Non-operator market for cable demand: beneficiary national policy to drive demand

Non-operator market for cable demand: beneficiary national policy to drive demand

2019-08-26 15:25
The market demand for fiber optic cable can be roughly divided into two parts, one is the operator market and the other is the non-operator market. The operator market has always been the mainstay of fiber optic cable demand, accounting for more than 80% of the total demand. The non-operator market demand has benefited from the national policy, and it has shown a steady and rising development trend, gradually becoming a fiber optic cable. An important factor in demand pull.
The market demand situation of fiber optic cable operators has become clear. After three years of volume and price increase, the development period of the boom has gradually entered the trough period of volume and price drop. The arrival of the trough period and the pace of 4G construction have slowed down, and 5G has not yet formed. Substantial pull and operator demand tightening are closely related. In the past three years, the market demand variable of operators has been huge, while the non-operator market has shown a steady development trend. This can be analyzed from the market demand situation of non-operators in the power, overseas and other fields in the last three years.

With the development of China's electric power industry, higher requirements and demands for power communication have been put forward, and the construction and development of power communication networks are facing a major transformation. At the same time, due to the acceleration of China's power grid construction and the construction of UHV projects in recent years, the optical cable industry has created a huge market. In particular, the power cable market, such as ADSS and OPGW, has grown at an average annual rate of more than 10%. In terms of data, the demand for optical cable in the power market reached 9.87 million core kilometers in 2016, 11.48 million core kilometers in 2017, 5.5 million core kilometers in 2018, and 5.8 million core kilometers in 2019. The demand for optical cables has been relatively stable. The situation, the specific information is shown below.纤缆需求之非运营商市场:受益国家政策拉动 需求稳中有升

In the future, with the development of China's electric power industry and the accelerated advancement of smart grids, the demand for related power cables will surge, especially for power cables such as ADSS cables, OPGW cables, OPPC cables, etc., which will usher in good market development prospects.
The overseas market has a higher share of the demand for fiber optic cable. With the promotion of the “One Belt, One Road” initiative and the demand from the international market, fiber optic cable companies are accelerating their pace of overseas, and more and more enterprises Exploring the international market, at the same time, more and more fiber optic cable products are sold to countries along the “Belt and Road” with market potential. The overseas sales of fiber optic cable products are increasing, and the share of revenues of related companies is also rising. In terms of figures, the export volume of optical cables in 2016 exceeded 25 million core kilometers. In 2017, it reached 34.7 million core kilometers. In the first half of 2018, it reached 21.24 million core kilometers, showing that the growth momentum is rapid.
At present, the overseas market has become an important position to consume domestic fiber optic cable production capacity. In the future, under the influence of the “Belt and Road Initiative” and the acceleration of the construction of communication infrastructure in Southeast Asia and Africa, the development of overseas markets for fiber optic cable companies will usher in further favorable conditions.
In addition to power and overseas markets, the demand for fiber optic cable in other application markets has also shown a steady growth trend. Other application markets mainly include railways, rail transit, highways and other related application markets. Relevant data show that the demand for fiber optic cable in these markets reached 17.19 million core kilometers in 2016, 15.3 million core kilometers in 2017, 21.37 million core kilometers in 2018, and 20 million core kilometers in 2019. See the figure below for specific information.

纤缆需求之非运营商市场:受益国家政策拉动 需求稳中有升

In the future, other fiber optic cable demand markets represented by railways, rail transit, highways, etc. will usher in good market development prospects, mainly due to the support of national policy. The country has been constantly increasing its traffic construction. At the end of 2018, the National Development and Reform Commission approved a number of high-speed rail projects with a total investment of over RMB 140 billion, the highest in history. In addition, the country will continue to increase its efforts in railway construction in the future. The objectives of the Medium- and Long-Term Railway Network Plan show that in 2025, China's railway total operating mileage will reach 175,000 kilometers, of which high-speed rail mileage will reach 38,000 kilometers; in 2030, the total railway operating mileage will reach 200,000 kilometers, and the high-speed railway mileage will reach 45,000 kilometers. . In addition to railways, rail transit and highway construction have also received corresponding policy support. With the acceleration of the construction of China's rail transit, the increase in the number of operating miles such as railways and highways, the demand for optoelectronic cables will also rise, and the locomotive optical cables, communications and signal optical cables will usher in considerable demand.
In the period when the fiber optic cable industry has entered the trough, it is meaningless to focus on the operators. The non-operator market shows a good development trend, another excellent choice for the industry, electricity, railway, oil. As the industry continues to increase investment and construction efforts, it will bring about a gradual increase in the demand for fiber optic cables; the importance of overseas markets is becoming more and more obvious, and it has also become a factor driving the growth of demand for fiber optic cables. In summary, for domestic fiber optic cable manufacturers, the non-operator market is also a good nugget.
Source: Photoelectric communication

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