Passive optical network (PON) is a fiber to the premises (FTTP) network structure. The goal of the network is to provide a solution which is easy to install, maintain and upgrade. This is done by using optical splitters in PON which enables a single fiber to deliver services to multiple premises. PON comprises an optical line terminal at the site of the service provider and numerous optical network units near end users. It is considered an eco-friendly alternative vis-à-vis conventional network, due to usage of unpowered optical splitters. GPON devices provide high-speed video, data and voice services to residential and business subscribers. Reliability and long-reach connectivity further strengthens the extremely high bandwidth of GPON technology. It also reduces the number of active switching devices implemented in a computer network. Moreover, GPON has been a major advancement for defense services, primarily due to advanced security and high bandwidth provided by the network.

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EPON assists service providers to deliver voice and IPTV services, broadband and enterprise services, such as voice and internet connectivity and time division multiplexing (TDM). In addition, 4G and 3G mobile backhaul carriage services are also provided by EPON. With advancement in technology, new EPON equipment having full compatibility with the existing Ethernet standards are being developed continuously. As Ethernet is the major networking solution used in local area networks (LANs) and metro-area networks (MANs), protocol conversions are not required.

ONT as well as OLT are used in both GPON and EPON. OLT is placed at the service provider's central site, while the ONT at the premises of end users. The OLT operates as the Local Area Network (LAN) - combination element for assimilating video, voice and data services into a particular fiber structure. The ONT provides different local service interfaces to the user, such as video, telemetry, voice and data. GPON offers secure, high bandwidth and scalable networks for military, business and campus applications by leveraging influence of fiber optics and internet protocol/Ethernet architecture.

Global Passive Optical Network Equipment Market was valued at US$24.81 bn in 2014, at a CAGR of 20.7% from 2015 to 2023 to account for US$163.5 bn in 2023.

Global passive optical network (PON) equipment market: by components

> Optical cables
> Optical power splitters
> Optical filters
> Wavelength division multiplexer/de-multiplexer
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Global passive optical network (PON) equipment market: by structure

> Gigabit passive optical network (GPON)
> Ethernet passive optical network (EPON)

Global gigabit passive optical network (GPON) equipment market: by components

> Optical Network Terminal (ONT)
> Optical Line Terminal (OLT)

Global Ethernet passive optical network (EPON) equipment market: by components

> Optical Network Terminal (ONT)
> Optical Line Terminal (OLT)

Key players have also been profiled on the basis of company overview, financial overview, business strategies and key developments. Major market participants profiled in this report include Huawei Technologies Co. Ltd., Alcatel-Lucent S.A., ZTE Corp, Calix Inc., Ericsson Inc., Adtran Inc, Freescale Semiconductor Inc., Motorola Solutions Inc., Mitsubishi Electric Corporation and Verizon Communications Inc.