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Global passive optical network equipment market: 23.1% CAGR forecast between 2012-16
Global Passive Optical Network (PON) Equipment Market 2012-2016 - a new market research report on 2014-04-17 06:53:01
The Global Passive Optical Network (PON) Equipment market is to grow at a CAGR of 23.14 percent over the period 2012-2016. One of the key factors contributing to this market growth is the increasing growth of PON equipment in China. The Global PON Equipment market has also been witnessing the development of ultra-high capacity optical networks. However, the declining average selling price of the equipment could pose a challenge to the growth of this market.

With the deployment of 10G and 40G optical transmission networks in recent years, there is an upsurge of deployment of higher capacities. Many leading vendors such as Alcatel-Lucent, Ciena, and Huawei have announced that they are going a step further in the future by innovating and conducting trials for capacities as large as 400G and 10 petabits per second transmission. Although the capacities are much larger than required currently, they are considered as future investments considering the huge expansion in data traffic.

The increasing growth of PON equipment in China is a major growth driver. In China, there is a transition toward optical-wired communication from wireless communication. The mass adoption of electronic gadgets and the data traffic created by the huge volume of customers are driving end-users in the country to switch from a wireless to a wired optical medium.

One of the main challenges is declining average selling prices of equipment. Semiconductor optical devices are used for high data volume applications and their prices have fallen significantly during the past 10 years. Buyers and vendors in the Optical industry have become highly competitive and cost sensitive. Thus, there is always pricing pressure from customers which affects the profits of the company.

The key vendors dominating this space include Alcatel-Lucent, Huawei Technologies Co. Ltd., Mitsubishi Electric Corp., Sumitomo Electric Networks Inc., and ZTE Corp.

The other vendors mentioned are Adtran Inc., Calix Network Inc., Cisco Systems Inc., Dasan Networks Inc., ECI Telecom, Fiberhome Technologies Group, Freescale Semiconductor Inc., Fujitsu Ltd., Genexis B.V., Hitachi Ltd., Motorola Solutions Inc., NEC Corp., PMC-Sierra Inc., Telefonaktiebolaget LM Ericsson, Tellabs Inc., Ubiquoss Inc., UTStarcom Inc., Zhone Technologies Inc., and ZyXEL Communications Corp.

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