Passive Optical Network (PON) Market by Product and Geography - Forecast and Analysis 2022-2026

The passive optical network (PON) market size is projected to increase by USD 25.89 billion by 2026, accelerating at a CAGR of 19.42%.

This passive optical network (PON) market research report extensively covers market segmentation by product (GPON and EPON) and geography (APAC, North America, Europe, South America, and Middle East and Africa).

The passive optical network (PON) market report further provides detailed information on several market vendors, including ADTRAN Inc., Calix Inc., Cisco Systems Inc., CommScope Inc., Dasan Network Solutions, Huawei technologies Co. Ltd., InCoax Networks AB, Mitsubishi Electric Corp., Motorola Solutions Inc., Nokia Corp., NXP Semiconductors NV, Telefonaktiebolaget LM Ericsson, Tellabs Access LLC, Verizon Communications Inc., and ZTE Corp. among others.

What will the Passive Optical Network (PON) Market Size be During the Forecast Period?

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Passive Optical Network (PON) Market: Key Drivers, Trends, and Challenges

The migration from copper to optic fiber is notably driving the passive optical network (PON) market growth, although factors such as increasing installation and component costs may impede market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the passive optical network (PON) industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.

Key Passive Optical Network (PON) Market Driver

One of the key factors driving the global passive optical network (PON) market growth is the migration from copper to optic fiber. Optic fibers are inexpensive, lightweight, and non-flammable; they can carry higher bandwidths than copper wires. With the growing adoption of optical fibers to increase security, the demand for PONs for residential and commercial users is also increasing as they are used for faster and more efficient data transfer. In addition, as copper wiring can easily be tapped, thus, governments are enabling optic fiber technology for communication purposes. Optical fibers are the most integral parts of a PON, and hence, the demand for optical fibers will create a subsequent demand for PONs, which will drive the market growth during the forecast years.

Key Passive Optical Network (PON) Market Trend

Increase in internet traffic is one of the key PON market trends that is expected to impact the industry positively in the forecast period. With the arrival of 4G and the deployment of 5G, there will be more people going online, and this number is set to rise every year. Moreover, the introduction of Chinese smartphone makers such as Oppo, OnePlus, and Lenovo, which are priced competitively but have advanced features, will also boost Internet traffic. The growing internet traffic will require the use of better infrastructure to support high transmission speeds to manage this congestion. For this, optical fibers need to be used, which will drive the demand for PON deployment. Fiber optics can transfer data at high speeds and over long distances.

• For instance, a local area network (LAN) using copper lines can support 3,000 telephonic calls, but a fiber-optic cable can carry over 30,000 calls.

Key Passive Optical Network (PON) Market Challenge

One of the key challenges to the global passive optical network market growth is the increasing installation and component costs. The cost of fibers depends on cable and connector styles. Each connector is priced from USD 1 to USD 15. Installing a fiber-optic line can cost up to USD 30,000 for an entire building to be wired. In addition, an optical modulator will cost about USD 5,000, and an amplitude modulator would cost about USD 2,500. Thus, for deploying a PON, the major component to install is a fiber-optic line, which is very expensive, as mentioned. Therefore, with the growing cost burden, the adoption of fiber optics is getting hampered, which will limit the demand for PONs in the forecast years.

This passive optical network (PON) market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2022-2026.

Parent Market Analysis

Technavio categorizes the global passive optical network (PON) market as a part of the global electronic equipment and instruments market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the passive optical network (PON) market during the forecast period.

Who are the Major Passive Optical Network (PON) Market Vendors?

The report analyzes the market's competitive landscape and offers information on several market vendors, including:

 

• ADTRAN Inc.
• Calix Inc.
• Cisco Systems Inc.
• CommScope Inc.
• Dasan Network Solutions
• Huawei technologies Co. Ltd.
• InCoax Networks AB
• Mitsubishi Electric Corp.
• Motorola Solutions Inc.
• Nokia Corp.
• NXP Semiconductors NV
• Telefonaktiebolaget LM Ericsson
• Tellabs Access LLC
• Verizon Communications Inc.
• ZTE Corp.

