Vertical Divider
Telecom Equipment Makers Experience Best Year in Decade Due to 5G
The telecom equipment market has logged its best year in nearly a decade, according to analyst firm Dell'Oro Group - and China's Huawei is still dominant. In a report based on preliminary estimates, Dell'Oro says that annual revenue growth of 7% led to the best year for the market since 2011.Overall, Huawei, Ericsson and ZTE grew market share, while Nokia (and Cisco slipped, according to the firm - bringing Nokia and Ericsson close to parity, but a ways behind Huawei. Market share for the top six suppliers was Huawei (31%), Nokia (15%), Ericsson (15%), ZTE (10%), Cisco (6%) and Ciena, 3%), all ahead of Samsung. Both Ericsson and Nokia improved their RAN positions outside of China, according to the report - and mobile core network and RAN made up about half of the $90B-$95B in global spending in the telecom equipment market last year. While the COVID-19 pandemic shifted traffic patterns - leading to strong demand for capacity upgrades in some market segments - Dell'Oro is optimistic the market isn't headed for a drop-off, projecting overall growth of 3%-5% in 2021. Ericsson posted a strong earnings report at the end of January, growing its Networks revenues by 11% on momentum from 5G networking contracts and benefiting from a ban on Huawei in several countries.
The telecom equipment market has logged its best year in nearly a decade, according to analyst firm Dell'Oro Group - and China's Huawei is still dominant. In a report based on preliminary estimates, Dell'Oro says that annual revenue growth of 7% led to the best year for the market since 2011.Overall, Huawei, Ericsson and ZTE grew market share, while Nokia (and Cisco slipped, according to the firm - bringing Nokia and Ericsson close to parity, but a ways behind Huawei. Market share for the top six suppliers was Huawei (31%), Nokia (15%), Ericsson (15%), ZTE (10%), Cisco (6%) and Ciena, 3%), all ahead of Samsung. Both Ericsson and Nokia improved their RAN positions outside of China, according to the report - and mobile core network and RAN made up about half of the $90B-$95B in global spending in the telecom equipment market last year. While the COVID-19 pandemic shifted traffic patterns - leading to strong demand for capacity upgrades in some market segments - Dell'Oro is optimistic the market isn't headed for a drop-off, projecting overall growth of 3%-5% in 2021. Ericsson posted a strong earnings report at the end of January, growing its Networks revenues by 11% on momentum from 5G networking contracts and benefiting from a ban on Huawei in several countries.
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