Europe FTTH GPON Market, By Component Type (Optical Line Terminal (OLT), Optical Network Terminal (ONT)/ Optical Network Unit, Optical Splitters and Transmitting Media), Subscriber Type (Residential and Business), Technology (XGS-PON, NG-PON2, 2.5G PON and XG-PON), Optical Signalling Format (WDM/WDMA and TDM/TDMA), Application (Wi-Fi Coverage, National and International Voice Calling, Video Services, High Bandwidth Data Service, CATV Services, Telemedicine, IPTV Service, Gaming and Others), End User (Telecommunication, Residential, Healthcare, Transportation, Commercial, Energy and Utilities and Others), Industry Trends and Forecast to 2029.
Market Analysis and Insights
Technological development brought the enhanced internet service to support the consumer demand for the faster internet connection is augmenting the increased count of fibre optic networks. This has been made possible as the population is getting more inclined towards digital platforms, internet services, and online services for their daily requirements. This increasing penetration of the internet is creating a huge demand for high bandwidth, high-speed internet services that are efficiently provided by the fibre-optic network. Thus, the increasing growth in fibre optic infrastructure is increasing the demand for FTTH GPON network in the market. However, technological limitation of PON is expected to hamper the growth of the market.
Data Bridge Market Research analyses that the FTTH GPON market will grow at a CAGR of 5.8% during the forecast period of 2022 to 2029.
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Report Metric |
Details |
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Forecast Period |
2022 to 2029 |
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Base Year |
2021 |
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Historic Years |
2020 (Customizable to 2019 - 2014) |
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Quantitative Units |
Revenue in USD Million, Volumes in Units, Pricing in USD |
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Segments Covered |
By Component Type (Optical Line Terminal (OLT), Optical Network Terminal (ONT)/ Optical Network Unit, Optical Splitters and Transmitting Media), Subscriber Type (Residential and Business), Technology (XGS-PON, NG-PON2, 2.5G PON and XG-PON), Optical Signalling Format (WDM/WDMA and TDM/TDMA), Application (Wi-Fi Coverage, National and International Voice Calling, Video Services, High Bandwidth Data Service, CATV Services, Telemedicine, IPTV Service, Gaming and Others), End User (Telecommunication, Residential, Healthcare, Transportation, Commercial, Energy and Utilities and Others) |
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Countries Covered |
U.K., Germany, France, Italy, Spain, Russia, Netherlands, Switzerland, Turkey, Belgium and Rest of Europe |
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Market Players Covered |
Nokia Corporation, ZTE Corporation, Genexis, NEC Corporation, Iskratel, DZS, FiberHome, Broadcom, AT&T Intellectual Property, TP-Link Corporation Limited, FIBRAIN Sp. z o.o., Huawei Technologies Co., Ltd., Cisco Systems, Inc., Telefonaktiebolaget LM Ericsson, Corning Incorporated, GX Group, ASSIA, Inc., Tejas Networks Ltd., Adtran, UTStarcom Incorporated, GPONDoctor, Allied Telesis, Inc., OPTOKON a.s., DTC International Ltd, Zyxel, Calix |
Market Definition
GPON stands for gigabit ethernet passive optical network (PON). In GPON, asynchronous transfer mode (ATM) is used for voice, ethernet is used for data, and proprietary encapsulation is used for voice. This means that it uses fixed-size cells rather than data packets of various size. On downstream and upstream bandwidths, it outperforms EPON (ethernet passive optical network). A GPON system consists of an optical line terminal (OLT) that uses a passive optical distribution network (ODN) to connect many optical network terminals (ONTs/ONUs). GPON is a telecommunications access technology that uses fibre-optic cabling to reach the user. This fibre optic technology provides faster data transmission and reception through a single fibre, with a point-to-multipoint architecture, which allows home optical fibre (FTTH), or a building (FTTB).
FTTH GPON Market Dynamics
Drivers
- Increasing demand for high definition content by consumers
The demand for high-speed data services by consumers for television cable signals, telephone signals and internet communications is constantly increasing over the years. Rising use of the social media platform and requirement of high definition quality content is driving the demand for fiber optic network as it provides high quality data with better speed.
