by Passive optical network equipment such as optical line terminals, optical network terminals, and related hardware enable fiber to the premises connectivity by facilitating transfer of data, voice and video signals from the central office to businesses and homes. These devices are adopted for applications comprising fiber-to-the-home services, high-speed internet access, cable TV signal distribution, and business ethernet connectivity. Deployment of PON networks promotes scalable, cost-effective and reliable broadband services to cater growing data and connectivity needs.
The global Passive Optical Network Equipment Market is estimated to be valued at US$ 22.92 Mn in 2023 and is expected to exhibit a CAGR of 22% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Growing implementation of smart cities and homes across major economies has resulted in rising demand for reliable high-speed internet connectivity. This has accelerated deployment of Fiber-to-the-Home (FTTH) networks based on Passive Optical Network (PON) technologies. PON systems enable higher bandwidth capabilities and improved network capacities to meet burgeoning data traffic arising from IoT devices, HD video streaming services and cloud applications. Major service providers are extensively upgrading their access networks with next-generation PON solutions such as XGS-PON and NG-PON2 that offer data speeds over 10Gbps. On the back of sustained investment towards broadband infrastructure development and network densification initiatives worldwide, the passive optical network equipment market is expected to showcase pronounced growth over the forecast period.
Porter’s Analysis
Threat of new entrants: There are high capital requirements for establishing a new Passive Optical Network Equipment manufacturing facility. The market also has few major players dominating the market, making it difficult for new entrants.
Bargaining power of buyers: The buyers have moderate bargaining power as there are few suppliers of Passive Optical Network Equipment in the market. However, the buyers can choose from the available options based on technical specifications and pricing.
Bargaining power of suppliers: The key suppliers have moderate bargaining power owing to the differentiated nature of their products and technologies.
Threat of new substitutes: There are limited substitutes for Passive Optical Network Equipment used for fiber to the home. Alternative wired technologies have limitations.
Competitive rivalry: The Passive Optical Network Equipment market is consolidated with top players capturing majority market share. The competition is intense based on product quality, pricing and technical expertise.
Key Takeaways
The Global Passive Optical Network Equipment Market Demand is expected to witness high growth at a CAGR of 22% during the forecast period of 2023 to 2030. The market size is projected to reach US$ 22.92 Mn in 2023.
North America holds the largest share of the Passive Optical Network Equipment market currently. However, Asia Pacific region is expected to grow at the fastest pace during the forecast period primarily due to increasing FTTH subscription in China and India.
Key players operating in the Passive Optical Network Equipment market are Adtran Inc., Huawei Technologies Co. Ltd., Alcatel-Lucent S.A., Hitachi Communication Technologies, Inc., AT & T Inc., Freescale Semiconductor, Inc., Broadcom Corporation, Inc., Ericsson Inc., Calix Inc., and ECI Telecom, Ltd. Huawei dominates the market with largest market share. The other players compete based on product features and pricing.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
