Passive Optical Network Market Revenue Expected to Reach a Sizeable US$63.01 bn by 2023 in Asia Pacific Region

Press Release   •   Oct 10, 2016 15:51 IST

APAC Holds Key Opportunities in PON Equipment Through Improved Connectivity Initiatives

“Asia Pacific is currently a hotbed of activities in networking and connectivity,” states a TMR analyst. “China and India especially are showing a very high demand for passive optical networks. India for instance is planning to introduce OFC connectivity between all its villages. The spread of dark fiber across the Indian network is set to generate significant opportunities for regional and global players alike.”

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China is currently going through a very high adoption rate of electronic devices, thereby creating high volumes of data being transmitted across networks. This high volume data traffic is actually causing users to switch from their currently wireless modes to wired – specifically optically wired – networks.

Component Costs Remain too High for Some Operators

A key restraint on the proliferation of PONs globally is the high cost associated with the operators’ side components. GPON, the more developed technology set, comes at a very high initial cost, but can prove to be beneficial and less expensive over time. Fiber trenching also requires a high capital investment and takes up a large chunk of a service provider’s total investment.

Although cost recovery is possible, it can currently occur at a very slow pace, which is making several players reconsider PON implementation.

APAC PON Demand at All-time High, will Continue to Grow

The global passive optical network (PON) equipment revenue generation is expected to progress at a highly positive CAGR of 20.7% within a forecast period from 2015 to 2023. The revenue is expected to reach US$163.50 bn by the end of 2023.

WDM/WDDM is currently the largest PON equipment component and is expected to generate a revenue of US$78 bn by the end of 2023 while still retaining its market leadership. Both GPON and EPON structures are expected to grow at an extremely fast rate with GPON being the more preferred structure. It is expected to reach US$114.84 bn by the end of 2023.

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