Home » Business, Electronics & Semiconductors, Manufacturing & Industry, News & Current Affairs » Passive Optical Network (PON) Equipment Market Is Expected To Reach USD 46.46 Billion By 2024 : Radiant Insights,Inc
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The European PON equipment market is estimated to grow at a CAGR of over 21% from 2016 to 2024.

The global PON equipment market is expected to reach USD 46.46 billion by 2024, according to a new report by Grand View Research, Inc. The high capacity telecommunications network for transmitting information as optical signals is expected to drive the demand. The increased bandwidth and decreased transmission delay between the end-points are anticipated to offer significant opportunities for development.


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However, the high installation cost at the operators’ interface, owing to the operational cost, is expected to challenge the industry penetration over the next eight years. The industry is consolidated with the on-going R&D investments to obtain competitive advantages, which is projected to result in mergers& acquisitions, and strategic alliances.


Furthermore, the growing demand for a strong optical network setup and energy conservation is anticipated to bolster the growth of the GPON equipment industry. The GPON equipment infrastructure comprises a single optical fiber accessed by multiple users with the help of optical splitters; this is considered to be a cost-effective technology for fiber-to-the-home deployments. The bandwidth intensive applications in the emerging markets offer substantial growth opportunities for the equipment.


The increasing investments from public and private sectors with the exceeding data traffic are expected to be the key drivers. This equipment enables millions of signals to be impressed through the frequency division multiplexing. Additionally, the optimized bandwidth connectivity and high return on investments (ROI) are also expected to contribute to the PON equipment market.


However, the high installation costs at the operator’s end would make it difficult to offer services at an affordable price. Furthermore, the operational cost of the.optical network equipment may also hinder growth.


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Further key findings from the report suggest:

  • In 2015, GPON equipment captured a revenue share of over 65% of the overall revenue. It is considered as a lucrative segment owing to the increased bandwidth capabilities, including the internet and digital content over a single optic line in the commercial and residential sectors.
  • The GPON optical network terminal (ONT) component is projected to grow at a CAGR of over 20% over the forecast period. It is placed at the central office and functions as the LAN combination unit for assimilating video, data, and voice services.
  • The EPON optical line terminal component (OLT) is expected to grow at a CAGR of over 21% from 2016 to 2024. OLT is installed at the subscriber premises and offers local service interfaces to the users.
  • The large-scale investments in the R&D infrastructure, as well as increased internet penetration in countries such as China, Japan, and Taiwan, is projected to lead the Asia Pacific equipment industry to capture an enormous share of over USD 18 billion by 2024.
  • Notable companies operating in the PON equipment market, include Alcatel-Lucent S.A, Huawei Technologies Co. Ltd., Calix Inc., and ZTE Corporation. The rapidly evolving technologies for new product developments have led to mergers & acquisitions and strategic alliances between the players.


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