Passive Optical LAN Market Overview

Passive optical LAN can replace traditional methods of cabling by containing multiple levels of routers and switches. It can be used in saving building resources and delivering broadband speeds to end-users. Market Research Future’s (MRFR) report on the passive optical LAN market report uncovers evolution of optical fiber and changing business requirements of corporations. The report focuses on estimations on production and value chain for the market during the forecast period (2020-2027) while assessing the impact of the COVID-19 pandemic.

Passive Optical LAN Market Scope

The global passive optical LAN market size can balloon to USD 50 billion by 2022. It can exhibit a CAGR of 19% over the forecast period. The use of optical splitter for slashing energy bills can drive the demand for the market. Its popularity among small business owners and households can favor the market. Companies are pandering to the demand for sustainable technologies and passive optical LANs fits the bill perfectly.

Increasing reliance on cloud for storage of assets and resources coupled with modernization of data centers can drive the market demand significantly. Rollout of 5G and adoption of internet of things owing to higher bandwidth speeds may fare well for the market. Moreover, the benefit of POL over copper owing to its use in large campuses and being a provider of network services can drive a steady demand over the forecast period.

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The COVID-19 pandemic has negatively affected the market owing to restrictions placed on enterprises and organizations. The glut in demand and supply coupled with soaring prices of raw materials can impede the market.

But high installation costs and short range of the technology can hamper market growth.

Passive Optical LAN Market Regional Analysis

North America, Asia Pacific (APAC), South America, Europe, and the Middle East & Africa (MEA) are major regions analyzed for measuring the growth of the global passive optical LAN market.

APAC is expected to command a major share of the market owing to large economies such as India and China making the switch to fiber optic cables. Digitization of services, digital initiatives, and huge demand for internet-supported devices can bode well for the passive optical LAN market. Rapidly accelerating data traffic and means to control the energy bills can facilitate market demand over the assessment period.

North America has assumed the second position in the global market owing to heavy investments in POL coupled with inclination towards green technologies. Huge demand for energy-efficient technologies and investments in cyber security can drive the demand for passive optical LAN.

Europe will be lucrative for the market owing to government encouragement through initiatives as well as public-private partnerships to provide basic internet speeds at public places. Development of a ecosystem of industry players, products, and services for creating awareness of PON can bode well for the market.

Passive Optical LAN Market Segmentation

By component, the market has been segmented into amplifier, power splitter, optical cables, connectors, coupler, and end receiver.

By type, it is divided into gigabyte capable passive optical networks and EPON. The EPON type can command a huge market share owing to the utilization of Ethernet packets that is commonly used in LAN.

By end-user, the market is catering to BFSI, education, manufacturing, healthcare, government, and others.

By application, it is segmented into hybrid fiber-coaxial cable, synchronous optical network, loop feeder, and synchronous digital hierarchy.

Passive Optical LAN Market Competitive Scope

Huawei Technologies Co. Ltd., Tellabs Inc., ZTE Corporation, Verizon Communications Inc., Zhone Technologies Inc., Alcatel Lucent SA, ADTRAN Inc., Ericsson Inc., 3M Company, and TE Connectivity Ltd. are notable players of the global passive optical LAN market.

The market is highly intense and fragmented with key players launching new products to stay relevant amid growing customer demand.

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Industry News

Infinera and American Tower have completed a demo run on multi-point optical transmission in a carrier network. The trial was carried out on the passive optical network of American Tower and compatible with its partner’s XR optics technology that pave the way for high internet speeds in a metropolitan region.

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