Global Passive Optical Network Equipment Market Receives Impetus from Overhaul of Services

The global passive optical network (PON) equipment market will expand at a phenomenal 20.70% CAGR from 2015 to 2023. Some of the advantages of PON equipment are – high return on investment, reliability, low cost of ownership, and advanced security and facile network operations. Presently, Asia Pacific holds immense opportunities for the growth of the PON equipment market; high investments for the development of telecommunications research infrastructure and overall technological advancements for expeditious services are the reasons to this. In 2014, Asia Pacific was ahead of the other regional segments – North America, Europe, and Rest of the World (RoW) – and held more than 35% of the global PON market.

Design and Application Analysis of Passive Optical Network Equipment 

Typically, PON equipment is installed on PON network structure that counts as one of the two important systems for the feasibility of fiber to the premises (FTTP) solutions. In these networks, optical splitters are used for a single fiber to transmit information to multiple premises. The structure of the passive optical network – more precisely, whether it is an Ethernet passive optical network (EPON) or a gigabit passive optical network (GPON) – decides the split ratio of these networks. Regarding the design aspects of PON and its parent FTTP network structures, a solitary optical line terminal at the service provider’s site is complemented by numerous optical network units in proximity to the end users. 

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Gigabit passive optical networks employ GPON devices suitable for high-speed video streaming, data, and voice services for both residential and business subscribers. The high bandwidth of GPON is further strengthened by the reliability and long-reach connectivity of these networks. In terms of utilization, GPON has been tremendously beneficial for defense services due to the advanced network security and high bandwidth of these networks.

On the other hand, EPONs help service providers deliver broadband and enterprise services, voice and IPTV services, and time division multiplexing (TDM). The usability of EPON also lies in mobile backhaul carriage services for 3G and 4G data networks. In addition, Ethernet networking solutions do not require protocol conversions, which count for their high usability in metro-area networks (MANs) and local area networks (LANs). To serve these advanced networks, EPON equipment is evolving continually to be compatible with existent Ethernet standards. 
    
 

GPON Structural Networks Advantageous over Ethernet PONs

The global passive optical network equipment market is divided on the basis of component, structure, and geography. The component segments of the market are optical cables, optical filters, optical power splitters, and wavelength division de-multiplexers/multiplexers. Of these, wavelength division de-multiplexer/multiplexers constituted the dominant segment and accounted for almost 50% of the global market in 2014.

On the basis of structure, gigabit passive optical networks and Ethernet passive optical networks are the segments of this market. Of the two, in 2014, GPON accounted for the larger contribution to the global PON market. The segment held more than 65% of the overall market due to its high deployment in government enterprises and corporate projects. GPON also provides higher bandwidth, advanced security, and larger downstream speed than EPON, which are collectively contributing to the increasing adoption rate of GPON equipment.

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