Page 40 - Market Analysis Report of Optical Communications Field in China & Global market 2024

CHINA exceed 20 billion dollars in 2027. The market scale of silicon
Figure 7 Market Share of Enterprises in the Global
Optical Transmission and Network Access Equipment Field
Data source: Compiled and drawn by by the Network
Telecommunication Research institute
In the optical transmission equipment market, there are
continuous acquisition and restructuring activities. In June
2024, NOKIA announced that it will spend 2.3 billion dollars
to acquire America optical communication equipment
manufacturer Infinera to expand its optical market scale
and gain a larger market share. This acquisition will enable
NOKIA’s optical network department to obtain some new
products that have achieved major success in design and will
also expand NOKIA’s access to the North American market.
In the Chinese optical transmission equipment market, the
industry scale is continuously expanding and the enterprise
competing pattern is relatively stable. According to the list of the
top 10 competitive enterprises in China’s optical transmission
and network access equipment, HUAWEI, ZTE, FiberHome,
TIANYI, CIG, SDGI, Shanshui, GW Delight, RAISECOM,
CHULINXINXI are ranked in the top ten.
III. Global optical device market
In the optical communication market in 2024, some are happy
while some are worried. When it comes to the most eye-
catching performance in the market, the optical device market
must be mentioned. With the development boom of generative
AI, it has driven the demand for high-speed optical modules to
fully enter a period of high growth. In particular, the demand
for high-speed optical modules with increase significantly, and
the optical device industry is ushering in an opportunity period
for vigorous development. On the whole, the optical device
industry is still in a development stage of upward growth.
The market scale of optical devices is expected to continue
to grow. Incremental demands such as 1.6T and 800G are
expected to be continuously released. At the same time, the
commercialization expectations of new products such as LPO,
CPO, and silicon photonics are accelerated. Capital expenditures
of domestic and foreign customers on AI computing power
will continue to increase quarter-on-quarter. According to
Lightcounting’s prediction, the global market scale of optical
modules may maintain growth at a CAGR (compound annual
growth rate) of 11% from 2022 to 2027, and is expected to
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photonic-based optical device products will reach 30 million
dollars cumulatively from 2021 to 2026.
Measures such as the expansion of China’s backbone network,
the high-quality development of the “dual gigabit” network, and
the moderately advanced construction of 5G and computing
power not only promote the development of the optical fiber
and cable industry but also provide opportunities for the
optical device and module market. In 2017, the market scale of
optical devices in China was about 13.7 billion yuan. In 2023,
the market scale reached 27.3 billion yuan, with a compound
growth rate of about 12.18%.
Optical module device enterprises above designated size
at home and abroad have achieved revenue or profit
increases to varying degrees. AI demand has driven the the
release of high-speed optical devices, and performance has
been continuously verified. The revenues of major listed optical
device enterprises at home and abroad have all achieved strong
growth, and the growth trend is expected to continue.
Figure 8 Revenue of major listed optical fiber and cable
enterprises in China from 2018 to 2023
Data source: Compiled and drawn by the Network
Telecommunication Research Institute
The optical device market is facing a new round of
reshuffling, and the market share of Chinese enterprises in
the optical device market is further expanding. At the time
of a new round of technological innovation, some enterprises
make early layouts and seize the initiative, shining brightly or
emerging in the new round of reshuffling. Some enterprises are
slow to respond and are gradually being squeezed out of the
competition camp.
In the list of the top 10 competitiveness enterprises in global
optical devices and optical modules in 2024, Coherent tops the
list with a market share of 15.28%. BROADCOM, Zhongji
Innolight, Lumentum, Accelink, and Hisence Broadband rank
the top six on the list with market shares of 10.97%, 9.38%,
10.17%, 5.58%, and 4.54% respectively. The detailed global
market share of optical devices and optical module is shown in
the following figure.