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The Gigabit Passive Optical Network (GPON) Technology Market size is forecast to increase by USD 25,219.18 million, at a CAGR of 21.42% between 2023 and 2028.
The growth of the market depends on several factors, including the migration from copper to optical fiber, the rapid growth of the telecommunications industry, and the rising demand for triple-play and quad-play services. GPON is a prominent Passive Optical Network (PON) standard, which is a type of point-to-multipoint network technology that provides broadband access to end-users via fiber optic cable. GPON stands for Gigabit Passive Optical Network. The term Gigabit in GPON refers to the maximum speed that it offers, which is typically 2.488 Gbps downstream and 1.244 Gbps upstream. The term passive refers to an optical fiber network that does not rely on any electrically powered equipment along its path. GPON technology has proven to be the most widely adopted type of optical fiber connection, using over 95% less energy than a traditional copper cable network. Furthermore, GPON has a 1:64 ratio on a single fiber. This means that a GPON can serve video, data, and voice to up to 64 end-users over a single fiber line. As in GPON, a number of fibers run in a fiber optic network, it is the optical network standard of choice for establishing last-mile connectivity in an efficient and cost-effective manner.
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Migration from copper to optical fiber is a key market driver. Copper wires transmit information using electrical impulses, but this causes signal loss and potential data distortion. Additionally, copper wires are vulnerable to tapping, posing security risks. In contrast, optical fibers are cost-effective, lightweight, and fire-resistant. They have higher bandwidth capacity than copper wires. The rising use of optical fibers is driving the demand for GPONs among residential and commercial users, enabling faster and more efficient data transfer.
The advantages of optical fibers outweigh those of copper cables, especially in terms of security. Copper wiring is prone to data leaks through tapping, leading to a shift towards optical fibers for communication purposes. Optical fibers are essential components of GPONs, thus driving their demand. Despite the initial cost of deploying GPONs being high, their demand is expected to increase significantly in the future. As more countries opt for optical fiber deployment, the global market is projected to experience substantial growth.
The advent of smart city technologies is a key market trend. Smart cities are being developed in many countries by integrating advanced information and communication technologies (ICT) into urban infrastructure. This includes connecting various stakeholders such as local departments, libraries, schools, transportation systems, power plants, water supply networks, and waste management through ICT solutions.
Factors considered for designating a city as smart include adopting smart grid technologies, improving traffic management with IT, and providing Wi-Fi access points and mobile apps for city information. Smart cities integrate devices across the city, have telecom infrastructure supporting multiple subsystems, centralize inputs for efficient energy usage, overcome traffic bottlenecks through communication, provide extensive Wi-Fi and mobile network coverage, and prefer fiber-optic cables over copper for stability and long-distance data transmission. The rise of smart cities drives the demand for GPONs to establish advanced ICT infrastructure, expected to increase in the future.
The high cost of fiber optics is a challenge restraining the growth of the market. Fiber-optic components are significantly more expensive than copper counterparts, with varying costs depending on cable and connector styles. Each connector alone can range from USD 1 to USD 15. Installing fiber-optic cables in a building can cost up to USD 30,000. Additionally, essential optical modulators for the setup, such as phase modulators (USD 5,000) and amplitude modulators (USD 2,500), require significant investment.
If an Internet service provider (ISP) chooses to switch to optical fibers, they must replace the existing copper wiring entirely, which can cost billions of dollars for major cities. This high cost makes fiber-optic cable installation prohibitively expensive, leading ISPs to opt for upgrades rather than complete replacements. The expensive nature of fiber optics poses a challenge to their adoption and subsequently impacts the demand for GPONs in the forecast period.
The market share growth by the FTTH segment will be significant during the forecast period. In order to provide high-speed internet access, fiber-to-the-home (FTTH), also known as fiber-to-the-premises (FTTP), involves installing and using optical fiber from a central location to individual buildings, such as homes, apartments, and businesses. With regard to current technologies, FTTH significantly improves the connection speeds that internet users can access.
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The FTTH segment was valued at USD 3,385.77 million in 2017 and continued to grow until 2021. Coaxial cables, twisted pair conductors, and Digital Subscriber Lines (DSL) cannot achieve the improved network performance that FTTH offers, particularly higher speed over long distances. Due to its greater bandwidth, experts think that FTTH is the best technology to handle consumer network demands in the ensuing decades. FTTH improves the quality of high-definition video streaming on websites like YouTube and Roku. Multiple upgrades are possible without having to replace the fiber. Changes to the fiber's infrastructure are possible without replacing the fiber itself. Moreover, when compared to earlier technology, it offers faster speeds over long distances. Since the fiber links directly to homes and can be used to complete the remaining network segments with Ethernet or coaxial cables, it is superior to other fiber designs. Thus, owing to its benefits, the FTTH segment of the global market is expected to grow during the forecast period.
