GPON Market revenue to cross USD 14 Billion by 2036, says Research Nester

Key GPON market players include Cisco Systems, Inc., Fiberhome Telecommunications Technologies Co., Ltd., AT&T, Inc., Calix, Inc., Telefonaktiebolaget LM Ericsson, and Zyxel Communications Corporation.

New York , Jan. 17, 2024 (GLOBE NEWSWIRE) -- The global GPON market size is estimated to attain at 6% CAGR from 2024 to 2036. The market is expected to garner a revenue of USD 14 billion by the end of 2036, up from a revenue of USD 7 billion in the year 2023. The market demand has been driven by the rapidly growing telecommunications industry and increasing progress with GPON technology. The market will be driven by the services that GPON technologies provide to homes and offices, in particular as regards connectivity. Mobile subscriptions amounted to 5.3 billion individuals as of the end of 2021 and accounted for 67% of the world population. Over 400 million new cell phone users will be added between now and 2025.

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In addition, one of the main factors that are driving the gigabit passive optical network market has been a rise in feature-rich applications and websites requiring high-speed Internet access. The market has a positive impact as more bandwidth-intensive applications are being demanded, encouraging ISPs to deploy gigabit fiber technologies. Gigabit Passive Optical Network (GPON) is a fiber-optic telecommunications technology that enables the delivery of high-speed broadband services to residential, commercial, and industrial users. GPON leverages passive optical splitters to divide and distribute the optical signal among multiple users, providing efficient and cost-effective broadband connectivity.

GPON Market: Key Takeaways

  • Market in Europe to propel highest growth
  • The NG-PON2 segment to garner the highest growth
  • Market in Asia Pacific to grow at a highest rate

Increasing Migration to the Optical Fiber from Copper across the Globe to Boost Market Growth

The copper wires use electrical impulses to transmit information, which leads to loss of signal and the potential for data distortion. Moreover, copper wire is at risk of being tapped, which poses security risks. By contrast, optical fibers are cheaper, lighter, and more resilient to fire. Compared to copper wire, they've got a better broadband capacity. Demand for GPONs from both consumers and business users is being driven by the growing use of optical fibers which enables greater speed and more efficient data transfer. In order to drive demand, optical fiber is an essential component of GPON. By the end of 2022, optical fibers will account for 38% of all single subscriptions, up from 28% in December 2019, as it remains the most widely used connection technology. In many countries, it is the integration of ICT with town infrastructure that makes smart cities possible. It involves the use of ICT solutions to bring together a number of stakeholders, e.g. Local Authorities, libraries, schools, transportation systems, power stations, water supply networks, and waste management. The adoption of smart grids, improved traffic management with IT and the provision of Wi-Fi access points and information apps on cities are factors considered to have been taken into consideration when defining a city as Smart. Market dynamics are further enhanced by increasing demand for better fiber quality, which is leading to an increase in GPON usage between service providers.

GPON Industry: Regional Overview

The global GPON market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa region.

Government Initiatives for Broadband Expansion to Drive the Market Growth in Europe Region

The GPON market in Europe region is estimated to garner the largest revenue by the end of 2036. The growth of the GPON business in this region is driven by a growing use of next-generation high-speed broadband across Europe to support mobile freight applications. In addition, in order to create a large 5G network infrastructure throughout many countries, which would facilitate the uptake of products, telecommunications companies are cooperating with each other. It is expected that by 2028 there will be 492 million 5G subscribers in Western Europe. In the Western European region, there were 69 million 5G subscriptions in 2022. Moreover, the area's biggest operators, like Telefonica and Nokia, are looking to upgrade their networks in order to better meet the rising demand for fast broadband throughout the world. Due to growing demand from the region, for high-speed networks. Government initiatives and policies aimed at expanding broadband infrastructure form a cornerstone for the growth of the GPON market in Europe. Many European countries are investing significantly in broadband projects to bridge the digital divide, enhance connectivity, and stimulate economic development.

