Page 39 - Market Analysis Report of Optical Communications Field in China & Global market 2023

Data center connectivity, further increasing demand for areas should achieve coordinated and balanced development
fiber optic cables of information and communication networks, and promote
As enterprises increasingly adopt cloud services, cloud the construction of "broadband border areas" and strong cloud
companies are continuously investing in data center capacity networks in small and medium-sized cities.
and networks closer to customers. The demand for low latency The world is in the period of Digital transformation, and telecom
services and strict data localization regulations provide urgently operators from all over the world have announced major plans
needed impetus for these investments. Amazon Network to invest in their networks. BT is investing approximately £ 15
Services will spend £ 1.8 billion to build and operate a data billion ($18.3 billion) and plans to lay out an all fiber network
center in the UK over the next two years. In March 2022, to approximately 25 million households by the end of 2026. As
Microsoft announced its intention to establish its latest data of the end of September 2022, it has reached nearly 9 million
center area in India. In April, Google announced plans to invest households. The Italian Open Fiber Company also plans to
approximately $9.5 billion in offices and data centers in the invest $11 billion as part of its new 10-year strategy. Deutsche
United States in 2022, up from $7 billion in 2021. Overall, with Telekom announced its goal of achieving 10 million households
the increasing demand for remote work, the development of with fiber optic access by 2024 and all households in Germany
high-speed computing technology, and the increasing amount of with fiber optic access by 2030. AT&T has increased its capital
data that needs to be processed every day around the world, the expenditure from $16.5 billion in 2021 to $20 billion in 2022.
importance of data centers is becoming increasingly prominent. Bharti Airtel in India plans to invest $15 billion in CapEx
through four subsidiaries.
The digital economy has become a new driving force for Except for Eastern Europe, the demand for fiber optic cable
economic development, and many countries have released laying is on the rise in all regions of the world. Among them,
relevant policies to accelerate the development of FTTx developed country markets continue to increase the penetration
Digitalization is sweeping the world, and countries are rate of FTTH, increase 5G deployment efforts to support the
accelerating their investment in communication network development of the digital economy and promote energy
infrastructure. The Federal Communications Commission conservation and emission reduction; Emerging markets are also
recommends that the national standard of minimum broadband vigorously promoting fiber optic laying and 4G networks.
speed be raised to 100Mbps (downlink) and 20Mbps (uplink). Major fiber optic countries will gradually move towards a
Multiple state and federal subsidies have also emerged in the gigabit society. Mainstream telecom operators in Europe, North
United States to promote broadband connectivity in rural and America, East Asia, and other markets use gigabit networks
underserved areas. The bills/subsidies related to broadband as an important means of differentiated competition, and the
deployment include the Rural Digital Opportunity Fund (RDOF) proportion of global gigabit network coverage continues to
and Broadband Equity, Access, and Deployment Plan (BEAD). increase.
The UK government plans to invest £ 5 billion to support the Since 2006, it has been 17 years since the ranking event
deployment of gigabit broadband, providing 'gigabit broadband' of Top 10 Competitiveness Enterprises in the Optical
to 85% of the UK population by 2025. The French government Communications of China & Global Market hosted by
will increase the funds for the deployment of the domestic Network Telecom Information Research Institute. Through
optical network THD project to 3.57 billion euros, and the various research data which demonstrates the market pattern
Spanish government will invest 4.3 billion euros in public funds of the optical communication industry, we witness a leap in
to promote the development of connectivity, data infrastructure the competitiveness of optical communication enterprises. The
and 5G technology. The Canadian government has invested selection results of “the Top 10 Competitiveness Enterprises
$826.3 million to provide Internet services to nearly 150000 in the Optical Communications industry of Global market in
Quebec households that have not yet connected to the Internet. 2023" clearly show the competition among enterprises in the
In March 2023, China released the "Overall Layout Plan for optical communications and its sub-industries of China and
the Construction of Digital China", proposing to accelerate the Global market in 2023. According to the rankings of the Top 10
collaborative construction of 5G networks and gigabit optical competitiveness enterprises in the optical fiber and cable field
networks, and promote the comprehensive development of the of Global market in 2023, the top 10 companies are occupied
mobile Internet of Things; Systematically optimize the layout by four countries, namely the United States (Corning), Italy
of computing infrastructure, promote efficient complementarity (Prysmian), Japan (Furukawa Electric/OFS, Sumitomo Electric,
and collaborative linkage of computing power between the Fujikura), and China (YOFC, HTGD, FiberHome, ZTT, and
East and the West. In the same month, the Ministry of Industry FUTONG). Chinese companies account for half of the list,
and Information Technology stated that it will carry out the while YOFC and HTGD rank among the top three globally with
"Light Chasing Action" for gigabit optical networks, strengthen market shares of 11.3% and 8.9% respectively. FiberHome,
cross industry, cross enterprise, and cross regional network ZTT, and FUTONG have market shares of 7.7%, 7.9%, and 6.1%
collaborative innovation, and support the transformation respectively, demonstrating strong market competitiveness.
of traditional industries to digitization, networking, and Corning, Furukawa Electric/OFS, Prysman, Sumitomo Electric,
intelligence; Small and medium-sized cities and remote rural and Fujikura respectively accounted for 17.1%, 9.8%, 8.2%,
7.1%, and 4.1%.
37