GPON Market size was over USD 5.4 Billion in 2023 and is projected to reach USD 12 Billion by the end of 2036, witnessing around 6% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of GPON is assessed at USD 5.95 Billion.
The GPON market growth is driven by the surging global demands for high-speed reliable internet. This growth is reflected by the fact that in 2024 there are more than 5 billion internet users, which is basically more than half the world. The standard GPON networks can provide speeds of 2.5 Gbps and 5 Gbps, but newer versions like XG-PON and NG-PON2 can reach speeds of up to 40 Gbps. These kinds of optical network options are reliable, reduce latency, offer high bandwidth, and are cost effective.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
~ 6% |
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Base Year Market Size (2023) |
~ USD 5.4 Billion |
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Forecast Year Market Size (2036) |
~ USD 12 Billion |
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Regional Scope |
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Component (Optical Line Terminal OLT, Optical Network Terminal ONT)
ONT segment is likely to hold more than 73% GPON market share by 2036. ONTs can support various services such as internet access, VoIP, and video streaming, making it a versatile solution for different applications. An Optical Network Terminal (ONT) is a device located at the customer's premises that connects to the Passive Optical Network (PON) and communicates with the Internet Service Provider (ISP) to provide an Internet connection. It is responsible for converting optical signals to electrical signals via a fiber cable and organizing and optimizing different types of data coming from customers to efficiently send it to an ISPs central hub.
Technology (2.5G PON, XG-PON, XGS-PON, NG-PON2)
By the end of 2036, 2.5G PON segment is set to account for more than 50% GPON market share. Other segments such as XG-PON and XGS-PON are also poised for expedited growth. NG-PON2 exhibits the potential to become the future frontrunner, driven by its compatibility with 5G networks and the burgeoning demand for high-speed internet access and advanced functionalities. This market expansion is propelled by a plethora of factors, including the increasing popularity of quad-play services, the diminishing costs of advanced GPON systems, and ongoing technological advancements that deliver superior bandwidth, speed, and security.
Application (FTTH, FTTB, FTTC)
In GPON market, FTTH segment is anticipated to register growth of more than 4.5% till 2036. The GPON market's Application segment, encompassing FTTH (Fiber-to-the-Home), FTTB (Fiber-to-the-Building), and FTTC (Fiber-to-the-Curb), is experiencing significant growth. This surge is fueled by the rising demand for high-speed broadband, the ongoing shift towards fiber optic infrastructure, and the increasing need for reliable and efficient connectivity solutions in both homes and businesses.
Our in-depth analysis of the GPON market includes the following segments:
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Component |
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Technology |
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Application |
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North America Market Statistics
North America in GPON market is likely to dominate around 34.5% revenue share by the end of 2036. The market growth in the region is expected on account of North America being one of the first regions to embrace GPON technology, leading to established infrastructure and a mature market. The market growth in the region is also expected on account of strong service providers. The region boasts strong telecommunication companies with the resources to invest in fiber optic testing infrastructures.
The United States and Canada are key players in the market, with the United States holding a significant market share of almost 17% in 2022. Further analysis predicts that in the United States, the GPON market is on track to reach $4.1 billion by 2033, fueled by a compound annual growth rate (CAGR) of 5%. US telecom giants like AT&T, Verizon, and Comcast are leading the charge in GPON deployment. This strategic move allows them to address the growing consumer demand for high-bandwidth applications and services.
APAC Market Analysis
The APAC region will also encounter significant growth, second to the North American region for the GPON market during the forecast period. China, Japan, South Korea, India, and Australia are driving the growth of the market in the Asia-Pacific region, with significant expansion anticipated in this region due to increasing demand for high-speed internet services and government investments in broadband infrastructure. In 2022, Japan held 5.6% of the market share globally, with several telecommunication providers in this region making efforts to commercialize 5G technology, thereby facilitating the market's growth. China is also a significant player in the GPON market in the Asia-Pacific region, with increasing internet penetration, rising demand for high-speed data services, and extensive telecom network development initiatives driving the growth of GPON industry.
There are several major players, along with some regional and local vendors, that dominate the GPON market landscape. Collectively, they offering a wide range of GPON technologies, products, and solutions to businesses, families and individuals alike. The following paragraphs mention some of these key players of the industry.
Author Credits: Abhishek Verma
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