Page 40 - Market Analysis Report of Optical Communications Field in China & Global market 2020

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use, superimposed cloud computing, big data, Internet of Figure 8: Global optical transmission enterprise
Things, streaming media, etc., are constantly emerging, and market share
the pressure on network bandwidth is constantly increasing.
Operators are putting forward higher requirements for
single-fiber capacity and ultra-high-speed transmission for
long-distance trunk lines. In China, the eight-horizontal-line
and eight-vertical-line optical cables have been built for
more than 20 years, and the first batch of optical cable lines
have reached the late stage of their design life. In order to
meet the business needs of 5G era, backbone networks will
enter the replacement and construction cycle in the next
few years.
Figure 7: China's optical fiber and cable
manufacturers performance
second quarter of 2018 is taken into account, China's
optical hardware market will grow by less than 10% in
2019. ZTE's market share rose 2 percent in 2019, thanks
to a strong rebound after a 2018 BAN in the United States.
With the exception of North America, where it no longer
has significant revenue, ZTE has gained market share in
other regions. On the other hand, the Japanese market
performed very well, growing by 25% in the fourth quarter
and nearly 40% for the whole of 2019.

Figure 9: China's optical transmission enterprise market
share

II: Global Optical Transmission Market
Global optical transmission equipment grew by 6% in 2019,
driven by the demand for WDM systems. ZTE and Ciena,
two equipment makers, saw the biggest increase in optical
revenue, driving their market share expansion. Demand
for WDM systems continued to be strong in all regional
markets, with two of the largest revenue contributors in
Europe, Middle East and Africa (EMEA) and Asia Pacific.

The North American optical network market has been
positive recently, growing by more than 25% in the fourth III. Global Optical Devices Market
quarter of 2019 and by 10% for the whole of 2019. In the The global optical device market size in 2019 was about
Fourth quarter of 2019, demand for edge and core switching 9.8 billion US dollars, down 4.85% year-on-year, and the
and routing sectors declined sharply in the North American market size in 2018 was about 10.3 billion US dollars. In
submarket, while the deployment of 5G and other access 2019, the size of China's optical device market reached
drove strong growth in the access and converged switching about $3.6 billion, down 2.7% year-on-year, accounting for
equipment sector. In the three years 2016-2018, North 37.5% of the global optical device market share.
American operators focused their capital spending on the
wireless and access, leading to a decline in spending on The concentration of global optical module manufacturers
optical network hardware. Optical network hardware sales continues to increase. In 2019, the top five optical device
in the region recovered and grew at a healthy rate in 2019, market shares are Broadcom (Broadcom used as brand
with market leaders Ciena and Infinera each seeing optical name after Avago acquired Broadcom), Lumemtum
hardware sales growth of more than 25%. (Oclaro), II-VI (Finisar), Accelink and Sumitomo Electric.
In 2019, the light module market has undergone great
China's transmission equipment market declined slightly changes and the industry leader integration has entered the
in the fourth quarter of 2019, mainly due to a decline in peak. II-VI acquired Finisar, Lumentum acquired Oclaro,
packet equipment and optical hardware growth down to Cambridge acquired Oclaro's Japanese module business,
single digits. If the impact of ZTE's suspension in the etc.

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