Page 40 - Market Analysis Report of Optical Communications Field in China & Global market 2019

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When 5G network evolves from NSA to SA, the global Performance of Global Optical Fiber Cable
demand for optical fiber will rise steadily. It is predicted by Manufacturers
this report that the demand for 5G optical fiber will reach According to the research of the of Network Telecom
16 times than that for 4G without considering multiplexing Information Research Institute, among the Top ten
of optical fiber. For 2019-2022, the global optical fiber competitive enterprises in the global optical fiber and cable
and cable demand is 501 million fiber kilometers, 512 market, Chinese enterprises account for half of the total and
million fiber kilometers, 557 million fiber kilometers and perform outstandingly. YOFC, Hengtong and FiberHome
609 million fiber kilometers respectively. It will grow to Communication occupy a large market share. YOFC ranks
650 million fiber kilometers in 2023. In the next five years, 2nd in the world with 12% market share, and Hengtong
the length of optical fiber to be laid around the world is ranks 3rd with 11% market share. Besides, FiberHome,
expected to be close to 3 billion fiber kilometers. Futong and ZTT rank 5th, 6th and 9th with 7%, 8% and
8% shares respectively. The global enterprises Corning,
In addition, the rapid growth of cloud computation, big data Furukawa Electric/OFS, Sumitomo, Prysmian and Fujikura
and Internet of Things requests greater capacity and new account for 15%, 10%, 5%, 6% and 4% respectively.
fiber-optic route for the internal and external connections
of the data centers. Specifically, the internal optical fiber Figure 5: Market share of global optical fiber
of the data center, the optical fiber interconnection of and cable enterprises
data center nodes, and the international submarine cable
connection, will become the main driving force for the
growth of optical fiber cable demand.

Current Situation of Global Optical Fiber Preform
Industry
Optical fiber preform plays an important role in the optical
fiber industry chain, accounting for about 70% of the
optical fiber profits. Benefitting from the rapid growth of
optical fiber demand, the optical fiber preform is in short
supply all over the world, which promotes the expansion
of the preforms industry. It is estimated that by 2023, the
global production of preforms will reach 36500 tons, and 2. Current Situation of Chinese
the demand will reach 36300 tons. Optical Fiber and Cable industry
The Demand of Optical Fiber and Cable Market Slows
It is estimated that by 2022, with the large-scale Down
construction of 5G, the global production of optical fiber With the landing of “Broadband China” and “Internet+”
preform will reach 24200 tons, and the global demand strategies, especially the continuous construction of FTTH
for optical fiber preform will reach 22900 tons. Limited and 4G, China’s optical fiber and cable market has been
by technology, the concentration of optical fiber preform booming in the past few years. The market scale has further
enterprises is relatively high. The preform manufacturers expanded, and the strength of the leading enterprises has
around the world are mainly in Japan, the United States been enhanced.
and China, including Corning, Sumitomo Electric, Shin-
Etsu Chemical, YOFC, Hengtong, Futong, etc. In particular, from 2015 to 2018, the large-scale network
construction of China Telecom has driven the demand
Scale of Global Submarine Cable Market for optical cables to grow at a high speed. In 2018, the
The global submarine optical fiber cable market has total length of China’s optical cable construction reached
reached US $2.67 billion in 2018, which is expected to 43.58 million kilometers, with an increase of 26.38 million
increase to US $3.66 billion by 2025, with a compound kilometers compared with 2013, of which the access
annual growth rate of 4.0%. The submarine optical fiber network optical cable accounted for 80%. The access
cable market is mainly driven by the deep-sea development, network optical cable mainly includes optical cable for
which accounts for nearly 76.65% of the total consumption base station backward and forward transmission, and also
of the downstream submarine optical fiber cable. cables on optical broadband user side. The rapid growth
Europe, the United States and China are three regional of China’s optical fiber deployment mainly comes from
markets with greatest demand. In the predictive period, the construction of optical broadband access network and
Prysmian, Nokia(Alcatel Lucent), TE SubCom, NEC, 4G mobile communication base station. And it makes the
Nexans, NKT(ABB), ZTT, LS Cable&System, Hengtong optical fiber and optical cable market to present a upward
and Orient Cable will become the leading submarine trend of both volume and price from 2016 to 2018.
optical fiber cable suppliers.
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