GPON Market Size & Share, by Component (OLT, ONT); Technology (2.5G PON, XG-PON, XGS-PON2, NG-PON2); Application (FTTH, Mobile Backhaul); Vertical (Transportation, IT & Telecom, Healthcare, Energy & Utilities, MTU) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2024-2036

  • Report ID: 5345
  • Published Date: Oct 27, 2023
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2023-2036

GPON Market size is expected to surpass USD 14 Billion by the end of 2036, growing at a CAGR of 6% during the forecast period, i.e., 2024-2036. In the year 2023, the industry size of GPON was over USD 7 Billion. 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.

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.


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GPON Market: Key Insights

Base Year

2023

Forecast Year

2024-2036

CAGR

~ 6%

Base Year Market Size (2023)

~ USD 7 Billion

Forecast Year Market Size (2036)

~ USD 14 Billion

Regional Scope

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)

GPON Sector: Growth Drivers and Challenges

Market-Growth-Drivers

Growth Drivers

  • Rising Migration to the Optical Fibre from Copper- 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.
  • Introduction of Smart City Technologies- 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.
  • Increasing Demand for Superior Quality Fibres- Market dynamics are further enhanced by increasing demand for better fibre quality, which is leading to an increase in GPON usage between service providers. In addition, the expansion of the GPON market has been supported by government initiatives to digitalize emerging countries.

Challenges

  • High cost of optic fibers- Depending on the cable and connector style, fibreoptic components have a significantly higher price compared to copper elements with differing costs. Moreover, substantial investments are required for fundamental optical modulators like phase modulation and amplitude modulation to be set up. The Internet service provider must completely replace copper networks, which can run into the billions of dollars for large cities if they decide to go with fiber optic cables. As a result, the installation of fibre optic cable has become prohibitively costly and ISPs are choosing upgrades rather than total replacement. The fact that fiber optics are expensive creates a problem in the adoption of them, which will also affect demand for GPONs over the forecast period.
  • Understanding advanced cyber security threats with GPON technology is lacking which has led to a fall in market share.
  • The availability of alternative technology, interoperability problems and operational difficulties are anticipated to lead to a slight delay in fiber optics performance.


GPON Segmentation

Technology (2.5G PON, XG-PON, XGS-PON2, NG-PON2)

The NG-PON2 segment in the GPON market is anticipated to hold the largest share of about 48% by the end of 2036. 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.

Component (OLT, ONT)

The ONT segment is expected to account for 75% share of the global GPON market during the forecast period.  The ONT's main function is to convert signals transmitted by fiber optic cables into electricity and transmit them to both enterprises and users at home. In addition, the market will be stimulated by an increase in the number of users that can benefit from voice, video and data services which need to be equipped with ONT hardware components. More than 1.8 billion subscribers to video streaming services are currently subscribed.

Our in-depth analysis of the global market includes the following segments:

          Component

  • OLT
  • ONT

          Technology

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

          Application

  • FTTH
  • Mobile Backhaul

          Vertical

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

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GPON Industry - Regional Synopsis

Europe Market Forecast

GPON market in Europe region is expected to gain the largest share of about 30% by 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.

APAC Market Statistics

GPON market is attributed to have the second largest share of about 25% during the forecast period.  The mature GPON industry, the government's infrastructure investments and a massive deployment of next generation GPON networks give rise to market demand in this region.

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Companies Dominating the GPON Landscape

top-features-companies
    • Nokia Corporation
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • Turk Telekom
    • Cisco Systems, Inc.,
    • Fiberhome Telecommunications Technologies Co., Ltd.,
    • AT&T, Inc.
    • Calix, Inc.
    • Telefonaktiebolaget LM Ericsson
    • Zyxel Communications Corporation
    • ADTRAN, Inc.
    • Broadcom Ltd.

In-the-news

In The News

  • 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.

Author Credits:  Abhishek Verma, Hetal Singh


  • Report ID: 5345
  • Published Date: Oct 27, 2023
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

Shift from copper to optic fibres and increasing demand for superior quality fibres are the major factors driving the growth of the GPON market.

The market size of broadband aggregation equipment is anticipated to attain a CAGR of 6% over the forecast period, i.e., 2024-2036.

The major players in the market are Cisco Systems, Inc., Fiberhome Telecommunications Technologies Co., Ltd., AT&T, Inc., Calix, Inc., Telefonaktiebolaget LM Ericsson, Zyxel Communications Corporation, and others.

The NG-PON2 segment is anticipated to garner the largest market size by the end of 2036 and display significant growth opportunities.

The market in the Europe region is projected to hold the largest market share by the end of 2036 and provide more business opportunities in the future.
GPON Market Report Scope
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