Passive Optical LAN Market Size was valued at USD 22746.72 Million in 2023. The Passive Optical LAN market industry is projected to grow from USD 25555.89 Million in 2024 to USD 64873.75 Million by 2032, exhibiting a compound annual growth rate (CAGR) of 12.3% during the forecast period (2024 - 2032). Increased demand for high bandwidth and energy-efficient networks and the high-speed internet requirement is the key market drivers enhancing the growth of market.
Source: The Secondary Research, Primary Research, MRFR Database, and Analyst Review
Market CAGR for passive optical LAN is being driven by the rising Growing demand for high bandwidth and energy-efficient networks. The POL market is primarily increased due to the growing demand for high bandwidth applications throughout the world. The POL is a greener option than the traditional copper-based Ethernet local network. Therefore, there is no requirement for power, and it emits reduced amount of heat, owing to its passive nature.
HDTV, 3-D TV, IPTV, video on demand, and gaming are some of the consumer market players that have increased the investment and deployment of fiber to home networks throughout the world. The expansion of the telecom companies also assists in the growth of the market globally. Telecom companies provide services like video, voice, data, and wireless for different applications. The novel technologies need more bandwidth, and therefore, users are more likely to opt for passive optical LAN, as the copper-based infrastructures are not efficient for high bandwidth applications. POL uses a point-to-multipoint topology, where a single strand of single-mode fiber offers multiple endpoint splitters to meet the endpoint devices. It requires less cable as single-mode fiber can support multiple devices and also offers security, cost reliability, and space savings for enterprise LAN (POL) environment.
POL is the technology that is efficient and enhances performance with green benefits required by modern enterprises. POL solutions utilize optical splitters rather than using workgroup switches and produce no heat, do not require power, and can even be mounted in electrical closets. This technology minimizes the ceiling space required, and their fire load-saving ability makes them environment-friendly. The increasing requirement for high-speed broadband services, and adoption of the Internet of Things in developing countries, and the increasing popularity of cloud-based services are a few factors are foreseen to boost the market growth globally. The market players are also enhancing the overall network architecture to attain dominance in the market globally. The market has tremendous growth opportunities in the Asia Pacific region due to technological advancement, the development of system administration, and the increase in the popularity of innovative headway and exploration framework throughout the globe. Thus, driving the Passive Optical LAN market revenue.
The Passive Optical LAN market segmentation, based on components, includes Optical Power Splitter, Optical Filters, and Wavelength Division Multiplexer/DE-Multiplexer. The wavelength division multiplexer/DE-multiplexer segment dominates the market, accounting for the largest market revenue, and is anticipated to reach 5.97 million dollars in 2028. A large number of investments are being made by the manufacturers in building WDM ROADM-based optical equipment in order to offer higher and faster transmission capacity networks to their customers.
Figure 1: Passive Optical LAN Market, by Components, 2022 & 2032 (USD Billion)
Source: The Secondary Research, Primary Research, MRFR Database, and Analyst Review
The Passive Optical LAN market segmentation, based on end users, includes Manufacturing, Educational, Healthcare, and Others. The healthcare segment dominates the market to modernize in order to meet the high-bandwidth requirement and the proliferation of wireless devices, providing higher stability via consistent availability and offering strict QoS in support of mission-critical services. The daily IT modification demands are anticipated as a factor at a centrally situated desktop as the optical LANs are maintained centrally through element management software (EMS)
By region, the study offers market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American Passive Optical LAN market area dominates the market as consumers are becoming obsessed with energy-saving technologies and have the demand for securing their internet connections as cybercrime cases are increasing globally. The US is the largest contributor of the passive optical Ian market in the North American region.
Further, the primary countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, Japan, China, India, Australia, South Korea, and Brazil.
Figure 2: PASSIVE OPTICAL LAN MARKET SHARE BY REGION 2022 (USD Billion)
Source: The Secondary Research, Primary Research, MRFR Database, and Analyst Review
Europe's Passive Optical LAN market accounts for the second-largest market share due to the popularity of OTT platforms, and the advent of interactive gaming and video-on-demand has increased the deployment of broadband infrastructure in the region. Further, the German Passive Optical LAN market held the largest market share, and the UK Passive Optical LAN market was the fastest-growing market in the European region.
