The global Gigabit Passive Optical Network (GPON) market size is predicted to gain striking growth during the forecast period from 2023 to 2033. According to the research report published by Future Market Insights, the global market is slated to cross a valuation of USD 6,821.7 million in 2023.
It is anticipated to reach a valuation of USD 11,688.9 million by 2033. The market is foreseen to register a modest CAGR of 5.5% from 2023 to 2033. The rapid growth of the market was primarily driven by the factors such as:
Within the forecast period, it is estimated that the global market is anticipated to be worth USD 7 billion by 2033.
Several government projects and investments in high-speed internet and broadband are anticipated to boost the growth of GPON in the market. GPON comes with a variety of services, including TDM, voice, ATM, Ethernet, wireless extension, single port phone, and many other options. In addition, the same network can deliver symmetrical downstream bandwidths of 622 Mbit/s and symmetrical upstream bandwidths of 1.25 gigabit/s with many different bit rate options. The GPON technology, therefore, represents a technology that is more than suitable for a triple-play service.
GPON networks are particularly suitable for applications in the FTTx world. A GPON customer is typically an individual or small business that utilizes the service. With the ability to deliver data, voice, and IP video, GPON proves to be a good fit for FTTH applications.
The single-mode, simplex optical fiber connectors, and passive optical splitter are used in GPON to distribute GPON fiber to the desktop (FTTD) application. A GPON technology can reduce costs for moving, adding, or altering networks, offer low prices per port, and ease installation and maintenance.
| Attribute | Details |
|---|---|
| Gigabit Passive Optical Network Market Share (2022) | USD 6,565.6 million |
| Gigabit Passive Optical Network Market Share (2023) | USD 6,821.7 million |
| Gigabit Passive Optical Network Market Share (2033) | USD 11,688.9 million |
| Gigabit Passive Optical Network Market Share (2023 to 2033) | 5.5% |
| Gigabit Passive Optical Network Market Attraction | The steadily growing demand for high-speed internet connections and technological advancements in GPON technology is anticipated to act as key drivers in the next coming years. |
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In 2018, the global GPON market size stood at USD 5,732.6 million. From 2018 to 2022, the market observed steady growth, accounting for USD 6,565.6 million in 2022. The market expanded at a CAGR of 3.4% from 2018 to 2022.
Governments all over the world are pushing for the expansion of broadband infrastructure to close the digital gap and assist economic growth. Numerous nations have put in place laws and policies to support the installation of fiber optic networks, including GPON, in both urban and rural regions.
These activities foster an atmosphere that encourages telecom providers to spend money on GPON technology and grow their service offerings, thereby bolstering GPON market growth.
The advent of 5G technology continues to augment market growth for GPON. To accommodate the increasing data traffic, the development of 5G networks needs a strong and high-capacity backhaul infrastructure. For 5G backhaul, GPON technology offers an effective and affordable option by providing the necessary bandwidth and minimal latency.
The need for GPON technology in the telecommunications industry is anticipated to increase as 5G networks continue to grow.
In 2022, the Optical Line Terminal segment by component accounted for 56.6% of the share in the global market. Compared to conventional broadband access methods, which require huge electricity to function, GPON technology is energy-efficient. OLTs in GPON networks use less energy, which lowers overall energy use and carbon emissions.
GPON networks are extremely scalable and can support a sizable user base without sacrificing service quality. Service providers may simply extend their networks by adding additional OLTs and ONTs (Optical Network Terminals) to satisfy the rising demand for high-speed internet services as it continues to rise.
In 2022, the telecommunications segment by vertical garnered a 20.4% market share. The expansion of bandwidth-intensive applications, such as video streaming, cloud computing, and IoT (Internet of Things) devices, is causing a boom in demand for high-speed internet services in the telecoms sector. To address the increased customer demand for high-speed internet access, service providers now provide ultra-fast broadband connections using GPON technology.
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North America market is projected to be the most significant for the United States market during the forecast period. As a result of EU initiatives to improve broadband coverage and improve connectivity, Europe holds a significant market share for GPON technology. As a result of the growing interest of telecom operators in network simplification, it has resulted in a market expansion of optical line terminations (OLT) in the United States.
It is projected that the GPON market in the United States is anticipated to reach USD 4.1 billion by the end of the forecast period 2033. In 2022, the United States accounted for 16.7% of the share of the global market. GPON's market share in the United States is predicted to expand at 5% CAGR throughout the forecast period.
The growth of software firms in these regions, as well as the market's need for telecommunications, has propelled the market's demand for GPON services. For instance,
Countries such as the United Kingdom, Germany, France, Sweden, and the Rest of Europe are expected to efficiently deploy GPON solutions and contribute to accelerating regional demand. It is expected that the United Kingdom market for GPON is anticipated to hold USD 489.6 million in demand with a CAGR of 4.5% during the forecast period.
