Allied Market Research

Passive Optical Components Market Expected to Reach $45,622 Million, Globally, by 2022


Report Code : A01594

quote The largest market of passive optical components is present in the Asia-Pacific region and it is growing at a very high rate. Few of the several factors that supplement the growth in the market in Asia-Pacific include, increase in number of internet users and customer shift toward the advanced technology. quote

Komal Sharma
Research Analyst, Semiconductor & Electronics

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Passive Optical Components Market Report, published by Allied Market Research, forecasts that the global market is expected to garner $45,622 million by 2022, registering a CAGR of 17.6% during the period 2016 - 2022. In 2015, in components, WDM/WDDM held the largest market share in the total market.

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In an optical system, major optical components include, optical connectors, optical power splitters, optical encoders, optical couplers, and optical cables. Another major application of passive optical components is in Fiber-to-the-Home (FTTH) networks to branch the optical signals. Passive optical components do not have electrical-to-optical or optical-to-electrical conversion during its operation. Passive optical components are a wide range of devices, which not only include simple components but also the electronically controlled, optical devices such as switches and variable optical attenuators.

Some of the major drivers for this market growth are high growth in IP traffic, increased FTTH requirements, demand for scalability in mobile network, advancement in GPON SoC technologies and high return on investment and low cost of ownership. However, difficulty in managing failure of passive optical networks (PON) and less range of network devices connection are restraining factors for the growth of this market. Opportunities for optical components market are its increasing demand for higher and broadband bandwidth and shift towards high capacity optical networks.

In components, WDM/WDDM holds the largest market share in terms of revenue, owing to several factors that boost its growth in the market. Increase in demand for the cloud services, rapid growth in deployment of FTTx, and rise in IP traffic are the factors that are driving the growth of the WDM market. Ongoing efforts of telecom companies to upgrade their network infrastructure with performance enhancing networking technologies provides major opportunity for the growth of the market.

SDH and SONET together contributed over 62% of the technology segment in the passive optical components market in 2015. Scalability factor of SDH application is one of the key factors anticipated to navigate its demand in the market. In the long run, with service providers (SPs) increasing the size of their networks worldwide, the future of the SONET/SDH test equipment markets relies largely on advancement in the optical technology.

Key Findings of the Passive Optical Components Market :

  • Optical amplifiers, patch cord, and pigtails are second and third largest segments, in passive optical components market and contributed over 27% of the share.
  • WDM/WDDM is anticipated to grow with a very high growth rate of about 18% CAGR during the forecast period.
  • SONET and SDH applications are expected to experience a high growth rate in the upcoming years.
  • Asia-Pacific dominated the market in 2015, supported by growth in China, South Korea, and Japan.

Based on geography, Asia-Pacific contributes the largest share in overall passive optical components market, followed by North America, Europe, and LAMEA. The Asia-Pacific market is expected to witness significant growth during the forecast period

The key players of the global passive optical components market adopt novel concepts & ideas, partnerships, acquisitions, and improvement in manufacturing techniques, besides enhancing their profitability, to gain a competitive edge over other players.

The major players profiled in the report include Alcatel-Lucent S.A., ZTE Corp., Motorola Solutions Inc., Huawei Technologies Comp. Ltd., Tellabs Inc., Adtran Inc., Freescale Semiconductor Inc., Calix Inc., Mitsubishi Electric Corporation, and Ericsson Inc.

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quote Passive Optical Component Market By Application [Interoffice, Loop feeder, FITL, HFC, SONET), and SDH], Component type (Optical cables, Optical power splitters, Optical couplers, Optical encoders, Optical connectors, Patchcords and Pigtails, Optical amplifiers, Fixed and Variable optical attenuators, Optical transceivers, Optical circulators, Optical filters, and WDM/WDDM) - Global Opportunity Analysis and Industry Forecast, 2014 - 2022 quote

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