 

This statistical study of the passive optical network (PON) market encompasses successful business strategies deployed by the key vendors. The passive optical network (PON) market is fragmented and the vendors are deploying growth strategies such as technological innovation to compete in the market.

Product Insights and News

• ADTRAN Inc. - The company offers a passive optical network, which allows residential customers to access broadband network for nominal line speed up to 1 gigabyte per second and commercial customers to reach speed up to 10 gigabytes per second. 
• ADTRAN Inc. - Under the services and support segment, the company offers services including consulting, solutions integration, network implementation, maintenance, and professional and managed services. 

To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.

The passive optical network (PON) market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.

Passive Optical Network (PON) Market Value Chain Analysis

Our report provides extensive information on the value chain analysis for the passive optical network (PON) market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.

Which are the Key Regions for Passive Optical Network (PON) Market?

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39% of the market's growth will originate from APAC during the forecast period. China and Japan are the key markets for passive optical networks (PON) in APAC. Market growth in this region will be faster than the growth of the market in South America, Europe, and MEA

The growing interest of the governments of countries such as India and China in deploying fiber optics across the region will facilitate the passive optical network (PON) market growth in APAC over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.

COVID Impact and Recovery Analysis

• COVID-19 impact - In 2020, the outbreak of COVID-19 negatively impacted the regional PON market. The rise in the number of deaths due to the pandemic in China and other nations compelled governments to impose nationwide lockdowns, which impacted various businesses using PONs in the region as they were compelled to shut down temporarily. 
• COVID-19 recovery - In 2021, the initiation of large-scale vaccination drives carried out by the governments of countries in APAC led to the resumption of regional activities. This has increased the demand for new PONs in the region. Thus, such factors will drive the growth of the regional market during the forecast period.

What are the Revenue-generating Product Segments in the Passive Optical Network (PON) Market?

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The passive optical network (PON) market share growth by the GPON segment will be significant during the forecast period. GPON is the dominant segment in the market because of its superior attributes such as:

• A better user-experience
• High bandwidth capacity
• Significant short- and long-term cost savings
• Safe and secure
• Faster data rates
• Eco-friendlyCovers up to 12.43 miles

This report provides an accurate prediction of the contribution of all the segments to the growth of the passive optical network (PON) market size and actionable market insights on post COVID-19 impact on each segment.

 

Passive Optical Network (PON) Market Scope
Report Coverage	Details
Page number	120
Base year	2021
Forecast period	2022-2026
Growth momentum & CAGR	Accelerate at a CAGR of 19.42%
Market growth 2022-2026	$ 25.89 billion
Market structure	Fragmented
YoY growth (%)	18.6
Regional analysis	APAC, North America, Europe, South America, and Middle East and Africa
Performing market contribution	APAC at 39%
Key consumer countries	US, China, Japan, UK, and Germany
Competitive landscape	Leading companies, Competitive strategies, Consumer engagement scope
Key companies profiled	ADTRAN Inc., Calix Inc., Cisco Systems Inc., CommScope Inc., Dasan Network Solutions, Huawei technologies Co. Ltd., InCoax Networks AB, Mitsubishi Electric Corp., Motorola Solutions Inc., Nokia Corp., NXP Semiconductors NV, Telefonaktiebolaget LM Ericsson, Tellabs Access LLC, Verizon Communications Inc., and ZTE Corp.
Market dynamics	Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Passive Optical Network (PON) Market Report?

• CAGR of the market during the forecast period 2022-2026
• Detailed information on factors that will drive passive optical network (PON) market growth during the next five years
• Precise estimation of the passive optical network (PON) market size and its contribution to the parent market
• Accurate predictions on upcoming trends and changes in consumer behavior
• The growth of the passive optical network (PON) industry across APAC, North America, Europe, South America, and Middle East and Africa
• A thorough analysis of the market's competitive landscape and detailed information on vendors
• Comprehensive details of factors that will challenge the growth of passive optical network (PON) market vendors

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