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Preface • Work summary

In 2022, thanks to the easing of epidemic restrictions, as well as the promotion of infrastructure construction, energy transformation, and the wave of digitization, the global economy experienced a strong recovery. However, the strong recovery of economic activities is accompanied by considerable inflationary pressure, which is mainly caused by the rise of energy and commodity prices and the instability of the supply chain. The Russia-Ukraine conflict has exacerbated this pressure. This year, with the further deployment of new generation information technologies and networks such as 5G, cloud computing, big data, and artificial intelligence, the digital economy has developed rapidly, and the global optical communication industry has recovered and ushered in a new boom. The global demand for fiber optic cables in 2022 is approximately 539 million core kilometers, an increase of about 7.0% compared to expectations. Currently, the optic fiber and cable market of China has occupied more than 50% of the global market share, which will also increase in the future.


In 2022, the digital communication network will iterate towards greater traffic. The generative AI tool represented by ChatGPT is leading a new round of technological revolution, promoting the continuous construction of communication network transmission capacity, driving new demand growth and product upgrading of optical module and components. It is expected that the global market size of optical module will continue to grow by CAGR 11% in the next five years, and will exceed 20 billion dollars in 2027. In addition, high computing power and low power consumption are important development directions for the future market.


Since 2006, it has been 17 years since the ranking event of Top 10 Competitiveness Enterprises in the Optical Communications of China & Global Market hosted by Network Telecom Information Research Institute. Through various research data which demonstrates the market pattern of the optical communication industry, we witness a leap in the competitiveness of optical communication enterprises. The selection results of “the Top 10 Competitiveness Enterprises in the Optical Communications industry of Global market in 2023" clearly show the competition among enterprises in the optical communications and its sub-industries of China and Global market in 2023. According to the rankings of the Top 10 competitiveness enterprises in the optical fiber and cable field of Global market in 2023, the top 10 companies are occupied by four countries, namely the United States (Corning), Italy (Prysmian), Japan (Furukawa Electric/OFS, Sumitomo Electric, Fujikura), and China (YOFC, HTGD, FiberHome, ZTT, and FUTONG).

Chinese companies account for half of the list, while YOFC and HTGD rank among the top three globally with market shares of 11.3% and 8.9% respectively. FiberHome, ZTT, and FUTONG have market shares of 7.7%, 7.9%, and 6.1% respectively, demonstrating strong market competitiveness. Corning, Furukawa Electric/OFS, Prysman, Sumitomo Electric, and Fujikura respectively accounted for 17.1%, 9.8%, 8.2%, 7.1%, and 4.1%.

Let’s see financial data competitiveness index of enterprises, the financial competitiveness index of the top 10 enterprises in optical fiber and cable field of Global market shows a nearly "L-shaped" pattern. Corning leads far with a strong financial competitiveness index of 2.4768, and the gap between other companies is extremely small, some even less than 0.1, indicating the fierce competition among the top 10 companies. Chinese enterprises like YOFC and HTGD rank among the top three globally with 1.2856 and 1.1296, respectively. The financial competitiveness indices of FiberHome, ZTT, and FUTONG were 1.0400, 1.0908, and 0.5380, respectively.

In the field of optical transmission and network access equipment, due to the growing demand in North America, the global optical transmission market grew by about 4% in 2022, and the entire WDM market grew by about 5%. In the rankings of the Top 10 competitiveness enterprises in the optical transmission and network access equipment of global market in 2023, top 10 companies are from 6 countries: Finland (Nokia), Sweden (Ericsson), Germany (ADVA), the United States (CIENA, Infinera), Japan (NEC, Sumitomo Electric), and China (HUAWEI, ZTE, and Fiberhome). HUAWEI has taken the lead, with a global market share of 20.9% in optical transmission and network access equipment. Nokia ranks second with 12.4%, while Ericsson, ZTE, CIENA, and FiberHome occupy the top 6 with market shares of 11.9%, 12.2%, 14.4%, and 9.4%, respectively. The detailed market share of global optical transmission and network access equipment is shown in Figure 3.

 

HUAWEI, as the world's leading enterprise in the field of optical transmission and network access equipment, has kept the absolute advantage of 1.6682 with the financial data competitiveness index of 4.0034 and the second place Nokia of 2.3352, demonstrating the leading position of Chinese enterprises. Ericsson ranks third with 1.6449, followed by ZTE with 1.0580 who shows a rapid development momentum.

In 2022, the world's leading cloud computing vendors maintained investment in large-scale data center infrastructure, and the global telecommunications network equipment market grew by 3% year-on-year. The growth of network traffic, network upgrades, and policy promotion all provided development opportunities for the global optical device industry. According to the rankings of the Top 10 enterprises in the optical components field of global market, Coherent holds the top spot with a market share of 17.6%, while Broadcom, Lumentum, Accelink, and Zhongji Innolight rank among the top five on the list with market shares of 11.7%, 12.1%, 8.0%, and 10.9% respectively. The detailed market share of the enterprises in the global optical components is shown in Figure 5.

Through the financial competitiveness index, we find that the financial competitiveness indices of American companies like Coherent, Broadcom, and Lumentum, which occupy the top 3 in the global optical components field, are 3.5003, 2.9388, and 2.6888, respectively. However, the financial competitiveness indices of Chinese companies such as Accelink, Zhongji Innolight, Hisense Broadband, and Eoptolink are around 0.8-1.6 with a gap of at least one point, which still have broad development space.

The Steady Development of Optical Fiber and Cable Field of China

In 2022, the optical fiber and cable industry benefited from China’s network construction and the development of the digital economy. China has built the world's largest optical fiber and mobile broadband network. With the accelerated construction and application of new infrastructure such as 5G and gigabit optical networks, and the rapid growth of emerging businesses such as cloud computing, the new driving force for the development of optical fiber and cable industry continues to strengthen. The Leading & Coincident & Lagging Index of China’s Optical Fiber and Cable (Figure 7) in the past eight years confirms the industry's development dynamics.

In addition, since the second half of 2021, especially since October 2021, the three major operators have shown a trend of increasing both quantity and price for centralized procurement bidding of ordinary optical cable products. The industry ecology is tending to repair, and the supply-demand relationship continues to improve. The revenue of the main players in China's optical fiber and cable market has been continuously increasing for three consecutive years since 2020. Although the growth trend has slowed down slightly from 8.0% in 2021 to 5.5% in 2022 (see Figure 8), in the long run, driven by the digital wave and strong support from national policies, the development opportunities of the optical fiber and cable industry are infinite. It is predicted that China's optical fiber and cable industry will enter a stable and moderate growth period (see Figure 9).

Finally, all the members of the review team of “Network Telecom” and “Annual Ranking Event of the Top 10 Enterprises in the Optical Communications of China & Global Market would like to express heartfelt gratitude for the participation and cooperation from the industry colleagues over the past 17 years.

Rankings of The Top 10 Competitiveness Enterprises in the Optical Communications Industry of Global & China market in 2023 (17th)

 


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