Page 39 - Market Analysis Report of Optical Communications Field in China & Global market 2018
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China Telecom's 5G pilot city set as "6+6". The confirmed six cities are services, cloud computing technology and video-on-demand (VoD) services
Xiong'an, Shenzhen, Shanghai, Suzhou, Chengdu and Lanzhou. Six more further increase the demand for optic fiber and cables.
cities will be added.
From a regional point of view, North America is in the forefront of growth.
Operators Contribute to the Prosperous Market. In North America, optical fiber lighting is used for a variety of medical,
The three major operators, especially China Mobile, have been continuously commercial and modern applications. The defense department is also using
increasing the construction of optical fiber networks, and the huge market optical fiber because U.S. manufacturers are developing ground-based
demand has driven the rapid development of optical communication industry. tactical cables and connectivity solutions for the U.S. military.
Especially with the accelerating arrival of 5G era, "5G commercial, carrying Figure 17 Comparision of YOY Growth Rate of Internet Traffic
first" also promotes the operators’ optical communication equipment in World's Major Markets
collection volume to hit a new high.
China Mobile's demand for loose optical cables was 110 million fiber-kms in
the first half of 2018; its demand for optical cables is expected to reach more
than 220 million fiber-kms in 2018, an increase of about 50% over 2017.
Considering the collection volume of China Telecom (54 million fiber-kms
half a year) and the demand of China Unicom, National Radio and Television
Administration, and State Grid Corporation of China, it is estimated that the
China’s domestic demand for optical fiber in 2019 is expected to reach 350
million fiber-kms, an increase of more than 20% over the same period last
year. China's domestic fiber-optic market is booming as China's three major
operators push ahead with their annual fiber-optic collection plans.
Figure 15 2012-2022,Optic Fiber Deployment of China's Major ii. Performance of Global Optical Fiber and Cable Manufacturers
Operators Million Fiber-km(Single Mode+Multiple Mode) The research results of the Network Communication Information Institute
show that among the top 10 competitive companies in the global optical
fiber and cable market, Chinese enterprises, whose performance is very
strong, accounted for half of the market. YOFC, HTGD and FiberHome all
occupied a large market share. YOFC ranked second in the world with 14%
market share, while HTGD ranked third with 11% market share. Fiberhome,
Futong and ZTT ranked fifth, sixth and ninth, with a share of 7%, 9% and
9%. The rest competitive enterprises including Corning, Furukawa Electric/
OFS, Prysmian, Sumitomo Electric and Fujikura accounted for 10, 17, 7, 6
percent and 4 percent, respectively. These 10 companies account for 83% of
the global market share of optical fiber and cable, showing a strong market
competitive advantage.
DCI Construction Works as the Market Driver. Figure 18 Global optical fiber & cable enterprise market share
Emergence of large bandwidth applications such as 4K/8K high-definition
video, live broadcast and VR/AR, together with technologies such as NB-
IOT, the second rise of the Internet of things industry has been spawned.
The access of massive mobile devices has led to a sustained and high-speed
growth in network traffic. Traffic burst will effectively promote the data
center in the network transmission requirements.
II. 2018 Optical Communication Market
Analysis
1.Scale and Features of Optical Fiber and Cable
Market China’s Optical Fiber and Cable Market
Global Optical Fiber and Cable Market i. Current Status of China’s Optical Fiber and Cable Market
i. Current Status of Global Optical Fiber and Cable Market Demand of Optical Fiber and Cable Industry Continues.
Ever-mounting demand for long-distance data transmission, increasing On one hand, the introduction and implementation of various national
network activity, penetration of mobile phones and other portable handheld strategies and policies, including “speed upgrade and tariff reduction",
devices (such as tablets and laptops) in the consumer market, and the 5G, “Broadband China", “Belt and Road", demonstrate that Chinese
growing demand for high-speed Internet connectivity, all these factors government increases the investment and construction of optical network.
contribute to the expansion of the global optical communication maker, Report on the Work of the Government pointed out that in 2018, efforts will
promote the development of optical cable market. be made to build telecommunication infrastructure and deploy more than
Figure 16 Global Optical Fiber Consumption 30,000 administrative villages connected optical fibers. China's National
Unit: Million Fiber-km Development and Reform Commission, and the Ministry of Industry and
Information Technology, pointed out that in 2018, 90,000 km fiber-optic
trunk cable and 200 million new optical fiber ports will be added to achieve
optical network coverage in urban areas.
On the other hand, judging from the main domestic market demand in China,
the three major operators continue to increase the 4G network infrastructure
and maintain a high level of demand for optical fibers and cables; and the
accelerated arrival of the 5G era enables operators’ optical communication
equipment collection volume to reach a new high.
In addition, increasingly popular large-volume consumption leads to a
The global optical fiber and cable market in 2017 was about $11.07 billion, stronger demand from business and application level. According to statistics,
with the Asia-Pacific region the largest regional market, reaching $6.28 compound annual growth rate of China's traffic in the past 10 years was as
billion, followed by North America and Europe. By 2021, the global optical high as 47%. That of the next five years is still as high as 42%, well above
fiber and cable market will reach $13.87 billion, with a compound annual the global average of 22%. There is no doubt that data traffic growth will
growth rate of about 5.8%. strongly drive optical network upgrades.
In terms of applications, telecommunication and broadband are expected to New technologies, such as 4K, 8K, autopilot, VR/AR, 5G and so on, will
dominate the market by 2021. Optical fiber and cables support high-speed bring about another wave of development peak of optical communication.
data transmission services in small and long-range communication. These
cables have great potential for growth in health care, aerospace and defense, Current Status of China’s Optical Fiber and Cable Market
railways and oil and gas applications. In addition, growing audio & video
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