The global market for telecoms infrastructure has seen modest but healthy growth in the first half of 2020, bolstered by a good Q2, according to a report from a leading analyst firm.
“We just wrapped up the 2Q20 reporting period for all the telecommunications infrastructure programs covered at Dell’Oro Group,” said report author and VP Stefan Pongratz. “Preliminary estimates suggest the overall telecom equipment market – Broadband Access, Microwave & Optical Transport, Mobile Core & Radio Access Network, SP Router & Carrier Ethernet Switch – advanced 4% year on year for the first half of 2020.”
Preliminary readings, he said, suggest revenue rankings remained stable between the first two quarters of 2019 and the same period this year, with Huawei, Nokia, Ericsson, ZTE, Cisco, Ciena, and Samsung ranked as the top seven suppliers. At the same time, revenue shares changed slightly as Chinese suppliers benefitted from large scale 5G rollouts in China.
Revenue shares for the 1H20 period relative to 2019 for the top five suppliers show that Huawei, Nokia, Ericsson, ZTE, and Cisco comprised 31% (28% for 2019), 14% (16%), 14% (14%), 11% (9%), 6% (7%), respectively.
The overall telecom equipment market returned to growth in the second quarter of 2020, after a soft Q1, with particularly strong growth in mobile infrastructure and slower but positive growth for Optical Transport and SP Routers and CES, which was more than enough to offset weaker demand for Broadband Access and Microwave Transport.
“Also helping to explain the output acceleration in the second quarter was the stabilization of various supply chain disruptions that impacted the results for some of the technology segments in the first quarter,” said Pongratz.