GPON Market and its impact on the fiber optic industry


Market analysts predict that the Gigabit Passive Optical Network (GPON) Market will expand at a compound annual growth rate (CAGR) of 5.8% from USD 6.3 billion in 2020 to USD 8.3 billion by 2025. This growth is attributed to a number of factors, including rising high-speed internet service demand, an increase in GPON network demand for triple- and quadruple-play services, improvements in GPON technology, and the testing and rollout of the 5G network. According to the report, the industry will likely continue to expand as more applications, such as FTTH (Fiber to the House) and FTTB (Fiber to the Building), embrace GPON.

Optical network terminal (ONT) to lead the GPON market during the forecast period.

The Gigabit Passive Optical Network (GPON) network relies heavily on the Optical Network Terminal (ONT), also referred to as the Optical Network Unit (ONU), which is in charge of converting optical signals sent over optical fibre into electrical signals that are sent to commercial and residential users. Due to the growing number of customers utilising voice, video, and data services that require connectivity through the ONT hardware component, the ONT component is anticipated to dominate the GPON market in terms of volume and value throughout the forecast period. The GPON industry will expand as a result of the rising demand for ONT and its crucial function in GPON networks.

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The GPON market for the mobile backhaul application expected to grow at the highest CAGR during the forecast period.

The Compound Annual Growth Rate (CAGR) for the GPON market for the mobile backhaul application is anticipated to be the highest over the projected period. Since they can enhance bandwidth capacity while maintaining high reliability and quality of service and all while reducing operational costs, GPON networks are being used more and more for mobile backhaul. With the current fixed-line access, GPON networks provide an effective architecture, a low hardware demand, scalability, redundancy, and synergy. As a result, GPON networks are being used more frequently for mobile backhauling, which increases the economics of GPON for network operators. The advantages of using GPON networks for mobile backhaul applications will boost the market's expansion.

Market in Rest of the World expected to grow at the highest CAGR during the forecast period.

The market for GPON is anticipated to grow at the highest Compound Annual Growth Rate (CAGR) in the Rest of the World, which includes South America, the Middle East, and Africa. The GPON market is expanding in South America as a result of the region's growing subscriber base of Fiber-to-the-Home (FTTH) consumers. The demand for GPON networks is also increasing in Middle Eastern nations including Saudi Arabia, the United Arab Emirates, and Turkey. The expansion of the GPON market in this region is also being aided by telecom firms' increasing investments in Africa's optical network. Because to these elements, the Rest of the World market will have the potential to expand for GPON during the projection period.

The major companies involved in the development and supply of GPON include Huawei (China), Nokia (Finland), ZTE (China), Fiberhome (China), Calix (US), ADTRAN (US), DASAN Zhone (US), Cisco (US), NEC (Japan), Allied Telesis (Japan), Iskratel (Slovenia), Unizyx (Taiwan), and Alphion (US).

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Due to the widest selection of optical line terminal (OLT) and optical network terminal (ONT) solutions that support GPON and 10G-PON technologies, Huawei occupies the top spot in the global GPON market. The excellent quality and brand value of Huawei's GPON OLT and ONT devices are the main reasons for their appeal. Due to its widespread presence, Huawei has been able to dominate the GPON industry and take part in the development of global GPON standards. Also, Huawei now has a first-mover advantage in the 10 Gbps downlink range thanks to the commercial launch of XGS-PON. Huawei has embraced the inorganic strategy of partnership in addition to organic initiatives to broaden its reach. For instance, Huawei and TIME dotCom built a trial 10G-PON in order to offer fixed access users in Malaysia gigabit ultra-broadband. Huawei will continue to succeed in the GPON industry thanks to its leadership position, wide product offering, and strategic partnerships.

Several GPON solutions are available from Nokia, such as passive optical LAN, high-capacity PONs for cable operators, fixed networks for mobile transport, universal next-generation PONs, and ONT Quick Start. Due to its significant market share in the networking sector, Nokia has the highest brand value on the market. With the addition of Alcatel-Lucent, the company's technological innovation in GPON has been boosted, becoming a crucial factor in the expansion of the business. Nokia is the second-largest player in the GPON market, and by signing contracts to test its GPON devices, it is securing its leadership position. Overall, Nokia is well-positioned for continuing success in the GPON industry thanks to its extensive GPON portfolio, high brand value, and strategic partnerships.

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