Passive optical network (PON) is a telecommunication network that enables connection from one point to multiple points. PON is a fiber to home/premises (FFTH/FFTP) network which serves numerous connections through a single optical fiber and unpowered optical splitters. Optical fiber splitters ensure energy-efficiency in PON because it does not require electricity for signal transmission. The split ratio of PON depends on its usage in terms of its structure such as Gigabit passive optical network (GPON) or Ethernet passive optical network (EPON). PON is more environment-friendly than traditional copper-based Ethernet local area network. The usage of workgroup switches is eliminated by passive optical local area network (POL). This, in turn, eradicates the consumption of thousands of KW energy and thus acts as a more cost-effective option. Furthermore, PON reduces the usage of non-renewable electrical equipment and lowers power consumption. The traditional copper-based network provides 100/1000base Ethernet connectivity to desktop devices such as desktop computers, voice over IP phones, laptops, and video phones to work group terminal (WGT). Passive optical network uses a single fiber, single type optic to the WGT, and small passive optical splitters. Therefore, PON does not produce heat, does not require power, and can even be mounted in electrical closets. Furthermore, ability of these systems to save fire load makes them environment friendly. Considering all these factors, the impact of this factor is analyzed to be high currently and is anticipated to remain high during the forecast period.
PONs provides easy installation and maintenance vis-à-vis traditional networks, which makes its operations much more simplified. PON minimizes the network’s downtime during upgrade and expansion by using the existing fiber optic cable and only replacing the electronics, rather than changing the entire infrastructure. Furthermore, optical fibers used in PON are made up of dielectric material and thus electromagnetic radiations are not produced. Therefore, information or data remains secure during operation of PON. Components required by PON are wide area network (WAN) router, Ethernet aggregation switch (EAS), core router/switch, work group terminals (WGT), and fiber and passive optical splitters. PONs does not encounter multi-wired chaotic closets due to their inbuilt capabilities, which makes its operations hassle-free. Considering all these factors, the impact of this factor is analyzed to be medium currently and is expected to become high during the forecast period.
The major driving factors of the passive optical network equipment market in India are the high return on investments and low cost of ownership. In addition, unmatched security, higher bandwidth and greater reliability are set to bolster the growth of PON market in India. Moreover, simplified network operations, eco-friendly solutions and scalability are acting as the driving force for this market. It is also to be duly noted that high initial investments coupled with high component cost at operator’s interface and huge research and development costs is set to discourage start-ups and other mid-sized firms in entering into the India passive network equipment market, thus behaving as a restraint. The opportunities in this market are the need for higher bandwidth and rising demand for passive optical network in India.
Gigabit passive optical network (GPON) equipment is expected to generate larger revenue as compared to its counterpart - Ethernet passive network (EPON). Higher bandwidth allocation and low power consumption are significant features offered by GPON that has made it superior in terms of technology, compared to EPON. In addition, less number of active switching devices used in the network and advanced security is additional advantages provided by the GPON equipment. Thus, GPON is expected to witness significant growth rate over the forecast period from 2014 to 2020.
GPON optical network terminals (ONTs) accounted for majority market share in the year 2013 owing to the growth in gigabit passive optical network. As ONTs are components located at the subscribers end, the number of subscriber is similar to the number of ONT’s. GPON’s efficient and advanced networking technology has driven the demands for its components: ONT and OLT.
Passive optical network (PON) ensures connectivity from one access point to multiple end users. It is a fiber-to-the-home (FTTH) network and therefore rise in the number of FTTH subscribers coupled with increasing demand for energy conservation are bolstering the growth of PON equipment market in India. In addition, high return on investments, low cost of ownership, optimized connectivity, simplified network operations and advanced security are the other major factors driving the PON equipment market. The passive optical network is categorized into two types in terms of its structure – Gigabit passive optical network (GPON) and Ethernet passive optical network (EPON).
GPON terminal devices offer high-speed voice, video and data services to business and residential subscribers. Reliability and last-mile long-reach connection further reinforces the exceptionally high bandwidth of GPON technology. GPON reduces the quantity of active switching devices used in a computer network. In addition, GPON has been a prominent approach for defense services, owing to high bandwidth and advanced security provided by the network.
EPON aids service providers to offer IPTV and voice services, residential broadband, enterprise services, such as time division multiplexing (TDM), Internet and voice connectivity. In addition, 3G, and 4G mobile backhaul carriage services are also offered by EPON. The new EPON is fully compatible with the existing Ethernet standards so no alteration is required while linking to the existing Ethernet-based networks at both ends. As Ethernet is the key networking approach used in metro-area networks (MANs) and local area networks (LANs), no protocol conversions are required.
OLT and ONT, both are used in GPON as well as EPON. OLT is placed at the central office, while the ONT at the subscribers’ premises. The OLT functions as the Local Area Network (LAN) combination unit for assimilating data, video and voice services into a single fiber structure. The ONT terminates the passive optical network and provides different local service interfaces to the user, such as voice, data, video and telemetry. Leveraging the influence of all internet protocol/Ethernet architecture and fiber optics, GPON offers scalable, secure and high-bandwidth networks for business, military and campus applications.
This market research study analyzes the passive optical network equipment market in India and provides estimates in terms of revenue (USD Million) from 2013 to 2020. It recognizes the drivers and restraints affecting the industry and analyzes their impact over the forecasted period from 2014 to 2020. Moreover, it identifies the significant opportunities for market growth in the years to come.
The report segments the market based on structure which includes gigabit passive optical network (GPON) and Ethernet passive optical network (EPON). Furthermore, gigabit passive optical network has also been segmented on the basis of components which include optical line terminal (OLT) and optical network terminal (ONT). The OLT and ONT segments have also been estimated on the basis of revenue and volume in USD million and million units, respectively.
In order to ensure a clear understanding of the India passive optical network equipment market, we have given a detailed analysis of the value chain. Moreover, a detailed Porter’s five forces analysis has been given for a better understanding of the intensity of competition present in the market. Furthermore, the study comprises of a market attractiveness analysis, where the equipment are benchmarked based on their market scope, growth rate and general attractiveness.
The report provides company market share analysis of the various industry participants. Key players have also been profiled on the basis of company overview, financial overview, business strategies and key developments. Major market participants profiled in this report include Alphion India Pvt. Ltd., Adtran Inc., Broadcom Corporation Inc., Calix Inc., Ericsson Inc., Freescale Semiconductors Inc., Hitachi, Ltd., Huawei Technologies Co. Ltd., Mitsubishi Electric Corporation, Motorola Solutions Inc. and Verizon Communications Inc. among others.
Passive optical network (PON) equipment Market: By structure
- Gigabit passive optical network (GPON)
- Ethernet passive optical network (EPON)
Gigabit Passive optical network (GPON) equipment Market: By components
- Optical Network Terminal (ONT)
- Optical Line Terminal (OLT)