Passive Optical Network Equipment Market is Expected to Exhibit a CAGR of 22.0% over the forecast period (2021-2028).

Increasing need for green network solution is expected to drive growth of the global passive network (PON) equipment market during the forecast period. Passive optical local area network (POL) solutions are more eco-friendly than conventional copper-based Ethernet local area network. POL removes the use of workgroup switches and instead uses optical splitters. As a result of this, it complies with HVAC standards since it eradicates the usage of thousands of KW energy and acts as a more-cost effective option. Furthermore, there is no requirement for rack mount switches which in turn reduces the usage of non-renewable electrical equipment and lowers power consumption. Passive optical network (PON) uses a single fiber, single type optic to the WGT. In addition, PON uses small passive optical splitters, which are located in the enclosures in a building, usually on every floor. Therefore, PON produces no heat, requires no power, and can even be mounted in electrical closets.?

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High installation cost at operators interface and operational challenges are expected to restrain growth of the global passive optical network (PON) equipment market during the forecast period. Although PON equipment offers numerous benefits, its high installation cost remains the major restraining factor. According to a study conducted on behalf of the Broadband Forum, 53% of the respondents said that interoperability issues caused complications associated with their internal testing burden. 44% stated issues with network performance, and 41% mentioned issues with greater management overhead. Furthermore, a gigabyte passive optical network (GPON), which is one of the most advanced technologies in PON, costs US$ 6.69 million. The equipment cost is very low when compared with other costs, as the raw material required at the service providers' end is less complex and technologically advanced.

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