The rise in demand for optical fiber cable industry

       After a downturn in the past few years, the global optical fiber and cable industry has entered a new round of growth cycle. In the future, the global optical fiber and cable market will show a trend of "demand recovery, volume and price rise, and the industry is improving". In fact, since 2014, China's demand for optical fiber and cable has accounted for about 50% of the world's total demand. In particular, from 2015 to 2018, China vigorously built FTTH and 4G networks, and the proportion of demand is far ahead of other global markets. As a "bellwether" of domestic operators' collective procurement, China Mobile's collective procurement this year reflects, to some extent, the rapid growth of operators' demand for optical fiber and cable driven by the large-scale construction of 5G and the rapid expansion of traffic.

    As the focus of current industry attention and development, 5G, double gigabit, FTTR, industrial Internet and other concepts are gradually realized with the evolution of technology, which undoubtedly plays a great pulling role in the rise of optical fiber demand. As the foundation of network construction, optical fiber cable should the important task of building a strong and stable network in the development of 5G .In addition to 5G construction, communication infrastructure construction is also one of the reasons for the increased demand for optical fiber. Currently in Europe, FTTH coverage in Germany, The UK, Poland, Italy and other major developed countries needs to be improved. Therefore, Europe will invest 300 billion euros to realize the full 5G scheme and gigabit upgrade of communication infrastructure before 2025.

   The United States has launched a $2.3 trillion infrastructure and job creation program, while South America, Africa, South And Southeast Asia are also launching network construction and upgrading programs. China's cable exports in the first three quarters of this year can also reflect the rapid growth of overseas demand. In addition, CRU forecasts that cable demand in emerging markets will grow at a cagR of 5%-6% over the period 2022-2026. It is worth noting that in terms of broadband networks alone, even by 2026, only 36% of households in the emerging markets of Latin America, the Middle East and Africa combined will be using FTTx solutions, leaving plenty of room for growth.

  In general, under the influence of multiple factors, the global optical fiber and cable industry is gradually returning to the right track. Both domestic and overseas, the demand for optical fiber and cable products will maintain a steady and continuous growth trend. We have reason and confidence to believe that in the near future, the optical fiber and cable market will usher in a new round of healthy and green development stage.