Global Passive Optical Network Market to Hit Sales of $115.46 Billion by 2028 | 25GS-PON Technology to Offer Lucrative Growth Opportunities for Service Providers

Global passive optical network market is valued at USD 13.61 billion in 2021, and it is anticipated to attain a value of USD 115.46 billion by 2028, at a CAGR of 21.1% over the prediction period (2022–2028).


Westford,USA, Nov. 07, 2022 (GLOBE NEWSWIRE) -- As data traffic continues to grow exponentially, the need for higher capacity networks is becoming more and more acute. Passive optical networks (PONs) offer a cost-effective solution to this problem, as they can provide extremely high bandwidths over long distances. The main driver of passive optical network market growth is the ever-increasing demand for bandwidth. With the proliferation of video streaming and other bandwidth-intensive applications, consumers are demanding faster and more reliable networks. PONs are ideally suited to meet this demand, as they can provide gigabit speeds over long distances without the need for active components or expensive optical fiber.

Another factor driving market growth of the global passive optical network market is the deployment of fiber-to-the-home (FTTH) networks. FTTH is being rolled out in many countries in order to provide subscribers with symmetrical gigabit speeds. PONs are the technology of choice for FTTH deployments, as they offer a flexible and scalable solution that can be easily integrated into existing infrastructure. Currently, over 1.3 billion broadband connections are established across the globe and the number is projected to expand to 1.6 billion by 2030, a 26% growth in just 8 years.

With the growing demand for high bandwidth applications, the deployment of FTTH Networks, and the increasing need for cost-effective solutions, it is clear that the passive optical network market will continue to grow rapidly in the coming years. However, the major restraining factor for the growth of this market is high initial investment required for setting up a PON infrastructure. Nevertheless, the development of next-generation PON technologies and deployment of FTTx services in emerging markets are projected to offer lucrative opportunities to the market players.

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25GS-PON Technology to Offer Lucrative Growth Opportunities for Passive Optical Network Market

25 Gigabit-capable Passive Optical Networks (25GS-PON) offer a stepping stone towards future-proofing fiber networks. They provide the high bandwidth and low latency needed to support next-generation applications such as 4K/8K video streaming, virtual reality, and cloud gaming. 25GS-PON also offers backwards compatibility with 10GPON and 2.5GPON, making it a flexible solution for upgrading existing fiber networks.

Service providers in the global passive optical network market can use 25GS-PON to deliver gigabit speeds over existing fiber infrastructure, without the need to install new equipment or run new cabling. This makes 25GS-PON an attractive option for service providers looking to offer gigabit speeds to their customers without incurring the high costs of a complete network upgrade. Apart from this, 25G-PON uses AES 128-bit encryption, which is the same level of security used by banks and other financial institutions. This makes it ideal for applications where data security is paramount.

25GS-PON technology in the passive optical network market also has the potential to support future applications and services that have not yet been invented. The high bandwidth and low latency of 25GS-PON will enable service providers to offer new and innovative services that take advantage of the latest technology advances. The flexibility and scalability of 25GS-PON make it a perfect fit for future-proofing fiber networks. Service providers can deploy 25GS-PON now to support current and future applications, ensuring that their networks are ready for whatever comes next.

As per SkyQuest analysis of the passive optical network market, over 15 services providers around the globe have communicated to use 25GS-PON deployment across their broadband network on trial basis. Wherein, AT&T emerged as the first players to achieve the milestone of 20 Gbps symmetric speed using the technology.  

Top players that have undertaken 5GS-PON trials are Türk Telekom (Turkey), Openreach (UK), Google Fiber (USA), Chorus (New Zealand), AIS (Thailand), Telecom Armenia (Armenia), Frontier Communications (USA), Bell (Canada), Fiberhost (Poland), Delta Fiber, Deutsche Telekom AG (Croatia), CityFibre (UK), Hotwire (USA), Proximus (Belgium), EPB (USA), KPN (The Netherlands), and TIM Group (Italy).

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Huawaii, Nokia, are and AT&T Among Top Players in Passive Optical Network Market

The global passive optical network market is growing at a steady pace with the deployment of fiber-to-the-home (FTTH) and fiber-to-the-curb (FTTC) networks. The Asia Pacific region is leading the PON market growth due to the increasing demand for high bandwidth services such as HD video and gaming applications. SkyQuest’s analysis shows that the top six players in the global PON industry are Huawei, Nokia, AT&T, ZTE, FiberHome, and Alcatel-Lucent.

Huawei is the leading player in the global passive optical network market with a market share of 19.5%. The company has a strong product portfolio and has been deploying PON solutions in many countries around the world. ZTE is another leading player with a market share of 12.6%. The company has been very active in China's FTTH rollout and has also been expanding its overseas presence.

In terms of geography, Europe and North America are currently the main markets for PON deployment, accounting for around 60% of the global market. Huawei is a leading player in both regions.

Looking at specific product segments, Huawei is a leader in all three major categories of PON products in the passive optical network market: optical line terminals (OLTs), optical network units (ONUs), and optical access network devices (OADs). In terms of OLTs, Huawei's market share was 24%, compared to 17% for ZTE and 14% for Alcatel-Lucent. In terms of ONUs, Huawei had a market share of 32%, compared to 18% for ZTE and 16% for Alcatel-Lucent.

Overall, SkyQuest believes that Huawei is well positioned to capitalize on the growing demand for PON networks globally. The company has a strong market share, a comprehensive product portfolio, and a robust technology roadmap. In addition, Huawei's go-to-market strategy is focused on delivering high-quality solutions to customers.

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Major Players in Global Passive Optical Network Market

  • Huawei Technologies Company (China)
  • Nokia telecommunications Company (Finland)
  • Cisco Networking Hardware Company (US)
  • Ciena Telecommunications Equipment Company (US)
  • AT&T Company (US)
  • ADVA Telecommunications Equipment Company (Germany)
  • Furukawa Group Company (Japan)
  • ADTRAN Inc Company (US)
  • Juniper Networks Corporation (US)
  • II-VI Incorporated Semiconductor Manufacturing Company (US)

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