Optical fiber communication is one of the important ways of modern information transmission. It has the advantages of large capacity, long relay distance, good confidentiality, immunity to electromagnetic interference and saving copper. The report uses information to track and collect market data for the optical fiber and cable industry over a long period of time, and constructs an analysis system from the overall perspective of the industry. The report mainly analyzed the development status and prospects of China's optical fiber and cable industry; the pattern and concentration of the optical fiber and cable industry; and the technical status of the optical fiber and cable industry. A dielectric waveguide that transmits light waves. Optical fiber is a kind of fiber composed of two layers of transparent media in concentric circles. The most widely used dielectric material is quartz glass (SiO2). The inner medium is called the core, and its refractive index is higher than the outer medium (called the cladding). The refractive index of the core or cladding is adjusted by doping impurities such as germanium, phosphorus, fluorine, boron and the like in the quartz glass.
According to the Research Report on the Market In-depth Analysis and Development Strategy of the Optical Fiber and Cable Material Industry from 2020 to 2025 by Academia Sinica
2020 fiber optic cable market demand and industry development trend analysis
In 2011, there were 149 enterprises above designated size in the optical fiber and cable industry in China, 21 fewer than the previous year; total industrial output value was 68.802 billion yuan; sales revenue was 64.310 billion yuan, a year-on-year increase of 24.68%; profits were 6.554 billion yuan, a year-on-year increase of 47.39 %.
With the adoption of my country's FTTH and FTTC systems, the integration of three networks, and the continuation of large-scale 3G construction, the market still has a large demand for optical fiber and cable, which provides a strong impetus for the development of my country's optical fiber and cable industry, and the industry has a bright future.
As competition in the optical fiber and cable industry continues to intensify, mergers and acquisitions and capital operations among large optical fiber and cable companies have become more frequent. Excellent optical fiber and cable manufacturers in China are paying more and more attention to the research of the industry market, especially the development environment of the enterprise and the trend of customer demand In-depth study of changes. Because of this, a large number of excellent domestic optical fiber and cable brands have risen rapidly and have gradually become leaders in the optical fiber and cable industry!
In fact, after double-digit growth in 2016 and 2017 in the entire optical fiber and cable market, the growth rate in 2018 has slowed down significantly by only 4%. Under the guidance of the "Broadband China" and "Optical Into Copper Retreat" policies, my country has been vigorously building home broadband optical fiber access networks since 2015, which has brought the golden three years of my country's optical fiber and cable industry, 2016 and 2017. This is also the reason for the high growth. As of April 2018, my country's optical fiber coverage rate reached 87.5%, and there is not much room for future penetration. Therefore, the future increase in fiber demand mainly depends on 5G construction.
However, since my country's fiber optic cable materials for the bearer network in the 4G period have been relatively saturated, the incremental demand in the 5G period is not as much as imagined. CRU predicts that by 2021, global and Chinese fiber optic cable demand will reach 617 million core kilometers and 355 million core kilometers, respectively, 3-4 times that of 4G. Although the absolute demand is still growing, the overall 5G demand has only a compound annual growth rate of 5%, and it is no longer able to achieve the double-digit growth rate in 16 and 17 years.
The domestic optical fiber and cable industry has formed a complete industrial chain system including optical rod manufacturing, optical fiber drawing, and optical cable manufacturing, and it also has a leading position in the global market. But one of the most fatal problems in the optical fiber and cable industry is that downstream customers are too concentrated. The industry's customers are mainly the three major operators, the government and some Internet companies. Among them, China Mobile, China Telecom, and China Unicom account for about 80% of total domestic demand for optical fiber and cable. Therefore, the needs of operators have a significant impact on the optical fiber and cable industry. This has resulted in the industry being very cyclical on the one hand, and demand fluctuates with the operator’s network construction; on the other hand, due to excessive reliance on the three major operators without pricing power, the three major operators are always in a strong position. Moreover, due to the relatively low barriers to fiber drawing and cable manufacturing, the total number of domestic fiber and cable companies has reached more than 150, and operators have plenty of room for choice. Therefore, it is difficult to change the situation of fiber and cable manufacturers being suppressed by operators in the short term.
China's optical fiber and cable industry has evolved from a simple import application to the world's largest market integrating R&D, production and application in the entire industry chain for 40 years. According to incomplete statistics, as of the end of 2018, China's annual optical fiber production capacity has exceeded 400 million core kilometers, accounting for 60% of the world's total production capacity; the annual self-produced optical fiber preform capacity exceeds 10,000 tons, which can meet the annual optical fiber production capacity of 400 million core kilometers. In terms of application, China's three major operators purchased no less than 200 million core kilometers of optical fiber in 2018, accounting for more than 50% of global optical fiber usage.
In terms of volume, referring to China Mobile’s historical centralized procurement situation, a total of 177 million core kilometers were collected in 2017; the demand for half a year in 2018 was 110 million core kilometers, and the scale of China Mobile’s centralized procurement is about 105 million core kilometers. However, this scale is the consumption of the entire 2019. Compared with the centralized procurement in 17 and 18, China Mobile's optical fiber demand in 2019 has dropped by 50%.
