Capitalizing on Growing Consumer Base in Emerging Economies Key Growth Strategy for Players in Passive Optical LAN (POL) Market

The market for passive optical LAN (POL) is led by Huawei Technologies Co., Ltd., ZTE Corporation, and Alcatel-Lucent S.A. These three companies accounted for a combined share of over 75% in the overall POL market in 2015, indicating the high degree of consolidation. Transparency Market Research finds that most of these companies are focusing on business expansion to increase their consumer base and new product development and technological enhancement to deliver value enhancements to customers.

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An increasing number of companies in the passive optical LAN market are also focusing on innovative and technological advancements and R&D efforts in passive optical networks (PON). Acquisitions are another way of expanding customer base and reducing competition.

 Some of the other key companies in the POL market are Ericsson Inc., Adtran Inc, Freescale Semiconductor Inc., Motorola Solutions Inc., Mitsubishi Electric Corporation, and Verizon Communications Inc. Staying on the crest of the technology wave is becoming a success imperative, as can be seen with developments such as the rolling out of Huawei’s 4G ultra broadband networks. The company endeavors to gain an advantage in markets such as Rio de Janeiro (Brazil), Bangalore (India), and Stockholm (Sweden) with the move.

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Accelerating Bandwidth Requirements Driving Need for Passive Optical LAN

“The growing need for higher bandwidth is a major opportunity for players in the passive optical LAN market,” states the lead analyst. IT professionals have declared that the demand for higher bandwidth is presently large and is likely to grow in the near future owing to the increasing number of subscribers using a greater number of connected devices and data-dense services. “Africa and Asia are likely to witness a sudden surge in the demand for bandwidth, rising at a CAGR of more than 38%,” the analyst predicts.

Moreover, POL solutions are greener than conventional copper-based Ethernet local area networks. This is expected to further bolster the passive optical LAN market over the forecast period. TMR predicts that the impact of this factor will remain high over the coming years.

In contrast, various technical and operational issues such as data and signal losses, dispersion, and attenuation threaten to impede the global passive optical LAN market.

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