Global GPON Market Report and Forecast 2024-2032

Global GPON Market Outlook

The global GPON market size is projected to grow at a CAGR of 6% in the forecast period of 2024-2032, to reach a value of USD 12.49 billion by 2032.

Gigabit-capable passive optical network (GPON) is a standard for passive optical networks (PON) published by the ITU-T. It is commonly used for the implementation of the last kilometre of fibre-to-the-premises (FTTP) services. For its functioning, GPON requires the optical medium and the hardware used to access it and defines the manner in which ethernet frames are converted into an optical signal, as well as the parameters of that signal.

GPON supports high data rates, typically up to 2.488 Gbps downstream (from the provider to the customer) and 1.244 Gbps upstream (from the customer to the provider). It provides significant bandwidth capabilities, handling the growing demand for data-intensive services like HD video streaming and high-speed internet.

The passive nature of the network reduces operational costs as it requires less maintenance and no power for the splitting components. It can further accommodate a large number of users over long distances, making it ideal for both urban and rural telecommunications networks. GPON represents a significant leap in broadband technology, offering high-speed, efficient, and scalable solutions for data transmission. Its deployment is central to the development of modern telecommunication infrastructures, meeting the increasing demands of residential and commercial users for high-speed internet and multimedia services.

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GPON Market Segmentation

By equipment type, the market is divided into:

• Optical Line Terminal (OLT)

• Optical Network Terminal (ONT)

• Others

Based on equipment type, the optical network terminal (ONT) segment accounts for a significant share of the market. This is because the optical network terminal (ONT) is one of the most important networking hardware installed at the user premise, which is used to transmit traffic through the GPON network. Its main function is to convert optical signals into electrical signals, which are forwarded to business and residential users.

The market is expected to be led by ONT components over the forecast period. This, coupled with the increasing demand for voice, video, and data services that require connection via the ONT hardware component, is expected to contribute to the market growth.

Based on services, the market can be segmented into:

• Fixed Internet and Voice

• Internet Protocol TV (IPTV)

• Mobile Voice and Internet

The fixed internet and voice segment holds a significant GPON market share, supported by the consistently growing demand for broadband internet services in both residential and commercial sectors. GPON's ability to deliver high-speed internet efficiently caters to this demand, driving its adoption.

Fixed internet access is considered an essential service in many regions, often prioritised by governments and service providers in infrastructure development plans. Many service providers use GPON to upgrade their existing copper-based networks (like DSL) to fibre, primarily to offer better internet and voice services. Providers often bundle voice services with the internet, making it a comprehensive package for users. The integration of voice services over the same network adds value without significant additional costs.

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The market is divided based on technology into:

• 2.5G PON

• XGS-PON

• XG-PON

• NG-PON2

The demand for XGS-PON in the market is on the rise, driven by several factors that stem from its advanced capabilities compared to standard GPON. XGS-PON, which stands for 10 Gigabit Symmetric Passive Optical Network, offers significantly higher bandwidth with symmetric speeds of 10 Gbps both downstream and upstream.

As the demand for higher internet speeds increases due to surge in activities like streaming 4K/8K video, cloud gaming, and remote work, XGS-PON offers an effective solution with its 10 Gbps symmetric speed (same speed for both download and upload). This is a significant upgrade over the traditional GPON's 2.5 Gbps download and 1.25 Gbps upload speeds.

On the basis of application, the market can be segmented into:

• FTTH

• Mobile Backhaul

• Others

The GPON technology is witnessing robust growth with the adoption of highly scalable telecommunication backhaul infrastructure to meet the needs of customers and increase market revenue. The rapid technological advancements and the increasing shift towards automation have significantly contributed to the GPON market growth. The rapid emergence of next-generation networks including LTE-A and 5G has motivated the major telecom operators to use backhaul equipment, which is flexible enough to meet the ever-changing demands of coverage, latency, and capacity in the market.

Over the forecast period, the growing emphasis of telecom operators on continuously providing communications with low latency and high bandwidth is expected to be a key driver for the market.

By end use, the market can be divided into:

• Residential

• Commercial Industries

• Telecommunications

• Energy and Utilities

• Healthcare

• Transportation

• Others

The residential sector is one of the largest consumers of GPON technology. The need for high-speed internet for streaming, gaming, work-from-home setups, and smart home devices drives significant demand. Residential consumers often require reliable and fast internet connections, making GPON an attractive option.

GPON is a leading technology in FTTH deployments. It allows the delivery of high-speed internet services directly to homes using optical fibre cables. This is a significant upgrade over traditional copper-based networks and offers much higher speeds and reliability.

Commercial establishments, including businesses, offices, and retail spaces, rely on high-speed internet for various operations. GPON can provide the necessary bandwidth for cloud computing, data transfers, and other business applications.

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The report also covers the major regional markets for GPON, which are as follows:

• North America

• Europe

• Asia Pacific 

• Latin America

• Middle East and Africa

GPON Market Analysis

The GPON (Gigabit Passive Optical Network) market stands as a rapidly evolving segment within the telecommunications sector. The demand for high-speed broadband services is the primary driver of the market. This is fuelled by the increase in internet consumption, streaming services, remote work, online education, and the proliferation of connected devices.

The market is influenced by continuous technological advancements, including the development of next-generation PON technologies like XGS-PON and NG-PON2, which are some of the crucial GPON market trends that offer even greater speeds and capacity. While initially more prominent in developed regions, the market is expanding rapidly in developing countries, driven by government initiatives to improve internet connectivity and the growing demand for high-speed internet services.

Regional Insights

The Asia Pacific to provide enhanced growth opportunities to the market

Region-wise, the Asia Pacific is expected to witness robust growth over the forecast period owing to the increasing public and private investment in the development of broadband infrastructure. For example, in 2020, the Chinese government's USD 22 million investment plan to increase internet access across the country was implemented, thus, creating new opportunities for the expansion of the market. Moreover, many telecommunication companies in the region are making efforts to commercialise 5G technology, hence, further boosting the GPON market demand.

In addition, the efforts of telecom operators for the deployment of 5G networks will motivate service providers to use fibre-based infrastructure to support high-bandwidth requirements. This is another major factor contributing to the growth of GPON technology in the region.

Key Players in the Market

The GPON market report by EMR gives a detailed analysis of the following key players in the market, covering their competitive landscape, capacity, and latest developments like mergers, acquisitions, and investments, expansions of capacity, and plant turnarounds:

• Hitachi, Ltd.

• Cisco Systems, Inc.

• ZTE Corporation

• Huawei Technologies Co., Ltd.

• Ubiquoss, Inc.

• Calix, Inc.

• Nokia Corporation

• Tejas Networks, Ltd.

• Others

The comprehensive EMR report provides an in-depth assessment of the market based on the Porter's five forces model along with giving a SWOT analysis.

Key Highlights of the Report

GPON Market Report Snapshots

GPON Market Size

GPON Market Analysis

GPON Companies