Global Passive Optical Components Market to Witness Rising Expenditure on GPON Equipment in 2016

Companies in the global passive optical components market are increasingly focusing on designing and manufacturing innovative and personalized solutions that are in compliance with international standards. In addition to this, companies are striving to meet the ever-growing demands of passive optical networks (PONs) for the highest level of optical and mechanical specifications. There are several technologies that companies are deploying to meet this demand. However, there is one technology that holds great promise in the foreseeable future: GPON.

In the past few years, many passive optical network (PON) standards have been created. In the late 1990s, ATM PON (APON) was created, which deployed the asynchronous transfer mode (ATM) for long-haul packet transmission. As ATM went out of use, a newer version came into being, called broadband PON (BPON). Although BPON is still used in some systems, at present, most of the systems use Gigabit PON (GPON).


Expenditure on GPON Equipment Grew Substantially in 2015

GPON is one of the most promising PON standards. Take the example of revenue spend in China on GPON equipment this year. The gigabit PON equipment spending in the country climbed by almost 50% during the first half of 2015. In China, GPON has fuelled the growth of more than 10% of the overall broadband equipment market during the second quarter of 2015. Similarly, in North America, the expenditure on GPON equipment increased substantially during the second quarter of 2015. The growing investment in gigabit passive optical network equipment worldwide is projected to boost the growth of GPON components sectors in the next year as well.

Why Spending on GPON Equipment will Continue to Rise in 2016

GPON continues to be one of the most cost-effective technologies for a provider to deploy fiber connectivity. Several studies have demonstrated that using gigabit PON in an optimal network can result in around 70% lower CapEx, around 90% less space utilization, and 80% lower power consumption. Hence, the short- and long-term cost savings associated with GPON will continue to fuel its popularity among providers.

In addition to this, lower power consumption also means reduced carbon emissions. In the U.S. government buildings are mandated to cut down on energy consumption by the end of 2015. Such favorable regulations will propel the demand for GPON components even more.

However, it is not just power saving and cost saving that is fuelling the demand for Gigabit PON equipment. Gigabit PON tends to support building high-performance converged networks. Gigabit passive optical networks can provide support to previously existing wireless access points such as WAP and facilitate more flexible WAP replacement. IT teams can integrate building automation security and other sensor systems with ease using gigabit passive optical network architecture.


Even though GPON may not be suitable for every project, it is one of the most viable options to achieve cost savings, power savings, and build high-performance converged networks.

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