Rapid Expansion of Fiber-to-the-Home (FTTH) Networks to Propel the Growth in the Asia Pacific Region

The Asia Pacific GPON market is estimated to garner the highest CAGR by the end of 2036. Telecom operators across the Asia Pacific region are aggressively expanding their fiber-optic networks, particularly deploying Fiber-to-the-Home (FTTH) architectures. GPON technology, being a cost-effective and scalable solution for FTTH, is witnessing significant adoption to meet the growing demand for ultra-fast broadband. The FTTH Council Asia Pacific reported that by the end of 2020, the FTTH/B penetration rate in Asia reached 69.3%. This underscores the region's commitment to fiber network expansion and lays the foundation for the increased adoption of GPON. Government initiatives aimed at driving digital transformation and enhancing telecommunications infrastructure play a pivotal role in the growth of the GPON market in Asia Pacific. Governments are investing heavily in projects that aim to bridge the digital divide, improve connectivity, and foster economic development. The rollout of 5G networks across Asia Pacific is driving the demand for robust backhaul connectivity solutions. GPON technology, with its high bandwidth capabilities and efficiency, is well-suited to serve as a backhaul solution for 5G deployments, fostering its adoption in the region.

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GPON Segmentation by Technology

  • 2.5G PON
  • XG0PON
  • XGS-PON2
  • NG-PON2

Amongst these segments, the NG-PON2 segment is anticipated to hold the largest share over the forecast period.  NGPON2 offers a higher rate of bandwidth allocation as compared to current broadband technologies, an increase in the split ratio, and faster upstream and downstream data rates while at the same time improving security. Moreover, an incremental market opportunity for GPON vendors will be created by the deployment of NG-PON2 with 4G and 5G network technologies on applications including fronthaul as well as backhaul. For delivering 5G services, which require lower latency and more rapid connections, the telecommunications industry is using NG-PON2, a carrier-grade networking technology that meets billing requirements. In 2019, the number of 5G connections was around 10 million. The number of 5G subscriptions could reach 1,1 billion by the end of 2023, which accounts for just 8.9 % of all mobile broadband connections.

GPON Segmentation by Component

  • OLT
  • ONT

Amongst these segments, the GPON market ONT segment is anticipated to hold a significant share over the forecast period. The proliferation of smart home devices and the demand for connected lifestyles fuel the growth of the ONT segment. ONTs provide the necessary interface for connecting various smart devices, ensuring a seamless and integrated smart home experience. The number of connected IoT devices worldwide is expected to reach over 30 billion by 2025. This increasing connectivity underscores the importance of ONTs in enabling the interconnectivity of diverse smart home devices. The deployment of 5G networks and the rise of Fixed Wireless Access (FWA) as a broadband solution contribute to the growth of the ONT segment. ONTs are essential for delivering high-speed broadband services in both wired and wireless scenarios, aligning with the requirements of emerging 5G technologies.

GPON Segmentation by Application

  • FTTH
  • Mobile Backhaul

GPON Segmentation by Vertical

  • Transportation
  • IT & Telecom
  • Healthcare
  • Energy & Utilities
  • MTU

Few of the well-known market leaders in the global GPON market that are profiled by Research Nester are Cisco Systems, Inc., Fiberhome Telecommunications Technologies Co., Ltd., AT&T, Inc., Calix, Inc., Telefonaktiebolaget LM Ericsson, Zyxel Communications Corporation, and other key market players.

Recent Development in the GPON Market

  • Calix Inc. recently announced that over 225 broadband service providers (BSPs) around the world are actively setting up Calix XGS-PON networks in order to provide consumers and businesses with high-speed symmetrical 10G services. BSPs can now simplify the operation of their networks with the Intelligent Access EDGE based on the AXOS® Network Innovation Platform and accelerate fiber deployments.
  • Turk Telekom has accelerated its high-speed network deployment in Turkey. A successful 25G PON trial has been completed by the company in Turkey, as part of this initiative, where speeds over 10 times higher than those possible with existing GPON networks have been achieved.

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