- Rising demand for fiber optic cable for higher bandwidth
Fibber optic bandwidth is high as data transmission speed and distance covered data without attenuation are possible. Optical fibre can transmit data as pulses of light through different objects like glass wire, allowing data to travel at the speed of light.. As the number of internet users grows, so does the amount of bandwidth available per user, driving up demand for high bandwidth in the market.
- Increasing internet penetration
The FTTH GPON market is highly driven by the increasing usage of internet. As the penetration of internet increases the demand for better connectivity infrastructure will also increase. Telecom companies are focusing on providing an efficient system to the customers for optimum experience. The increasing adoption of internet will increase the requirement of optic fibre in the market.
- Increased adoption of smart devices
Increasing disposable income of the consumers and need of advanced electronic products is driving the consumer electronics market. Consumers are becoming techno savvy and adopting new technologies at work, daily routine, personal entertainment and others. Growing adoption of the smartphone, desktop, tablets and other devices is driving the market growth.
Opportunities
- Rising adoption of 5G network
5G is the next generation of wireless cellular technology, it is the next big thing. It is a network that can transmit massive amounts of data at unfathomable speeds, it will provide high speeds data up to 3000 Mbps (3 Gbps) in the real world. The data center industry relies entirely on these 5G technology networks as it further enhances its capabilities.
Restraints/Challenges
- Technological limitation of PON
Despite the many advantages that have the PON to own intrinsic configuration, there are some limitation associated with it. The major limitation which is to be considered is that caused by distribution of information from the OLT to the different ONTs. The fact that a divisor distributes information from the OLT to all ONTs that are connected to the same stage or distribution tree, it causes a reduction in network efficiency.
COVID-19 Impact on FTTH GPON Market
The confinement and lockdown period during the Covid-19 crisis has shown the importance of good, reliable internet connectivity at home. A high-speed connection at home has opened up the possibility of efficient teleworking, maintaining entertainment habits and keeping close contacts. Data traffic in all networks has increased significantly during the pandemic period. COVID-19 has increased the demand of FTTH GPON in the market. Fixed broadband networks has gain immense popularity for keeping the world connected. Traffic grew 30-40% overnight, driven primarily by working from home (video conferencing and collaboration, VPNs), learning from home (video conferencing and collaboration, e-learning platforms) and entertainment (online gaming, video streaming, social media). Moreover limited supply and shortage of semiconductors and gadgets has significantly affected the supply of FTTH GPON in the market. The flow of new equipment, such as computers, servers, switches, and customer premise equipment (CPE) has either fully stopped or is delayed, with lead times of up to 12 months for different items.
Manufacturers are making various strategic decisions to bounce back post COVID-19. The players are conducting multiple research and development activities to improve the technology involved in the FTTH GPON. With this, the companies will bring advanced FTTH GPON to the market.
For instance,
- In March 2020, AT&T Intellectual Property announced that they have enhanced its fiber-to-the-home (FTTH) “last mile” network by deploying XGS-PON technology The company will initially provide 1 gigabit download speeds then boosting them to 10 gigabits per second in both directions as it upgrades from GPON networks. Thus with this the company will be providing high speed internet connection to its customers
Thus, the COVID-19 has increased the demand of FTTH GPON in the market but limited supply and shortage of semiconductors and gadgets has significantly affected the supply of FTTH GPON in the market.
Recent Developments
- In April 2022, Nokia Corporation announced that they have signed an agreement with Energie Wasser Luzern (ewl), the Swiss energy services company to deploy its next-generation PON fiber solution in Lucerne, Switzerland. The company will be replacing the network with fiber access technology, which will help in providing a single network for business and residential customers, as well as for smart metering services. Thus with this the company will help ewl to provide more capacity, faster speeds, and world-class broadband services for its fiber-to-the-home (FTTH) network
- In May 2022, ZTE Corporation announced that they have released the prototype of its first Optical Network Unit (ONU) which can support both 50-Gigabit-Capable Passive Optical Networking (50G PON) and Wi-Fi 7 technologies. The company released it at the FTTH Conference 2022 in Vienna, Austria. With this the company will be able to provide high-bandwidth, multi-device connectivity for home and enterprise
Europe FTTH GPON Market Scope
The FTTH GPON market is segmented based on component type, subscriber type, optical signalling format, technology, application and end user. The growth amongst these segments will help you analyze major growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.
