead to market fragmentation, where only a few large, well-funded service providers can afford to invest in PON technology. Additionally, service providers that face high upfront costs may be hesitant to expand their PON networks to underserved or rural areas, where the return on investment is less certain. This can slow down efforts to bridge the digital divide and extend PON services to a wider population. As a result, these factors are expected to hinder the demand for passive optical networks in the coming years.

Application Outlook

Based on application, the market is divided into FTTX and mobile backhaul. In 2022, the mobile backhaul segment witnessed a substantial revenue share in the market. PON technology is cost-effective compared to traditional alternatives like point-to-point microwave or copper-based solutions. This cost efficiency is a significant driver for its adoption in mobile backhaul. PON networks offer high levels of reliability and redundancy, which are critical for maintaining continuous connectivity in the mobile backhaul segment. These factors will boost the demand in the mobile backhaul segment in the coming years.

Component Outlook

On the basis of component, the market is divided into optical line terminal (OLT), optical network terminal, and optical distribution network (ODN). In 2022, the optical distribution network (ODN) segment witnessed a substantial revenue share in the market. Many countries and regions are investing in the expansion of broadband networks, with a focus on fiber-optic infrastructure, to meet the growing demand for high-speed connectivity. This expansion drives the demand for ODN components and services. Additionally, 5G deployments continue to expand, there's an increasing need for fiber-optic ODNs to support the high-capacity and low-latency requirements of 5G. These aspects will pose lucrative growth prospects for the segment.

Type Outlook

Based on type, the market is segmented into EPON, GPON, and others. In 2022, the GPON segment garnered a significant revenue share in the market. The demand for high-speed internet access is a major driver for GPON technology. As more people and businesses required faster and more reliable internet connections, service providers turned to GPON as a cost-effective solution for delivering gigabit-speed broadband services. Telecommunication service have expanded their networks using GPON technology to offer high-speed broadband services. This expansion was driven by the growing number of internet users and the need for increased bandwidth to support data-intensive applications. Owing to these factors, there will be increased demand in the segment.

Regional Outlook

By region, the market is segmented into North America, Europe, Asia Pacific, and LAMEA. In 2022, the Asia Pacific segment acquired the highest revenue share in the market. The Asia Pacific region is home to a large and rapidly growing population, especially in countries like China and India. This demographic trend drives the need for improved telecommunications infrastructure to connect more people. With the ongoing urbanization in many parts of Asia, there is a greater demand for high-speed internet services in urban and suburban areas. Therefore, the segment will grow rapidly in the coming years.

The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Adtran, Inc., Calix, Inc., Ciena Corporation, Cisco Systems, Inc, Huawei Technologies Co., Ltd. (Huawei investment & Holding Co., Ltd.), Infinera Corporation, Nokia Corporation, TP-Link Corporation Limited, ZTE Corporation and Ericsson AB

Recent Strategies Deployed in Passive Optical Network Market

Partnerships, Collaborations & Agreements:

Oct-2023: TP-Link Corporation Limited has formed a strategic partnership with Qualcomm Technologies, Inc., a leading company specializing in semiconductors, software, and wireless technology services. This collaboration is set to introduce advanced XGS-PON (10 Gigabit Symmetrical Passive Optical Network) Wi-Fi 7 solutions, with the goal of transforming the telecommunications sector. The objective is to offer service providers a swift and flexible deployment approach while delivering unparalleled Wi-Fi and networking experiences to their customers.

Jan-2023: Telekom Research & Development Sdn Bhd (TM R&D), the innovation arm of Telekom Malaysia Berhad (TM), has recently signed a Memorandum of Understanding (MoU) with ZTE (Malaysia) Corporation, a global leading provider of information and communication technology solutions. Through this collaboration TM R&D and ZTE together will explore the strength of next-generation passive Optical network access technology, 50GPON and deliver ultra-broadband access to the government and consumers which will enhance the user experience in Malaysia.

Dec-2022: Nokia Corporation has joined forces with Etisalat UAE, operating under the brand name "Etisalat by e&," the largest telecommunications provider in the GCC region. This partnership showcased the highest Passive Optical Network (PON) speeds in the Middle East and Africa. Furthermore, it aims to support Etisalat in offering top-tier solutions to its client and facilitating the integration of cutting-edge technological innovations within the UAE.

Aug-2022: Nokia Corporation entered into partnership with Furukawa Electric LatAm, the foremost company specializing in network cabling. Under this partnership Nokia with the aimed to expediting the deployment of optical LAN systems in Latin America. This collaboration between Furukawa Electric LatAm and Nokia offers their clients an advanced and pioneering solution that not only promotes sustainability through reduced power consumption but also delivers a dependable and secure technological infrastructure.

Mar-2022: ZTE Corporation has announced a strategic collaboration with Converge ICT Solutions Inc, a prominent fiber optic broadband network provider in the Philippines. Under this partnership, ZTE Corporation is set to introduce a commercial 10-Gigabit-capable symmetric passive optical network (XGS-PON) infrastructure in the South Luzon and Visayas regions of the Philippines.

Sep-2021: Ciena Corporation has officially entered into an agreement to purchase the Vyatta routing and switching technology from AT&T Inc., a leading provider of long-distance telephone and telecommunications services. This strategic acquisition underscores Ciena's commitment to enhancing its Routing and Switching business by integrating Vyatta's expertise and assets. The goal is to empower Ciena's clients to establish virtualized networks and implement new features in 5G, enterprise, and cloud applications swiftly and cost-effectively.

