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GPON Market Size, By Component (Product [Optical Line Terminal (OLT), Optical Network Terminal (ONT)], Service [Professional Service, Managed Service]), By Technology (2.5 GPON, XG-PON, XGS-PON, NG-PON2), By Application (Fiber To The Home (FTTH), Other FTTX, Mobile Backhaul), By End-use (Residential, Business [IT & Telecom, BFSI, Healthcare, Government]), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2023 – 2032

  • Report ID: GMI2954
  • Published Date: Jan 2023
  • Report Format: PDF

Industry Statistics

GPON Market size was recorded at over USD 15 billion in revenue in 2022. Driven by favorable broadband access initiatives by government organizations, the industry is expected to grow at a more than 10% CAGR from 2023 to 2032.
 

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The burgeoning internet usage in developing countries and the global increase in IP traffic are aiding market progression. The need for GPON technology-based solutions including ONTs and OLTs has surged as a result of government plans for fixed broadband infrastructure and smart city developments. For instance, in March 2021, the UK government launched Project Gigabit worth £5bn billion (~USD 6 billion) to provide the fastest gigabit broadband connectivity in Hampshire, Norfolk, Suffolk, Shropshire, Worcestershire, and Isle of Wight districts with an aim of recovering from the impact of the pandemic and fortify country-wide network.
 

Excessive developments in network technology may restrain industry progression

Consistent advancements in network technology are a major factor restraining GPON market growth. Network modifications are necessary, particularly in the central office, for the migration and physical installation of next-generation PON services. Operators often face setbacks to keep up with rapid technological innovation to provide customers with better connectivity and competitive bandwidth options. Nonetheless, with the growing importance of GPON in network connectivity and forward error correction, the market is likely to witness steady growth in the upcoming years.
 

Growing installation of triple-play services to push product adoption

In terms of component, GPON market is categorized into product and service. The product segment held over 60% market share in 2022. Since ONT is regarded as necessary hardware installed at the user premise, transforming optical signals into electric signals, which is aiding segment expansion. According to the U.S. Energy Information Administration report, in 2021, the U.S. electric utilities have about 111 million advanced smart metering infrastructure installations. The segment growth is also likely to be fueled by the increasing demand for triple-play services and high-speed internet connections.
 

Soaring need for communication services to foster demand for ONTs

Under product, GPON market is further classified into optical network terminal (ONT), optical line terminal (OLT), and others. ONT segment was valued at over USD 3 billion in 2022. The advent of 5G networks to meet the increased need for rapid communication services, along with the development of higher-performing cellular networks, is driving the demand for ONTs. Moreover, businesses are deploying ONT technological solutions in response to the rising network requirements, which is speculated to prove lucrative for the segment outlook.
 

Cost-effective performance to help XGS-PON technology gain traction

With respect to technology, industry is divided into XG-PON, 2.5 GPON, NG-PON2, and XGS-PON. GPON market share from the XGS-PON technology segment is foreseen to progress at over 15% CAGR through the forecast period. Operators are aided by the new XGS-PON standard (ITU G.9807.1, 2016) to overcome the difficulties associated with cost and performance. The technology removes wavelength tunability and mobility from TWDM-PON to establish a universal channel.
 

Surging use in LTE-A and 5G networks to define mobile backhaul segment landscape

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In terms of application, GPON market is segregated into other FTTX, fiber-to-the-home (FTTH), and mobile backhaul. Mobile backhaul segment is expected to grow at over 15% CAGR from 2023 to 2032, the report claims. The recent development of next-generation networks such as LTE-A and 5G has encouraged telecom operators to deploy backhaul equipment to deliver low latency and high bandwidth communications.
 

Significant use of cutting-edge GPON to accelerate business segment share

Based on end-use, GPON market is classified into residential and business. The business segment is anticipated to reach a valuation of over USD 20 billion by 2032. GPON can effectively combine phone, data, and video onto a single fiber for enterprise networks. The adoption of next-generation GPON technology, such as XGS-PON, to improve enterprise networks is projected to boost market expansion. To cite an instance, in March 2022, Izzi, a management service organization, announced deploy Pacific Broadband Network’s netWatch and vendor-agnostic GPON management software.
 

