The development status and prospect of the optical device industry market segment and downstream application fields

1. Overview and classification of the optical device industry

Optical devices play a vital role in optical communication networks, and they are responsible for the generation, modulation, detection, reception, connection, conduction, transmission, wavelength division multiplexing and demultiplexing, optical path conversion, signal amplification, photoelectric conversion and other functions of optical signals. These devices represent the frontier of modern optoelectronic technology and microelectronic technology, and are the cornerstone of building optical communication networks.

The transmission rate of optical signals in optical fibers is close to the speed of light, reaching 2.0×108m/s per second, but the processing and transmission rate of optical devices and optical devices are facing certain bottlenecks. Therefore, the performance level of optical devices and optical devices directly affects the information transmission speed, quality, performance level and reliability of optical communication networks.

By continuously improving the performance and technical level of optical devices, optical communication networks can better meet the growing demand for information transmission, achieve higher speed and more reliable data transmission, and promote the development and progress of the information society. Therefore, it is of great significance to the R&D and application of optical devices, and is the key to the sustainable development of the field of optical communication.

Optical devices can be divided into active optical devices and passive optical devices according to whether energy drive is needed, active optical devices are responsible for the generation of optical signals, the conversion of electrical signals into optical signals, the conversion of optical signals into electrical signals, and the transmission and reception of optical signals; Passive optical devices are responsible for the connection, transmission, regulation, coherence, isolation, filtering and other control work of optical signals, and set key nodes for the optical signal transmission system.

2. The development stage of the optical device industry

In the past 50 years of development, the mainland optical device industry has experienced three stages: independent exploration, open development and accelerated innovation.

The continental optical device industry has gone through three stages

The development status and prospect of the optical device industry market segment and downstream application fields

(1) Autonomous exploration period: the 70s to the end of the 80s of the last century

In the 70s of the last century, Continental began to start research and development on optical device production technology. In order to develop the optical communication industry and catch up with the cutting-edge technology of Western countries, the Institute of Semiconductors of the Chinese Academy of Sciences, Wuhan Research Institute of Posts and Telecommunications and other research institutes have developed wavelength lasers of different wavelengths in active optical devices through independent research and development. In terms of passive optical devices, in order to solve the problems of long-distance optical fiber connection, splitting, switching and wavelength multiplexing, the research institutes are committed to the research of all-optical fiber structure and micro-optical discrete device projects, and have developed multi-mode optical fiber connectors, splicing and melt taper optocouplers and mechanical optical switches, which meet the needs of multi-mode optical fiber communication research and application at that time.

(2) Open development period: 90s of the last century - early 21st century

In the 90s of the last century, in order to strive for China's super-large market, overseas advanced technology, equipment and a large number of optical device products began to pour into the Chinese market. With the rapid development of optical communication technology, the construction of communication networks in mainland China has higher and higher requirements for the technical requirements and production efficiency of optical devices. Although with the efforts of the relevant units in the mainland, optical devices have made major breakthroughs in product types, technical processes and production materials, but due to the lack of manpower and material resources, there is still a certain gap between the mainland optical device products and the international leading level. In order to meet the development needs of optical communications, optimize the device production line process, and simplify the device production steps, domestic optical device manufacturers vigorously introduce foreign equipment and develop upstream ceramic sleeve mass production technology. The quality of China's optical device products has been further improved, and the upstream and downstream of the industrial chain have become more and more perfect.

(3) Accelerated innovation period: from the beginning of the 21st century to the present

By the beginning of the century, with the popularization of optical fiber communication applications and the breakthrough of transmission technology, the density of optical fiber laying has increased exponentially. Traditional optical devices and equipment can no longer meet the production requirements of new technology products, and high-density optical fiber cabling requires the transformation of devices to miniaturization and high integration. The contradiction between market demand and low-end production capacity stimulates the industry to accelerate the iterative upgrading of device products. In this context, domestic enterprises have developed dense wavelength division multiplexers that can meet the transmission requirements of new technologies according to the structure of low-light devices, and introduced new foreign assembly lines to miniaturize the devices. Under the mode of continuous innovation, self-research and introduction, and absorption of foreign advanced technologies and processes, Continental has the production capacity of the entire optical communication industry chain from optical components to optical equipment, and occupies an important position in the global market.