The Asia-Pacific Passive Optical LAN Market is expected to grow at a rapid CAGR from 2024 to 2032. This is due to rapid growth in the demand for digital and mobile devices and increasing investments made by the government in the region. Moreover, China’s Passive Optical LAN market held the largest market share, and the Indian Passive Optical LAN market was the fastest-growing market in the Asia-Pacific region.
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Passive Optical LAN market grow even more. Market players are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Passive Optical LAN industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the Passive Optical LAN industry to benefit clients and increase the market sector. In recent years, the Passive Optical LAN industry has offered some of the most significant advantages to network services. Major players in the Passive Optical LAN market, including Proximus group, CommScope Holding Company Inc., Nokia, Airfiber Verizon Communications, Mitsubishi Electric Corporation, Huawei Technologies Co Ltd., Intelligent Fiber Optic Systems Corporation, Fotech Solutions Ltd., NXP Semiconductors, ZTE Corporation, and others, are attempting to increase market demand by investing in research and development operations.
Proximus Group is a supplier of digital services and future-proof connectivity, provided in Benelux and also to the market. It is a leading provider of internet, telephony, television, and network-based ICT services via Proximus and Scarlet brands. Their advanced interconnected mobile and fixed networks provide access anytime, anywhere, to digital services and data. The company largely invests in future-proof networks and innovative solutions, building a base for sustainable growth. In May 2021, the company collaborated with Nokia, which is a comms tech supplier, in order to launch the first-ever PON live network, connecting the Havenhuis buildings in Antwerp and the central office of Proximus. This new deployment is in line with the inspiring 2022 vision of Proximus to fuel its position as the leading fixed broadband network supplier in Belgium.
CommScope Holding Company Inc., founded in 1953 in Hickory, North Carolina, is an American network infrastructure provider. The company designs and manufactures network infrastructure products with four business segments; venue and campus networks, broadband networks, home networks, and outdoor wireless networks. The company is investing largely in the innovation of the globally most advanced wired and wireless networks. In August 2021, the company launched a coexistence portfolio in order to upgrade its PON networks in order to increase its data speeds and supply additional services without replacing or adding fiber to its existing PON infrastructure globally.
Proximus Group
CommScope Holding Company Inc.
Nokia
Airfiber
Verizon Communications
Mitsubishi Electric Corporation
Huawei Technologies Co Ltd.
Intelligent Fiber Optic Systems Corporation
Fotech Solutions Ltd.
NXP Semiconductors
ZTE Corporation
April 2024: Huawei held its first Global Optical Summit in Bangkok in April 2024 under the theme “F5G-A, the Foundation for Industrial Intelligence.” The event was attended by more than 300 customers and partners from Singapore, Thailand, the Philippines, and Malaysia, among other countries. During the summit, Huawei launched a series of F5G-A (F5G Advanced) products and solutions targeted at the Asia Pacific region; it also kicked off the OptiX Club member recruitment campaign globally to enable industrial intelligence in Asia Pacific.
ZTE Corporation, a leading global provider of information and communication technology solutions, will launch over ten industry-leading Wi-Fi 7 Customer Premises Equipment (CPE) products named “LinkPro” at Mobile World Congress 2024, to be held in February. LinkPro CPE series is applicable for different networking scenarios like homes and Small- and Medium-sized Enterprises (SMEs), which helps operators build a foundation for 10G-plus network connections while achieving better service development. Wi-Fi 7 significantly increases throughput and reduces latency, thus being able to meet the high bandwidth demand of VR/AR, ultra-high-definition video such as 4K/8K, and cloud computing, among others, which require low latency.
November 2023: Finolex Cables Ltd, an Indian firm, declared the inclusion of passive LAN components into its existing business portfolio of LAN cables.
November 2023: Ericsson developed and launched a new solution that combined G.fast and POL architectures. The new solution enables the provision of high-speed internet in the world through existing infrastructure.
