Global Passive Optical Network Equipment Market Projected to Reach $7.62 Billion by 2015, According to New Report by Global Industry Analysts

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GIA announces the release of a comprehensive global report on Passive Optical Network (PON) Equipment markets. Rising demand for bandwidth-intensive triple play content, development of next-generation PON technologies, and continued migration from copper to fiber based broadband access will stimulate global passive optical network (PON) equipment market to reach $7.62 billion by 2015.

Passive Optical Network (PON) Equipment: A Global market report

Rising demand for bandwidth-intensive triple play content has strained legacy communications networks and caused bottlenecks, specifically in the head-ends and in-the-last-mile of the communications infrastructure. Service providers are looking out for solutions to capitalize on the efficiency of existing bandwidth availability and economically transport and manage digital traffic within networks, and minimize the need to build new networks for triple play content distribution. A 100% fiber-optic network such as PON has the capability to deliver a broader and more vibrant entertainment experience to all its users. Using fiber, passive optical network equipment enables broadband access from the central office of local service providers to the office or residence of subscribers.

North America and Asia will continue to be the favorable markets for PON equipment during the next five years. Growth in PON market would be primarily driven by large-scale deployments of PON in China, and increasing GPON (Gigabit Passive Optical Networking) deployments across the world, for the purpose of upgrading access networks, and offering new services such as broadband TV. Service providers are increasingly turning to PON as the next-gen residential broadband access technology, predominantly in areas where DSL penetration has reached its maturity and vendors are seeking to increase their ARPU (average revenue per user). Globally, GPON is the primary PON technology for the deployment of FTTB and FTTH networks and will continue to remain so through 2011. GPON technology is gaining momentum in North America and Europe but the reign of EPON in China will restrict its growth prospects in Asian markets. In coming years, revenue growth for GPON equipment will be challenged, as the industry's focus has shifted to developing more advanced 10G EPON and WDM-PON technologies.

In spite of double-digit revenue increase for global GPON manufacturers during Q1 2009, overall PON market witnessed erosion in growth due to declines in EPON and BPON revenues. PON revenue forecasts are slightly down as key service providers adopt a more cautious approach by postponing fiber upgrades until they regain confidence about subscriber uptake of high-broadband services. Many service providers, who were previously actively advocating PON deployments in an attempt to solidify their market position, are showing reluctance and will justify the cost associated with extending fiber to residences and buildings. On the other hand, service providers such as NTT, Verizon, Hanaro, and KT who had already allocated resources to fiber rollouts & upgrades, will continue with their plans hoping to gain a strategic advantage.

As stated by the new market research report on Passive Optical Network (PON) Equipment, the Asia-Pacific and Japan collectively account for a major share of the global PON market. Demand for PON equipment in Asian markets such as Korea and Japan are encouraged by the government regulations while the US will witness significant demand for PON equipment from local telecom operators. The global PON equipment industry is expected to witness strong growth across all of the regional markets, with developing markets of Asia-Pacific poised to score the highest gains. In segmental perspective, strong opportunities for growth lie in the Fiber-to-the-home PON equipment sector.

Key players dominating the marketplace include Alcatel-Lucent, Allied Telesis Inc, Broadlight Inc, Calix Network Inc, Telefonaktiebolaget LM Ericsson, Freescale Semiconductor Inc, Fujitsu Network Communications Inc, Hitachi Telecom, Mitsubishi Electric Corporation, Motorola Broadband Communications, NEC Corporation, Occam Networks Inc, Oki Electric Industry Co. Ltd., PMC-Sierra Inc, Sumitomo Electric Networks Inc, Teknovus Inc, Tellabs Inc, UTStarcom Incorporated, and Wave 7 Optics Inc, among others.

The report titled "Passive Optical Network (PON) Equipment: A Global market report" announced by Global Industry Analysts, Inc., provides a comprehensive review of industry overview, product overview, product introductions/innovations, profiles of major players, and recent industry activity. The report analyzes market data and provides analytics in value for major geographic markets such as North America, Japan, Europe, Asia-Pacific, and rest of world. The study also analyzes the Passive Optical Network (PON) Equipment market by the following segments: Fiber-to-the-home PON and Fiber-to-the-building PON.

For more details about this comprehensive market research report, please visit -

About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a reputed publisher of off-the-shelf market research. Founded in 1987, the company is globally recognized as one of the world's largest market research publishers. The company employs over 800 people worldwide and publishes more than 1100 full-scale research reports each year. Additionally, the company also offers thousands of smaller research products including company reports, market trend reports, and industry reports encompassing all major industries worldwide.

Global Industry Analysts, Inc.
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