In 2023, the market share of the world's leading optical communication companies in the field of optical devices, optical fiber and cable, and optical equipment will be 28.1%, 41.9%, and 42.5%, respectively. Although the mainland has become the main producer and seller of the optical communication industry, the technology of optical devices in the mainland still lags behind the developed countries such as the United States and Japan. The mainland device market is mainly concentrated in the low-end field, the market share of high-end devices is low, and high-end products such as high-speed detection dies, lasers and related chips still need to be imported. At this stage, China's optical device manufacturers are constantly moving towards the field of high-speed devices, trying to close the technological gap with the world's advanced enterprises. With the support of the mainland's industrial advantages and market scale, China's optical device manufacturers are expected to occupy a higher market share in the global market after mastering the high-speed device production technology.

3. The development status and prospects of the optical device market segment

(1) The development of information technology and the rapid growth of data traffic have driven the development of the optical device market

With the rapid development of information technologies such as cloud computing, big data, Internet of Things and artificial intelligence, as well as the digital transformation of traditional industries, the global demand for data has increased exponentially. The Internet Data Center (IDC) is becoming increasingly important as the core platform for managing the IT infrastructure and applications of an enterprise or organization. With the deployment of more and larger data centers, the demand for optical communications is growing again.

This growth will drive the market demand for optical component products such as optical fiber connectors and adapters, optical fiber patch cords, distribution boxes and other optical fiber wiring device products, as well as optical module products.

2019-2023 market size of China's optical device industry

(2) The demand for wiring such as data communication and telecommunications promotes the continuous growth of the optical fiber cabling product market

Optical fiber cabling system is an optical fiber network communication cabling product used in data centers, telecommunication rooms, optical fiber access networks, and smart buildings. It mainly includes optical fiber patch cords, adapters, optical fiber distribution boxes and distribution frames. Optical fiber is divided into two types: single-mode and multi-mode, single-mode optical fiber is mainly used to connect the core network between urban nodes, the connection between urban networks, and the access network of homes or enterprises; Multimode fiber is mainly used in the backbone network or data center of the integrated cabling system in the building.

The market size of fiber optic cabling products continues to grow due to the diverse performance needs of end users. Among them, the optical fiber patch cord is the core product of the optical fiber cabling series, which is used to connect the equipment and the optical fiber cabling link, and is widely used in the connection between the optical transceiver and the terminal box. Fiber optic patch cords play an important role in the fields of optical fiber communication systems, optical fiber access networks, optical fiber data transmission, and local area networks.

(3) The development of the optical module market drives the growth of the passive interconnected optical device market

With the development and technological progress of the optical communication industry, the demand for bandwidth continues to increase, and equipment integrators and telecom and data center operators continue to increase their investment in optical communication networks and equipment, thereby driving the development of the optical module industry, and the global and Chinese optical module market is growing steadily. In addition, the application of AI has generated the demand for higher transmission rates and larger bandwidths, driving the demand for high-speed optical modules, while the application of silicon photonics chips and CPO technology has also made it possible to transmit with high bandwidth density and low power consumption.

4. Analysis of the downstream application market of the industry

The terminal application fields of optical devices are mainly divided into telecom operator market, data center market and emerging markets. The telecommunications market is the first market for optical devices, mainly including 5G communication, optical fiber access, etc., and the construction of communication networks promotes the continuous growth of the market demand for optical devices; The data center market is the fastest growing market for optical devices, and the growth of data traffic and data convergence drives the continuous growth of market demand. Emerging markets, including automotive electronics, healthcare and consumer electronics, are potential markets that are expected to take over from telecom operators and data center markets and promote the development of the optical device industry in the future. The growth driver of the telecom market comes from the fixed network access and 5G demand, and the growth driver of the data communication market comes from the rapid growth of data traffic and the opportunities brought by the rapid upgrading of downstream optical module products, both of which jointly build the basic plate of the development of the optical device industry.