Component Type
- Optical Line Terminal (OLT)
- Optical Network Terminal (ONT)/ Optical Network Unit
- Optical Splitters
- Transmitting Media
On the basis of component type, the Europe FTTH GPON market is segmented into optical line terminal (OLT), optical network terminal (ONT)/ optical network unit, optical splitters and transmitting media.
Subscriber Type
- Residential
- Business
On the basis of subscriber type, the Europe FTTH GPON market has been segmented into residential and business.
Technology
- XGS-PON
- NG-PON2
- 2.5G PON
- XG-PON
On the basis of technology, the Europe FTTH GPON market has been segmented into XGS-PON, NG-PON2, 2.5G PON and XG-PON.
Optical Signalling Format
- WDM/WDMA
- TDM/TDMA
On the basis of optical signalling format, the Europe FTTH GPON market has been segmented into WDM/WDMA and TDM/TDMA.
Application
- Wi-Fi Coverage
- National and International Voice Calling
- Video Services
- High Bandwidth Data Service
- CATV Services
- Telemedicine
- IPTV Service
- Gaming
- Others
On the basis of application, the Europe FTTH GPON market has been segmented into Wi-Fi coverage, national and international voice calling, video services, high bandwidth data service, CATV services, telemedicine, IPTV service, gaming and others.
End User
- Telecommunication
- Residential
- Healthcare
- Transportation
- Commercial
- Energy and Utilities
- Others
On the basis of end user, the Europe FTTH GPON market has been segmented into to telecommunication, residential, healthcare, transportation, commercial, energy and utilities and others.
Europe FTTH GPON Market
The FTTH GPON market is analyzed, and market size insights and trends are provided by the component type, subscriber type, optical signalling format, technology, application, end user and countries as referenced above.
Europe FTTH GPON market is covers countries such as U.K., Germany, France, Spain, Italy, Netherlands, Switzerland, Russia, Belgium, Turkey and rest of Europe.
U.K. is expected to dominate the Europe FTTH GPON market as the country is witnessing increasing government’s support for “gigabit-capable” networks, such as via business rates holiday on new fibre, as well as connection vouchers, various other funding schemes and regulatory changes via to help support investment in U.K. Improvement has been fostered over the past 4 years in networks deployment. Moreover, a significant increase in competition between new FTTH ISPs has helped to drive the market forward at an increasing pace never in the U.K. Presently, commercial deployments in urban areas and the Government’s new state aid funded euro 5 Billion Project Gigabit program will help to extend fibre optic network growth and the growth of the country in the Europe FTTH GPON market.
The country section of the FTTH GPON market report also provides individual market impacting factors and changes in regulations in the market domestically that impact the current and future trends of the market. Data points such as new sales, replacement sales, country demographics, disease epidemiology and import-export tariffs are some of the significant pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands and the impact of sales channels are considered while providing forecast analysis of the country data.
Competitive Landscape and FTTH GPON Market Share Analysis
The FTTH GPON market competitive landscape provides details of the competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, solution launch, product width and breadth, application dominance. The above data points are only related to the companies' focus on the FTTH GPON market.
Some of the major players operating in the Europe FTTH GPON market are Nokia Corporation, ZTE Corporation, Genexis, NEC Corporation, Iskratel, DZS, FiberHome, Broadcom, AT&T Intellectual Property, TP-Link Corporation Limited, FIBRAIN Sp. z o.o., Huawei Technologies Co., Ltd., Cisco Systems, Inc., Telefonaktiebolaget LM Ericsson, Corning Incorporated, GX Group, ASSIA, Inc., Tejas Networks Ltd., Adtran, UTStarcom Incorporated, GPONDoctor, Allied Telesis, Inc., OPTOKON a.s., DTC International Ltd, Zyxel, Calix among others.
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