Page 18 - 2023年光通信竞争力报告(摘要版)

6 The competitiveness report on the Top 10 competitiveness enterprises in the optical communications industry China & Global market in 2023 (17 ) (Abstract Edition)
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Preface • Work summary

In 2022, thanks to the easing of epidemic restrictions, as well as the promotion of infrastructure construction, energy transformation,
and the wave of digitization, the global economy experienced a strong recovery. However, the strong recovery of economic activities
is accompanied by considerable inflationary pressure, which is mainly caused by the rise of energy and commodity prices and the
instability of the supply chain. The Russia-Ukraine conflict has exacerbated this pressure. This year, with the further deployment of
new generation information technologies and networks such as 5G, cloud computing, big data, and artificial intelligence, the digital
economy has developed rapidly, and the global optical communication industry has recovered and ushered in a new boom. The
global demand for fiber optic cables in 2022 is approximately 539 million core kilometers, an increase of about 7.0% compared to
expectations. Currently, the optic fiber and cable market of China has occupied more than 50% of the global market share, which will
also increase in the future.

In 2022, the digital communication network will iterate towards greater traffic. The generative AI tool represented by ChatGPT is
leading a new round of technological revolution, promoting the continuous construction of communication network transmission
capacity, driving new demand growth and product upgrading of optical module and components. It is expected that the global market
size of optical module will continue to grow by CAGR 11% in the next five years, and will exceed 20 billion dollars in 2027. In
addition, high computing power and low power consumption are important development directions for the future market.

Since 2006, it has been 17 years since the ranking event of Top 10 Competitiveness Enterprises in the Optical Communications of
China & Global Market hosted by Network Telecom Information Research Institute. Through various research data which demonstrates
the market pattern of the optical communication industry, we witness a leap in the competitiveness of optical communication
enterprises. The selection results of “the Top 10 Competitiveness Enterprises in the Optical Communications industry of Global
market in 2023" clearly show the competition among enterprises in the optical communications and its sub-industries of China and
Global market in 2023. According to the rankings of the Top 10 competitiveness enterprises in the optical fiber and cable field of
Global market in 2023, the top 10 companies are occupied by four countries, namely the United States (Corning), Italy (Prysmian),
Japan (Furukawa Electric/OFS, Sumitomo Electric, Fujikura), and China (YOFC, HTGD, FiberHome, ZTT, and FUTONG). Chinese
companies account for half of the list, while YOFC and HTGD rank among the top three globally with market shares of 11.3% and 8.9%
respectively. FiberHome, ZTT, and FUTONG have market shares of 7.7%, 7.9%, and 6.1% respectively, demonstrating strong market
competitiveness. Corning, Furukawa Electric/OFS, Prysman, Sumitomo Electric, and Fujikura respectively accounted for 17.1%, 9.8%,
8.2%, 7.1%, and 4.1%.

Figure 1 Market Share of Enterprises in the Global Optical Fiber and Cable Field

Let’s see financial data competitiveness index of enterprises, the financial competitiveness index of the top 10 enterprises in optical
fiber and cable field of Global market shows a nearly "L-shaped" pattern. Corning leads far with a strong financial competitiveness
index of 2.4768, and the gap between other companies is extremely small, some even less than 0.1, indicating the fierce competition
among the top 10 companies. Chinese enterprises like YOFC and HTGD rank among the top three globally with 1.2856 and 1.1296,
respectively. The financial competitiveness indices of FiberHome, ZTT, and FUTONG were 1.0400, 1.0908, and 0.5380, respectively.

In the field of optical transmission and network access equipment, due to the growing demand in North America, the global optical
transmission market grew by about 4% in 2022, and the entire WDM market grew by about 5%. In the rankings of the Top 10
competitiveness enterprises in the optical transmission and network access equipment of global market in 2023, top 10 companies