(1) Telecom operator market

In recent years, the demand for optical devices in mainland China has mainly come from 5G, dual-gigabit construction and data center construction. In terms of 5G investment and construction, in 2023, the three basic telecom companies and China Tower Co., Ltd. will complete a total of 420.5 billion yuan in telecom fixed asset investment, an increase of 0.3% over the previous year. Among them, 5G investment reached 190.5 billion yuan, a year-on-year increase of 5.7%, accounting for

45.3% of the total investment. In terms of base station construction, by the end of 2023, the total number of mobile communication base stations in the country will reach 11.62 million, of which 3.377 million are 5G base stations, accounting for 29.1% of the total number of mobile base stations, an increase of 7.8 percentage points compared with the end of the previous year. There are 24.0 5G base stations per 10,000 people, covering all prefecture-level cities, more than 98% of counties, and more than 80% of towns and towns across the country. According to the Ministry of Industry and Information Technology's goal, it is planned to increase the number of 5G base stations to 3.64 million by the end of 2025, and the construction of 5G base stations will be steadily advanced from 2022 to 2025.

China's new 5G base station construction from 2019 to 2023

Mobile Internet access traffic is growing exponentially, with a compound growth rate of 51.85% from 2017 to 2023. The rapid growth of network users and data traffic has higher requirements for optical communication transmission networks, and the upgrade of access network speed is an important way to ensure the Internet quality of mainland network users. According to data from the Ministry of Industry and Information Technology, by the end of 2023, the total number of fixed Internet broadband access users of the three basic telecommunications companies reached 636 million, with a net increase of 46.66 million for the whole year.

At present, the construction of 100 Gigabit optical network and Gigabit optical network in mainland China is advancing simultaneously, and the number of access households is increasing. However, the gigabit optical network construction cycle is still relatively short, and as of the end of 2022, the penetration rate of gigabit broadband access in mainland China is only 15.6%, and there is still broad room for growth in the future. Driven by the continuous improvement and upgrading of the mainland network coverage, the demand for optical devices is expected to maintain a growth trend.

(2) Data centers

The capital expenditure of domestic cloud vendors tends to be stable, and the growth of cloud infrastructure investment is a long-term trend. Domestically, the total capital expenditure of the three major cloud vendors in 2022 was 63.9 billion yuan, of which Alibaba's capital expenditure in 2022 was 37.1 billion yuan, Tencent's capital expenditure was 18.07 billion yuan, and Baidu's capital expenditure was 8.73 billion yuan. In 2023, the total capital expenditure of the three major cloud vendors in China will be 56.59 billion yuan, of which Alibaba, Tencent, and Baidu will be 21.47 billion yuan, 23.93 billion yuan, and 11.19 billion yuan, respectively. Driven by the capital expenditure of major cloud vendors in China, the scale of data centers in mainland China continues to grow steadily. According to the Ministry of Industry and Information Technology, by the end of 2022, the number of data center racks in use in mainland China reached 6.5 million, with a compound growth rate of more than 30% from 2017 to 2022.

From 2017 to 2023, the global data center market size increased from US$46.55 billion to US$82.05 billion, with a compound growth rate of 9.91%; China's data center market grew from RMB51.28 billion to RMB247.01 billion, with a compound growth rate of 29.96%. Driven by national policies such as new infrastructure, digital transformation and the long-term goal of Digital China, as well as the growth of enterprise demand, the market size of data centers in mainland China continues to grow rapidly.

In September 2022, the "White Paper on the Development of New Computing Infrastructure under Eastern Data and Western Computing" was released, which is the first white paper on computing facilities since the implementation of the "Eastern Data and Western Computing" strategy in mainland China. By building a new computing network system that integrates data centers, cloud computing, and big data, the "Eastern Data and Western Computing" project will orderly guide the demand for computing power from the east to the west, optimize the construction layout of data centers, and promote the collaborative linkage between the east and the west. For the optical device industry, the "Eastern Data and Western Computing" project will generate a large demand for optical modules and optical device products by building more data centers, optimizing the data center structure and upgrading the computing power transmission rate, and will promote the deepening development of optical device products in the direction of high integration, miniaturization, high speed and high density.

