Factors that increase the market demand for magnetic components
The continuous development of new infrastructure and the rapid popularization of a new generation of network communication technology will accelerate the upgrading of network communication equipment and greatly increase the market demand for magnetic components
A. Continued development of new infrastructure
In December 2018, my country proposed for the first time: to accelerate the pace of 5G commercial use and strengthen the construction of new infrastructure such as artificial intelligence, industrial Internet, and Internet of Things, and the concept of “new infrastructure” was born from this. “New infrastructure” is essentially information digital infrastructure, mainly including 5G infrastructure, UHV, intercity high-speed railway and urban rail transit, new energy vehicle charging piles, big data centers, artificial intelligence, and industrial Internet. Communication network infrastructure is a key input.
In July 2019, my country proposed to accelerate the construction of new infrastructure such as information networks. In March 2020, my country proposed to speed up the construction of new infrastructure such as 5G networks and data centers. In March 2020, my country proposed: strengthen the construction of new infrastructure, develop a new generation of information network, expand 5G applications, build data centers, increase charging piles, power stations and other facilities, promote new energy vehicles, stimulate new consumer demand, and help industrial upgrading .
The “my country’s 14th Five-Year Plan and 2035 Long-term Goals” passed in March 2021 pointed out that “accelerate the large-scale deployment of 5G networks, increase the user penetration rate to 56%, promote and upgrade Gigabit optical fiber networks. Prospective layout of 6G network technology reserves. Expansion Backbone network interconnection nodes, a new batch of international communication entrances and exits, comprehensively promote the commercial deployment of the sixth version of the Internet Protocol (IPv6). Accelerate the construction of a national integrated big data center system. Actively and steadily develop the industrial Internet and the Internet of Vehicles. Accelerate transportation, energy, Digital transformation of traditional infrastructure such as municipal administration.
“New infrastructure” is an important development strategy of our country, an important content of serving the national network power strategy, an objective need to support the high-quality development of the digital economy, and an effective path to promote economic and social transformation and upgrading. In this context, the construction of new infrastructure represented by 5G and big data centers will continue to develop.
B. Rapid popularization of new generation network communication technology
With the strong support and guidance of the government, my country’s fixed broadband and mobile broadband have both entered the Gigabit era, that is, Gigabit fixed broadband network and 5G Gigabit mobile network. 5G is the fifth generation of mobile communication technology. 5G technology has the characteristics of high frequency, large capacity, high speed, low delay, large-scale equipment connection, and support for massive access. F5G is the fifth-generation fixed network, represented by 10GPON (10Gigabit-Capable Passive Optical Networks, a passive optical integrated access standard), WiFi6 and other technologies. 10GPON technology is the key to realizing gigabit broadband access, and Wi-Fi6 is the connection after realizing gigabit broadband access. The 10GPON gigabit broadband network has leapfrog development in terms of connection capacity, bandwidth and user experience. The uplink and downlink rates will be as high as symmetrical 10Gbps, and the delay will be reduced to less than 100us. Wi-Fi6 is the latest generation of Wi-Fi standard, which greatly improves the wireless transmission rate, supports multi-device communication, efficiently utilizes wireless channels, and improves network stability under dense signals.
The continuous development of new infrastructure and the rapid popularization of new-generation network technologies 5G, 10GPON, and WiFi6 will promote the rapid construction of communication network infrastructure, which will bring a wide range of network communication equipment such as 5G communication base stations, routers, switches, servers, and set-top boxes. The upgrading and upgrading of network communication equipment will significantly increase the purchase volume of network communication equipment, thereby greatly increasing the market demand for upstream magnetic components.
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