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GPON Technology Market size worth over $30bn by 2028

  • Published Date: February 3, 2022

GPON Technology Market size is set to surpass USD 30 billion by 2028, according to a new research report by Global Market Insights Inc.

GPON provides end-users with the ability to consolidate several services onto a single network, thereby reducing costs while increasing bandwidth. GPON is increasingly emerging as the key communication technology and supporting high-bandwidth transmissions to break down bandwidth bottlenecks of network access over twisted-pair cables. To enable the smooth transformation of today’s demanding businesses, enterprises are rapidly adopting GPON technologies to cope with immediate business needs.

Due to the consistent spread of the COVID-19 virus, public and private enterprises have switched to remote work environments. By identifying the business benefits of GPON technology, fiber network providers, such as Openreach & Zzoomm, deployed GPON solutions. Major GPON vendors including DASAN Zhone, Huawei, and Alcatel Lucent are focusing on strategic partnerships to provide gigabit broadband services across a potential customer base. Companies are also deploying optical networks and line terminal platforms to optimize the service bandwidth, thereby bolstering the market growth.

Rising adoption of IoT devices will support the GPON technology market expansion

The market progression is attributed to the growing acceptance of IoT devices in applications such as smart cities and autonomous vehicles. The growing penetration of connected devices is enabling enterprises to ensure seamless network performance. Every IoT application has varying requirements, such as data rates, device density & latency, and each network presents a unique set of operational challenges. GPON technology is increasingly being deployed in the above-mentioned applications as it has the potential to support multiple connections with varying bandwidth needs.

High bandwidth capacity and scalability will foster the OLT market demand

The Optical Network Termination (ONT) segment held 30% of the market share in 2021. The penetration of data-driven applications will lead to increasing demand for ONTs that possess great reliability to meet network requirements. The demand for ONTs in GPON architecture is also expected to be buoyed as they provide support for high-bandwidth media applications such as Internet Protocol Television (IPTV) and telephone services over a single fiber connection.

Browse key industry insights spread across 350 pages with 642 market data tables and 33 figures & charts from the report, “GPON Technology 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, 2022 – 2028”, in detail along with the table of contents:

Increasing market revenue for higher bandwidth services to support the rising usage of XG-PON systems

The XG-PON segment is slated to witness 35% growth rate by 2028 due to the increasing demand for services that require higher bandwidths, the emergence of innovative access technologies on the user side, and the need to reduce network construction investments by decreasing the split ratio & transmission distance. XG-PON is a PON system that supports nominal transmission rates in the order of 10 Gbit/s in at least one direction and implements a suite of protocols specified in ITU-T G.987.x series recommendations.

The industry expansion for FTTC and FTTN will increase exponentially

The other FTTX segment is estimated to attain a CAGR of 10% till 2028 led by the affordable pricing offered by Fiber to The Node (FTTN) and Fiber To The Curb/Cabinet (FTTC) solutions. The cost of deploying FTTN is low compared to FTTH and provides fiber-optic internet to more customers at reduced expenditures as the final connection to the home is through copper cables. Fiber to the Curb/Cabinet (FTTC) is similar to FTTN though the street pole or cabinet is closer to the users’ premises, typically within 300m (1,000 feet).

Digital transformation across telecom networks and a shift to 5G to fuel the industry growth across the IT & telecom sector

Global GPON Technology Market Size, By Business End-use

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IT & telecom sector is poised to expand at more than 15% CAGR through 2028 on account of the ongoing expansion of 4G networks and investments in the commercialization of 5G. With the expansion of mobile broadband ecosystems, the industry demand for efficient backhaul solutions is being increasingly realized by operators. Most cell sites in telecom networks are backhauled by microwave & wireline systems. Due to the high cost of linearly scaling these networks, GPON residential broadband deployments for mobile backhauls are being increasingly leveraged for mobile backhaul purposes.

Rapid surge in FTTH deployments and the expanding broadband infrastructure to support the regional growth

Asia Pacific GPON technology market is anticipated to reach over USD 10 billion by 2028 owing to various government initiatives in countries including China and India to stimulate the development of broadband infrastructure. With increasing investments in 5G technology to improve the telecom infrastructure, the market demand for ultra-high-capacity networks will increase. The increased penetration of IoT in applications, such as smart cities, will also drive the adoption of next-gen PON technologies.

Major market players are emphasizing on developing scalable and future-ready solutions

Some of the key companies operating in the market include ADTRAN, Inc., Allied Telesis, Inc., Alphion Corporation, AT&T Inc., Broadcom Ltd., Calix, Inc., Cisco Systems, Inc., DASAN Zhone Solutions, Inc., Fiberhome Telecommunication Technologies Co., Ltd., Hitachi, Ltd., Huawei Technologies Co., Ltd., ISKRATEL, d.o.o., NEC Corporation, Nokia Corporation, NXP Semiconductors N.V., Tellabs, Inc., Telefonaktiebolaget LM Ericsson, Verizon Communications, Inc., ZTE Corporation, and Zyxel Communications Corporation. Major leaders are emphasizing on the development of 10G-PON solutions to gain a competitive advantage over other market competitors.

Authors: Preeti Wadhwani, Smriti Loomba