Jul-2020: Nokia and Vecima Networks (TSX: VCM) today announced plans for Vecima to acquire key, next generation technology and products for cable service providers. Under the agreement, Nokia’s Gainspeed portfolio along with all supporting technology and assets will transition to Vecima Networks. The planned deal is expected to close quickly subject to customary closing conditions. Financial details are not being disclosed.

Feb-2020: Infinera CorporationTeamed up with Lumentum Holdings Inc., an industry leading designer and manufacturer of innovative photonics-based solutions. Under this collaboration infinera launch XR optics-based networking solution which is powered by infinera's low -power DSP technology. XR optics offers efficient and cost-effective solutions for 5G, broadband, and cloud-based services, with innovative point-to-multipoint technology that could change optical networking economics.

Product Launch and Product Expansions:

May-2023: TP-Link, a prominent global provider of networking products for both consumers and businesses, unveiled two new cutting-edge Wi-Fi 7 devices today. The first is the Deco BE85, a Tri-Band Mesh Wi-Fi system with the extraordinary power of the latest Wi-Fi 7 technology, delivering speeds of up to 22Gbps across three Wi-Fi bands via 12 streams. The second is the Archer BE800, a Tri-Band Wi-Fi Router operating at impressive speeds of up to 19Gbps across three bands. Notably, the Archer BE800 comes equipped with a versatile 10 Gbps SFP+Fiber WAN/LAN combo port, as well as a 10 Gbps WAN/LAN port, offering flexible connectivity support for both fiber and copper connections.

Mar-2023: Huawei Technologies Co., Ltd. unveiled a groundbreaking Lossless Industrial Optical Network solution at the Mobile World Congress 2023 (MWC 2023), marking an industry first. This innovative offering leverages Fifth-generation fixed network (F5G) technologies and was introduced during the F5G Evolution, Unleashing Green Digital Productivity session. It promises to empower customers in constructing exceptionally dependable industrial networks, ultimately enhancing production quality and efficiency.

Nov-2022: TP-Link Corporation Limited, a prominent global supplier of networking products for both consumers and businesses, has introduced three new Wi-Fi 7 routers: Archer BE900, Archer BE800, and Archer BE550. These routers stand out with their innovative and aesthetically pleasing designs while offering impressive performance. The Archer BE900 offers quad-band Wi-Fi with speeds of up to 24 Gbps, the Archer BE800 is a tri-band Wi-Fi 7 router with speeds of up to 19 Gbps, and the Archer BE550 is another tri-band Wi-Fi 7 router, providing speeds of up to 9.2 Gbps.

May-2022: ZTE Corporation, a prominent global provider of telecommunications, enterprise, and consumer technology solutions for mobile internet, made a significant announcement today at the FTTH Conference 2022 in Vienna, Austria. They unveiled the industry's first Optical Network Unit (ONU) prototype that offers support for both 50-Gigabit-Capable Passive Optical Networking (50G PON) and Wi-Fi 7 technologies. This groundbreaking ONU, known by the model number ZXHN F9746Q, utilizes asymmetric 50G PON technology on the network side, achieving impressive data rates with a reception speed of 50 Gbps and a transmission speed of 25 Gbps.

Feb-2022: ZTE Corporation, a prominent global provider of telecommunications, enterprise, and consumer technology solutions for the mobile internet, has announced its plan to unveil the AX11000 Wi-Fi 6E 10-Gigabit-capable Symmetric Passive Optical Network (XGS-PON) Optical Network Terminal (ONT) at the upcoming Mobile World Congress (MWC) 2022, set to commence in Barcelona on February 28, 2022. The XGS-PON ONT, which offers both 10 Gbps wired and 10 Gbps Wi-Fi access speeds, also supports the EasyMesh standard, enabling seamless and high-speed networking for multiple devices.

Mergers & Acquisitions:

Nov-2022: Ciena Corporation has successfully completed the acquisition of Tibit Communications Inc. and Benu Networks, both renowned providers in the realm of Passive Optical Network (PON) technologies and advanced subscriber management solutions. This strategic move by Ciena was driven by its aspiration to enhance its switches and routers portfolio with PON capabilities. The aim is to fortify its software offerings in preparation for the next-generation network infrastructure. Additionally, this acquisition brings a pool of highly skilled professionals into Ciena's workforce, further bolstering its capabilities in subscriber management.

Geographical Expansions:

Feb-2023: Nokia has unveiled plans to broaden its manufacturing operations for PON optical line terminals (OLTs) by expanding its factory located in Sriperumbudur, in close proximity to Chennai, India. This strategic move is a direct response to the rising demand from both domestic Indian customers and a growing global customer base.

Scope of the Study

Market Segments covered in the Report:

By Application

• FTTX
• Mobile Backhaul

By Component

• Optical Line Terminal (OLT)
• Optical Network Terminal (ONT)
• Optical Distribution Network (ODN)

By Type

• EPON
• GPON
• Others

By Geography

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
• Germany
• UK
• France
• Russia
• Spain
• Italy
• Rest of Europe
• Asia Pacific
• China
• Japan
• India
• South Korea
• Singapore
• Malaysia
• Rest of Asia Pacific
• LAMEA
• Brazil
• Argentina
• UAE
• Egypt
• South Africa
• Nigeria
• Rest of LAMEA

Companies Profiled

• Adtran, Inc.
• Calix, Inc.
• Ciena Corporation
• Cisco Systems, Inc
• Huawei Technologies Co., Ltd. (Huawei investment & Holding Co., Ltd.)
• Infinera Corporation
• Nokia Corporation
• TP-Link Corporation Limited
• ZTE Corporation
• Ericsson AB

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