Passive Optical Network

Passive Optical Network Market to Observe Strong Development

A passive optical network is a faster light-based multipoint telecommunication network system that brings optical fiber cabling as well as signals to the end user. PON comprises one optical line termination (OLT) at the carrier’s premises and numerous optical network units (ONU) near the end users. PON is eco-friendly and provides better bandwidth compared to copper-based networks. In a passive optical network, a single fiber can support 16-128 end users. One fiber can handle both the upstream and downstream data traffic. PON with higher bandwidth helps telecom companies to provide faster data, voice, video and some other services. PON is enabling telecom operators to provide fiber to the home, building, cabinet, premises, and fiber to the neighborhood, unlike fiber to the business alone in the past. BPON, EPON, GPON, and WDM-PON are major passive optical network structures. The report provides profiles of the companies in the market such as ADTRAN, Inc., Alcatel-Lucent S.A., Calix, Freescale Semiconductor, Inc., Ericsson Inc., Hitachi, Ltd., Huawei Technologies Co. Ltd, Mitsubishi Electric Corporation, Motorola Solutions, Inc., Verizon Communications Inc., and Other companies.

Passive Optical Network Market: Drivers and Restraints

Fiber to the home (FTTH) application is gaining more demand from telecommunication operators and it is expected to drive the growth of the PON market. Increasing data traffic is necessitating upgradation in infrastructure for enabling higher capacities and it is driving the growth of the market. The growing demand for conservation of energy and the presence of a robust optical network setup is anticipated to enhance the growth of the global PON market. Growing investments in research & development and in infrastructure by both private and public entities to improve the broadband connectivity and efficiency drive the growth of the global passive optical networks market. The technological upgradation of network infrastructure by major telecom companies is anticipated to drive the growth of the global PON network market. Increasing demand for GPON equipment and EPON equipment to meet bandwidth requirements and data-intensive services are anticipated to drive the growth of the global PON market during the forecast period. Moreover, higher installation and operation costs, due to the higher component costs, hinders the growth of the passive optical network market. Besides, the growing demand for higher broadband bandwidth applications and are anticipated to present growth opportunities for the passive optical networks market in upcoming years.

Passive Optical Network Market: Regional Analysis

As per the geographies, North America dominates the passive optical network market. Increasing investments from government, increasing the establishment of strong optical networks, and growing demand for passive optical network equipment drive the growth of the passive optical network market in the North America region. Further, Asia-Pacific is the fastest growing region for the PON market. Growing investments in R&D activities, growing data usage in the region and growing demand for greater bandwidth in major economies such as China, India, and Japan are the major factors driving the growth of the Asia-Pacific region for PON market.

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