2011 Future Trends of China's Optical Fiber and Cable Industry

In 2009, although the international financial crisis had cast a shadow over the development of domestic fiber optic cable companies, under the influence of multiple factors such as domestic demand, 3G construction, and FTTH construction, China’s fiber optic cable industry has gone through “explosive During the same year of growth, the new round of industry consolidation and investment climax also kicked off. Looking back at the past and looking forward to the future, how the development of China's fiber optic cable industry is worthy of consideration by everyone in the industry.

I. The composition and development status of the optical fiber and cable industry 1. Key technologies and industry components Since the practical application of optical fiber communications for more than 30 years, the manufacturing technology of optical fiber and optical cables has grown by leaps and bounds, and the variety of products has been continuously enriched, and due to the large-scale application and improvement of production efficiency, As the performance of optical fiber cable products continues to increase, the cost has continued to decrease, which has led to the continuous expansion of optical fiber applications. At present, the domestic optical fiber and cable industry has formed a complete industrial chain system, including the main industrial chain consisting mainly of optical rod manufacturing, optical fiber drawing and optical cable manufacturing, and various sub-industry chains such as optical fiber and cable materials formed by the expansion of epitaxy. The industrial chain is rapidly expanding with the expansion of fiber optic applications.

In the optical fiber cable industry chain system, we believe that there are considerable gaps between the two key technologies in China and the international advanced level, that is, “one by one”. “One end” is a light stick manufacturing technology that everyone knows. In recent years, under the strong support of the country and the continuous investment of the company, the domestic light stick manufacturing technology has achieved rapid development, and technological breakthroughs and large-scale manufacturing are within easy reach. It is believed that within 2 to 3 years, the domestic light-bar manufacturing capability can basically meet the market demand. Then, in addition to the "one tail," many people do not realize that it is an extension of the application field. The development of fiber optic cable technology has not been applied in the traditional sense. Now it seems that in the field of medicine, sensing, Many aspects such as power grid security protection have been applied, of course, including more areas that we have not yet used. In this respect, we have not had much participation from powerful companies. The domestic fiber optic cable industry infrastructure cannot be established only in the traditional sense of communications, and in the near future it will be basically saturated. We should continue to innovate, continue to invest in R&D, strengthen cooperation with various industries, and continue to expand new applications for fiber optics. Only in this way can our industry continue its healthy development.

2. The status of China's manufacturing power in the optical fiber and cable industry has been established, but the level of industrial development is not balanced, and the risks brought about by the new round of capacity expansion need to be guarded. 1) At present, China's optical fiber and cable have established a position as a major manufacturing country according to the latest 2010 CRU. Data: In 2009, the global demand for single-mode optical fibers reached 168.5 million core kilometers, an increase of 24% from 2008. Among them, the demand for single-mode optical fibers in China increased by 89%, compared to the demand for single-mode optical fibers in other regions of the world. Declined by 4%. China's single-mode optical fiber demand in 2009 reached 78.8 million core kilometers, accounting for 46.8% of the world's total demand, and for the third consecutive year to become the world's largest fiber optic cable consumer market. After three years of continuous leaps and bounds, China has formed the world's largest optical fiber and cable industry and formed a complete light, fiber, and fiber cable industry chain. In 2009, China's 12 fiber-drawing enterprises produced 60.4 million core kilometers of optical fibers, of which Changfei, Fiberhome, and Fortis fiber output all reached 10 million core kilometers or more; in 2009, the total output of optical cables in the world was 172 million core kilometers, only China's optical fiber cable. The output reached 80.42 million core kilometers, accounting for 46.8% of the world's total output, and the production capacity is still expanding. China's five major cable companies have become world-class large-scale enterprise groups.

2) The level of industrial development is not balanced Although China has formed a complete industrial chain including optical fiber preforms, optical fibers and optical cables, and the scale of the industry ranks first in the world, there are still a series of problems in the entire industry development process.

First of all, 70% to 80% of the optical rod industry also relies on imports. The share of domestic preforms has been maintained at around 20%, with no major development. From the perspective of the industrial chain, the profit ratio of the upstream optical fiber preforms, optical fibers, and optical fiber cables is approximately 7:2:1. Therefore, the preform manufacturers took away 70% of the profits of the entire industry and dominated the industrial chain. . The price of the preforms was controlled by foreign companies, and the huge profits of light bars were earned by foreign companies. China relies on the purchase of sticks for drawing. The price of the optical rods is high, and it is difficult to reduce the cost of optical fibers. Moreover, the price of optical fibers is low and the profit margin of optical fiber companies is minimal.

