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, 2022 – 2028

Industry Trends

GPON Market size surpassed USD 10 billion in 2021 and is poised to grow at over 10% CAGR from 2022 to 2028. Global GPON product shipments exceeded 250 million units in 2021.
 

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The GPON market growth is attributed to growing feature-rich applications and websites that require high-speed internet access. The increasing demand for bandwidth-intensive applications has forced internet service providers to implement gigabit fiber technology. The adoption of smartphones and a huge penetration of internet-driven applications, such as video on demand and HDTV, have generated the need to adopt next-generation GPON technologies that deliver much higher bandwidth. This factor has become vital in supporting the burgeoning data traffic.
 

The GPON market has received a strong impetus amid the ongoing COVID-19 pandemic. The market acceleration in GPON space has been substantial as GPON vendors are focusing on making significant investments to expand fiber-optic networks in the region. For instance, in April 2020, Valley Fiber Limited, a Canadian telco, reported majority investments from DIF Capital Partners. The investments furthered the company’s fiber-to-the-business and fiber-to-the-home networks in Canada. Significant investments in fiber-optic network expansion are expected to support the acceptance of GPON equipment.
 

Increasing affinity of telecom operators toward network simplification to expand the market expansion of OLT in the U.S.

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The U.S. Optical Line Termination (OLT) segment dominated more than 50% of the GPON market share in 2021. The demand for OLTs in GPON architecture is slated to increase manifold as they enable switch vendors to easily address CAPEX & OPEX costs and boost their network simplification objectives, targeting the next-generation architecture. GPON equipment manufacturers are introducing modern OLTs, which can help companies in enhancing their network infrastructure.
 

Multiple wavelength support offered by NG-PON2 to augment the GPON market progression in the UK

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The UK next-generation PON 2 (NG-PON2) segment is projected to witness 15% growth rate through 2028. NG-PON2 (ITU-T G.989) utilizes multiple wavelengths and can deliver 40 Gbps with 80 Gbps in the future on a single fiber. The technology aids the convergence of multiple service networks onto a single Optical Distribution Network (ODN).
 

The key difference between XGS-PON and NG-PON is the multiple wavelengths supported by NG-PON2. In UK CSPs, this can eliminate physical constraints within an access network. NG-PON2 utilizes TWDM and supports a minimum of four wavelengths on each fiber.
 

Robust network bandwidth offered by the GPON technology is fostering the market value of backhaul solutions in China

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In China, GPON market for backhaul segment valued at USD 350 million in in 2021. With the growing demand for increased bandwidth, reliability & scalability in broadband networks, next-generation PON technologies are being increasingly deployed. This deployment allows telecom operators to enhance their service quality while reducing their operational costs for mobile backhaul applications, thus propelling the industry growth. XGS-PON has the potential to aid CSPs in delivering high-speed internet access to their customers while keeping the backhaul cost in check.
 

Crucial role of bandwidth-intensive applications across the healthcare sector is promoting regional growth across the German market

In Germany, the healthcare segment in the GPON market accounted for 10% of revenue share in 2021 led by the proliferation of several bandwidth-intensive medical applications. To satisfy the changing network needs due to a rise in the data traffic, passive optical LANs are deployed in German healthcare facilities including hospitals and continuing-care communities. The PON technology provides support to mission & life-critical healthcare networks.
 

EU initiatives to strengthen communication infrastructure across the region

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Europe GPON market is estimated to attain a CAGR of over 15% CAGR by 2028 owing to the initiatives undertaken in line with the EU’s objectives to strengthen broadband coverage and improve connectivity. These are anticipated to improve the efficiency of GPON solutions and effectively stimulate the regional demand.
 

In Europe, major operators including Telefonica and Nokia are investing heavily in modernizing their network infrastructure to support the growing industry value for high-bandwidth network capabilities in the region. The growing usage of cloud services is also leading to a significant increase in the amount of data transmitted over broadband connections, accelerating the Europe next-generation market development.
 

Strengthening innovation in emerging 5G networks to emerge as premiere market strategy among GPON vendors

The global GPON market is nearing consolidation as various key players, such as Huawei, ZTE & Cisco, are aggressively extending their market presence by acquiring other companies and diversifying their line of solutions. Prominent leaders are placing ever-growing stress on large-scale investments in 5G networks to meet the demand for high bandwidth and low latency. The industry has also showcased several strategic alliances between key leaders for new product launches with added functionalities to maintain revenue share and profitability.
 

Some of the key participants operating in the market are ADTRAN, Inc., Allied Telesis, Inc., Alphion Corporation, AT&T Inc., Broadcom, Inc., Calix Corporation, Cisco Systems, Inc., DASAN Zhone Solutions, FiberHome Telecommunication Technologies Co., Ltd., Hitachi, Ltd., Huawei Technologies Co., Ltd., Iskratel, NEC Corporation, Nokia Corporation, NXP Semiconductors N.V., Telefonaktiebolaget LM Ericsson, Tellabs, Inc., Verizon Communications, Inc., ZTE Corporation, and Zyxel Communications Corporation.
 

The GPON market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2018 to 2028 for the following segments:

Market, By Component

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

Market, By Technology

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

Market, By Application

• FTTH
• Other FTTX
• Mobile Backhaul

Market, By End-use

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

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

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