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Passive Optical LAN (POL) Market: Snapshot

The market for passive optical LAN (POL) is poised for substantial growth in the coming years, registering a double-digit CAGR through the forecast period. Escalating bandwidth requirements, coupled with the energy efficient nature of passive optical components, is driving the POL market. The growth of networking technologies in the Asia Pacific and RoW markets, increasing fiber deployments, and rising investments in technological advancements and research infrastructure across both the regions are also propelling the passive optical LAN market.

The global passive optical LAN market is expected to expand at an impressive CAGR of 22.9% during the forecast period from 2016 to 2024, reaching a market size of US$103.4 bn by 2024. The market stood at US$14.1 bn in 2015.

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Increased Usage of Optical Amplifiers in Ultra-high Capacity Networks

The key components of a passive optical LAN include cables, power splitters, filters, wavelength division multiplexers/de-multiplexers, couplers, encoders, connectors, patch cords and pigtails, amplifiers, attenuators, transceivers, circulators, network terminals, and line terminals. The global passive optical LAN market was led by the wavelength division multiplexers/de-multiplexers segment in 2015, followed by optical amplifiers. The latter enjoys a significant share in the POL market owing to their increased use in ultra-high capacity networks. Fixed and variable optical attenuators and amplifiers are likely to grow at an above average CAGR over the course of the forecast period following the increasing demand for higher bandwidths and rapid growth in fiber optic technologies.

Asia Pacific to Retain Lead in POL Market throughout Forecast Period

In 2015, Asia Pacific led the market for POL, accounting for a share of more than 36%. The growing demand for passive optical networks in the region, especially in China, is one of the primary forces driving this passive optical LAN market. A surge in data traffic and the use of electronic gadgets by a large volume of customers further drives the APAC market. Governments of major countries across the region are planning to invest in the deployment of fiber optic networks to improve the network infrastructure in their respective countries. This is anticipated to boost the Asia Pacific market for passive optical LAN during the forecast period.

North America is also a key contributor to the growth of the POL market globally. Technological advancements and an increasing demand for more advanced security are some factors that can be expected to boost the growth of passive optical LAN in North America. Furthermore, the rising demand for energy conservation and simplified network operations is anticipated to bolster the growth of the POL market in this region. The passive optical LAN market in North America is expected to grow at a remarkable CAGR of 20.0% over the forecast period.

The growing demand for energy-efficient solutions and increased investments in network solutions and research infrastructure are propelling the passive optical LAN market in RoW countries such as Brazil and South Africa. In addition, major investments have been lined up in wireless cell tower base stations as the volume of network traffic grows exponentially in the RoW.

Some of the leading players in the POL market are Alcatel Lucent SA (France), Ericsson Inc. (Sweden), Huawei Technologies Co. Ltd. (China), ADTRAN, Inc. (U.S.), TE Connectivity Ltd. (Switzerland), ZTE Corporation (China), and Verizon Communications Inc. (U.S.)

Passive Optical LAN (POL) Market - Snapshot

The increasing demand for passive optical networks all across the world is the primary driver for the growth of the global passive optical LAN market. The growing need for higher bandwidth is further propelling the demand for passive optical networks worldwide. Manufacturers of this market are also seizing this opportunity to turn this in their favor and are thereby indulging in research and development tactics so as to generate significant revenues. A vast majority of players are investing heavily on the introduction and implementation of innovative technologies to generate better revenues in the coming years.

Geographically, the market is dominated by Asia Pacific and is expected to continue doing the same in the coming years on account of the rising demand for passive optical network in the emerging nations such as China. The increasing demand for more bandwidth and the fact that passive optical LAN systems are energy efficient and long lasting, have further propelled its demand in the developing nations of Asia Pacific such as India, and others. The development of systems administration advances in the Asia Pacific and markets in the other parts of the world, expanding fiber organizations, and rising interests in innovative headways and exploration framework across both the locales are additionally pushing the passive optical LAN market.

