Product Code: RP-ID-10352427 |
Published Date: 21 Mar 2025 |
Region: Regional |
Category: ICT & Telecom |
Report ID: 10352427
Market Overview:
North America Passive Optical Network (PON) Market Analysis by Technology {Asynchronous Transfer Mode PON (APON), Broadband Passive Optical Network (BPON), Gigabit Passive Optical Network (GPON), Ethernet Passive Optical Network (EPON) and Others}; by Component {Optical Line Terminal (OLT), Optical Network Terminal (ONT), Splitters, and Others}; and by Application (FTTx, and Mobile Backhaul)-Supply & Demand Analysis & Opportunity Outlook 2021-2031
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North America Passive Optical Network (PON) Market Size, Forecast, and Trend Highlights Over 2021 - 2031
The North American passive optical network (PON) market is estimated to garner a revenue of USD 26,765.1 Million by the end of 2031 by growing at a CAGR of 19.7% over the forecast period, i.e., 2022 – 2031. Further, the market generated a revenue of USD 4,456.9 Million in the year 2021. The rising penetration of the internet among the population of North America is primarily driving the growth of the North America PON market. According to The World Bank, 91% individuals of the population in the United States are internet users.
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The higher number of companies in North America offering cloud computing services is pushing the market growth. In the United States, there are nearly 5,500 organizations providing cloud service. Furthermore, the rise in a number of devices connected to the Internet of Things (IoT) is driving the growth of the North America Passive Optical Network (PON). In the United States, about 9 billion people are connected to IoT in 2020.
North America Passive Optical Network (PON) Market: Growth Drivers and Challenges
Growth Drivers
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Higher Internet Transmission Speed
North America has the highest internet speed worldwide. As of 2021, from fixed broadband connection Americans were receiving download speeds of 204 Mbps and about 74Mbps upload speed. Most fiber internet providers is offering a speed of more than 1000 Mbps.
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Higher Adoption of Cloud Computing
Companies and organizations are extensively using the cloud for easing out their tedious task, manage their massive data, and producing meaningful patterns. In America, nearly 94% of enterprises are using some sort of cloud service. About 48% of companies store their highly classified data on the cloud.
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Rising Number of Internet Users
With the rise in digitization and faster internet speed, a higher number of people are using the internet. In 2021, there were nearly 417 million internet users, and this number is expected to reach approximately 449 million by 2026.
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Rapid Digitization Across the Region
Owing growth opportunities provided by digital transformation, increasing competitive pressure, and higher demand of customers for digital services are driving more companies towards digitization. Nearly, 60% of American consumer prefers digital tool such as online chatbot and others for customer service.
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Higher Number of Devices Connected to the Internet of Things (IoT)
With rising internet-based services and smartphone users, more devices are getting connected to IoT. In 2019, there were about 3 billion IoT connections and by 2025, connections are forecasted to reach over 5 billion.
Challenges
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Availability of Substitute Technologies in the Market such as XGS-PON
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Data Bandwidth is Compromised During Peak Hours of Usage
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High Cost of Fiber and Labor Required for Installation of Setup
Labor charges for POL installation are very high in comparison to traditional networks and it is likely to hamper the market growth. Other than the labor fees, the price of fiber is also a challenge as it depends on the cable and connecter style. Therefore, the variable price of fiber might affect the market.
The North America passive optical network (PON) market is segmented and analyzed for demand and supply by application into FTTx and Mobile Backhaul. Out of the two, the FTTx segment is anticipated to hold the largest market size by the end of 2031. It is to grow at a CAGR of 19.8% over the forecast period. It garnered significant revenue in 2021. This growth is attributed to the rapid penetration of HDTV (High Definition Television) among the population. The larger the screen, the lesser the compression has to be put on video, for that it requires higher bandwidth to access the better video service. In 2021, nearly 44% of U.S., the household has a 4K TV set that is ultra-high definition. Furthermore, FTTx networks are highly used in the telecommunication sector, therefore rise in telecommunication is expected to increase the adoption of FTTx in North America.
North America Passive Optical Network (PON) Market Regional Synopsis
Regionally, the North America passive optical network (PON) market is studied in two major countries including the United States and Canada. Amongst these markets, the market in the United States is projected to hold the largest market value at the end of 2031. The United States passive optical market is to grow at a CAGR of 19.8% over the forecast period. In the year 2021, the PON market in the United States garnered a modest revenue. The higher number of internet users in the United States is likely to propel the market growth. As of January 2022, over 300 million people have accessed the internet in the United States. Moreover, increased usage of at least one type of cloud service among the company is expected to boost the passive optical network market. In the United States, about 80% of enterprises are using hybrid cloud services in 2022.
Market Segmentation
Our in-depth analysis of the North American passive optical network (PON) market includes the following segments:
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By Technology |
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By Component |
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By Application |
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Key Companies Dominating the North America Passive Optical Network (PON) Market
Our report has covered detailed company profiling comprising company overview, business strategies, key product offerings, financial performance, key performance indicators, risk analysis, recent developments, regional presence, and SWOT analysis among other notable indicators for competitive positioning. Some of the prominent industry leaders in the North America passive optical network (PON) market that are included in our report is Comtrend Corporation, Arcadyan Technology Corporation, Zyxel Communications Corporation, Actiontec Electronics, Inc., Calix Inc., Adtran Inc., DZS, CommScope Holding Company Inc., Nokia Corporation, Humax Networks, Inc., Wistron NeWeb Corporation, and others.
Global North America Passive Optical Network (PON) Market: Latest Developments
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August, 2021: Commscope Holding Company Inc., introduced the Coexistence portfolio, to escalate the speed of data and provide additional services in the same PON infrastructure without replacing or adding fiber to it.
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July, 2022: Nokia Corporation announced to provide XGS Passive Optical Network (PON) solution to SINET, Cambodia’s leading internet service provider.
Key Reasons to Buy Our Report
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The report covers a detailed analysis comprising market share attained by each market segment and its sub-segments.
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It covers market dynamics including growth drivers, trends, potential opportunities, price trend analysis, and challenges that impact market growth.
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The report includes detailed company profiles of the major players dominating the market.
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We use effective research methodologies to calculate the market numbers and provide value-added assessment for overall growth.
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We provide customized reports as per the clients’ requirement helping them to see possible and unexpected challenges and unforeseen opportunities in order to help them reach their goal.
- Comtrend Corporation
- Arcadyan Technology Corporation
- Zyxel Communications Corporation
- Actiontec Electronics Inc.
- Calix Inc.
- Adtran Inc.
- DZS
- CommScope Holding Company Inc.
- Nokia Corporation
- Humax Networks Inc.
- Wistron NeWeb Corporation
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