Secondly, fiber optic cable products have been highly homogenized, prices have become the only means of competition, and some companies do not hesitate to reduce the quality of products in order to reduce costs. China Tell Laboratory has said: "Inspection agencies in recent years, the detection of fiber optic cable, fiber optic cable product failure rate of 20% to 30%."

Third, our capacity for independent innovation needs to be enhanced. There is still a certain gap between China's enterprises in terms of R&D, production, and key aspects of core technologies for optical fiber and cable, compared with foreign countries. The core technologies of new types of optical fibers and optical cable products, such as G.657 optical fibers and air-blow micro-fiber cables, are developed overseas and are only being tracked and developed in China.

These gaps have, to a large extent, limited the healthy and rapid development of China's optical fiber and cable industry. Therefore, the domestic industry must not only be big but also stronger. We must adhere to independent innovation and breakthrough bottlenecks, and strive to achieve breakthroughs in the key areas of optical fiber and cable production, and form a group of products with independent intellectual property rights. At the same time, fiber optic cable companies and telecom operators must strengthen the interaction of the industry chain, promote all parties in the industrial chain to achieve a win-win situation, and create a greater space for development in the fiber optic cable industry.

3) Risk brought by the new round of capacity expansion The development of China's fiber optic cable industry has experienced three periods of rapid development. The first expansion period from 1991 to 1994 made China's optical cable production capacity reach 1 million core km/year; during the second expansion period from 1999 to 2001, the production capacity reached 30 million core km/year; in 2008 During the third expansion period in 2009, the domestic optical fiber production capacity has spanned over 100 million kilometer-km/year, and the optical fiber cable production capacity is even greater. This round of expansion has three major new features: First, large-scale fiber optic cable companies continue to expand their scale; second, both optical fiber and optical fiber production capacity have doubled from the beginning of 2008; third, powerful companies have started joint ventures to establish light rod production. Base, competition extends to the upstream of the industry chain.

It should be noted that under the influence of the international financial crisis, the large-scale expansion of domestic industries has further established China’s status as the world’s largest fiber optic cable manufacturing country, and it also brings certain risks.

It can be foreseen that China’s optical fiber demand will remain at 60 million core kilometers to 80 million core kilometers in the next 2 to 3 years, and there is currently a gap in domestic optical rod production capacity, but light rod imports will continue to decrease in the next 2 to 5 years. And will eventually match the optical fiber drawing capacity; while China's optical fiber drawing ability will exceed domestic demand by 20% to 30%, the competition of optical fiber begins to transfer to the production efficiency, process route and other aspects affecting the cost; as for cable manufacturing, due to lower entry barriers In recent years, the manufacturing capacity has been greater than the market demand. In 2009, the short-term supply of optical fiber cables was in short supply, which was actually caused by the shortage of optical fibers, and was not a problem of optical cable manufacturing capacity. The new round of capacity expansion of optical cables is mainly carried out by big manufacturers, and has a relatively high starting point and a large number of expansions. At present, the harm caused by the blind expansion of optical cables is increasingly evident.

These rounds of capacity expansion are the inevitable result of increased market demand. It is a problem that China, which is already in the world’s largest market, will continue to grow in future. Therefore, grabbing the market from the hands of relatively weak opponents becomes a test of survival. Such a huge Behind the production capacity, the impact of any decline in market demand will result in irrational price reductions and the risk of product quality degradation.

Second, the development direction of China's fiber optic cable industry 1. Accelerate the process of localization of light bars, improve the industrial chain to speed up the process of localization of light sticks is to solve the current industry development "bottleneck" and "short board" problem. A few years ago, some domestic large manufacturers have already realized this problem and have put forward their own development plans and goals in the light bar industry. For example, Fenghuo Communication and Fujikura Corporation established a joint venture in 2009 with Fujikura Fiber Optoelectronics Technology Co., Ltd. Optical fiber industrial prefabricated rod base, with a production capacity of 10 million kilometers of precast rods after the first phase of the project is completed, will become an important optical rod manufacturing base in the world. Other domestic companies, such as Changfei, Hengtong, Fortis, Zhongtian, etc., are also implementing new light-rod projects through independent innovation and R&D through cooperation with foreign advanced technologies. We believe that after 3 to 5 years of development, domestic companies can achieve a production capacity of 2,500 tons of light rods, which can basically meet the needs of domestic optical fibers.

The construction of 2.3G and FTTH and the implementation of “Triple-play” will be the continuous driving force for the development of optical fiber and cable industry. 3G commercialization in China has laid a foundation for the industry in 2009. As of the end of 2009, 3G investment by three domestic operators totaled 160.9 billion yuan. . By the end of the “Eleventh Five-Year Plan” period, China’s mobile users will reach 800 million, and if 40% of them become 3G users, it will reach 320 million, and the scale of users will surely rank first in the world. In the next few years, the steady growth of the 3G industry will inevitably impose higher requirements on the coverage and stability of optical fiber networks, which will lead to a steady growth in the demand for optical fiber and cable.

