Aggressive growth forecast for passive markets

Created May 5, 2017
News and Business

Two new market research reports are predicting vibrant growth in the global passive optical equipment markets.

In its ‘Passive Optical LAN Market Research Report: Global Forecast to 2022’, Market Research Future (MRFR) reckons the worldwide passive optical LAN market could be worth $50 billion by 2022.  That market will be majorly driven by considerations such as large investments made by governments to improve infrastructures.

According to MRFR, Asia-Pacific is dominating the passive optical LAN sector due to factors that include robust demand for higher bandwidth from the economies of China, India, and Japan. Rising Internet data usage and increasing investment in research and development are also anticipated to grow the market in that region.

In a study publicised at the end of April, Allied Market Research (AMR) valued the global passive optical component market at $14.6 billion in 2015, and predicted it to reach $45.6 billion by 2022, growing at a CAGR of 17.6% from 2016 to 2022. This survey – ‘Passive Optical Components Market Report’ – included optical components such as cables, power splitters, couplers, encoders, amplifiers, transceivers, filters and connectors; components used for FTTH networks for branching optical signals and multi/de-multiplexing; and components for optical video surveillance systems.

AMR lists some of the major drivers of this market expansion as: high growth in IP traffic; increased FTTH requirements; demand for scalability in mobile networks; advances in GPON SoC technologies; high return on investment, and low cost of ownership. However, the difficulty of managing service restoration following PON failures was cited as one current market growth inhibitor.

John Williamson

John Williamson

This article was written
by John Williamson

John Williamson is a freelance telecommunications, IT and military communications journalist. He has also written for national and international media, and been a telecoms advisor to the World Bank.