Passive Optical Component Market Expected to Reach $172 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Passive Optical Component Market By 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, WDM/WDDM, Others), By Application (Interoffice, Loop Feeder, Fiber In The Loop (FITL), Hybrid Fiber-Coaxial (HFC), SONET, SDH): Global Opportunity Analysis And Industry Forecast, 2022-2031" was valued at $39.4 billion in 2021, and is estimated to reach $172 billion by 2031, growing at a CAGR of 15.7% from 2022 to 2031.

An optical splitter provides an essential solution to a passive optical network for point-to-multipoint connection. Passive amplifiers are a major application of passive optical components, which are used to amplify a signal, converting it into electrical form. Optical components such as passive optical components, active optical components, optical power splitters, optical couplers, optical encoders, and optical connectors are the major components of the optical network system. The passive optical component market share is expected to have consistent growth during the forecast period. The demand for new technological innovations is expected to register a significant passive optical component market growth in the coming years. For instance, demand for smart phone networks in is anticipated to grow in the future in Asia-Pacific. Global industrialization of passive optical components is expected to maintain the passive optical component market growth; however, factors such as difficulty in managing failure and less range provided by PON network devices would hamper the growth of the passive optical component market size.

 According to Passive Optical Component Market Trends, WDM, patch cords & pigtails, and optical amplifiers accounted for the largest market share of the total market in 2021. They are responsible for network connection and amplifying signals in the connection. Wavelength division multiplexers allow performing bidirectional communication on a single strand of fiber optics and help in increasing the overall carrier capacity of the optical fiber. Multiplexing of different signals is accomplished by using a multiplexer at the transmitter end of the system. With the increase in the use of the internet by residential users, the need for wavelength division multiplexing (WDM) solutions in metro regions has also increased, thus WDM emerged as a new alternative technology. This technology is adopted by vendors very quickly as it uses less expensive passive optical components.

By component, the passive optical component industry is fragmented into optical cables, optical power splitters, optical couplers, optical encoders, optical connectors, patch cords & pigtails, optical amplifiers, fixed & variable optical attenuators, optical transceivers, optical circulators, optical filters, WDM/WDDM, and others. The WDM/WDDM segment was the highest revenue contributor to the market. Some of the opportunistic factors accelerating the growth of this market include high and rapidly increasing consumer and commercial demand for more telecommunication capacity and internet services, with fiber optic technology capable of providing the required information capacity. The evolution of fiber optic communication is driven by advancements in technology and an increase in demand for fiber optic communication. It is expected to continue in the future, with the development of new and more advanced communication technology.

By application, the passive optical component industry is divided into interoffice, loop feeder, fiber in the loop (FITL), hybrid fiber-coaxial (HFC), SONET, and SDH.

According to the region-wise passive optical component market analysis, Asia-Pacific holds a significant share of the global market, owing to the presence of prime players in this region. The adoption of an automatic identification system is expected to propel the growth of the passive optical component industry in this region.

KEY FINDINGS OF THE STUDY

• In 2021, the WDM/WDDM segment accounted for maximum revenue, and is projected to grow at a notable CAGR of 16.0% during the forecast period.
• The SDH segment is projected to grow at a CAGR of 16.5% during the forecast period.
• Asia-Pacific contributed for the major share in the passive optical component market, accounting for more than 41% share in 2020.

The key players profiled in the report include Alcatel-Lucent S.A., ZTE Corp., Motorola Solutions Inc., Huawei Technologies Comp. Ltd., Ericsson Inc., Tellabs Inc., Adtran Inc., Calix Inc., AT & T Inc., and Broadcom Corporation, Inc. Market players have adopted various strategies, such as product launch, collaboration & partnership, joint venture, and acquisition, to expand their foothold in the passive optical component market.