In recent years, the scale of China network communication equipment market has shown an overall growth trend, and the growth rate is higher than that of the global market. Among them, the rigid demand for switches and wireless products is the main driving factor for market growth. In 2020, the market size of China's enterprise-level switches is about 3.15 billion US dollars, an increase of 24.5% over 2016; the market size of wireless products is about 880 million US dollars, an increase of 44.3% over 2016.
The scale of the global network communication equipment market is also showing an overall growth trend, among which switches and wireless products are the main drivers of market growth. In 2020, the market size of enterprise-class Ethernet switches is about US$27.830 billion, an increase of 13.9% over 2016; the market size of wireless products is about US$11.340 billion, an increase of 18.1% over 2016.
At present, the update and iteration speed of domestic network communication products is accelerating, among which 5G base stations, WIFI6 routers, set-top boxes and data centers (including switches and servers) are key application areas for small magnetic ring coils.
More than 1.25 million new 5G base stations were added last year
From 4G to 5G, the transmission speed of the communication network has increased by leaps and bounds, and the electromagnetic wave frequency bands used by it have increased accordingly: the main frequency bands used by 4G are 1.8-1.9GHz and 2.3-2.6GHz, and the base station coverage radius is 1-3 kilometers.
The frequency bands used by 5G include 2.6GHz, 3.5GHz, 4.9GHz and high-frequency bands above 6GHz, which are about 2 to 3 times higher than the existing 4G signal frequency. The signal transmission distance and penetration effect are relatively weakened, and the corresponding base station coverage The radius is greatly reduced, so the construction of 5G base stations needs to be denser.
To achieve the coverage level of the existing 4G network, the total number of 5G base stations will be 2 to 3 times that of 4G base stations. The deployment density of base stations needs to be greatly increased, and the radio frequency system of base stations is characterized by miniaturization, light weight, and integration. According to data from the Ministry of Industry and Information Technology, by the end of 2019, the number of 4G base stations in China had reached 5.44 million, accounting for more than half of the total number of 4G base stations in the world.
A total of more than 130,000 5G base stations have been built nationwide. By the end of September 2020, the number of 5G base stations in the country has reached 690,000. According to the forecast of the Ministry of Industry and Information Technology, the number of new 5G base stations in China will increase rapidly in 2021 and 2022, and 5G base stations will be added in 2022. The number of base stations will peak at more than 1.25 million.
Wi-Fi6 maintains a compound growth rate of 114%
Wi-Fi6 is the sixth generation of wireless access technology, which is suitable for personal indoor wireless terminals to access the Internet. It has the advantages of high transmission rate, simple system, and low cost. The core component of the router to realize the network signal transmission function is the network transformer. Therefore, in the iterative replacement process of the router market, the demand for network transformers will increase significantly.
Compared with the current general-purpose Wi-Fi5, Wi-Fi6 is faster and can reach 2.7 times that of Wi-Fi5; more power-saving, based on TWT energy-saving technology, can save 7 times power consumption; the average speed of users in crowded areas is increased At least 4 times.
Based on the above advantages, Wi-Fi6 has a wide range of future applications, such as cloud VR video/live broadcast, allowing users to experience immersive; distance learning, supporting virtual online classroom learning; smart home, Internet of Things automation services; real-time games, etc.
According to IDC data, Wi-Fi6 began to appear in succession from some mainstream manufacturers in the third quarter of 2019, and it is expected to occupy 90% of the wireless network market in 2023. It is estimated that 90% of enterprises will deploy Wi-Fi6 and Wi-Fi6 routers. The output value is expected to maintain a compound growth rate of 114% and reach US$5.22 billion in 2023.
Global set-top box shipments will reach 337 million units
The set-top box refers to the technology and application terminal that uses the infrastructure of the telecommunications broadband network, uses the TV as the display terminal, and provides interactive digital media content and digital entertainment services to home users through the Internet protocol.
The set-top box is equipped with an intelligent operating system and has rich application expansion capabilities. The interactive services provided mainly include interactive multimedia services such as live TV programs, recordings, video-on-demand, web browsing, online education, online music, online shopping, and online games. wait. With the advancement of technology worldwide, the popularity of smart TVs and the widespread use of high-definition transmission channels, the global shipments of set-top boxes have been steadily increasing year by year.
According to the data released by Grand View Research, the new shipments of global set-top boxes increased from 315 million units in 2017 to 331 million units in 2020, maintaining a steady growth, and the new shipments are expected to reach 337 million units by 2022.
The global data center is undergoing a new round of transformation
With the advent of the 5G era, the data transmission rate and transmission quality have been greatly improved, and the data transmission and storage capacity in fields such as high-definition video/live broadcast, VR/AR, smart home, smart education, smart medical care, and smart transportation have exploded. The scale of data has further increased, and a new round of transformation in data centers is accelerating in an all-round way.
According to the "Data Center White Paper (2020)" released by the China Academy of Information and Communications Technology, as of the end of 2019, the total number of data center racks in use in China reached 3.15 million, with an average annual growth rate of more than 30% in the past five years. Growth is rapid, the number exceeds 250, and the rack size reaches 2.37 million, accounting for more than 70%; there are more than 180 large-scale and above data centers under construction, and the rack size exceeds 3 million, maintaining a continuous growth momentum.
In 2019, China's IDC (Internet Digital Center) industry market revenue reached about 87.8 billion yuan, with a compound growth rate of about 26% in the past three years, and it is expected to maintain a rapid growth momentum in the future.
According to the structure of the data center, the switch plays an important role in the system, and the network transformer assumes the functions of the switch data transmission interface and noise suppression processing. Driven by communication network construction and traffic growth, global switch shipments and market size have maintained rapid growth.
According to the "Global Ethernet Switch Router Market Report" released by IDC, in 2019, the total revenue of the global Ethernet switch market was US$28.8 billion, a year-on-year increase of 2.3%. In the future, the scale of the global network equipment market will generally increase, and switches and wireless products will become the main drivers of market growth.
According to the architecture, data center servers can be divided into X86 servers and non-X86 servers, among which X86 is mainly used in small and medium-sized enterprises and non-critical businesses.
According to data released by IDC, China's X86 server shipments in 2019 were approximately 3.1775 million units. IDC predicts that China's X86 server shipments will reach 4.6365 million units in 2024, and the compound annual growth rate between 2021 and 2024 will reach 8.93%, which is basically consistent with the growth rate of global server shipments.
According to IDC data, China's X86 server shipments in 2020 will be 3.4393 million units, which is higher than expected, and the overall growth rate is relatively high. The server has a large number of network data transmission interfaces, and each interface needs a network transformer, so the demand for network transformers increases with the increase of servers.
