Passive optical network equipment includes optical line terminals, optical network terminals, and other passive optical components that are used for establishing optical fiber connectivity between central offices and end-users. Passive optical networks provide several advantages over traditional copper networks such as higher bandwidth, lower maintenance costs, and better reliability. With the digitization of various industries and growing need for high-speed internet among consumers and enterprises alike, demand for fiber to the home connectivity is increasing significantly. This is driving the need for passive optical network equipment that can help establish such fiber connections efficiently and effectively.

The global Passive Optical Network Equipment Market is estimated to be valued at Us$ 22.92 Mn in 2023 and is expected to exhibit a CAGR Of 8.1% over the forecast period 2023 To 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

One of the major trends in the passive optical network equipment market is the shift towards next generation PON technologies. With increasing demand for bandwidth intensive applications, existing GPON and EPON networks are reaching their bandwidth limits. This is driving research and adoption of upcoming NG-PON2 standards that promise throughput up to 10Gbps and beyond. NG-PON2 standards help future proof networks to support demands for several years. Another important trend is the convergence of fixed and mobile networks with the concept of 5G FWA (fixed wireless access). Using 5G capability, mobile operators are establishing fiber deep connections using PON and providing fixed broadband services. This is opening new growth avenues for passive optical equipment vendors. Governments across regions are also supporting fiber deployments through rural broadband initiatives which is slated to drive momentum in the market over the coming years.

Porter’s Analysis

Threat of new entrants: The Passive Optical Network equipment market requires significant infrastructure and capital investment to enter the market, limiting the threat of new entrants. However, certain new technologies like fiber wireless networks pose a threat to some extent.

Bargaining power of buyers: Individual consumers have low bargaining power in the Passive Optical Network equipment market due to availability of standardized products from major players. However, large enterprises and telecom operators have moderate bargaining power.

Bargaining power of suppliers: Major component suppliers like optical cable, optical splitters etc have moderate bargaining power due to availability of substitutes and dominance of network equipment manufacturers.

Threat of new substitutes: Technologies like 5G wireless networks pose a threat to fiber based broadband connectivity. However, limited capability of 5G and scalability of fiber networks restricts this threat currently.

Competitive rivalry: The Passive Optical Network equipment market has few major players dominating the market. However competition is high based on product innovation, customization and pricing.

Key Takeaways

The Global Passive Optical Network Equipment Market Demand is expected to witness high growth over the forecast period supported by increasing demand for high speed internet connectivity. The global Passive Optical Network Equipment Market is estimated to be valued at US$ 22.92 Mn in 2023 and is expected to exhibit a CAGR of 8.1% over the forecast period 2023 to 2030.

Regional analysis:

Asia Pacific dominates the global Passive Optical Network equipment market currently owing to rapid fiber network deployment in densely populated countries like China and India. North America is another major regional market driven by optical network upgrades in the US.
Key players:

Key players operating in the Passive Optical Network Equipment market are AbbVie, Novartis International AG, Teva Pharmaceutical Industries Ltd., Pfizer Inc., Sanofi S.A., Merck & Co., Abbot Laboratories, Horizon Therapeutics plc, Johnson & Johnson, GE Healthcare, Carl Zeiss Meditec AG, Alcon Vision LLC, Eli Lilly and Company, Optovue Inc and Kala Pharmaceuticals. Major players are focusing on partnerships, mergers and new product launches to strengthen their market position.

Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it