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

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.