Passive Optical Network (PON) Equipment Market - Global Industry Analysis, Size, Share, Growth, Trends And Forecast, 2013 - 2019

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Free Market Analysis

Global passive optical network (PON) equipment market was valued at USD 3.97 billion in 2013, growing at a CAGR of 22.7% from 2014 to 2019. Passive optical network (PON) is a point to multipoint telecommunication network. PON is a fiber to home/premises (FFTH/FFTP) architecture which serves multi premises through unpowered optical splitters and a single optical fiber. Optical fiber splitters do not require electricity for signal transmission, which makes it an energy saving technology. The split ratio depends on the structure of the PON used, such as Gigabyte passive optical network (GPON) and Ethernet passive optical network (EPON) among others.

Low cost of ownership and high return on investments coupled with higher bandwidth, greater reliability, unmatched security are the major driving forces of the PON equipment market. In addition, environment friendly green solution, scalability and simplified network operations further drives growth in this market. However, high initial investments at the operators interface hamper growth in this market. The high investment in research infrastructure coupled with technological advancements proves to be an opportunistic area for the market. In addition, the growing demand for higher bandwidth in the Asia Pacific and Rest of the World economies is another major opportunity for the PON equipment market growth in the near future.

In 2013, the Asia Pacific market was the largest revenue generator for the passive optical network equipment market. The dominance by Asia Pacific is due to large number of countries such as China, India, Japan and Taiwan among others investing heavily in the fiber-to-the-home infrastructure as well as in research and development infrastructure. Similarly, North America and Europe accounted for over half of the market share, as these have been continually using passive optical network equipment for networking purpose and have a strong optical network setup.

Gigabyte passive optical network (GPON) equipment accounted for majority market share in 2013, owing to the continuously increasing demand for higher bandwidth and a number of advantages associated with this technology such as higher bandwidth allocation and less power consumption. In addition, less number of active switching devices used in the network and advance security offered are additional advantageous features offered by the GPON equipment. Thus, GPON is expected to witness significant growth rate over the forecast period.

GPON optical network terminals (ONTs) accounted for majority market share in the year 2013 owing to the growth in gigabyte passive optical network. As ONTs are components located at the subscribers end, the number of subscriber is similar to the number of ONT’s. In 2013 GPON was a new and advance networking technology so the ONTs associated with it holds majority of the market in the year 2013.