The passive optical component market is estimated to be valued at US$ 40.86 Billion in 2024

A newly published report by Coherent Market Insights reveals a sustainable growth opportunity in the passive optical component market. Coherent Market Insights’ analyst projected the passive optical component market is estimated to be valued at US$ 40.86 Bn in 2024. It is expected to exhibit a CAGR of 16.8% over the forecast period 2024 -2031.

Rising demand for high-speed data services and increasing FTTH connections. Expansion of communication networks across the globe has fuelled the demand for passive optical components. For instance, according to the Fiber Broadband Association, as of December 2021, around 36.6 million homes and businesses in the U.S. have access to fiber broadband services.

Key market trends include Increasing investments in 5G infrastructure by telecom operators is a major trend observed in the passive optical component market. Significant capital is being poured by telcos globally to enhance their network infrastructure and accommodate 100Gbps+ connectivity, driving extensive deployment of next-generation PON technologies.

Rising focus on gigabit-capable broadband networks is another key trend gaining traction. Governments of various countries are also aiding investments in digital infrastructure.

Passive Optical Component Market Opportunities: By Component – The splitter segment accounts for the largest share in the passive optical component market. Splitters play a vital role in the distribution and routing of signals in optical communication networks. They are able to divide an optical signal into multiple signals allowing connectivity to various end users through fibres optic networks.

By Material Type- The glass segment dominates the passive optical component market. Glass has been the de facto material for optical fibers due to its excellent light transmission properties and stability over changing temperatures. Glass core fibers provide extremely low optical loss over long transmission distances.

Key Market Takeaways: The passive optical component market size is projected to reach USD 187.64 Billion by 2030 witnessing a CAGR of 16.8% during the forecast period. The growing deployment of FTTx networks worldwide is a major factor driving market growth.

On the basis of component, the splitter segment is expected to hold the largest share. This is owing to its critical role in distributing signals in fiber optic networks.

On the basis of material type, glass is anticipated to dominate the market. This is due to its proven optical transmission capabilities and stability.

North America is predicted to dominate the passive optical component market share. This is due to the early adoption of advanced connectivity technologies and presence of leading market players.

Competitor Insights: Key players operating in the passive optical component market include Corning Incorporated, Sumitomo Electric Industries, Ltd., NTT Electronics Corporation, Huawei Technologies Co., Ltd., ZTE Corporation, CommScope Holding Company, Inc., TE Connectivity Ltd., Molex LLC, 3M Company, Adtran, Inc., OFS Fitel, LLC, Prysmian Group, Leviton Manufacturing Co., Inc., Sterlite Technologies Limited and Fujikura Ltd.

Recent Developments:  In December 2022, Motorola Solutions, acquired Rave Mobile Safety, a Massachusetts-based supplier of cloud-based mass notification and incident management platforms. Rave’s technology enables organizations and public safety authorities to communicate and collaborate during emergencies by effectively sending notifications and updates regarding health emergencies, lockdowns, and evacuations, keeping people informed and safe. More information in full report