Page 36 - Market Analysis Report of Optical Communications Field in China & Global market 2023

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million, accounting for more than half of the total, ranking first Countries in the Asia Pacific region will be leaders in the
in the world. From the perspective of the early commercial development of 5G. Since the outbreak of COVID-19, the
development of 3G, 4G, and 5G, 5G has developed the fastest digitization process in the Asia Pacific region has accelerated.
in seven regions, including South Korea, Japan, Europe, and The digital action plans and frameworks launched by
China. governments in the region are a key factor in driving the digital
process. ASEAN has also taken multiple measures to promote
digitization in its member countries. The organization identified
accelerating inclusive Digital transformation as one of the five
strategies for promoting the economy and improving society
after the COVID-19 epidemic. Recently, ASEAN announced a
strategy to transform the economic and social environment of
the region through the Fourth Industrial Revolution (Industry
4.0). This strategy emphasizes the key role of 5G in promoting
the construction of digital infrastructure required for Industry 4.0.
Southeast Asia continues to innovate 5G technology and
listing models. Singapore has already provided 5G SA services
Global Development of 5G Connection Users
in the 3.5 GHz spectrum. Operators have designed various
It is expected that by the end of 2028, the global number of mobile services to stimulate users' demand for 5G, including
5G contracts will reach 5 billion, accounting for 55% of all bundled streaming and cloud gaming services. Singapore is
mobile contracts. By 2027, 5G will become the mobile access the first country in the world to achieve 95% coverage of 5G
technology with the highest number of contracts. SA. Malaysia continues to develop its unique 5G promotion
In 2022, countries around the world will actively promote methods. The National Digital Company (DNB) established
the implementation of 5G applications. Leading countries by its government is a Single Wholesale Network provider that
and regions such as China, the United States, Europe, Japan leases 5G access to operators. DNB's goal is to achieve 80% 5G
and South Korea will carry out 5G integrated application population coverage by the end of 2024.
investment, exploration and demonstration in the fields of In Northeast Asia, operators continue to invest heavily in 5G
AR/VR, ultra-high definition video, Industrial Internet, smart to improve coverage and capacity, with a focus on indoor
transportation, smart medicine, public security and emergency, coverage. In 2022, 5G contracts in the region continued to grow
and military private networks, playing an important role in strongly, with approximately 320 million new contracts added.
national military innovation, smart life, smart production 5G is the only growing signing type, expected to reach 1 billion
and efficiency improvement. Telecommunications operators, by the end of 2023.
equipment manufacturers, and industrial enterprises in the On June 1, 2022, the Japanese government announced the basic
United States collaborate to test and develop 5G industrial principles of the "Digital Garden City National Concept" policy
use cases, exploring the path of 5G promoting industrial to enhance regional vitality. By the end of 2027, 99.9% of
manufacturing growth. The South Korean government will households will be covered by fiber optic lines capable of high-
comprehensively promote 5G integrated applications to the speed internet communication, and an additional 2.3 million
industry starting from 2022. On the one hand, we actively talents proficient in digital technology will be trained by the end
support the upgrading of integrated application technology for of 2026. Japan strives to utilize these digital infrastructure to
industrial innovation oriented applications and life intensive enhance the convenience of life in various regions and create a
applications, and on the other hand, we further activate the "society that can live comfortably anywhere in the country".
5G industry ecosystem and support the global expansion of Japan plans to increase the 5G population coverage to
5G integrated applications. The EU has established a clear 99% by the end of 2030 and will continue to implement
path for the integration of 5G and vertical industries through the "5G investment promotion tax system", providing
policy releases and project deployments. Extensive 5G telecommunications operators investing in 5G construction with
industry application experiments have been conducted in 7 key a tax discount equivalent to 15% of the investment amount.
industries of concern, as well as in multiple vertical industries As the first country in the world to launch commercial 5G
such as ports, agriculture, and transportation. Overall, the 5G services for consumers, South Korea's 5G users are steadily
industry applications in major countries are mostly in their early growing. As of the end of August 2022, the number of 5G users
stages, with numerous demonstration projects and relatively few in South Korea has approached 24.5 million, accounting for
mature applications that can be replicated on a large scale. The over 32.7% of the total number of users in the country. As of
global 5G application is still in its early stages and is moving the end of June 2022, the data traffic carried by 5G networks
towards a stage of large-scale application development. accounted for 70.8% of all data traffic.

The Asia Pacific region is experiencing strong growth in 5G Current status of 5G in Europe and America
and will lead the global 5G development The overall progress of 5G in Europe is severely lagging, and
the population covered by 5G is still less than 10%. Nick Read,
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