Market for Optics in China. It will be full of surprises, as usual.
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1 Month 2015 Market for Optics in China January 2018 Market for Optics in China. It will be full of surprises, as usual. For Client Use Only. Reproduction and sharing with third parties is prohibited. Copyright Lightcounting
2 Abstract... 4 Executive Summary... 5 The wall was built, the fiber deployed, what is next?... 5 The development of China s cyberspace is entering a fast lane Xi Jinping... 6 What does this mean for optical components demand?... 7 Ethernet transceivers are the #1 market opportunity for optics deployed in China... 8 Domestic suppliers will have more opportunities and more funding for innovation Chapter 1: Telecommunication Service Providers in China China Mobile is taking a lead with close to 1 billion customers CSPs in China reduce their spending Networking Infrastructure Projects in China China Mobile continues to expand China Telecom is number one in wireline broadband and datacenter services China Unicom adds leading ICPs as new investors China Broadcasting Network is catching up with the top Chapter 2: Internet Content Providers in China Chinese ICPs are growing faster Chinese consumers are taking a lead in adoption of cloud services Infrastructure investments of Chinese ICPs are still modest, but are growing fast Chinese ICPs are just starting to build mega datacenters There is a hidden value in networks of smaller data centers Venturing outside of China China s cyberspace remains inhospitable to foreigners Increasing competition will drive adoption of 100GbE and 400GbE technology in China Vianet Alibaba
3 Baidu Ctrip JD.com Tencent Vipshop Chapter 3: Network and Datacenter Equipment Manufacturers Sales of telecom optical networking equipment in China are slowing down Cloud data centers offer a new market opportunity FiberHome has had non-stop revenue growth, driven by its domestic market H3C / Unisplendour is doing well, powered by HP products Huawei maintains its dominance in the global telecom equipment market Inspur is #1 storage equipment supplier in China Lenovo is reenergizing its datacenter group ZTE is the second powerhouse equipment vendor in China Chapter 4: Chinese Manufacturers of Optical Components and Modules Sales of Chinese optical component companies will exceed $2.7 billion in Innolight emerges as a new role model for the Chinese startups The search for lower manufacturing cost continues Laser chip manufacturing is still mainly outside of China The Chinese government plans to develop chip-making capability in China Is Silicon Photonics the best option for China? Accelink ATOP Corporation Eoptolink Technology Gigalight HG Genuine
4 Hi-Optel HiSense Broadband InnoLight O-Net Sunstar Communication Technology Xiamen San-U Opto-electronic Technology Chapter 5: Sales of Optical Components and Modules for deployments China Demand for Ethernet optics in China will skyrocket in Sales of DWDM modules and components to China will remain flat in China will account for more than 50% of FTTx and wireless fronthaul optics sales in Market for AOCs and EOMs in China Appendix A: Highlights from Technology Development Roadmap of the China Optoelectronics Device Industry in Overview of optical communication device industry Covered Content The need to develop optical communications devices Development status of optical communication devices industry Current status of global optical communication devices industry The current situation and competitiveness of China's optical communication devices industry Problems and challenges Optical communication device industry development ideas, development goals Development Ideas Structural adjustment goals Technology Innovation Goals Policy recommendations
5 Abstract Demand for optics from Chinese service providers surprised the industry in It started with massive deployments of FTTx systems and continued with optical fronthaul in the access markets. Adoption of next generation 10G PON and 25G fronthaul optics will sustain demand for access optics in First deployments of 100G DWDM technology in core networks set up high expectations for scale of future projects. Chinese Internet companies are starting to build datacenters requiring more optical connectivity inside and outside of these facilities. The datacenter upgrades will boost demand for 100GbE transceivers and 25G AOCs in 2018 and beyond. This report discusses current and future infrastructure projects of Communication Service Providers (CSPs) and Internet Content Providers (ICPs) in China. It analyses the impact of these projects on the demand for optical networking equipment, optical modules and components. The report also discussed history of optical component and module manufacturing in China and analyses challenges ahead. It includes profiles of the leading Chinese CSPs, ICPs, equipment manufacturers and suppliers of optical component and modules. Appendix to the report includes translation of highlights from the latest Roadmap of Optoelectronics Industry in China. The report includes a companion spreadsheet containing a detailed 5-year shipment and revenue forecast of optical component demand in China. 4
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