Fiber-to-the-home (FTTH) needs to establish a branch-to-end fiber network, which will provide unlimited imagination for the development of the fiber optic cable industry. It can be said that FTTH provides an opportunity for further development of the domestic fiber optic cable industry. After China’s large-scale implementation of fiber-to-the-home, it will require more than 100 million kilometers of optical fiber each year. The entire industrial chain of optical fiber and cable will benefit from this, and users will also enjoy the convenience of FTTH. In addition, the worldwide development of FTTH also makes the global optical fiber demand growth trend, which will greatly promote the export of domestic products.

The executive meeting of the State Council held on January 13, 2010 decided to speed up the integration of the telecommunications network, radio and television networks, and the Internet, and clearly proposed the phased goals and priorities. The move marks that the triple play will formally enter into a substantive stage of advancement, and the triple play will stimulate the input of optical and television networks to radio and television operators and bring new opportunities for the development of the optical fiber and cable industry.

3. Convergence and innovation are the main theme of the development of China's fiber optic cable industry in the future. The issuance of 3G licenses in 2009 and the merger of Unicom and China Netcom made a dramatic change in China's telecom operation structure. The three major operators have started mobile, fixed, and broadband. Integrated operations. In 2010, the State Council put forward the "triple play", which enabled the radio and television services and telecommunication services to begin to interweave. This large convergence trend has increased the demand for bandwidth. This convergence of service scope and the history of the operators have been strong. Imbalance leads to the continuous application of innovative technologies.

In the face of a multi-demand market, major optical fiber and cable companies have begun to explore differentiatedness from the era of convergence. The centralized procurement of major operators since 2004 has greatly promoted the standardization of China's fiber optic cable products. The common GYTA and GYTS cable specifications have obvious homogeneity, and their structure and performance are similar. In 2008, major companies increased investment in R&D, and independent innovation technologies and products continued to emerge. The development of G.657 fibers was synchronized with international standards. There may be 3 to 4 skeletal belt cables, and the submarine cable is also a coastal island. More attention has been paid to development. Special requirements for special occasions such as sensing optical cables, oil well cables and mining optical cables have broken the foreign monopoly. The indoor soft optical cable industry is booming, and plastic optical fibers have started to go into short-distance communication applications. The appearance of this series of new technologies shows that major domestic optical fiber and cable companies pay more attention to the innovation of independent intellectual property rights, and it is an inevitable stage for China to move from a manufacturing country to a manufacturing powerhouse, and will become a key point for the development of China's optical fiber and cable enterprises in the future.

4. Increase R&D investment and expand the new field of fiber optic applications At present, fiber optic cable is basically applied in the traditional communication field. Looking back at the history, even in the traditional communication field, the development of fiber optic cable is accompanied by the expansion of the application field and it has grown from The application of backbone network in the 1990s, the access network application at the beginning of this century, and the FTTH construction and 3G construction in recent years, the continuous application of new technologies, new products, and new materials in this process has greatly promoted The progress of industry technology and the sound development of the industry, but in this process, especially in recent years, with the intensification of market competition, product prices continue to decline, manufacturers have great pressure for survival, the manufacturers will increasingly focus on the market With regard to exploration and cost control, with little investment in R&D, coupled with centralized procurement by operators, even if manufacturers have research and development intent, they follow the collective baton, which, to a certain extent, affects the broader R&D enthusiasm of manufacturers.

The application of optical fiber is far from the narrow understanding of most fiber optic cable companies. There is a big gap between this level of research and the international advanced level. However, the few enterprises represented by long-flying and bonfire in domestic enterprises The more emphasis is placed on the R&D investment, in order to grasp the core technologies in new application areas and enhance the company's differentiated competitiveness. We believe that this direction will be the mainstream of corporate development and the development trend of the industry.

5. Going abroad to open up the international market is the development direction The total global demand in 2009 is about 1.6 trillion core kilometers. China has already accounted for over 40% of the world's total demand for optical fiber and cable. China's production capacity of optical fiber and cable has surpassed domestic demand while exporting optical cable. The number of companies is less than 6 million core kilometers. In the international arena, the scope and number of domestic companies involved do not match the production capacity of over one trillion cores. China's optical fiber and cable companies must seize the opportunity to go abroad and compete with multinational companies such as Corning, Perisman and Draka in the world and rank among the largest international companies.

Electrical Wire

Electrical Wire ,Cable Supplier ,Electrical Cabling ,Wire And Cable

Chongqing Taishan Cable Co., Ltd. , http://www.cqbareconductor.com

Posted on