Report: PON OLT Market Is Bright Spot for Slowing Broadband Access Market

The worldwide PON optical line terminal (OLT) market hit the $3 billion level last year, a 16% increase compared to 2018, according to Dell’Oro Group. The firm says this was “the lone bright spot” for access equipment sales as cable infrastructure and DSL suffered “significant” revenue declines.

“Although 2019 was a challenging year for broadband access equipment vendors, with revenue dipping to levels not seen since 2012, there are positive signs that operators are committed to 10G upgrades to support premium broadband services,” Jeff Heynen, Dell’Oro’s Senior Research Director for Broadband Access and Home Networking, said in a press release. “There will be pockets of growth in 2020, but increased competition is needed to spur additional spending.”

Other results from the research :

  • Total cable access concentrator revenue decreased 30 percent year over year to $255 million, driven once again by a slowdown in CCAP license purchases across all regions.
  • Total DOCSIS 3.1 CPE units increased to 6 million, representing 67 percent of total Cable CPE shipments.
  • Total XGS-PON OLT port shipments increased 222 percent year over year, as more operators continue their shift to 10 Gbps FTTH networks.

The global passive optical network market is growing, according to a new report from MarketsandMarkets. The firm says that the GPON segment is expected to increase from $6.3 billion this year to $8.3 billion by 2025, a compound annual growth rate (CAGR) of 5.8%. The firm said that the growth will be driven by high demand for GPON networks for triple and quad-play services, high speed broadband services, advances in GPON technology and trial and development of 5G services.

The GPON market is expected to be led by ONT (optical network terminal, also known as optical network unit) components in volume and value during the forecast period.


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