Page 39 - Market Analysis Report of Optical Communications Field in China & Global market 2020

From the point of view of centralized purchasing scale, fiber and cable demand remain stable.
the scale of centralized purchasing 2020 is the largest
in the single bidding, which is close to 120 million fiber Demand in Europe continues to rise thanks to the Digital
kilometers. From the perspective of the number of winning Agenda for Europe 2025. FTTH networks are preferred
bidders in concentrated purchasing, the number of winning in France, Spain, Portugal and northern Europe, while
bidders in 2018 was 10-18, in 2019 10-13, and in 2020 G.FAST is the norm in Germany and the UK. Although
10-14, representing the number of winning bidders and these systems use the last meter of the existing copper cable
winning shares vary. network, a large number of cables are needed to upgrade
the distribution network. In other places, such as Italy, the
In 2020, the collection volume of common optical cable two technologies coexist.
rose but the price fell. Throughout the bidding enterprise
quotation, the highest price was 21.68 yuan without tax, South America's main operators have resumed investments
while other manufacturers were quoted below 20 yuan. in optical fiber cables because of political stability.
Among them, four quoted prices between 19 and 20
yuan, five quoted prices between 18 and 19 yuan and four The copper cable market is slowing as related products
quoted prices below 18 yuan. Volume-rising and price- mature. The increased demand for Internet access has led
falling concentrated purchasing will undoubtedly make the major operators to choose to use optical fiber to update
optical fiber and cable enterprises continue to be in a weak their networks rather than maintain or upgrade existing
period of development, and optical fiber and cable material networks.
enterprises will face a huge pressure of survival.
Global growth has been sluggish because of the downturn
(2)2020 China operators’ significant wireless main in the Chinese and Asian cable markets. However, the
equipment centralized purchasing demand for professional and office environments and
Figure 5: 2020 China operators’ significant wireless greater bandwidth capacity in data centers is driving
main equipment collective purchasing demand growth. In addition, industrial applications require
new highly specialized products (Industry 4.0) and HDTV
cables (used for broadcasting digital content, such as
sports events or other activities of media interest) are also
important sources of growth.
Figure 6: Global performance of optical fiber and
cable manufacturers

A total of 520,000 5G base stations will be procured for
5G wireless master equipment of the three major operators,
including over 270,000 5G base stations to be purchased by
China Mobile for the newly built and expanded 5G phase
II, and 250,000 5G base stations to be purchased by China
Telecom and China Unicom through joint networking.
Bidding for 5G base stations from China Mobile, China
Telecom and China Unicom totaled 76 billion yuan. China
Broadcast Network’s 5G investment will also be gradually
launched. Eventually, the acceleration of 5G network 2.China's optical fiber and cable market status
construction will drive the release of production capacity of In 2019, the construction of FTTx and 4G came to an end,
the whole industrial chain.
while 5G had just hit the road. This year was at a critical
juncture for the optical fiber and cable industry. In the
Section Two: 2020 Optical Communication fourth quarter of 2019, 5G was officially commercialized
Market Analysis in China, and overall demand began to climb. With the
I: Global Optical Fiber and Cable Market formal commercial use of 5G, the demand for optical fiber
1. Global optical fiber and cable market analysis and cable will continue to grow steadily, and the optical
The global fiber and cable market shrank slightly in 2019. communication industry will continue to prosper.
Compared with 2019, the market will rebound in 2020. The
APAC market and the North American market for optical New technologies and services such as 5G commercial
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