The market analysis and research firm, Dell’Oro Group published its half-yearly “Telecom Equipment Market” report for the first half of 2020. The report in whole took the Broadband Access, Microwave & Optical Transport, Mobile Core & Radio Access Network (RAN), and Service Provider (SP) Router & Carrier Ethernet (CE) Switch markets into consideration.
The telecom equipment market saw an overall growth of 4% in H1 2020 as the businesses were back on the track of growth in Q2 after a 4% decline in Q1 2020. Even though the vendors were able to retain their ranks, they did see a change in their revenue share, since the Chinese vendors excelled in the mass 5G rollouts in China during the pandemic. Huawei, which had a 28% revenue share in H1 2019 as well as in Q1 2020, performed quite well in Q2 2020, as it was able to grasp 31% of the total revenue share in H1 2020 and remained the topmost supplier.
In the first half of this year, Nokia managed to hold 14% of the total revenue share of the market and remained the second-largest telecom equipment maker globally. If the current value is compared to that of H1 2019, Nokia’s share depleted with a drop of 2%. Followed by Nokia, Ericsson with 14%, ZTE with 11%, and Cisco with 6% revenue share rounded up the list of top five vendors.
Compared to their H1 2019 results, Ericsson remained stable, ZTE witnessed a positive jump of 2%, and Cisco dropped by 1%. Talking particularly of the specific segments, except for the Broadband Access and Microwave Transport market, all the other segments took a small leap alongside a double-digit growth in Mobile Infrastructure.
Coming to the Microwave Transmission equipment market, the demand shrank by 14% year-over-year. Nokia remained the third-largest supplier after Huawei and Ericsson. Also, Nokia was the only major vendor among the top 3 that ended the first half of the year on a positive note, since it gained the most market share in H1 2020, i.e., its share increased by 3%.
Dell’Oro Group expects the advancing trends in the first half for the overall telecom equipment market to continue in the second half of this year as well.
The report conclusively states that contrary to all the backlash that Huawei has been facing all around the world, the company has performed rather well than expected, and it has also been possible due to the large defensive support from its homeland. Again, if we talk about Nokia, there is also a lot of positivity surrounding the change in Nokia’s leadership, and a lot is being expected from the new leaders. Recently, the Finnish state fund, Solidium Oy, increased its ownership in Nokia Corporation to 5%, which is also a national support for the homegrown company.
However, considering how sensitive the geopolitical situations around the telecom equipment vendors have been in the past few months, it remains to be seen who will benefit the most from it, as it is not so obvious yet.
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