Page 43 - Market Analysis Report of Optical Communications Field in China & Global market 2022

with market revenue in the Asia Pacific region, including China, home and go to school at home, thus creating greater demand
declining by a single digit percentage year on year. In the for faster, more universal and more reliable networks. Although
first half of this year, the Chinese optical transmission market supply chain disruptions continue, the industry is basically
contracted by 6% and is expected to decline throughout the able to overcome these issues, resulting in strong growth in the
year. optical device and module markets in 2020 and 2021.
As demand for new optical equipment surged faster than supply The global transceiver period market is expected to deliver
in 2021, some deliveries were delayed until 2022. Therefore, the another strong (14%) revenue growth in 2022 after growing
growth of the North American market in the first half of 2022 10% and 17% in 2021 and 2020, respectively. However, market
is well over 10%. As long as optical suppliers have sufficient growth is expected to slow to 4% in 2023 before recovering
components to manufacture optical transmission systems, in 2024-2025. Demand for optical devices is strong across all
the North American market is expected to achieve growth market segments, but persistent bottlenecks in the global supply
throughout the year. chain are negatively impacting sales of 400G DR4 and 100G
The shortage of components is one of the biggest problems DR1+ transceivers to Amazon in the first nine months of 2022.
in the optical transmission market this year. Many equipment meta has significantly increased its optical device deployments
manufacturers have been unable to meet customer orders, this year, but its latest forecast for 2023 is sharply lower.
reducing their annual revenue. This supply problem is expected The market is expected to have a compound annual growth rate
to continue into the first half of 2023. Therefore, predicting (CAGR) of 11% in 2022-2027, with strong sales of DWDM
the market size in 2022 and 2023 is more based on forecasting and Ethernet optics accounting for the majority of market
supply than demand. growth in 2021. It is expected that these market segments will
Rankings of Top 10 competitiveness enterprises in the optical continue to lead growth in 2022-2027. The sales of optical
transmission and network access equipment field of Global interconnects, mainly active optical cable (AOC), will also grow
market in 2022 shows that 10 enterprises are from 7 countries: at a double-digit rate in the next five years.
Sweden (Ericsson), Finland (Nokia), the United States (Ciena),
Germany (ADVA), Japan (NEC, Sumitomo Electric), and
China (Huawei, ZTE, and Fiber).

With the end of the 10G upgrade cycle in the Chinese market
and the gradual increase in 10G PON deployments in North
America and Europe driven by government funded projects,
PON sales on FTTx networks will remain stable. The 25G
and 50G PONs will provide new growth in the later part of the
Driven by large Internet content providers (ICPs) such as forecast period. Wireless forwarding is a weak sector as China's
Amazon, Google, and Microsoft, a large number of 400ZRs will 5G network deployment is nearing completion. With the start of
be shipped in 2023. In addition to these ICPs, communication 6G deployment, this segment will resume growth in 2026-2027.
service providers also have a broad interest in 400ZR. Although
IPoDWDM will reduce the demand for DWDM metropolitan Section 3: Global Operator Performance
area repeaters in Data Center Interconnection (DCI), sales Ⅰ. Major global operators
of Independent Optical Line Systems (OLS) are expected to
increase, possibly doubling by 2023. AT&T
In the third quarter of 2022, AT&T achieved revenue from
Ⅲ. Global optical device market continuing operations of $30 billion, down 4.1% from $31.3
The optical communication industry has entered 2020 with a billion in the same period last year. Cash from operating
very strong momentum. At the end of 2019, the demand for activities from continuing operations was $10.1 billion, capital
Dense Wavelength Division Multiplexing (DWDM), Ethernet, investment was $6.8 billion, and free cash flow for the quarter
and wireless forward connections surged; In 2020 and 2021, due was $3.8 billion. In the third quarter, AT&T added 338000
to the COVID-19 pandemic, people will mainly turn to work at fiber broadband users, an increase from 289000 in the same

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