ID: MRFR/SEM/1611-HCR | February 2021 | Region: Global | 100 pages
The CAGR for the passive optical LAN market is projected to be 19% until the end of 2022. The market is expected to be worth USD$50 billion by then. Passive optical LANs are solutions that businesses and homeowners alike use. Examples of businesses that use POLs are for-profit businesses, government agencies and entities, hospitals, hotels, real estate developers, and universities.
These solutions provide various Internet and Internet-based services through one network. The result is greater productivity for businesses, entities, and organizations and a better Internet connection for everyone who uses POL solutions.
COVID-19 appeared on the global stage more than a year ago. It was a potentially dangerous virus so governments around the world tried to contain its spread by limiting human contact as much as possible. They did this by mandating the wearing of masks, contactless delivery, working remotely, and social distancing. Governments also imposed temporary quarantines and indefinite lockdowns.
This has negatively impacted the global passive optical LAN market, but only temporarily. The lockdowns and quarantines have made it harder for companies in the passive optical LAN market to find the raw materials and resources for their products and services. This has raised their overall production costs. These companies have been forced to pass the higher cost onto the end consumer in the form of higher prices. But the overall prospects for the market and industry look bright.
The technologies that power the global passive optical LAN market use optical splitters. They also use much less energy when operating. Many homeowners, business owners, government agencies, and other formal entities love this because it lowers their overall monthly energy bills.
But there are other factors that are driving growth in the global passive optical LAN market. One is the increased usage of these technologies by companies that are interested in ‘going green.’ They find that these technologies have two main benefits for them: it increases their image among those in their target markets because they are seen as being environmentally friendly and it allows them to use much less energy much more efficiently.
Many new opportunities are emerging as more and more homeowners and professional entities embrace the products and services that use the technologies that comprise the passive optical LAN market. One is an increase in sales and the sectors that are willing to try these products and services (many for the first time!)
One factor limiting growth in this market is the usage of copper cables. Cables that are made out of this metal are unable to transmit electronic and digital signals far. This means that it’s hard for many would-be customers to take full advantage of the abilities and powers of the passive optical LAN market.
Traditional copper cable is also unable to handle a high bandwidth of information. This has prompted many companies in this market to invest heavily in research and development. They want to find metals that are cost-effective and much more efficient in capturing and transmitting electronic and digital signals longer distances.
COVID-19 notwithstanding, one of the main challenges that the global passive optical LAN market faces is high production costs. Indeed, this market will be unable to reach its full growth potential if the companies in this industry are unable to find lower-priced raw materials that are just as effective!
Cumulative growth analysis
The market is currently experiencing a CAGR that is just under 20%. This growth is expected to continue until at least the end of next year. The market is estimated to be worth USD$50 billion at the end of this time period.
The companies in the global passive optical LAN industry are constantly bringing new products to market. They find that the only way they can continue to make money is to introduce amazing new products and services that are meaner and leaner. One such product is the RFI/RFP process. Extreme Networks currently markets this and its users and customers love it. One of their main sweet spots about this product is the fact that it’s cost-effective and works well with modern networks.
The passive optical LAN industry currently markets many products. These can be further categorized into components, type, application, and end-user. The component part includes optical cables, coupler, power splitter, connect, amplifier, and end receiver. The market can be further subdivided into gigabyte capable passive optical networks and EPON.
The application segment is further subdivided into loop feeder, synchronous optical network, hybrid fiber-coaxial cable, and synchronous digital hierarchy. The end-user segment pertains to manufacturing, BFIS, education, healthcare, government, etc…
The Asia-Pacific region has the largest passive optical LAN market share of all of the regions in the world. The two Asian giants India and China especially have seen tremendous demand in terms of optical fiber. India, especially, has seen exponential growth in the demand for digital and mobile devices. This is rapidly accelerating data traffic. The Indian government is also a major contributor to demand. It’s investing heavily in LAN all over India to improve both the infrastructure and Internet connectivity pan-India.
North America has the second largest passive optical LAN market size. The reason being that many companies are investing heavily in the POL industry. Many more people are becoming obsessed with the energy saving technologies that alternative and green energy presents them with. They are demanding more products that use passive optical LAN technologies. They also want to make sure that their Internet connections are completely secure - cybercrime is a big and growing concern in America.
A contributor to growing demand in the North American market is the growing demand for energy-efficient solutions and more investment in network solutions.
The market is highly fragmented and competitive. Companies find that they must introduce new products to market, merge with and acquire other companies, or form joint-ventures in order to generate enough revenue to survive.
A major player in the passive optical LAN technologies industry is ADTRAN Inc. it has survived by introducing products with greater bandwidth to market. This has dramatically increased the speed and efficiency of the Internet for its customers.
List of companies
The passive optical LAN market is experiencing healthy growth at 19% CAGR. Though the market is lucrative, it faces stiff competition. Companies are rising to the challenge by innovating.
Frequently Asked Questions (FAQ) :
POL contribute various services to businesses, governments, hospitals, hotels, real estate developers, and universities by reducing their infrastructure cost and deploying single network. This helps to enhance business performance and improve mobile connectivity to all the users. Passive optical LAN solutions are more efficient comparing to traditional local area network.
The global Passive Optical LAN market is expected to grow at CAGR of 19% during the forecast period.
Passive Optical LAN Market is segmented into Components, Type, Application and End User.
Asia-pacific is leading the market for Passive optical LAN. The growing demand for the optical fiber in the emerging countries like China and India is boosting the market in this region. Increasing usage of electronic gadgets and significantly growth of the data traffic is also driving the growth of the market. Government is also contributing in the growth by investing in the optical LAN to improve the infrastructure in their respective region.
The prime end-users in the market are Manufacturing, BFIS, Education, Healthcare and Government among others.