Passive Optical Network (PON) Market Emerging Demand and Growth Opportunities by 2020 to 2026

The Passive Optical Network (PON) is a telecommunication technology that is used to implement a point-to-multipoint architecture. In order to enable a single optical fiber, the system uses fiber optic combiners and splitters, which is then used to serve multiple end-users without the need for individual fibers between customers and the hub. The coverage range of PON is limited to 20 km (12 miles), and is often known by its other name, Fiber to the Home (FTTH).

A new research report on (PON) has been published by Market Insights, offering preview of a present-day market, key players in the market, and activities that may impact the PON market between 2020-2026. The report features expert opinions, joint ventures, mergers and acquisitions, new product developments, strategic associations, and research and developments of the PON market. It utilises several methods of analysis to identify the market’s potential threats and opportunities, such as Porter’s Five Force Analysis, Price Analysis, and Supply Chain Analysis. The report explains the PON market’s driving factor, as well as restraining factor, which helps to provide a clear picture for readers.

In 2018, the PON Market was valued at USD 8.66 billion with a predicted annual growth rate (i.e. CAGR) of 19.8% between 2019 and 2025. According to a different report conducted by Grand View Research, the PON market size is expected to reach USD 43.43 billion within 5 years from now. This indicates that the PON industry is expected to enjoy smooth growth in the coming years. The predicted bull-ish market is attributed to the increase in application of VoIP phones, as well as the cost-effective solution of transferring data & electrical signals together. In addition, there has been an increased focus on upgrading pre-existing networks to a passive optical network for higher broadband and the growing number of connected devices, both inside and outside residential homes, is expected to multiply significantly in the market.

The increasing demand for energy conservation and strong optical network setup is predicted to fuel the market growth. Emerging regional markets like North America will experience a regional growth, which is attributed to Google Fibre’s expansion, rising number of cable operators, and U.S. telecom deployment plans. The Asia Pacific region is anticipated to grow with the fastest growth rate during the forecasted period thanks to the operators and government initiatives in Japan and South Korea.

In terms of structure, the global PON is segmented as Gigabit (GPON), wavelength division multiplexing (WDM-PON), and Ethernet (EPON). GPON, in particular, shows a growth potential of over 21.6% owing to the shifting dynamics of the segment. As such, it is deemed critical for business to stay ahead in this field in order to keep up with the changing market. GPON is believed to bring a healthy surplus to the PON market and global growth, as it is predicted to reach over US$18.7 billion by 2025.

EPON accounts for the largest revenue share among the rest. When compared to DWDM-P2P technology on a single fibre, the EPON technology combined with DOCSIS-EPON can provide a higher efficiency that is capable of supporting a larger number of customers. Meanwhile, consumer interest is likely to grow significantly in next-generation WDM technology, which remained as a less significant slice of the PON market in 2018.

As such, service providers will need to build out high quality PON/GPON access networks in order to offer Gigabit FTTH and Gfast broadband services. Using remote Optical Network Management, such as VIAVI ONMSi, will offer benefits such as rapid identification of fiber cabling care & handling, cable layout mapping documents, and centralized testing of the PON network, which helps to minimize service outages and intrusions.

Get in touch with us today to take the next step with one of Viavi’s PON products or solutions.