Expansion of service delivery networks is driving IT & telecom firms to adopt GPON solutions

The business end-use segment is further divided into IT & telecom, healthcare, BFSI, government, and others. IT & telecom segment held over 45% of the market share in 2022 as a result of the heavy implementation of GPON by IT and telecom firms to modernize their service delivery network. For instance, in April 2022, Indian telecom giant HFCL Ltd. completed connecting 1,789 Gram Panchayats via the GPON network with above 7,765 OFC layouts. Furthermore, segment growth is also driven by the ongoing development and expansion of communications networks to meet the rising user demands.
 

Soaring adoption of high-speed broadband to aid European market expansion

Europe GPON Market Share, By Country, 2022

 Countries

Market Share, 2022 (%)

UK

23.2%

Germany

20.2%

France

14.5%

Spain

11.3%

Italy

12.4%

Netherlands

7.5%

Sweden

5.1%

Rest of Europe

5.8%

Total

100%

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Europe GPON market is speculated to account for over 15% of the overall industry revenue by the end of 2032. The increasing use of next-generation, high-speed broadband in Europe to support mobile hauling applications is propelling the GPON business development in the region. Moreover, telephone providers are collaborating with government bodies to build a strong 5G network infrastructure across several countries, thereby facilitating product penetration.
 

Strategic alliances with telecom firms to stimulate the GPON industry outlook

ADTRAN, Inc., Alphion Corporation, Allied Telesis, Inc., AT&T, Inc., Calix, Inc., Broadcom Ltd., Cisco Systems, Inc., Fiberhome Telecommunication Technologies Co., Ltd., Telefonaktiebolaget LM Ericsson, and Zyxel Communications Corporation are some key players involved in the GPON industry. These firms majorly focus on strategic acquisitions, mergers, and alliances to propel their customer reach and enhance their market outlook.
 

Impact of COVID-19 on the GPON market trends

The COVID-19 pandemic opened new opportunities for the GPON industry as the demand for high-speed data and connectivity among businesses increased drastically. The new remote working trend encouraged businesses and homeowners to adopt 5G technology and broadband with gigabit passive optical network systems, especially for residential applications. According to a study, Indonesia recorded 175 million people using broadband networks during the lockdown phase, which is equal to 64% of the population. This surge prompted many firms to upgrade their GPON FTTH technology to accommodate the emerging consumer needs, which has positively influenced the product outlook.
 

The GPON market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2018 to 2032 for the following segments:

By Component

  • Product
    • Optical Line Terminal (OLT)
    • Optical Network Terminal (ONT)
    • Others
  • Service
    • Professional Service
    • Managed Service

By Technology

  • 2.5 GPON
  • XG-PON
  • XGS-PON
  • NG-PON2

By Application

  • Fiber To The Home (FTTH)
  • Other FTTX
  • Mobile Backhaul

By End use

  • Residential
  • Business Retail
    • IT & Telecom
    • BFSI
    • Healthcare
    • Government
    • Others

The above information has been provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • UK
    • Germany
    • France
    • Italy
    • Spain
    • Netherlands
    • Sweden
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • ANZ
    • Singapore
    • Thailand
  • Latin America
    • Brazil
    • Mexico
    • Argentina
    • Chile
    • Colombia
    • Peru
  • MEA
    • Iran
    • Saudi Arabia
    • South Africa
    • Israel
    • UAE

 

Authors: Preeti Wadhwani, Shamal Gawande

Frequently Asked Questions (FAQ) :

Global Market size for GPON was valued at over USD 15 billion in 2022 and is set to progress at more than 10% CAGR from 2023 to 2032 owing to favorable broadband access initiatives by government organizations as well as increased internet usage in developing countries.
Mobile backhaul segment is anticipated to grow at over 15% CAGR between 2023 and 2032 due to the recent development of next-generation networks such as LTE-A and 5G.
XGS-PON technology segment is projected to progress at over 15% CAGR from 2023-2032 as a result of positive inclination operators towards the new XGS-PON standard (ITU G.9807.1, 2016) to overcome difficulties associated with cost and performance.
Europe GPON industry is slated to garner over 15% industry share by the end of 2032 on account of the mounting use of next-generation, high-speed broadband in the region to support mobile hauling applications.

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Premium Report Details

  • Base Year: 2022
  • Companies covered: 19
  • Tables & Figures: 761
  • Countries covered: 27
  • Pages: 463
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