The component segment is fragmented into ONT and OLT. Based on components, the ONT segment holds the largest market share. The Optical Network Terminal (ONT) acts as a crucial link between the Internet Service Provider (ISP) and fiber Internet users. It plays a vital role in translating optical signals into data for computing devices, functioning as a modem in FTTP connections. ONT requires power and can be easily plugged into any AC electrical outlet. As a user-side equipment in the GPON network, ONT serves as the endpoint for users. It is typically installed near the service entry, in the garage, basement, or outside the home. In apartment buildings, two types of ONT devices are commonly used. The first type assigns an ONT to each individual flat, while the second type involves a larger and more complex ONT for the entire building, with each flat receiving its Internet cable from this ONT (usually a twisted pair like CAT5, CAT5E, CAT6, or CAT6A). The demand for ONTs is driven by the installation of fiber networks to provide higher bandwidth connections.
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APAC is estimated to contribute 42% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The expansion of the market in APAC during the forecast period will be driven by the rising interest of the Chinese and Indian governments in deploying fiber optics throughout their respective nations. There is a need to implement technologies that can accomplish this because both these developing nations and others in APAC are placing a strong emphasis on digitalization. Furthermore, the increasing number of mobile subscribers is a significant factor in the growth of the regional market. Additionally, the increase in smartphone sales has been largely attributed to the rising income levels in APAC. As a result, more smartphone subscribers are using their mobile phones to access the internet. With more people using cell phones, faster internet connections at reasonable prices will be necessary.
The continued rollout of 4G and the upcoming rollout of 5G is expected to result in an increase in the number of mobile subscribers in APAC. Mobile telecommunications providers now have the opportunity to expand by creating the infrastructure necessary to meet the rising demand for high bandwidth services like streaming and downloading of movies and music. The number of mobile subscribers will continue to increase during the forecast period, leading to a rise in the demand for fiber optic cables, which in turn, will boost the growth of the market in APAC during the forecast period.
The Market industry report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Cisco- The company offers GPON technology such as Cisco Catalyst PON Series.
Calix- The company offers GPON technology such as GigaSpire BLAST Systems.
Broadcom- The company offers GPON technology such as Multiport 10G PON MAC.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market players, including:
Qualitative and quantitative market growth analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market report forecasts market growth by revenue at global, regional & country levels and provides a market research and growth analysis of the latest market trends and analysis and growth opportunities from 2017 to 2027.
GPON (Gigabit Passive Optical Network) technology is at the forefront of shaping urban development by revolutionizing data communication and high-speed internet connectivity. With the integration of GPON networks into urban infrastructure, cities are experiencing a paradigm shift in resource allocation, energy consumption, and smart technology adoption.
This technology, based on fiber optic networks, facilitates increased bandwidth, enabling seamless integration of IoT devices and smart applications. The deployment of GPON networks is particularly beneficial for service providers in urban areas, delivering gigabit-speed internet services to residential areas. This advancement ensures ultra-fast internet and consistent high-speed connectivity, meeting the growing consumer demand for high-quality broadband services.
Telecom companies and broadband service providers (BSPs) leverage GPON technology to establish a robust fiber optic infrastructure, providing network health monitoring and machine learning capabilities. These capabilities not only automate workflows but also enable the prediction of maintenance needs, ensuring optimal performance and reliability. As cities continue to evolve, GPON technology emerges as a key enabler in creating smarter, connected, and technologically advanced urban landscapes.
GPON Technology Market Scope |
|
Report Coverage |
Details |
Page number |
158 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 21.42% |
Market growth 2023-2027 |
USD 25,219.18 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
20.67 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 42% |
Key countries |
US, China, Japan, UK, and Germany |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Adtran Inc., Allied Telesis Holdings K.K., Alphion Corp., AT and T Inc., Broadcom Inc., Calix Inc., Centre for Development of Telematics, Cisco Systems Inc., DZS Inc., FiberHome Telecommunication Technologies Co. Ltd., Hexatronic Group AB, Huawei Technologies Co. Ltd., Kontron AG, NEC Corp., Nokia Corp., Optical Network Technologies, Richerlink Technology Co. Ltd., Telefonaktiebolaget LM Ericsson, Unizyx Holding Corp., and ZTE Corp. |
Market dynamics |
Parent market analysis, Market forecasting |
Customization purview |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Component
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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