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Gigabit Passive Optical Network (GPON) Market size to exceed $50 Bn by 2032

  • Published Date: January 25, 2023

Gigabit Passive Optical Network (GPON) Market size is anticipated to reach 50 billion by 2032, according to a recent research report announced by Global Market Insights Inc.

Importance of GPON for technology advancement in reducing bandwidth limitations as the chief driver for the GPON industry. GPON is considered a crucial legacy technology for high-bandwidth transmission to lessen the bandwidth constraints of network access over twisted pair cables. Several GPON strategies, such as Dynamic Bandwidth Allocation (DBA), allow customers to attain the necessary bandwidth and release unused bandwidth for other subscribers. According to a study on the comprehensive performance of DBA schemes on the XG-PON system, DBA had supreme control over multiple ONUs, aiding in the management of bandwidth access.

Soaring need for managed optical services to augment services segment revenues

Gigabit passive optical network (GPON) market based on component into product and service. The service segment size is estimated to garner USD 20 billion in revenue by the end of 2032. The snowballing requirement for managed optical services from businesses to meet end-user needs, ensuring that solutions lower the total cost of ownership for both managed service providers and end users, is contributing to GPON services expansion.

Browse key industry insights spread across 393 pages with 533 market data tables and 36 figures & charts from the report “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”, in detail along with the table of contents:

Mounting requirement for performance optimization to propel managed services demand

Under service, gigabit passive optical network (GPON) market is further divided into professional service and managed service. The managed service segment is anticipated to reach a valuation of around USD 8 billion by 2032. Businesses are focusing on improving operational effectiveness and optimizing network performance. Managed service providers oversee the administration of optical networks and provide remote monitoring and quality of service.

Burgeoning demand for wider bandwidth to increase NG-PON2 industry share

With respect to technology, the study classifies the gigabit passive optical network (GPON) market into XG-PON, 2.5 GPON, NG-PON2, and XGS-PON. The NG-PON2 segment is speculated to be worth around USD 2 billion by 2032. The rising consumer bandwidth demand and the easy supply of services via a single optical distribution network (ODN) are primed to foster the uptake of NG-PON2 technology. In February 2022, telecommunications specialist Verizon shifted from XGS-PON to NG-PON2 as it provides 40 Gbps capacity as well as four wavelengths to benefit super-user experiences.

Utilization of smart triple and quadruple play services to push GPON adoption in FTTH

The report further cites heavy demand for FTTH, especially across smart home settings. The FTTH segment held more than 40% share of the GPON market in 2022. Rising consumer interest in triple- and quadruple-play services is fueling the demand for FTTH. Ongoing developments that offer customers improved convenience and better living standards in smart homes are further bolstering FTTH deployments, which is slated to amplify segment share.

Cumulative demand for cost-effective networking solutions to impel product adoption in residential settings

The deployment of GPON solutions for wider connectivity in residential settings is likely to remain high in the coming years. The residential end-use segment held over 60% market share in 2022. The mounting need for affordable networking solutions is set to increase with the use of Community Access TV (CATV), IPTV, and high-bandwidth applications, including video streaming services. Thus, operators offer high-bandwidth services to FTTH users using the same PON infrastructure utilized in the new XGS-PON for residential consumers.

Supportive government programs to fuel North America gigabit passive optical network (GPON) market expansion

North America market was valued at over USD 3 billion in 2022. The region may emerge as a major hub for this industry owing to supportive government investments in broadband and telecom infrastructure upgrades and the rising demand for high-speed internet connectivity from household and business consumers.

Development of novel broadband technologies to enhance the competitive scenario

The strategic landscape of the GPON industry is expected to witness a series of product launches by industry players. For instance, in October 2022, ZTE Corporation, a Chinese technology firm, introduced a new FTTx and connected home-based range of broadband products & solutions. The new broadband range aims to aid the development of advanced broadband services and accelerate the process of fiber transformation globally. Some key GPON market players profiled in the report include ADTRAN, Inc., Fiberhome Telecommunication Technologies Co., Ltd., Telefonaktiebolaget LM Ericsson, and Zyxel Communications Corporation, among others.

Authors: Preeti Wadhwani, Shamal Gawande