Description
Passive
optical network (PON) facilitates connectivity from a particular access point
to multiple end-users. It includes an optical line terminal located at the
service provider’s office and several optical network units near the end-users
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Global
passive optical network equipment market is projected to grow at a CAGR of 3.6%
from 2013 to 2018 (forecast period). Large-scale penetration of smartphones and
exponential growth in the number of household internet users are the main
growth drivers. Shift by the network providers to FTTH (Fiber-To-The-Home)
services is also expected to generate PON demand. FTTH applications are on the
rise owing to introduction of high-speed services and streaming videos for higher
bandwidth.
PON
acts as a cost-effective technology for FTTH deployment. Rising use of
data-intensive services (video conferencing, Voice over Internet Protocol
(VoIP), Video on Demand (VoD)) will have a favorable effect on market demand
over the forecast period. However, stringent governmental regulations coupled
with high installation and operational costs could be a challenge.
The
worldwide market is fragmented on the basis of technology into Gigabyte Passive
Optical Network (GPON) and Ethernet Passive Optical Network (EPON). GPON
occupies a higher share of the total market. It is estimated to grow faster
than EPON in the coming years.
GPON
delivers increased bandwidth capabilities as well as triple play services over
a single fiber optic line to residences and office premises. This segment will
grow on account of increasing focus on upgrading the existing networks to PON
to avail higher broadband strength. EPON uses Ethernet packets and is primarily
employed in Local Area Networks (LANs).
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The
passive optical network equipment market is geographically segmented into the
Americas; Asia Pacific (APAC); and Emerging Markets, Europe & Africa
(EMEA). Consumption of PON equipment in
APAC is the chief driver of the global PON equipment market. Countries like
Japan, China, & India are increasingly demanding higher bandwidth. High
investments in research & development in APAC will also propel the region’s
PON equipment demand.
Key
market players include Alcatel-Lucent, Mitsubishi Electric Corp., ZTE Corp.,
and Huawei Technologies Co. Ltd. Other notable companies are Cisco Systems
Inc., Fiberhome Technologies Group, ZyXEL Communications Corp., Dasan Networks
Inc., and Adtran Inc
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