Page 36 - Market Analysis Report of Optical Communications Field in China & Global market 2024

CHINA The global data center market generally maintains a steady
present, 13 operators around the world have released 5G-A
pilot networks, including China Mobile, China Unicom, China
Telecom, China Mobile Hong Kong, CTT Macau, Hong Kong
Telecom, Hutchison Telecom, STC Group, Du of the United
Arab Emirates, Oman Telecom, Saudi Zain, Kuwait Zain, and
Kuwait Ooredoo. Among them, China mobile will start the
world’s largest 5G-A commercial deployment in more than 300
domestic cities in 2024. At the same time, operators in countries
and regions such as Finland, Germany, Bahrain, and Qatar have
carried out 5G-A related verification.
2.Emerging market
Digital economy leads demand growth and industry prosperity
is expected to improve. The digital economy of major countries
continues to develop rapidly. Generally speaking, last year, the
total digital economy of five countries including the United
States, China, Germany, Japan, and South Korea exceeded 33
trillion dollars, with a year-on-year growth of more than 8%;
the proportion of digital economy in GDP is 60%. From 2019
to 2023, the digital economy of Germany, Japan, and South
Korea developed steadily, while the digital economy of the
United States and China achieved rapid growth. Looking at the
internal structure, the engine role of industrial digitalization in continuously promoted, and the scale of network-connected
digital economic growth continues to play. In 2023, it accounted
for 86.8% of the digital economy, an increase of 1.3 percentage
points compared to 2019. It is expected that from 2024 to 2025,
the revenue growth rate of the global digital industry will pick
up and steadily consolidate the foundation for the development
of the digital economy.
Global artificial intelligence technology breakthroughs and
industrial development are accelerating. As of Q1 2024,
there are nearly 30,000 AI enterprises globally , of which the
United States accounts for 34% of the global total and China
accounts for 15% of the global total. There are 234 global AI
unicorns, an increase of 37, accounting for 40% of the total new
unicorns. Among them, there are 120 American AI unicorns
and 71 Chinese AI unicorns. With the explosive development
of applications such as large artificial intelligence models, the
demand for intelligent computing power surges. Computing
power has become a strategic resource and the focus of
technological competition. Major countries highly focus on
computing power interconnection and carry out multiple
explorations.
As AI become increasingly popular, major giants are also laying
out in the field of AI data centers one after another. Global
leading manufactures such as Amazon AWS, Microsoft Azure,
and Google Cloud have very high investment enthusiasm in AI.
According to the latest report data of market research institution
Canalys, the total expenditure on cloud infrastructure service for
the whole year of 2023 increased from 247.1 billion dollars in
2022 to 290.4 billion dollars, an increase of 18%. It is predicted
that the total expenditure on global cloud infrastructure services
will increase by 20% in 2024.
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growth trend. According to the “Analysis Report on China’s
Third-Party Data Center Service Providers (2023)” released
by the China Academy of Information and Communications
Technology, from a global perspective, the global data center
market generally maintained a steady growth trend from 2017
to 2021. The market size increased from 46.55 billion dollars to
67.93 billion dollars, with an average annual compound growth
rate of 9.91% within five years. In the future, the global data
center market size will further expand.
II. The optical communication market in China
1. The communication industry maintains an overall tone of
steady progress.
In 2004, the scale of China’s digital economy continues to
expand, and the communication industry maintains an overall
tone of steady progress. In the first half of the year, China’s
communication industry showed a stable operation trend.
The volume and revenue of telecommunications business
maintained growth. The construction and application of new
infrastructure such as 5G and gigabit optical network were
users increased steadily.
In terms of business development, as of the end of August,
China’s telecommunication business revenue had cumulatively
reached 1,173.2 billion yuan, an increase of 2.7% year-on-year.
The total number of fixed Internet broadband access users of
the three major operators has reached 659 million, with a net
increase of 23.07 million compared to the end of the previous
year. The total number of mobile phone users of the three basic
telecommunications enterprises and China Radio and Television
had reached 1.778 billion, with a net increase of 34.52 million
compared to the end of the previous year. Among them, the
number of 5G mobile phone users had reached 966 million,
with a net increase of 144 million compared to the end of the
previous year.
The revenue of emerging business maintained rapid growth. The
three basic telecommunications enterprises actively developed
emerging businesses such as IPTV, Internet data centers, big
data, cloud computing, and the Internet of things.From January
to August, they completed a business revenue of 289.7 billion
yuan, an increase of 10.5% year-on-year. Accounting for 24.7%
of telecommunications business revenue to increased by 12.6
year-on -year.
2. The construction of gigabit fiber broadband networks
and 5G networks continues to advance.
In terms of infrastructure construction, according to statistics
from the Ministry of Industry and Information Technology
and publicly available industry data, in 2023, the three major
operators and China Tower completed telecommunications
fixed asset investment of 530.5 billion yuan. The construction of
all-optical networks is advancing rapidly. In 2023, the length of
newly built optical cable lines in China was approximately 4.74