On October 26-28, the 2020 World Optical Fiber and Cable Conference held an online conference. This top event in the world’s optical fiber and cable industry gathered more than one hundred telecom network executives, representatives of optical fiber and cable manufacturers, representatives of solution providers and technology experts and others participated in the grand event to discuss how to get rid of the crisis and accelerate industrial development in the post-epidemic era.

CRU cable supervisor Michael Finch said that 2020 is an unforgettable year. Structural changes have taken place in the way people work and socialize. In this process, optical fiber networks play an important role. In addition, the telecommunications industry is facing one of the most significant challenges since the beginning of 2000.

Michael Finch pointed out that although currently under the influence of COVID-19, the global optical fiber and cable industry is facing the dilemma of declining income, suspension of production, shortage of skilled workers, and sharp decline in demand. However, in the future, under 5G, data centers, edge computing, Internet of Things, smart cities, FTTH and some stimulus measures, the optical fiber and cable industry will usher in a strong recovery.

Recalling the impact of COVID-19 on the optical fiber and cable industry, Michael Finch said that under the impact of the epidemic, most operators have slowed down the construction of fixed and 5G networks, thereby reducing capital expenditures and greatly affecting the global optical fiber and cable industry. demand.

On a quarterly basis, the global demand for optical fiber cables in Q1, where the epidemic was the worst, was about 100 million core kilometers, down 12% year-on-year; Q2 demand was about 114 million core kilometers, down 6.3% year-on-year; by Q3, the epidemic slowed down and operations Businesses gradually resumed the progress of network construction, and the demand for optical cables began to pick up, with approximately 129 million core kilometers, an increase of 4.6% year-on-year.

Looking forward to Q4, based on the current October CRU FOCI index (Fibre Optic Cable Index, a core index of a monthly survey focusing on the optical fiber and cable market), the demand for optical cables has contracted slightly that month. In terms of regions, demand in Europe, the Asia-Pacific region (except China), China, and South America has contracted to varying degrees, while the North American market has achieved growth. In other respects, prices have become an index of greater contraction.

In the view of Michael Finch, the global optical fiber and cable industry is currently in a slow recovery cycle, and there is a possibility of mergers and acquisitions in the entire industry. It is estimated that by 2021, the epidemic will be brought under control, the global economy will return to normal, the fixed network and 5G construction of operators will be on track, and the global demand for fiber optic cables is expected to increase by 7%. At the same time, driven by the ubiquitous fiber optic network, the demand for fiber optic cables will maintain a relatively stable growth in the next few years.