Enterprise PON Deployments Also Expected to Ramp as Businesses Simplify Cabling and Reduce Power Consumption
REDWOOD CITY, Calif. – August 5, 2026 – According to a brand new PON in the Data Center and Premise Advanced Research Report recently published from Dell’Oro Group, the trusted source for market information about the telecommunications, security, networks, and data center industries, total 2026 Data Center PON equipment revenues are expected to increase 844 percent year-over-year (Y/Y), driven by hyperscalers looking to use the point-to-multipoint technologies to reduce the cabling and power consumption requirements of their out-of-band management networks.
“PON technologies are increasingly moving from traditional residential networks to enterprise and data center applications, providing additional growth opportunities for PON equipment providers,” said Jeff Heynen, Vice President of Broadband Access and Home Networking market research at Dell’Oro Group. “We see hyperscalers and enterprises, both large and small, increasingly deploying PON technologies for passive fiber distribution that is lower cost and that maintains its value far longer than traditional copper infrastructure,” added Heynen.
Additional highlights from the PON in the Data Center and Premise Advanced Research Report:
- Total cumulative spending on data center PON equipment from 2026 to 2030 is expected to exceed $3 billion, as hyperscalers, neocloud providers, and colocation providers all deploy PON for their out-of-band and infrastructure management networks.
- Enterprises are increasingly deploying Passive Optical LAN (POL) as the long-term benefits of increased speeds and lower operational costs outweigh the costs of deploying fiber in the building.
- Chinese operators continue to deploy tens of millions of master and subtended ONTs to deliver fiber-to-the-room (FTTR) services to their residential broadband customers.
The Dell’Oro Group PON in the Data Center and Premise Advanced Research Report includes 5-year market forecasts for PON Optical Line Terminals (OLTs), and PON Optical Network Terminals (ONTs) and Optical Network Units (ONUs) used in Data Center [Out-of-band management (OOBM), infrastructure management (DCIM)], Enterprise/MDU [Passive Optical LAN (POL), Fiber-to-the-room for business (FTTR-B)] , and Fiber-to-the room (FTTR) applications. To purchase this report, please contact us by email at dgsales@delloro.com.
Dell’Oro Group is a market research firm that specializes in strategic competitive analysis in the telecommunications, security, networks, and data center markets. Our firm provides in-depth quantitative data and qualitative analysis to facilitate critical, fact-based business decisions. For more information, contact Dell’Oro Group at +1.650.622.9400 or visit www.delloro.com.
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