For more industry information, please refer to the "2024-2030 Optical Device Industry Segment Market Research and Investment Feasibility Analysis Report" of PwC Consulting, and PwC Consulting also provides special market research projects, industry research reports, industrial chain consulting, project feasibility study reports, specialized and special new small giant certification, market share reports, 15th Five-Year Plan, post-project evaluation reports, BP business plans, industrial maps, industrial planning, blue white papers, national manufacturing single champion enterprise certification, IPO fundraising feasibility study, IPO working paper consulting and other services.

Table of Contents:

Chapter 1 Overview of the development of China's optical device industry from 2019 to 2023

Section 1 Analysis of the upstream and downstream industrial chain of China's optical device industry

1. Introduction to the principle of the industrial chain model

2. Analysis of the industrial chain of the optical device industry

Section 2 Analysis of the industrial chain of China's optical device industry

1. Analysis of the supply situation of major upstream industries

2. Supply forecast and analysis of major upstream industries from 2024 to 2030

3. Price analysis of major upstream industries

4. Price forecast and analysis of major upstream industries from 2024 to 2030

5. Analysis of the development status of major downstream industries

6. Analysis of the scale of major downstream industries

7. Price analysis of major downstream industries

8. Forecast and analysis of the prospects of major downstream industries from 2024 to 2030

Chapter 2 Analysis of the market development status of the global optical device industry

Section 1 Analysis of the development scale of the global optical device industry

Section 2: Regional distribution of the global optical device industry market

Section 3 Regional Market Analysis of North American Optical Device Industry

1. Analysis of the market status of the North American optical device industry

2. Market size analysis of North American optical device industry

3. Forecast and analysis of the North American optical device industry from 2024 to 2030

Section 4 Regional Market Analysis of European Optical Device Industry

1. Analysis of the market status of the European optical device industry

2. Analysis of the market size of the European optical device industry

3. Forecast and analysis of the prospects of the European optical device industry from 2024 to 2030

Section 5 Regional Market Analysis of Asian Optical Device Industry

1. Analysis of the market status of the Asian optical device industry

2. Market size analysis of Asian optical device industry

3. Forecast and analysis of the prospects of the Asian optical device industry from 2024 to 2030

Section 6 Analysis of Other Regions

Section 7 Global Optical Device Industry Scale Forecast from 2024 to 2030

Chapter 3 Analysis of the Development Environment of China's Optical Device Industry

Section 1 Analysis and Forecast of China's Macroeconomic Environment

Section 2 Analysis of the policy environment of China's optical device industry

Section 3 Analysis of the development of the social environment of China's optical device industry

Section 4 Analysis of the technical environment of China's optical device industry

Chapter 4 Operation of China's optical device industry from 2019 to 2023

Section 1 Analysis of the development factors of China's optical device industry

1. Analysis of favorable factors in the optical device industry

2. Analysis of stability factors in the optical device industry

3. Analysis of unfavorable factors in the optical device industry

Section 2 Market size analysis of China's optical device industry

Section 3 Analysis of the supply situation of China's optical device industry

Section 4 Analysis of the demand of China's optical device industry

Section 5 Analysis of Supply and Demand Balance of China's Optical Device Industry

Section 6 Analysis of the Development Trend of China's Optical Device Industry

Section 7 Analysis of the main entry barriers of China's optical device industry

Section 8 Analysis of Market Segments of China's Optical Device Industry

1. Area A

1. Overview of industry development from 2019 to 2023

2. The scale of demand from 2019 to 2023

3. Forecast of demand prospects for 2024-2030

II. Area B

1. Overview of industry development from 2019 to 2023

2. The scale of demand from 2019 to 2023

3. Forecast of demand prospects for 2024-2030

3. Area C

1. Overview of industry development from 2019 to 2023

2. The scale of demand from 2019 to 2023

3. Forecast of demand prospects for 2024-2030

4. Miscellaneous

1. Overview of industry development from 2019 to 2023

2. The scale of demand from 2019 to 2023

3. Forecast of demand prospects for 2024-2030

Chapter 5 Operation Data Monitoring of China's Optical Device Industry

Section 1 Analysis of the overall scale of China's optical device industry

Section 2 Analysis of production, sales and cost of China's optical device industry

