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Passive Optical LAN Market: Energy-efficient and Eco-friendly Networks Find High Preference, reports TMR

Posted on Sep 26, 2016

The global passive optical LAN market is opportunistic in nature and is collectively led by three prominent players. Alcatel-Lucent S.A., Huawei Technologies Co., Ltd., and ZTE Corporation collectively accounted for 75% of the global passive optical LAN market. Key companies are concentrating on expanding their business across many regions by increasing their product developments and by enhancing their technologies. Growing number of companies are investing in research and development activities for the development of passive optical LAN solutions. For many companies, acquisitions is a way to maintain their dominance, predicts Transparency Market Research (TMR), in its new report on the global passive optical LAN market.   

The global passive optical LAN market is expected to reach US$103.4 bn by 2024. Based on component, in 2015, the global market was led by the wavelength division multiplexers/de-multiplexers segment, followed by the optical amplifiers segment. The wavelength division multiplexers/de-multiplexers segment is expected to exhibit a 22.30% CAGR from 2016 to 2024.

Asia Pacific to become Promising Market for Passive Optical LAN

By region, in 2015, the global passive optical LAN market was dominated by Asia Pacific, accounting for 36% of the global market. Going forward, Asia Pacific is predicted to maintain its dominance owing to the rising demand for passive optical LAN networks, particularly in China. A surge in the use of electronic gadgets and data traffic are two of the factors expected to propel the Asia Pacific market for passive optical LAN. Governments of many nations are focusing on investing more for the improvement of the network infrastructure, which is further predicted to boost the Asia Pacific passive optical LAN market.

Demand for energy-efficient network solutions to increase

Passive optical LAN solutions are environment-friendly and efficient than traditional networks. As passive optical LAN produces no heat, can be easily mounted on electrical closets, and requires no power, they are increasingly being used in many regions. The rising need for high bandwidth servers is expected to create new opportunities in the global passive optical LAN market. High return on investment and low ownership cost are two of the factors predicted to propel the demand for passive optical LAN.

Preference for Wireless Broadband to Challenge Global Market

The preference for wireless broadband is increasing at a significant pace, which is a primary challenge for key players operating in the global passive optical LAN market. Optical components offer accessibility, agility, and speed that is required by the service providers. With advancements in the mobile technology, the required speed, accessibility, and agility are being achieved. The advent of 4G network technology is further predicted to hamper the demand for passive optical LAN.

Technological advancements to create growth opportunities

“Technical advancements will boost the sale of passive optical LAN,” states a TMR analyst. Key companies are planning to introduce next-generation passive optical LAN technologies in two phases, NG-PON and XG-PON with high downstream and upstream speed. This will improve customer experience and also give passive optical LAN an edge over many other networks, reports a TMR analyst.

Innovation is predicted to play a big role in the growth of the global passive optical LAN market. Although the market offers many other network options such as wireless broadband networks, the demand for passive optical LAN is expected to increase in the years to come.

This information is based on the findings of a report published by Transparency Market Research titled “Passive Optical LAN Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2016 - 2024.”

The global passive optical LAN market is segmented as follows:

Passive optical LAN market: By geography

  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • U.K.
    • Germany
    • Italy
    • France
    • Rest of Europe
  • Asia-Pacific
    • China
    • India
    • Japan
    • South Korea
    • Rest of APAC
  • Rest of the World
    • South America
    • Middle East
    • Africa

Passive optical LAN market: By components

  • Optical cables
  • Optical couplers
  • Optical power splitters
  • Optical encoders
  • Patch cords and pigtails
  • Optical connectors
  • Optical amplifiers
  • Optical transceivers
  • Fixed and variable optical attenuators
  • Optical circulators
  • Wavelength Division Multiplexers/De-multiplexers
  • Optical filters
  • Others

Passive optical LAN market: By application

  • Loop feeder
  • Interoffice
  • Fiber In The Loop (FITL)
  • Synchronous Optical Network (SONET)
  • Hybrid Fiber-Coaxial Cable (HFC)
  • Synchronous Digital Hierarchy (SDH) systems

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