Passive Optical Component Market

The global passive optical component market was valued at $39.4 billion in 2021, and is projected to reach $172 billion by 2031, growing at a CAGR of 15.7% from 2022 to 2031.

Optical components such as optical passive optical component, active optical component. optical power splitters, optical couplers, optical encoders, and optical connectors are the major components of optical network system. Passive optical components are also used in FTTH (Fiber to the Home) networks for branching of optical signals, multi/de-multiplexing, and for optical surveillance systems of video signals. Passive optical components do not require electrical-to-optical or optical-to-electrical conversion during its operation. Passive optical components include not only simple optical connectors and fixed optical attenuators, but also more complicated, electronically controlled, optical devices like switches and variable optical attenuators.

The passive optical component market has been severely impacted by the outbreak of the COVID-19 pandemic. With governments of several nations imposing and extending lockdowns, production and manufacturing facilities across the globe have been shut down, owing crisis and unavailability of workforce. Considering the inputs from various industry experts belonging to the various stages of the value chain, such as OEMs, suppliers, integrators, end users, and distributors, and the financial release of various companies in the passive optical component ecosystem, it is calculated that the market has experienced a decline during 2019–2020. Furthermore, the outbreak of the pandemic has disrupted the global supply chain, thereby creating significant gap in supply chain. Economic impact of the pandemic has been disruptive. Key players operating in the passive optical component industry temporarily witnessed a slowdown, owing to lack of availability of skilled professional to develop passive optical component market solutions, which has led to decline in revenues for the financial year 2020 to 2021. However, it is expected that the market will recover from 2021 and remain in the growth stage during the forecast period.

The passive optical component market is segmented into Component and Application.

By component, the market is divided into optical cables, optical power splitters, optical couplers, optical encoders, optical connectors, patch cords & pigtails, optical amplifiers, fixed &variable optical attenuators, optical transceivers, optical circulators, optical filters, WDM/WDDM, and others. The WDM/WDDM segment was the highest revenue contributor to the market in 2021.

By application, the market is segmented into interoffice, loop feeder, FITL, HFC, SONET, and SDH. The SDH segment was the highest revenue contributor to the market in 2021.

By region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

The passive optical network is categorized into two types, in terms of its structure, namely gigabit passive optical network (GPON) and Ethernet passive optical network (EPON). GPON terminal devices offer high-speed voice, video and data services to business and residential subscribers. Reliability and last-mile long-reach connection reduces quantity of active switching devices used in a computer network. EPON offers services such as internet protocol television (IPTV) and residential broadband, enterprise services, voice services such as internet and voice connectivity, 3G &4G mobile backhaul, time division multiplexing (TDM), and carriage services.

Major drivers such as high growth in IP traffic, increase in FTTH requirements, demand for scalability in mobile network, advancements in GPON SoC technologies, and high return on investment, and low cost of ownership propel the market growth. However, difficulty in managing failure of PON and less range of network devices connection restrain growth of the passive optical component industry.

Moreover, increase in demand for higher and broadband bandwidth and shift toward high-capacity optical networks provide lucrative opportunities for the growth of passive optical component market size. The passive optical component industy is experiencing significant growth, globally, owing to rise in use in optical fiber network, optical amplifiers, and optical power splitters for passive network. These passive optical components are highly reliable; thus, maintain the quality of fiber material. These components are also priced less. However, higher operational and installation cost is the major factor that restrain growth of the passive optical component market share.

Significant factors include rise in demand for passive optic network, smart phones, tablets, and other electronic devices. In addition, an enhanced efficiency of passive optical components and shift of users toward high-capacity optical networks also propels the passive optical component market growth. The above-mentioned factors collectively create opportunities for the market growth, while factors such as difficulty in managing failure in mobile network communication and less network connection range poses limitations for the market growth. Hence, each factor is expected to have its definite impact on the market during the forecast period.

Competitive analysis and profiles of the major passive optical component industry players, such as Alcatel-Lucent S.A., ZTE Corp., Motorola Solutions Inc., Huawei Technologies Comp. Ltd., Ericsson Inc., Tellabs Inc., Adtran Inc., Calix Inc., AT & T Inc., and Broadcom Corporation, Inc. provided in this report.

Key Benefits For Stakeholders

• This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the passive optical component market analysis from 2021 to 2031 to identify the prevailing Passive Optical Component Market Opportunity.
• The market research is offered along with information related to key drivers, restraints, and opportunities.
• Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
• In-depth analysis of the passive optical component market outlook assists to determine the prevailing market opportunities.
• Major countries in each region are mapped according to their revenue contribution to the global market.
• Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
• The report includes the analysis of the regional as well as global passive optical component market trends, key players, market segments, application areas, passive optical component market forecast and market growth strategies.

 Passive Optical Component Market Report Highlights