Sunday, August 11, 2019

Dell'Oro: 5-year telecom equipment/services to grow at 1% CAGR

Dell'Oro is predicting the overall telecom equipment and services market to grow at a 1% CAGR through 2023, growing from $121 billion in 2018 to $129 billion by 2023.

Some highlights from Dell'Oro:

  • In order to cope with mobile data traffic that continues to grow at an unabated pace and flattish revenue trends, operators are balancing their investments carefully between the supply side related challenges and the opportunities from a demand perspective. The need to reduce TCO has been a catalyst for the overall 4G to 5G migration acceleration, benefitting not only RAN equipment but also the demand for core, transport, and services.
  • Total Transport Market – including Microwave and Optical – is projected to grow at a 3% CAGR. 
  • The demand for Mobile Backhaul is projected to grow at a 3% CAGR while the overall RAN market is projected to grow at a 2% CAGR, over the forecast period.
  • Overall 5G infrastructure projections – including 5G RAN and 5G Core – were revised upward, reflecting a more optimistic view about the 5G Core market.
  • The adoption of 400 GE will help to advance the SP Router market and offset flat growth expectations for Broadband Access.
  • Following five years of contractions, Network Equipment Services revenue growth is expected to improve, buoyed by improving market sentiment for telecom equipment. 
  • Total Network Equipment Services revenue – including Managed Service, Network Rollout Service, and Consulting Service – is projected to grow at a low-single digit growth rate over the forecast period.