1. Analysis of finished products in the industry

2. Analysis of industry sales revenue

3. Analysis of the total asset-liability ratio of the industry

Fourth, the analysis of the profit scale of the industry

5. Analysis of the total output value of the industry

Sixth, the industry cost of sales analysis

7. Analysis of industry sales expenses

8. Analysis of industry management expenses

9. Analysis of industry financial expenses

Section 3 Analysis of Financial Indicators of China's Optical Device Industry

1. Industry profitability analysis

2. Analysis of the solvency of the industry

3. Analysis of industry operating capabilities

Fourth, the analysis of industry development capabilities

Chapter 6 Analysis of China's Optical Device Market Pattern from 2019 to 2023

Section 1 Analysis of the concentration of China's optical device industry

1. Analysis of market concentration in China's optical device industry

2. Analysis of regional concentration of China's optical device industry

Section 3 Problems and countermeasures in China's optical device industry

Section 4 Analysis of the Market Competitiveness of Chinese and Foreign Optical Device Industries

Section 5: Analysis of the Competitive Landscape of the Optical Device Industry

Chapter 7 Price Trend Analysis of China's Optical Device Industry

Section 1 Analysis of Price Influencing Factors in Optical Device Industry

Section 2 Analysis of the price status of China's optical device industry from 2019 to 2023

Section 3 Price trend forecast of China's optical device industry from 2024 to 2030

Chapter 8 Analysis of the regional market status of China's optical device industry from 2019 to 2023

Section 1 Regional market size distribution of China's optical device industry

Section 2 Analysis of the Optical Device Market in East China

1. Overview of East China

2. Analysis of the market demand and scale of optical devices in East China

3. Forecast of the optical device market in East China from 2024 to 2030

Section 3 Market Analysis in South China

1. Overview of South China

2. Analysis of the market demand and scale of optical devices in South China

3. Forecast of the optical device market in South China from 2024 to 2030

Section 4 Market Analysis in North China

1. Overview of North China

2. Analysis of the market size of optical devices in North China

3. Forecast of the optical device market in North China from 2024 to 2030

Section 5 Market Analysis in Central China

1. Overview of Central China

2. Analysis of the market size of optical devices in central China

3. Forecast of the optical device market in Central China from 2024 to 2030

Section 6 Market Analysis in Northeast China

1. Overview of the Northeast region

2. Analysis of the market size of optical devices in Northeast China

3. Forecast of the optical device market in Northeast China from 2024 to 2030

Section 7 Market Analysis in Northwest China

1. Overview of the Northwest Territories

2. Analysis of the market size of optical devices in Northwest China

3. Forecast of the optical device market in Northwest China from 2024 to 2030

Section 8 Market Analysis in Southwest China

1. Overview of the Southwest Region

2. Analysis of the market size of optical devices in southwest China

3. Forecast of the optical device market in southwest China from 2024 to 2030

Chapter 9 Competition in China's optical device industry from 2019 to 2023

Section 1 Analysis of the Competition Structure of China's Optical Device Industry

1. Competition among existing enterprises

2. Analysis of potential entrants

3. Threat analysis of substitutes

Fourth, the bargaining power of suppliers

Fifth, the bargaining power of customers

Section 2 SWOT analysis of China's optical device industry

1. Analysis of industry advantages

2. Analysis of industry disadvantages

3. Industry opportunity analysis

Fourth, industry threat analysis

Chapter 10 Analysis of Key Enterprises in the Optical Device Industry

Section 1 Enterprises

First, the company profile

Second, the company's main business overview and optical device product introduction

Third, the main economic indicators of the enterprise