San Francisco, July 12, 2016 (GLOBE NEWSWIRE) -- Passive optical network (PON) facilitates connectivity from a particular access point to multiple end-users. It includes an optical line terminal located at the service provider’s office and several optical network units near the end-users.
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Global passive optical network equipment market is projected to grow at a CAGR of 3.6% from 2013 to 2018 (forecast period). Large-scale penetration of smartphones and exponential growth in the number of household internet users are the main growth drivers. Shift by the network providers to FTTH (Fiber-To-The-Home) services is also expected to generate PON demand. FTTH applications are on the rise owing to introduction of high-speed services and streaming videos for higher bandwidth.
PON acts as a cost-effective technology for FTTH deployment. Rising use of data-intensive services (video conferencing, Voice over Internet Protocol (VoIP), Video on Demand (VoD)) will have a favorable effect on market demand over the forecast period. However, stringent governmental regulations coupled with high installation and operational costs could be a challenge.
The worldwide market is fragmented on the basis of technology into Gigabyte Passive Optical Network (GPON) and Ethernet Passive Optical Network (EPON). GPON occupies a higher share of the total market. It is estimated to grow faster than EPON in the coming years.
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GPON delivers increased bandwidth capabilities as well as triple play services over a single fiber optic line to residences and office premises. This segment will grow on account of increasing focus on upgrading the existing networks to PON to avail higher broadband strength. EPON uses Ethernet packets and is primarily employed in Local Area Networks (LANs).
The passive optical network equipment market is geographically segmented into the Americas; Asia Pacific (APAC); and Emerging Markets, Europe & Africa (EMEA). Consumption of PON equipment in APAC is the chief driver of the global PON equipment market. Countries like Japan, China, & India are increasingly demanding higher bandwidth. High investments in research & development in APAC will also propel the region’s PON equipment demand.
Key market players include Alcatel-Lucent, Mitsubishi Electric Corp., ZTE Corp., and Huawei Technologies Co. Ltd. Other notable companies are Cisco Systems Inc., Fiberhome Technologies Group, ZyXEL Communications Corp., Dasan Networks Inc., and Adtran Inc.
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Table of Contents
- Executive Summary
- List of Abbreviations
- Scope of the Report
3.1 Market Overview
3.2 Product Offerings
- Market Research Methodology
4.1 Market Research Process
4.2 Research Methodology
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