ALBANY, NY â€” The passive optical network (PON) equipment market is projected to expand at a compound annual growth rate (CAGR) of 22.7 percent from 2014 to 2019 to reach a market worth of $13.5 billion by 2019, up from $4 billion in 2013. This comes a recent report titled â€œPassive Optical Network (PON) Equipment Market – Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2013 – 2019â€ from Transparency Market Research (TMR), a India-based market intelligence firm.
By structure, the PON equipment market is classified into Ethernet passive optical network (EPON) and gigabit passive optical network (GPON). The research report also offers a cross-sectional evaluation of the aforementioned segments in terms of region. The primary regions assessed under the global PON equipment market are North America, Asia-Pacific, Europe, and Rest of the World.
According to TMR, PON equipment, as a market, offers high returns on investments and also reduces the overall cost of ownership. While the Europe PON equipment market is already thriving owing to many factors, there is huge scope for growth in the Asia-Pacific region. Technological advancements and ever-rising requirement for bandwidth are also projected to reinforce the PON equipment market over the course of the forecast period. On the other hand, operational hiccups and installation costs are expected to have a negative impact on the growth of the global PON equipment market.
Asia-Pacific Leads the Global PON Equipment Market
Asia-Pacific heads the global passive optical network equipment market, generating the maximum revenue in 2013. With growing internet penetration in countries such as China, Japan, Taiwan, and India, the demand for bandwidth has increased in recent years.
Investments in research and development as well as infrastructure in the field of passive optical network have further aided the growth of the PON equipment market in this region. In terms of industry share, North America and Europe together hold more than half the market. This is mainly due to a rather strong optical network set-up and growing use of passive optical network equipment.
Key players profiled in the PON equipment market report include Freescale Semiconductor, AT&T, Alcatel-Lucent S.A., Calix, Ericsson, Broadcom Corporation, Huawei Technologies, Motorola Solutions, Verizon Communications, Mitsubishi Electric Corporation, Hitachi Communication Technologies, ECI Telecom and Adtran.