Page 38 - Market Analysis Report of Optical Communications Field in China & Global market 2016

reached net sales revenue of 5.6 billion euro
in the first quarter of 2016, down 8%. In the
second quarter of 2016, its net sales were 5.7
billion euro, down 11%. In spite of the decline
of net sales, its market share was improved.
In the second quarter of 2016, ADVA, a German
optical transmission equipment manufacturer
reached sales revenue of 157.2 million euro,
up 40.1%. Its market share has been improved.
The total income in the first half of 2016 was
279.2 million euro, up 34.3% compared with
the income in the same period last year.
Fierce competition makes it harder for small
and medium-sized manufacturers
With the multiple advantages of technology,
cost and service, some enterprises like
Huawei, ZTE has rapidly got the leading
position. Besides staying ahead in the domestic
market; they also actively seek to expand the
international market and get more market share.
At present, the optical transmission and access
equipment of developed and manufactured
by Chinese enterprises have been widely
applied by operators in Europe, Southeast
Asia, Africa and other areas. China’s optical
network equipment enterprises have become
more important in the international optical
communications industry. However, at the
same time, the optical network equipment
industry began to enter the stage of oligopoly
competition. With the competition becoming
increasingly fierce, the market share will be
further concentrated to the leading enterprises.
The small and medium-sized manufacturers’
living environment will be even worse.
Short of key technologies and local high-end
products
After many years of deployment in the field of
optical network equipment, China’s mainstream
manufacturers have grasped the independent
intellectual property rights of some key
technologies in the systematic level. There still from the investment of telecom operators. In the list as a Chinese enterprise and ranks the fourth
lacks intellectual property rights of the leading
international standards, most of which are in the recent years, the world’s major economies got this year. It has risen by 1 place compared with
hands of foreign manufacturers. Chinese optical
network enterprises still have a long way to
gain the sustainable competitiveness.
400G will be deployed commercially in
small-scale
China started to research on 100G in 2010. In
2013, 100G was already applied in scale and
get popularized rapidly. With the development
of mobile Internet technology, the user ’s
demand for traffic will gradually increase. It is
expected that in 2020, the mobile traffic will
be close to 5GB per capita. The demand for
higher bandwidth due to the rapid development
of Internet, cloud computing, LTE, big data
and Internet of Things (IoT) technology leads
the optical transmission system to seek higher
speed and larger capacity, for example, the
400G. At present, China has deployed the
world’s largest 100G network.
38
It is worth mentioning that several major national development strategy and made
optical communication enterprises and telecom gratifying achievements. With the deepening
operators like HTGD, YOFC and China of “Broadband China” strategy, operators
Unicom have already been involved in the increased their investment in optical network
400G research. construction and development of network
technology applications such as data center
In 2016, there will be more deployment of 400G technology. It is forecasted that the annual
network. But considering the cost and long optical device market growth 2016 can reach
process of technology evolution, 100G network 15%, with the total market value reaching $ 6.65
will still be the best choice. It is expected that billion US dollar. However, compared to optical
in 2017, 400G will be deployed commercially devices and fiber optic cable manufacturers,
in small-scale. However, due to G.654E fiber the competitive advantage of China’s optical
standard development and the prices impact device manufacturers in the global is still not
of G.654 fibers, it will be still a long way to obvious. In the high-end 100G optical devices,
go before the large scale deployment of 400G backbone network transmission devices and
network appears other markets, Chinese manufacturers still
have a large gap with the international giants.
3.Size and features of the optical device The main reason is that China’s optical device
market manufacturers have difficulty in bearing the
Development of the global optical device high R & D cost of high-end optical devices and
market optical chip alone. In the world’s Top 10 optical
The demand for optical device mainly comes device manufacturers, only Accelink enters the
involved in large-scale deployment of optical last year.
networks one after another, which brought a
good long-term growth opportunity for the In 2015, the global sales revenue of 10G /40G
optical device industry. The dominant position /100G has reached 24.4 billion US dollars, and
of telecom market is gradually shifting to the will grow steadily and rapidly with an annual
data center market. CAGR of 12.2%. The annual CAGR of 40G
and 100G optical modules is 9.0% and 24.5%
The scale of global optical device market in respectively. It is estimated that by 2019, the sales
2015 was about 8 billion US dollars, while volume of optical modules will be 50million. In
the major growth came from the data center the next 5 years, sales of 10G and 40G optical
market whose annual growth rate was as high module will remain strong, which also gives
as 26.8%. This growth can be attributed mainly Chinese companies a great opportunity.
to the large demand of data center for the high-
speed optical module. The proportion of 40G With the full implementation of “Broadband
/ 100G optical transceiver module is getting China” strategy and the speeding up of network
higher and higher, and more than half is applied transmission as well as larger broadband
to the high-speed optical interconnect in the coverage, there will be an increasing demand
data center. It is expected that by 2017, the size for optical devices. Apart from the telecom
of the global optical device market can be more departments, the domestic radio and television
than 10 billion US dollars. systems as well as power systems also applied
optical communication technologies in the
The competition in the optical device market recent years, becoming the new patch of
is the fiercest in the whole chain of optical downstream costumers in the optical device
communications industry. The world’s market. In addition, the data center and the
top ten suppliers accounted for 66.81% of construction of wireless base stations will
global optical device market. Only the most become the new growth point for the market.
competitive enterprise—American
company Finisar enjoys a market Market share of global optical device suppliers
share of more than 10%, the others
market share are all less than 10%.
According to telecom information
institute, the global optical device
market will remain stable and will
reach 12.3 billion US dollars in
2019 with the annual CAGR of
10%.
Chinese optical device market in
2016
Over the past five years, China’s
optical devices and optical module
industry have closely follow the