The passive optical LAN (POL) market is highly consolidated and is led by ZTE Corporation, Huawei Technologies Co., Ltd., and Alcatel-Lucent S.A. These three companies held a combined 75% share in the global market in 2015.
In order to stay ahead in the game, most of these companies are concentrating on business expansion to expand their consumer base, and focusing on new product development and technological improvements to deliver value enhancements to customers. Acquisitions are another way of growing customer base and reducing competition, finds Transparency Market Research (TMR).
To be successful among the competitors, several companies are focusing on innovative and technological advancements. Recently, Huawei rolled out its 4G ultra broadband networks and it is further planning to enter markets in Bangalore (India), Rio de Janeiro (Brazil), and Stockholm (Sweden) in order to maximize its profits.
According to the TMR report, the global passive optical LAN market is projected to augment at a CAGR of 22.9% during the period from 2016 to 2024. The market size will grow from US$14.1 bn in 2015 to reach US$103.4 bn by 2024.
Asia Pacific Market to Receive Impetus from Improving Network Infrastructure
Asia Pacific held the maximum market share with over 36.0% in 2015. The main aspect driving the growth of the passive optical LAN market in the region, especially in China, is the increasing demand for passive optical networks. There is an enormous demand for electronic gadgets, leading to a surge in data traffic, thereby driving the growth in this regional market. In addition, governments of major countries across the Asia Pacific region are planning to invest in the distribution of fiber optic networks to better the network infrastructure in their respective countries, boosting the Asia Pacific market for passive optical LAN during the forecast period.
Technological advancements, rising demand for energy conservation, escalating demand for more advanced security, and simplified network operations are a few of the factors driving the growth of the POL market in North America. This region is also a significant contributor to the growth of the POL market globally and it is anticipated to grow at a remarkable CAGR of 20.0% over the forecast period.
Technical and Operational Issues to Act as an Obstacle
The players operating in the passive optical LAN market stand to gain from the increasing demand for higher bandwidth. The demand is anticipated to grow further in the coming years due to the growing number of subscribers using a larger number of connected devices and data-dense services. Plus, POL solutions are more environment-friendly than traditional copper-based Ethernet local area networks, thus giving impetus to the market. Rather than using workgroup switches, POL solutions use optical splitters and by following HVAC standards, they eradicate the usage of thousands of KW of energy, thereby acting as a more cost-effective option. Furthermore, passive optical LAN (POL) helps in saving the total cost of ownership (TCO) by a significant amount as the cost of installation is low and the highly-efficient equipment promises high return on investments. On the contrary, numerous technical and operational issues such as dispersion, data and signal losses, and attenuation are a few of the factors that limit the growth of the global passive optical LAN market.
This review is based on the findings of a TMR report titled ‘Passive Optical LAN (POL) Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2016 - 2024.’
Global Passive Optical LAN (POL) Market, by Geography
- North America
- Rest of Europe
- South Korea
- Rest of APAC
- Rest of the World
- South America
- Middle East
Global Passive Optical LAN (POL) 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
Global Passive Optical LAN (POL) Market, by Application
- Loop feeder
- Fiber In The Loop (FITL)
- Synchronous Optical Network (SONET)
- Hybrid Fiber-Coaxial Cable (HFC)
- Synchronous Digital Hierarchy (SDH) systems
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