On the other side, North America stands in close competition to Asia Pacific and generate notable revenues on account of the rising demand for advanced security and for energy preservation. There is also an increased demand for simplified network operations will also add fuel to the growth of the passive optical LAN market in the coming years.

POL arrangements are environment-friendly than regular copper-based Ethernet neighborhood. This is relied upon to additional support the passive optical LAN market over the figure time frame. The rising adoption of energy-efficient products is likely to create lucrative growth opportunities for the market in the coming years.

Passive optical LAN (POL) is a data transport medium, made of passive optical network (PON) technology, which provides converged data, video, and voice services at gigabit speeds over a single cable of fiber from one point to the other point. These solutions make use of a number of passive optical components. Majority of these components including ptical cables, optical couplers, optical power splitters, optical encoders, and optical filters among others can now be found in fiber to the home (FTTH) applications and current data networks. These components also find use in applications such as fiber in the loop (FITL), interoffice, loop feeder, hybrid fiber-coaxial cable (HFC), synchronous digital hierarchy (SDH) systems and synchronous optical network (SONET).

Passive optical LAN (POL) solutions are more environment-friendly than the traditional copper-based Ethernet local area network. Instead of using workgroup switches, the POL solution uses optical splitters. By eliminating the workgroup switches, it adheres to HVAC standards, thereby eradicating the usage of thousands of KW energy and acting as a more cost-effective option. Furthermore, since there is no need for rack-mounted switches, usage of non-renewable electrical equipment is minimized and power consumption reduced.

Passive optical LAN (POL) helps in saving the total cost of ownership (TCO) by a huge amount, as the cost of installation of the equipment is low. In addition, the highly-efficient equipment promises high return on investments. This low cost of ownership is achieved with POL using a highly-centralized distribution network, which is passive in nature. With the savings in both capital and operating expenditure, POL offers considerable saving in the total cost of ownership. In traditional networks, network upgradation and patches lead to a large amount of operational expenditure. However, in POL, network upgradation is much easier, as it uses the existing fiber optic cable and only the electronics are to be replaced, rather than replacing the whole infrastructure, which helps to save 75% of the expenditure.

This market research study analyzes the passive optical LAN market on a global level, and provides the estimates in terms of revenue (USD billion) from 2016 to 2024. It recognizes the drivers and restraints affecting the industry and analyzes their impact over the forecast period. Moreover, it identifies the significant opportunities for market growth in the coming years.

The report segments the market on the basis of geography into North America, Asia-Pacific (APAC), Europe, and Rest of the World (RoW), estimated in terms of revenue (USD billion). The report also segments the market based on components into optical cables, optical couplers, optical encoders, patch cords and pigtails, optical connectors, optical power splitters, optical amplifiers, optical transceivers, optical circulators, wavelength division multiplexers/de-multiplexers, fixed and variable optical attenuators, and optical filters. Based on applications, the passive optical LAN market is further segmented into fiber in the loop (FITL), interoffice, synchronous optical network (SONET), loop feeder, synchronous digital hierarchy (SDH) systems and hybrid fiber-coaxial cable (HFC).

For a better understanding of the passive optical LAN market, we have given a detailed analysis of the value chain. Furthermore, the study also comprises a market attractiveness analysis, where the products types are benchmarked based on their market size, growth rate and general attractiveness.

The report provides company market share analysis of various industry participants. In addition, the key players in the passive optical LAN market have also been profiled. The company profiles highlight the Company Details (HQ, Foundation Year, Employee Strength) Market Presence, By Segment and Geography, Key Developments, Strategy and Historical Roadmap, Revenue and Operating Profits in the field of passive optical LAN. Some of the key market participants profiled in this report include Alcatel Lucent SA (France), Ericsson Inc. (Sweden), Huawei Technologies Co. Ltd. (China), Adtran Inc (U.S.), TE Connectivity Ltd. (Switzerland), ZTE Corporation (China), and Verizon Communications Inc. (U.S.) among others.

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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