Page 36 - Market Analysis Report of Optical Communications Field in China & Global market 2018

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Chapter 10

Market Analysis Report 2018 of the Optical Communication

Field in China & Global Market

I. Prospect Analysis of China’s Optical Figure 2 5G Indirect Output Contribution to Economy
Communication Market in 2018 (Unit: 100 millioin yuan)
1.Globe: Optical Communication Market Remains
Thriving
4G Densification, 5G Application and Edge Data Center
Bring Optical Communication Market New Hope
4G Densification
In many developed telecom markets, 4G networks have been serving
for more than five years and have brought a lot of smart phone services.
Next, there is much to follow up in the developed telecom markets with
the addition of 4G antennas and the provision of faster and lower latency
services. In developing telecommunication markets, many operators are still
in the early stages of providing 4G services. According to data of Global Figure 3 Industrial Opportunities Brought by 5G
System for Mobile communication Association (GSMA), operators in
developing telecom markets will add 2 billion 4G new subscribers over the
next seven years. Moreover, 202 countries in the world have launched 651
commercial LTE (4G) and LTE advanced networks, 30-50 LTE networks are
expected to start by the end of 2018, and another 100 and other LTE projects
are planned. These 4G densification projects will bring new growth point to
the optical communication market.
Opportunities Brought by 5G Application
Compared with the current 4G network, the data throughput of 5G has
increased tenfold, the communication capacity has increased 100 times,
and the delay is one tenth of the original. The 5G network will stimulate the
global market in the coming years, but its early deployment will not have a
significant impact on the market. The global 5G mobile infrastructure market
is expected to grow from $50 million in 2019 to $2.3 billion by 2021. bandwidth traffic, which is very small at present. Therefore, the future
5G deployment will become the main driving force of the optical
Figure 1 5G Direct Output Contribution to Economy communication market.
(Unit: 100 millioin yuan)
1.Small Cells Playing A Significant Role
Due to small coverage, metrocells are not enough to support 5G network.
Taking cost and deployment into consideration, metrocells will not be used
in 5G high spectrum construction. Instead, microcellular will become the
mainstream, in the form of small cells as the basic unit, deploying super-
dense network, that is, small base station will be intensively deployed.
Figure 4 Investigation of Complaints Caused by Inadequate
Coverage of Operators

5G huge bandwidth demand and new network architecture (different
levels of cloud and DC deployment) bring opportunities and challenges
to optical networks (backbone and metropolitan area). 5G is also an
important driver for the expansion and upgrading of backbone networks
and metropolitan area networks. In the backbone network, the traffic
proportion of 5G will increase greatly; and the proportion of mobile traffic
of 5G in metropolitan area network will gradually keep pace with the fixed
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