Passive Optical Components Market: Insights into the Competitive Scenario of the Market

Transparency Market Research (TMR), a U.S. based market research and analysis firm recently published a market study on the global passive optical components market. According to the research report titled “Passive Optical Components Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2014 - 2020”, the global passive optical components market will expand at a remarkable 21.1% CAGR from 2014 to 2020. If the figure holds true, the overall valuation of the market will be US$38.19 billion in 2020 increasing from US$10.01 billion in 2013.

The TMR study states that the escalating demand for broadband bandwidth across the Asia Pacific and Rest of the World (RoW)together with the expansion of Passive Optical Networks (PON) in Asia Pacific are the major factors propelling the global passive optical components market.

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Additionally, amplified investments in research infrastructure and technological advancement and the increasing fiber optic deployment across Asia Pacific and RoW is bolstering the demand for passive optical components. Passive components constitute the foundation of optical network systems and find widespread usage in FTTH, fiber in the loop (FITL), synchronous optical network (SONET), synchronous digital hierarchy (SDH), hybrid fiber-coaxial cable (HFC), loop feeder, and interoffice applications. Additionally, demand for energy efficient networks that employs passive optical components is gaining popularity thus significantly contributing to the growth of the market, as noted in the TMR study.

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According to the research report findings, the multiplexers/de-multiplexers wavelength division dominated the components segment of the market in 2013. The segment was trailed by patch cords and pigtails in 2013. Being largely driven by the emergence of ultra-high-capacity optical networks, this segment accounted for 12.73% of the market in the same year.Owing to the unfathomably rising demand for internet communication bandwidth and development in fiberoptic technologies at an unparalleled pace, the optical amplifiers and optical attenuators segment is projected to grow at 22.0% and 21.8% CAGR respectively.

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SONET and SDH application segments have the ability to transfer multiple digital bit data streams across optical fiber employing lasers or light-emitting diodes. Owing to the benefits SONET and SDH application segments offer, the segments collectively accounted for the largest market share in 2013. SONET equipment find high deployment in North America whereas SDH equipment has acceptance in other parts of the world. According to the report, the SONET and SDH applications segments will grow at 22.8% and 22.7% CAGR respectively and will continue to lead the market between 2014 and 2020.

Geographically, Asia Pacific and Rest of the World is expected to continue its dominance in the global passive optical components market, followed by North America and Europe. Rapid economic growth witnessed by Asia Pacific and Rest of the World which led to increased investments in communication infrastructure, rise in the development of networking technologies and deployment of newer fiber optic systems will contribute significantly to the growth of the passive optical components market in the major economies located in this regions.

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