Recently, the first 29 gigabit cities in China were officially unveiled, showing the latest achievements of China's gigabit optical network construction, while 2022 will usher in the peak of gigabit city construction. As an important basic material for the construction of gigabit cities, fiber optic cables, optical devices and other products will be significantly enhanced, boosting the optical communication industry into the third growth cycle.
In March 2021, the Ministry of Industry issued the "Double Gigabit" network co-development action plan (2021-2023)" (hereinafter referred to as "Action Plan"), the next three years of 5G and gigabit optical network construction put forward specific requirements. Judging from the achievements so far, the first phase of the Action Plan has reached its goal. According to the Ministry of Industry and Information Technology, by the end of November 2021, the number of 5G base stations exceeded 1.396 million, and the 5G network continued to deepen coverage to counties and towns; the scale of 10G-PON ports supporting gigabit access reached 7.207 million, with the ability to cover more than 260 million households; the scale of gigabit users was raised to 33.89 million, a net increase of 27.46 million households over the end of 2020.
And compared with the first phase of the goal, the second phase of the Action Plan to double the goal, that is, gigabit fiber optic network with the ability to cover 400 million households, 10G-PON and above port size of more than 10 million, gigabit broadband users exceeded 30 million; 5G network to achieve basic coverage of township-level areas and key administrative villages; built 100 gigabit cities. This means that in 2022, the demand for fiber optic cables and optical devices will see a substantial increase. And to support the future gigabit, or even 10 gigabit scale optical network construction, the optical communications industry will also be driven by market demand, to accelerate the next generation of new optical communications product development.
Market size continues to rise
Fiber optic cable and optical components form the basis of gigabit city construction. As the construction of 5G network and gigabit optical network progresses, the demand for fiber optic cable and optical modules in China will continue to rise in the next few years.
For fiber optic cable, according to the consultancy CRU, China's fiber optic cable demand will reach 261 million core kilometers in 2022, up 6.5% year-on-year. Demand for fiber optic cables will peak at 283 million core kilometers by 2025, and demand for fiber optic cables in China will grow at a compound annual average rate of about 2.9 percent from 2021 to 2026.
And compared with the first phase of the goal, the second phase of the Action Plan to double the goal, that is, gigabit fiber optic network with the ability to cover 400 million households, 10G-PON and above port size of more than 10 million, gigabit broadband users exceeded 30 million; 5G network to achieve basic coverage of township-level areas and key administrative villages; built 100 gigabit cities. This means that in 2022, the demand for fiber optic cables and optical devices will see a substantial increase. And to support the future gigabit, or even 10 gigabit scale optical network construction, the optical communications industry will also be driven by market demand to accelerate the next generation of new optical communications products.
Market scale continues to rise
Fiber optic cables and optical devices form the basis of gigabit city construction. As the construction of 5G networks and gigabit optical networks progresses, the demand for fiber optic cables and optical modules in China will continue to rise in the coming years.
For fiber optic cable, according to the consultancy CRU, China's fiber optic cable demand will reach 261 million core kilometers in 2022, up 6.5% year-on-year. Demand for fiber optic cables will peak at 283 million core kilometers by 2025, and demand for fiber optic cables in China will grow at a compound annual average rate of about 2.9% from 2021 to 2026.
Recently, the first 29 gigabit cities in China were officially unveiled, showing the latest achievements of China's gigabit optical network construction, while 2022 will usher in the peak of gigabit city construction. As an important basic material for the construction of gigabit cities, fiber optic cables, optical devices and other products will be significantly enhanced, boosting the optical communication industry into the third growth cycle.
In March 2021, the Ministry of Industry issued the "Double Gigabit" network co-development action plan (2021-2023)" (hereinafter referred to as "Action Plan"), the next three years of 5G and gigabit optical network construction put forward specific requirements. Judging from the achievements so far, the first phase of the Action Plan has reached its goal. According to the Ministry of Industry and Information Technology, by the end of November 2021, the number of 5G base stations exceeded 1.396 million, and the 5G network continued to deepen coverage to counties and towns; the scale of 10G-PON ports supporting gigabit access reached 7.207 million, with the ability to cover more than 260 million households; the scale of gigabit users was raised to 33.89 million, a net increase of 27.46 million households over the end of 2020.
And compared with the first phase of the goal, the second phase of the Action Plan to double the goal, that is, gigabit fiber optic network with the ability to cover 400 million households, 10G-PON and above port size of more than 10 million, gigabit broadband users exceeded 30 million; 5G network to achieve basic coverage of township-level areas and key administrative villages; built 100 gigabit cities. This means that in 2022, the demand for fiber optic cables and optical devices will see a substantial increase. And to support the future gigabit, or even 10 gigabit scale optical network construction, the optical communications industry will also be driven by market demand, to accelerate the next generation of new optical communications product development.
Market size continues to rise
Fiber optic cable and optical components form the basis of gigabit city construction. As the construction of 5G network and gigabit optical network progresses, the demand for fiber optic cable and optical modules in China will continue to rise in the next few years.
For fiber optic cable, according to the consultancy CRU, China's fiber optic cable demand will reach 261 million core kilometers in 2022, up 6.5% year-on-year. Demand for fiber optic cables will peak at 283 million core kilometers by 2025, and demand for fiber optic cables in China will grow at a compound annual average rate of about 2.9 percent from 2021 to 2026.
And compared with the first phase of the goal, the second phase of the Action Plan to double the goal, that is, gigabit fiber optic network with the ability to cover 400 million households, 10G-PON and above port size of more than 10 million, gigabit broadband users exceeded 30 million; 5G network to achieve basic coverage of township-level areas and key administrative villages; built 100 gigabit cities. This means that in 2022, the demand for fiber optic cables and optical devices will see a substantial increase. And to support the future gigabit, or even 10 gigabit scale optical network construction, the optical communications industry will also be driven by market demand to accelerate the next generation of new optical communications products.
Market scale continues to rise
Fiber optic cables and optical devices form the basis of gigabit city construction. As the construction of 5G networks and gigabit optical networks progresses, the demand for fiber optic cables and optical modules in China will continue to rise in the coming years.
For fiber optic cable, according to the consultancy CRU, China's fiber optic cable demand will reach 261 million core kilometers in 2022, up 6.5% year-on-year. Demand for fiber optic cables will peak at 283 million core kilometers by 2025, and demand for fiber optic cables in China will grow at a compound annual average rate of about 2.9% from 2021 to 2026.