ZTE Corporation, at FTTH Conference 2022, revealed a prototype of this ONU, which it launched into the market as having both 50G PON and Wi-Fi 7 technology capabilities.
September 2023: Precision OT, a global optical system engineering and integration company, announced the general availability of OpenPath™ — its turnkey solution that enables a more open Passive Optical Network (PON) ecosystem — in February. The solution, which was launched September 2023, is redefining flexibility & efficiency standards during the deployment & management phases of 10 Gigabit Symmetrical Passive Optical Networks (XGS-PON). OpenPath™ revolutionizes past challenges and roadblocks many Multiple System Operators (MSOs) and service providers have been experiencing where they were unable to deploy XGS-PON due to a lack of interoperability among different vendors’ systems. By adopting a white box hardware approach coupled with an interoperability focus, Precision OT allows customers to move beyond vendor lock scenario, thereby making it easier and faster for them to acquire the necessary equipment required for their XGS-PON deployments.
November 2022: Ciena, the optical networking company, has diversified its technology offering to include broadband access, virtualized routing as well as subscriber management with acquisitions such as network-edge telco software specialist Benu Networks and the scheduled acquisition of next-generation passive optical network (PON) vendor Tibit Communications.
July 2022: Nokia announced that it put up a passive optical LAN (POL) solution for Orange at twenty sites all over France, including the New Orange Headquarters Bridge in Issy-les-Moulineaux near Paris. The POL solution connects more than 5,000 endpoints including Wi-Fi and hard-wired terminals replacing current copper-based LAN.
Optical Power Splitter
Optical Filters
Wavelength Division Multiplexer/DE-Multiplexer
Manufacturing
Educational
Healthcare
Others
North America
US
Canada
Europe
Germany
France
UK
Italy
Spain
Rest of Europe
Asia-Pacific
China
Japan
India
Australia
South Korea
Australia
Rest of Asia-Pacific
Rest of the World
Middle East
Africa
Latin America
| Report Attribute/Metric | Details |
| Market Size 2023 | USD 22746.72 Million |
| Market Size 2024 | USD 25555.89 Million |
| Market Size 2032 | USD 64873.75 Million |
| Compound Annual Growth Rate (CAGR) | 12.3% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Million) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Component, End User, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The US, Canada, German, France, UK, Italy, Spain, Japan, India, China, Australia, South Korea, and Brazil |
| Key Companies Profiled | Proximus Group, CommScope Holding Company Inc., Nokia, Airfiber Verizon Communications, Mitsubishi Electric Corporation, Huawei Technologies Co Ltd., Intelligent Fiber Optic Systems Corporation, Fotech Solutions Ltd., NXP Semiconductors, ZTE Corporation |
| Key Market Opportunities | Rising demand for high bandwidth connectivity. |
| Key Market Dynamics | Increased demand for energy-efficient and high-speed internet in developing countries. |
Frequently Asked Questions (FAQ) :
The Passive Optical LAN market size was valued at USD 22746.72 Million in 2023.
The market is foreseen to grow at a CAGR of 12.3% during the forecast period, 2024-2032.
North America had the largest share of the market
The key players in the market are Proximus Group, CommScope Holding Company Inc., Nokia, Airfiber Verizon Communications, Mitsubishi Electric Corporation, Huawei Technologies Co Ltd., Intelligent Fiber Optic Systems Corporation, Fotech Solutions Ltd., NXP Semiconductors, and ZTE Corporation.
The Wavelength Division Multiplexer/DE-Multiplexer category dominated the market in 2022.
Healthcare had the largest share of the market.
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Senior Research Analyst Ankit gupta is an analyst in market research industry in ict and semi industry. with post-graduation in "telecom and marketing management" and graduation in "electronics and telecommunication" vertical he is well versed with recent development in ict industry as a whole. having worked on more than 150+ reports including consultation for fortune 500 companies such as microsoft and rio tinto in identifying solutions with respect to business problems his opinions are inclined towards mixture of technical and managerial aspects.
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