Page 17 - 2019年光通信竞争力报告(摘要版)

6 The competitiveness report on "the Top 10 competitiveness enterprises in the optical communications industry of Global & China market in 2019” (Abstract Edition)
Preface • Work summary

Over the past year, the global communication market has been growing vigorously. Around the world, the construction
of optical fiber networks, fiber to home, large data centers, etc. has been promoted, and the demand for fiber optic cables,
optical transmission, optical devices and other fields has been rising. However, due to the further improvement of China's 4G
construction and the fact that 5G has not yet entered the obvious dividend period, the growth rate of global optical fiber and
cable market in 2018 has slowed down compared with that before.

Network Telecom information Research Institution has engaged in the competitiveness assessment of Global/China optical
fiber & cable enterprises for 13 years. “The Top 10 Competitiveness Enterprises in the Global Optical Fiber & Cable Field in
2019” clearly displays the competitive situations of main optical fiber & cable enterprises in 2019. According to the research
data and the monitoring results of the competitiveness of optical communication enterprises, it can be seen that China's huge
infrastructure construction tasks, 4G densified construction, old optical fiber renewal are still driving the performance of optical
communication enterprises to be outstanding, and the leading enterprises in China's optical communication, optical fiber and
optical cable, optical transmission and optical devices and other fields still have made satisfying achievements.

The research shows that companies in top 10 competitiveness enterprises of global fiber & cable market list are divided up
by four countries, namely, the United States(Corning), Italy(Prysmian), Japan(Furukawa Electronic/OFS, Sumitomo Electric,
Fujikura), and China(YOFC, HTGD, FiberHome, Futong, and ZTT), with Chinese enterprises occupying half of the list. YOFC,
HTGD and FiberHome occupy a large market share. That is, YOFC ranks second in the world with 12% market share, while
HTGD ranks third with 11% market share. FibrtHome, Futong, and ZTT respectively ranks fifth, sixth and ninth with market
share of 7%, 8% and 8%. Corning, Furukawa Electric/ofs, Sumitomo Electric, Prysmian, Fujikura take up market share of 15%,
10%, 5%, 6%, and 4% respectiy.

Viewing from the entire global optical transmission and network access equipment, HUAWEI stabilizes its leading position with
competitive score exceeding second Nokia of 71 points. Ten companies in this list come from five countries: Finland(Nokia),
Japan(Fujitsu, NEC, Sumitomo Electric), the United States(Ciena, Infinera), China(Huawei, ZTE, FiberHome), and
Germany’s(ADVA). HUAWEI ranks first by sharing 21% of global optical transmission and network access equipment. Nokia
locates No.2 with its 13% of market share. Ciena is listed No.3 with its 12% market share. FiberHome is in No.4 location, with
market share of 13%. And Fujitsu is in No.5 location with its market share of 7%. ZTE falls to sixth place due to the injunction
of United States. NEC, ADVA, Infinera and Sumitomo Electric occupy 4%, 3%, 5% and 1% market share respectively.

Global optical transmission technology is the new development direction of information transmission technology, and China
is the largest optical communication market in the world. HUAWEI, ZTE, FiberHome and other enterprises have become the
leading enterprises in this industry after years of efforts. Figure 2 is the market share of global optical transmission and network
access equipment manufacturers.

Figure 1 Global Optical Fiber & Cable Figure 2 Global Optical Transmission & Network
Enterprises Market Share Access Equipment Manufacture’s Market Share

The global market size of optical components in 2018 is about US $10.3 billion, increases less than 1% than last year. While the
global data center optical module market scale in 2018 is about US $3.7 billion, with a year-on-year growth of 12.12%.In 2018,
with the alteration of new technology, enterprise merger and acquisition, and developing markets, important changes have taken
place in the global optical components market, including technical direction, product selection, access mode of developing
markets, etc. As shown in Figure 3 is the scale of the global optical components market from 2018 to 2022: