Page 42 - Market Analysis Report of Optical Communications Field in China & Global market 2019

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Development of Submarine Cables in China From the perspective of the global market of optical
Globally, about 95% of the international communications transmission and network access equipment, Chinese
are transmitted through submarine optical cables. Due enterprises have a strong performance. Huawei and
to the high technical requirements, construction and FiberHome Communication still occupy a large market
maintenance difficulties, submarine optical cable has been share. Specifically, Huawei firmly occupies the leading
regarded as a pyramid industry in the field of photoelectric position, with a global market share of 21%. Nokia ranks
transmission for a long time. At present, the construction the 2nd with 13%, followed by Ciena the 3rd with 12%,
of submarine optical cables in China cannot match the FiberHome Communication the 4th with 13%, Fujitsu the
booming development of data communication industry, 5th with 7%, and ZTE the 6th due to the impact of the US
and there is still much space for improvement in the future. restrictions. NEC, ADVA, Infinera and Sumitomo Electric
In China, only a few enterprises, such as Hengtong, YOFC occupy 4%, 3%, 5% and 1% market share, respectively.
Baosheng, ZTT, and Orient Cable,etc., participate in the Figure 8: Market share of global optical transmission and
competition of the submarine cable market. In recent network access equipment manufacturers in 2019
years, China has launched “Ocean Power” strategy and
formulated the development objective of building a marine
economic powerhouse. Therefore, it is significant to
accelerate and strengthen the development and construction
of the submarine cable industry.

Business Performance of China’s Mainstream Fiber
Optic Cable Manufacturers
In recent years, China’s optical cable industry has
entered a period of vigorous development. In the field
of manufacturing, China has formed the situation of five
leading enterprises, namely, YOFC, Hengtong, FiberHome,
Futong and ZTT. Before the scale construction of 5G,
telecommunication operators, who are the main customers 2. Chinese Optical Network and
Transmission Equipment Market
of optical fiber and cable products, have slowed down Optical transmission is the new development direction of
their demand growth. After years of rapid development, at information transmission technology. China has the largest
present, the domestic industrial structure and competition optical communication market in the world. After years of
situation in the field of optical fiber and cable are relatively efforts, Huawei, ZTE, FiberHome, etc. have become the
stable, with shares scattering in YOFC, Hengtong, pioneers in this industry.
FiberHome Communication, Futong, ZTT, Tongding,
SDGI, Yongding, FOCT, Tongguang and other enterprises. In 2018, Huawei, FiberHome Communication and ZTE
Figure 7 shows the market share distribution of optical still occupy the top three in China’s optical transmission
fiber and optical cable in China in 2019. and network access equipment market, followed by
Figure 7: market share distribution of optical fiber and SDGI, Raisecom, GW Delight, Nanjing Putian, Shenzhen
optical cable in China in 2019 Kexin Communication, Symfun Telecom and Huahuan.
At present, most FTTH projects have been completed
in China, and 5G commercial construction will have
a significant impact on the development of network
equipment, optical component and module industries in the
next five years.

(III) Market Scale and Characteristics of Optical
Components
1.Global Optical Components Market
The global market size of optical components is about US
$10.3 billion in 2018, up less than 1% year on year. With
(II) Market Scale and Characteristics of Optical the development of new technology and emerging markets,
Network and Transmission Equipment as well as enterprise merger and acquisition, important
changes have taken place in the global optical component
1.Global Optical Network and market, including technical direction, product selection,
Transmission Equipment Market emerging markets access, etc. The optical component
industry has been in the period of intense integration,
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