The global passive optical component market revenue was around US$ 45.5 billion in 2022 and is estimated to reach US$ 172 billion by 2031, growing at a compound annual growth rate (CAGR) of 15.7% during the forecast period from 2023 to 2031.
Optical components like active optical components, optical passive optical components, optical couplers, optical encoders, optical power splitters, and optical connectors are the major components of an optical network system. Passive optical components are utilized in FTTH (Fiber to the Home) networks for branching of optical signals, multi/de-multiplexing, and for optical surveillance systems of video signals.
Factors Influencing Market Growth
- The increase in FTTH requirements, demand for scalability in mobile networks, advancements in GPON SoC technologies, high growth in IP traffic, high return on investment, and low cost of ownership drive the growth of the passive optical component market.
- Improved efficiency of passive optical components and a change of users toward high-capacity optical networks also push the growth of the passive optical component market.
- The smaller range of network device connections and complications in handling the failure of PON hinder the growth of the passive optical component industry.
- The rise in demand for broadband and higher bandwidth and the move toward high-capacity optical networks deliver lucrative opportunities for the growth of passive optical component market size.
Impact of COVID-19
The impact of the COVID-19 pandemic has severely influenced the passive optical component market. With governments of several nations extending and imposing lockdowns, manufacturing and production facilities across the world have been shut down, because of the unavailability and crisis of workforce.
Regarding the inputs from different industry experts belonging to the various stages of the value chain like suppliers, integrators, end users, OEMs, and distributors, and the financial release of several companies in the passive optical component ecosystem, it is calculated that the market has experienced a decline during the COVID-19 pandemic.
In 2022, Asia-Pacific region dominated a significant share of the global passive optical component market because of the presence of prime players in this region. Also, the adoption of an automatic identification system is anticipated to drive the growth of the passive optical component industry in this region.
The leading prominent companies profiled in the global passive optical component market are: -
- Alcatel-Lucent S.A.
- ZTE Corp.
- Motorola Solutions Inc.
- Huawei Technologies Comp. Ltd.
- Ericsson Inc.
- Tellabs Inc.
- Adtran Inc.
- Calix Inc.
- AT & T Inc.
- Broadcom Corporation, Inc.
- Other prominent key players
The global passive optical component market segmentation focuses on Component, Application, and Region.
Segmentation based on Component
- 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
Segmentation based on Application
- Loop Feeder
- Fiber in the Loop (FITL)
- Hybrid Fiber-Coaxial (HFC)
Segmentation based on Region
- North America
- The U.S.
- Rest of Europe
- South Korea
- Rest Of Asia-Pacific
- Latin America
- Middle East