In 2022, the United Kingdom market captured a 4.3% share of the global market. Some of the region's leading operators such as Telefonica and Nokia are upgrading their networks to meet the growing demand for high-speed networks around the globe. As a result of the growing use of cloud service, the amount of data to be transmitted via broadband connections has also increased dramatically.
This in turn has accelerated the development of the next-generation market in the United Kingdom region.
Based on the countries, the market for GPON in Asia Pacific has been divided into China, Japan, South Korea, Thailand, Indonesia, Taiwan, and the rest of Asia-Pacific. With a huge network of customers and a high penetration of 4G and 5G, Asia Pacific holds the prominent market share for GPON technology.
GPON technology offers robust bandwidth, which is why backhaul solutions are growing in China. China's market for these technologies is projected to expand at a CAGR of 4%, reaching USD 839.8 million by 2033. In 2022, China held a 3.7% share of the global GPON market.
Due to the growing demand for 5G services in these regions, GPON has seen increases in demand here. There has been growth in the market for GPON technologies because of the large population and a significant proportion of customer bases in these regions.
It is expected that Japan is anticipated to hold a market size of USD 686.4 million by the end of the forecast period with a CAGR of 4%. South Korea, on the other hand, is expected to obtain an estimated market value of USD 430.7 million during the forecast period. During the forecast period, the market is anticipated to expand by 3.9% from 2023 to 2033.
In 2022, Japan held 5.8% of the market share globally. Several telecommunication providers in this region have been making efforts to commercialize 5G technology, thus facilitating the market's growth. Additionally, the 5G networks deployed by telecom companies are expected to push service providers to build fiber-based networks to support the high-bandwidth needs of the huge customer bases.
This is another notable factor that contributes to the growth of GPON technology in the region.
| Country | CAGR Share in Global Market (2022) |
|---|---|
| The United States | 16.7% |
| The United Kingdom | 4.3% |
| China | 3.7% |
| Japan | 5.8% |
What is the Level of Competition for GPON in the Market?
Manufacturers can increase production and meet consumer demand through strategic partnerships, thereby increasing both their revenues and share of the market. New products and technologies are anticipated to enable end-users to benefit from new technologies. The result of a strategic collaboration can help the company to increase its production capacity.
Recent GPON Market Developments Observed by FMI:
| Attribute | Details |
|---|---|
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2018 to 2022 |
| Market Analysis | USD million for Value |
| Key Regions Covered | North America; Latin America; Europe; Asia Pacific; The Middle East & Africa (MEA) |
| Key Countries Covered | The United States, Canada, Germany, The United Kingdom, Nordic, Russia, BENELUX, Poland, France, Spain, Italy, Czech Republic, Hungary, Rest of EMEAI, Brazil, Peru, Argentina, Mexico, South Africa, Northern Africa, GCC Countries, China, Japan, South Korea, India, ASIAN, Thailand, Malaysia, Indonesia, Australia, New Zealand, Others |
| Key Segments Covered | Component, Technology, Application, Vertical, Services, Region |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, Trend Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
The growth potential of the market is 5.5% through 2033.
The United States holds high lucrativeness.
The growth of software firms and telecom needs fuels the United States market growth.
Japan is anticipated to fuel at a CAGR of 5.8% in 2022.
Demand for optical chips and stabilized prices drives sales.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Component 5.1. Optical Line Terminal 5.2. Optical Network Terminal 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Technology 6.1. 2.5G Pon 6.2. XG-Pon 6.3. XGS-PON 6.4. NG-PON2 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Application 7.1. Fiber to the Home (FTTH) 7.2. Fiber to the Building (FTTB) 7.3. Fiber to the Curb (FTTC) 7.4. Fiber to the Node (FTTN) 7.5. Mobile Backhaul 8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Vertical 8.1. Transportation 8.2. Telecommunications 8.3. Healthcare 8.4. Energy & Utilities 8.5. Residential (MTU) 8.6. Commercial Industries 9. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Services 9.1. Fixed Internet and Voice 9.2. Internet Protocol TV (IPTV) 9.3. Mobile Voice and Internet 10. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 10.1. North America 10.2. Latin America 10.3. Europe 10.4. South Asia 10.5. East Asia 10.6. Oceania 10.7. MEA 11. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. South Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 15. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 16. Oceania Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 17. MEA Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 18. Key Countries Market Analysis 19. Market Structure Analysis 20. Competition Analysis 20.1. Huawei 20.2. Cisco 20.3. ZTE 20.4. Nokia 20.5. Calix 20.6. FiberHome 20.7. DASAN Zhone 20.8. Allied Telesis 20.9. ADTRAN 20.10. Iskratel 20.11. Alphion 20.12. Unizyx 21. Assumptions & Acronyms Used 22. Research Methodology
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Gigabit Passive Optical Network (GPON) Market
