The worldwide PON market is forecast to grow to over $7 billion by 2022 – at a CAGR of 40 percent from 2017 to 2022.

PON technologies, including 10 Gbps EPON, XGS-PON, and NG-PON2, will drive the growth in the PON market, said Dell’Oro Group.

2.5 Gbps GPON will the dominant technology for offering residential broadband services due to its lower price and sufficient speeds.

The report said next-generation PON technologies have capacities and capabilities that current generation technologies lack for a number of growing use cases such as business services and mobile backhaul.

10 Gbps EPON has already begun shipping strongly in China where current generation PON is widely deployed.

“Shipments of XGS-PON and NG-PON2 remain small for now, but we anticipate that XGS-PON will grow more rapidly. XGS-PON and its 10 Gbps symmetric bandwidth should meet operators’ needs for business services and mobile backhaul,” said Alam Tamboli, senior analyst at Dell’Oro Group.