Huawei continues to lead the global telecom equipment market, increases share in the first three quarters of 2020: Report

Huawei has been a market leader in the telecom equipment industry for a decade and its journey to be a telecom giant continues as a new report shows its market share has increased even in the face of U.S. sanctions.

A new report from Dell’Ore group shows the ranking of telecom equipment makers and their growth between 2019 and Q1 2020 – Q3 2020.

This list is topped by Huawei with 30% of total global telecom equipment compared to 28% in 2019. Huawei is followed by Nokia, Ericsson, ZTE, Cisco, Ciena, and Samsung as the top seven suppliers, accounting for more than 80% of the total market.

The telecommunication equipment includes broadband access, microwave, optical transmission, mobile core, radio access networks (RAN), SP routers, and carrier Ethernet switches (CES).

Preliminary estimates suggest the overall telecom equipment market – Broadband Access, Microwave & Optical Transport, Mobile Core & Radio Access Network, SP Router & Carrier Ethernet Switch (CES) – advanced 9% Year-Over-Year (Y/Y) during 3Q20 and 5% Y/Y for the 1Q20-3Q20 period.

Other highlights of this report on the overall global telecom equipment market for the third quarter of 2020 include:

  • Following the 4% Y/Y decline during 1Q20, the positive trends that characterized the second quarter extended into the third quarter, underpinned by strong growth in Optical Transport and multiple wireless segments including 5G RAN, 5G Core, and Microwave Mobile Backhaul.
  • Technology segments that were impacted more materially by COVID-19 and the lockdowns during 1Q20 continued to stabilize in the quarter.
  • Preliminary estimates indicate increasing Mobile Infrastructure and Optical Transport revenues offset declining investments in Microwave Transport and SP Routers & CES for the 1Q20-3Q20 period.
  • The overall telecom equipment market continued to appear disconnected from the underlying economy. While the on-going transition from 4G to 5G is helping to offset reduced capex in slower-to-adopt mobile broadband markets, we also attribute the disconnect to the growing importance of connectivity and the nature of this recession being different than in other downturns improving the visibility for the operators.
  • With investments in China outpacing the overall market, we estimate Huawei and ZTE collectively gained about 3 percentage points of revenue share between 2019 and 1Q20-3Q20, together comprising more than 40% of the global telecom equipment market.
  • The Dell’Oro analyst team has not made any material changes to the overall outlook and projects the total telecom equipment market to advance 5% to 6% in 2020 and 3% to 4% in 2021. Total telecom equipment revenues are projected to approach $90 B to $95 B in 2021.

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