GPON market for the mobile backhaul application expected to grow at the highest CAGR

The global GPON market size is estimated to grow from USD 6.3 billion in 2020 to USD 8.3 billion by 2025, at a CAGR of 5.8%. The market growth is propelled by the high demand for GPON network for triple and quad-play services, increasing demand for high speed broadband services, advancement in GPON technology, and trial and deployment of the 5G network.

“The GPON market for the mobile backhaul application expected to grow at the highest CAGR during the forecast period.”

Among the optical fiber technologies available for mobile backhaul, GPON networks are increasingly being deployed because of its capability to allow telecom operators to increase their bandwidth capacity and maintaining the quality of service and high reliability while lowering the operational cost. Additional benefits offered by the GPON network for mobile backhaul application includes the efficient topology, minimal hardware requirement, scalability, redundancy, and synergy using the existing fixed-line access. The increasing adoption of GPON networks for mobile backhauling makes the economies of GPON more attractive to network operators.

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“Market in Rest of the World expected to grow at the highest CAGR during the forecast period.”

The rest of the world comprises South America, the Middle East, and Africa, which are the potential markets for GPON. Increasing subscription base of FTTH users in the South American countries is driving the growth of the GPON market in this region. Saudi Arabia, UAE, and Turkey are some of the prominent countries witnessing increasing demand for GPON in the Middle East region. Growing investments by telecom companies in Africa’s optical network has resulted in the growth of the GPON market.

The major companies involved in the development and supply of GPON include Huawei (China), Nokia (Finland), ZTE (China), Fiberhome (China), Calix (US), ADTRAN (US), DASAN Zhone (US), Cisco (US), NEC (Japan), Allied Telesis (Japan), Iskratel (Slovenia), Unizyx (Taiwan), and Alphion (US).

Key Market Players

As of 2019, Huawei (China), Nokia (Finland), ZTE (China), FiberHome (China), DASAN Zhone (US), Calix (US), and ADTRAN (US) dominated the global GPON market.

Huawei holds the leading position in the GPON market as it has the most comprehensive array of OLT and ONT products that support GPON and 10G-PON technologies. Huawei’s GPON OLT and ONT products are the most popular GPON products in the market, primarily because of their superior quality and brand value. Huawei’s worldwide presence has enabled it to lead the global market and participate in the drafting of international standards for GPON. This, coupled with the commercial launch of XGS-PON, has enabled Huawei to gain the first-mover advantage in the 10 Gbps downlink range. Along with organic strategies, Huawei has adopted the inorganic strategy of collaboration; for instance, it collaborated with TIME dotCom jointly to build a pilot 10G-PON, aiming to provide gigabit ultra-broadband for fixed access users in Malaysia.

GPON solutions provided by Nokia include high-capacity PONs for cable operators, fixed networks for mobile transport, universal next-generation PONs, passive optical LAN, and ONT Easy Start. Nokia is considered to have the highest brand value in the market, primarily because of its strong presence in the networking market. Moreover, the acquisition of Alcatel-Lucent has helped its technological innovation in GPON. This is expected to be a key factor driving the growth of this company. Nokia is the second-largest player in the GPON market. It is further cementing its position in the market by entering into agreements to test its GPON products.

Other companies involved in the GPON market are ZTE (China), FiberHome (China), DASAN Zhone (US), Calix (US), ADTRAN (US), CISCO (US), NEC (Japan), Allied Telesis (Japan), Iskratel (Slovenia), Unizyx (China), and Alphion (US).

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