Rise in Demand for Best Quality Fiber in Network Architecture of Service Providers to Fuel Growth of the GPON Equipment Market
The global gigabit passive optical network, i.e., GPON equipment market is fuelled by technical improvements, and a growing need for higher-quality fiber in service providers' network architectures. Increased internet penetration in developing nations, combined with an increase in worldwide IP traffic, has spurred industry expansion. GPON's technological and performance advantages over other legacy networks have also allowed it to become the preferred fiber access solution. Moreover, the emergence of high-speed services and streaming video has fuelled demand for more bandwidth, resulting in an increase in FTTP applications. Furthermore, as the number of connected devices grows, the demand for higher bandwidth is also projected to grow.
Mergers and acquisitions are being pursued by major market players to expand their market presence. For instance, in November 2020, Nokia, a telecommunications firm based in Finland, has launched 5G GPON technology, which is the next phase in the evolution of GPON (passive optical network) technology and allows the convergence of high-end services on a single fiber infrastructure. Similarly, in March 2019, at Mobile World Congress 2019, Huawei Technologies Co. Ltd. unveiled a 50G GPON prototype.
Optical Network Terminals Ability to Transform Optical Fiber Signal into Electrical Signals to Drive Growth of GPON Equipment Market
Optical network terminals (ONT) are expected to lead the GPON market over the forecast period. Optical network terminals (ONTs), also known as optical network units (ONUs), are another type of networking hardware that is put at the user's location and used to transmit traffic over the GPON network. Its main job is to transform optical fiber signals into electrical signals, which are then transferred to business and residential consumers. ONT components are predicted to lead the GPON market in terms of volume and value over the forecast period. This, together with the growing number of customers that use phone, video, and data services that require connectivity via the ONT hardware component, will raise demand in global GPON equipment market.
Increasing Demand for High-Speed Internet Services in Asia Pacific to Drive Growth of GPON Equipment Market
Asia Pacific is expected to dominate the GPON equipment market over the forecast period. The rising need for GPON network for triple and quad-play services, increasing demand for high-speed internet services, innovation in GPON technology, and trial and implementation of the 5G network are driving market expansion in this region. The mature GPON sector, government infrastructure spending, and broad deployment of next-generation GPON networks are all contributing to the market's growth in this region. In addition, the emergence of FTTH projects, particularly in China, has supported the expansion of the GPON equipment market. The expansion of the GPON equipment market is aided by low cost of ownership, high return on investment, advanced security, optimum bandwidth connectivity, and simplified network operations. For instance, in April 2020, AT&T increased their CAPEX to $5 billion to invest in 5G and fiber infrastructure. To offset the economic impact of the novel coronavirus outbreak on the telecom business, China Telecom invested US$ 27.8 billion in new 5G infrastructure projects in March 2020.
North America is expected to grow at a significant rate over the forecast period. The global GPON equipment market in this region is expected to be driven by increased acceptance of FTTH services and increased investments from both the public and commercial sectors. GPON vendors are focusing on making considerable expenditures to extend fiber-optic networks in the region, which has resulted in a significant market acceleration. In April 2020, Valley Fiber Limited, a Canadian telco, reported majority funding from DIF Capital Partners. In Canada, the investments helped the corporation expand its fiber-to-the-business and fiber-to-the-home networks. The acceptability of GPON equipment is likely to be aided by significant investments in fiber-optic network expansion.
Global GPON Equipment Market: Competitive Landscape
In August 2021, Coexistence portfolio was introduced by CommScope, a U.S.-based infrastructure supplier, to help customers update their PON networks to enhance data speeds and deliver additional services without having to replace or add fiber to their existing PON infrastructure. On the other hand, in May 2021, AirFiber Networks, an internet service provider based in India, will begin offering data services using Gigabit Passive Optical Networking (GPON). AirFiber Networks will use Nokia's GPON system to provide high-speed internet services in Bangalore and underserved areas across Tamil Nadu, with the goal of reaching over 100,000 subscribers in a year.
A few of the players in the GPON equipment market include Huawei (China), Nokia (Finland), ZTE (China), FiberHome (China), DASAN Zhone (US), Calix (US), and ADTRAN (US), etc.
Global GPON Equipment Market is Segmented as Below:
By Component
By Technology
By Application
By Vertical
By Region
Key Elements Included In The Study: Global GPON Equipment Market
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