Passive Optical Network Market To Reach $37.1 Billion By 2030

Passive Optical Network Market Growth & Trends

The global passive optical network market size is expected to reach USD 37.1 billion by 2030, registering to grow at a CAGR of 13.9% from 2024 to 2030 according to a new report by Grand View Research, Inc. Passive optical network equipment offers higher efficiency with better bandwidth and utilizes larger variable length packets. The telecom operators in the industry are transitioning their switches from fiber to the business to the fiber to the home and fiber to the building rollouts leading to the growth of PON equipment.

The equipment market is consolidated in nature with few major players dominating their presence in the market. Hence, mergers and acquisitions and strategic alliances are formed to recognize the transformational value of the products associated. The advancements in the networking technologies have led to the development and adoption of optical network services.

Furthermore, the increasing focus of players on upgrading the existing networks to PON for higher broadband speed and the growing number of connected devices both outside and inside the residential complexes is anticipated to proliferate the industry.

The increasing demand for energy conservation and strong optical network setup is expected to fuel the market growth. Emerging regional markets, such as Asia Pacific, offer strong growth opportunities for the technology owing to intensive bandwidth applications.

Increasing R&D and investments from private and public sectors along with factors such as exceeding data traffic are projected to be the key drivers for the industry. The North American and European regions captured a market share of over 50% owing to increasing use of passive optical network equipment.

However, short range on the operator’s premises and high installation cost at the are likely to hinder the market growth over the forecast period.

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Passive Optical Network Market Report Highlights

• Gigabyte Passive Optical Network (GPON) dominated the market and accounted for a share of 44.2% in 2023. As consumers and businesses increasingly rely on high-definition video streaming, online gaming, and cloud-based applications, there is a pressing need for network solutions to deliver higher bandwidth and faster speeds.

• The Optical Network Terminal (ONT) is expected to register the fastest CAGR during the forecast period. Applications such as 4K video streaming, online gaming, virtual reality (VR), and telecommuting require high bandwidth and low latency.

• The FTTx segment accounted for the largest market revenue share in 2023. FTTx solutions offer a scalable and future-proof infrastructure as businesses and service providers seek to build resilient networks that support future growth and technological advancements. FTTx networks are designed to accommodate increased data traffic and integrate new technologies as they become available, providing a long-term solution for high-speed internet connectivity.

• The major industry players in the PON market include Adtran; Calix, Inc.; Huawei Technologies Co., Ltd.; Mitsubishi Electric Corporation; ZTE Corporation; Fujitsu; NXP Semiconductors.

Passive Optical Network Market Segmentation

Grand View Research has segmented the global passive optical network market based on structure, component, application, and region:

Passive Optical Network Structure Outlook (Revenue, USD Million, 2017 - 2030)

• Gigabyte Passive Optical Network (GPON)

• Ethernet Passive Optical Network (EPON)

• Wavelength Division Multiplexing Passive Optical Network (WDM-PON)

Passive Optical Network Component Outlook (Revenue, USD Million, 2017 - 2030)

• Wavelength Division Multiplexer/De-Multiplexer

• Optical Filters

• Optical Power Splitters

• Optical Cables

• Optical Line Terminal (OLT)

• Optical Network Terminal (ONT)

Passive Optical Network Application Outlook (Revenue, USD Million, 2017 - 2030)

• FTTx

• Mobile Backhaul

Passive Optical Network Regional Outlook (Revenue, USD Million, 2017 - 2030)

• North America

  • U.S.

  • Canada

  • Mexico

• Europe

  • Germany

  • UK

  • France

• Asia Pacific

  • China

  • Japan

  • India

  • South Korea

  • Australia

• Latin America

  • Brazil

• Middle East and Africa (MEA)

  • Saudi Arabia

  • UAE

  • South Africa

List of Key Players in Passive Optical Network Market

• Adtran

• Calix, Inc.

• Huawei Technologies Co., Ltd.

• Mitsubishi Electric Corporation

• ZTE Corporation

• Fujitsu

• NXP Semiconductors

• TP-LINK CORPORATION PTE. LTD.

• Luna Innovations Incorporated 

• Silixa Ltd