The market for passive optical LAN (POL) is poised for substantial growth in the coming years, registering a double-digit CAGR through the forecast period. Escalating bandwidth requirements, coupled with the energy efficient nature of passive optical components, is driving the 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.
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.
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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.
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