Optical communications accelerate development, helping digital economy upgrade

As the wave of digitalization is rising, the "Digital China" strategy is accelerating its implementation, driving the construction of a new generation of information infrastructure to accelerate. As a key support in the digital economy era, optical communication products, with their high bandwidth, low latency and strong stability, are being integrated into core application scenarios such as 5G communications, data centers, industrial Internet, and smart cities at an unprecedented speed, becoming an important force in enabling industrial upgrading and building an intelligent society.

1. The market scale of optical communication products continues to expand, and 5G and data centers become driving forces

With the full advancement of 5G network construction and "Gigabit Optical Network" deployment across the country, the market demand for core products such as optical modules, fiber jumpers, and optical transceiver equipment continues to rise. According to data from the China Optical Communications Industry Association, the market scale of optical communication products in my country has exceeded 350 billion yuan in 2024, and it is expected to maintain an average annual growth rate of more than 6% in the next five years, showing strong development momentum.

At the same time, the in-depth implementation of the national "East Data West Computing" project has driven the explosive growth of computing power infrastructure and data center optical communication demand, and the demand for high-speed optical modules (100G/400G/800G)  has risen rapidly. In order to seize the market opportunity, many companies have increased their layout and promoted high-end optical communication products to scale, industrialization and intelligence.

2. Core optical communication technology has accelerated breakthroughs, and the process of domestic substitution has been significantly accelerated

In the past, domestic high-end optical chips, high-speed optical modules and other core devices were highly dependent on imports, which became a technical bottleneck restricting the development of the industry. However, in recent years, with the continuous maturity of silicon photonics technology, CPO packaging technology (co-packaged optics), and battery control technology, Chinese optical communication companies have gradually overcome key core technologies, and domestic substitution of optical communications is accelerating.

Zhongji Xuchuan, Accelink Technology, Huawei and other leading companies have achieved mass production of 400G optical modules, and actively developed 800G/1.6T ultra-high-speed optical modules, pushing domestic products to the world's first-class level. Important results have also been achieved in improving transmission rates, reducing power consumption, and enhancing interoperability, laying a solid foundation for domestic substitution and independent control of optical communication equipment.

3. Optical communication solutions are accelerating the penetration of multiple industry scenarios and promoting product specialization upgrades

Optical communication products are extending from the traditional operator market to more vertical industries, realizing the transformation from "generalization" to "specialization".

In the industrial Internet, enterprises widely deploy industrial-grade optical communication links to achieve efficient collaboration between devices; in the construction of the power Internet of Things, optical modules and optical cables realize real-time data return from substations and sensors, improving the efficiency of power grid monitoring; in the field of smart transportation, optical communication systems support the efficient operation of traffic signals, monitoring and information release systems.

In addition, in livelihood scenarios such as smart education and telemedicine, emerging demands such as high-definition video transmission, AR/VR teaching, and remote diagnosis and treatment have surged, and the dependence on high-speed optical communication networks has become more significant, promoting the simultaneous evolution of industrial technology and applications.

In order to meet the diversified needs of the industry, more and more companies have launched customized optical communication solutions, designed exclusive modules, packaging and network structures for different scenarios, promoted product structure optimization and upgrading, and further released market potential.

4. The rise of low-power optical communication equipment, green energy saving has become a new direction for the industry

Under the guidance of the "dual carbon" strategy, green and low-carbon has become the core development direction of the optical communication industry. Optical communication companies have comprehensively promoted products to achieve low power consumption, low carbon emissions, and high energy efficiency from device material selection, structural design to system integration.

For example, optical modules based on silicon photonics technology have obvious power consumption and cost advantages under large-scale deployment, becoming an important starting point for green upgrades of data centers. The use of new CPO packaging structures also significantly shortens the optical path, reduces insertion loss, and improves the efficiency of optoelectronic interconnection.

In the manufacturing process, some leading companies have started the construction of green manufacturing systems, and promoted the green transformation of product life cycles from the source by introducing carbon footprint monitoring, renewable materials, and environmentally friendly packaging processes, helping the industry achieve sustainable development.

5. Intelligent and integrated development, the optical communication industry has entered a new era of technological innovation

With the accelerated breakthrough of new generation cutting-edge technologies such as AI computing, 6G communication, quantum communication, and satellite Internet, the optical communication industry is accelerating into a new stage of intelligent, integrated, and green technological innovation.

In the future, the next generation of optical communication systems will achieve more levels of intelligent scheduling, autonomous perception, and energy-saving operation, and build a safer, more stable, and more efficient transmission base. With the support of national policies, technological collaborative innovation and global competition, China's optical communication companies will continue to enhance their technological innovation capabilities and global competitiveness, and consolidate their strategic position in the global optical communication market.

6.Drive high-quality development with innovation and create a new chapter for China's optical communication industry

Looking to the future, optical communication is not only the "highway" for information transmission, but also the "arterial blood" of the digital economic system. Only by continuously strengthening the breakthrough of independent core technologies, deepening the coordination of upstream and downstream industrial chains, and promoting the upgrading of products to high-speed, intelligent and green, can the optical communication industry seize the initiative in the new round of scientific and technological revolution, lead the development trend of global communication technology, and write a new glory for China's optical communication.