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

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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.

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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.

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

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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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