Showing posts with label Dell'Oro. Show all posts
Showing posts with label Dell'Oro. Show all posts

Tuesday, June 15, 2021

Dell'Oro: Total telecom equipment market up 15% in Q1

 The overall telecom equipment market grew 15% year-over-year (Y/Y) in the first quarter, reflecting positive activity in multiple segments and regions, lighter comparisons, and a weaker US Dollar, according to analysis from Dell’Oro Group.  This includes sales in the following categories:  Broadband Access, Microwave & Optical Transport, Mobile Core & Radio Access Network, and Service Provider Router & Switch revenue.

Some highlights from Dell'Oro:

  • The collective global share of the leading suppliers remained relatively stable between 2020 and 1Q21, with the top seven vendors comprising around ~80% of the total market.
  • Huawei maintained its leading position, however, the gap between Nokia and Ericsson, which was around 5 percentage points back in 2015, continued to shrink and was essentially eliminated in the quarter. 
  • Samsung passed Ciena in the quarter to become the #6 supplier.
  • Excluding North America, Dell'Oro estimates Huawei’s revenue share was about 36% in the quarter, nearly the same as the combined share of Nokia, Ericsson, and ZTE.
  • Following three consecutive years of growth between 2018 and 2020, preliminary readings suggest the positive momentum that characterized the overall telco market in much of 2020 extended into the first quarter, underpinned by double-digit growth on a Y/Y basis in both wireless and wireline technologies including Broadband Access, Microwave Transport, Mobile Core Network, RAN, and SP Router & Switch.
  • In addition to easier comparisons due to poor market conditions in 1Q20 as a result of supply chain disruptions impacting some segments, positive developments in the North America and Asia Pacific regions, both of which recorded growth in excess of 15% Y/Y during the first quarter, helped to explain the output acceleration in the first quarter.
  • Aggregate gains in the North America region was driven by double-digit expansion in Broadband Access, RAN, and SP Routers & Switch.

Further highlights here:

https://www.delloro.com/key-takeaway-1q-2021-total-telecom-equipment-market/


Dell’Oro: Ethernet controller and adapter sales up 6%

Ethernet controller and adapter revenue grew 6 percent quarter-over-quarter in 1Q 2021 as inventory correction from the prior quarter eases, according to a new report from Dell'Oro Group. The market research firm projects the server refresh and cloud expansion to drive higher demand later this year.

“In light of the tightening global semiconductor supply chain, we believe server vendors are proactively increasing inventory levels of Ethernet controllers and adapters in anticipation of higher demand later this year,” said Baron Fung, Research Director at Dell’Oro Group. “As a result, shipments of 10 and 25 Gbps ports grew moderately. Meanwhile, we observed strong momentum for 100 Gbps ports, as the Tier 1 Cloud service providers adopt higher speed ports following data center networking upgrades, and to support the growing demands of accelerated computing and all-flash array storage across the industry,” added Fung. 

Additional highlights:
  • Total Ethernet controller and adapter revenue forecast to grow 4 percent in 2021. 
  • Next-generation adapters with 200 Gbps connectivity are starting to ramp. 
  • Amazon and Microsoft accounted for 90 percent of the Smart NIC port shipments in 1Q 2021. 
  • Other leading Smart NIC vendors reported include Broadcom, Marvell, Napatech, and Nvidia.

Wednesday, June 2, 2021

Dell'Oro: Revenues for Mobile Core Network market up 16% in Q1

Revenues for the Mobile Core Network (MCN) market rose 16 percent year-over-year for 1Q 2021, according to a new report from Dell'Oro Group. 5G Core market reached over 20 percent revenue share of the MCN market, a record high since tracking 5G revenues began in 2Q 2020.

“This growth rate has been fueled from buildouts from five commercially deployed nationwide mobile 5G Standalone (5G SA) networks, three in China, one in the US, and one in Western Europe,” stated David Bolan, Research Director at Dell’Oro Group. “The MCN market is poised for higher growth as more 5G SA networks are readying to come on-line.  An example comes from Japan, as some of the Japanese service providers (SPs) are readying their networks for 5G SA. NEC, one of the primary 5G vendors in Japan, ranked fourth among 5G Packet Core vendors in 1Q21, achieving double-digit percent revenue market share,” Bolan added.


Additional highlights from the 1Q 2021 Mobile Core Network Report:

  • Investment in 4G Core saw its first double-digit percentage revenue decline year-over-year as more investments go into 5G.
  • IMS Core market growth remains positive as SPs realize they need to move their voice core from circuit switched voice to VoLTE for initial voice services for 5G.
  • Huawei, Ericsson, Nokia, ZTE, and Mavenir are the top vendors for the quarter in 1Q 2021 based on the trailing four quarters

https://www.delloro.com/news/mobile-core-network-market-logged-strong-double-digit-growth-in-1q-2021/

Wednesday, March 10, 2021

Dell'Oro: WLAN market sees big spending from education and govt sectors

 The Wireless LAN market experienced double-digit growth year-over-year in 4Q2020 thanks to government and stimulus spending in many countries including China, Japan, and the USA. Overall market outlook strengthens, according to a new report from Dell'Oro Group. Wireless LAN vendors lose opportunities as supply lead times extend beyond government funding use by date.

“While government spending is flowing into all vertical industries, it is most notable in K-12 Education and Government,” said Matthias Machowinski, Senior Research Director at Dell’Oro Group. “We estimate those two verticals alone contributed an additional 15 percent to overall market spend during 4Q 2020, as sales to K-12 increased 90 percent and Government increased almost 40 percent—extraordinary rates. Clearly, government spending is lifting overall market sales and by our judgment, is likely to continue through 2021 and beyond,” added Machowinski.


Additional highlights from the Wireless LAN 4Q 2020 Quarterly Report:

  • Wi-Fi 6 achieved a major milestone, accounting for the majority of access point revenue. Notable growth came from government-funded projects in China, Japan, and Mexico.
  • Demand surges for entry-level Enterprise-class access points for remote employees.

https://www.delloro.com/news/government-spending-drives-wireless-lan-market-to-double-digit-y-y-growth-in-4q-2020-outlook-strengthens/

Tuesday, March 9, 2021

Dell'Oro: Campus switch sales dipped in Q4

The worldwide Campus Switch revenue declined in 4Q 2020, following a short recovery in the prior quarter, according to a new report from Dell'Oro Group.  The year-over-year revenue decline was broad-based across all regions, except China which continued to grow for the third consecutive quarter.


“Government stimulus around the world, which propelled market recovery in 3Q 2020, continued in the fourth quarter of 2020,” said Sameh Boujelbene, Senior Director at Dell’Oro Group. “However, 4Q 2020 did not benefit from pent-up demand from large enterprises as much as the prior quarter did. On a more positive note, we started to see some sign of recovery in the mid-market,” added Boujelbene.

Additional highlights from the 4Q 2020 Ethernet Switch – Campus Report:

  • Despite the market decline, verticals that performed well during the quarter are government and public sector, lower education, financial sector, and manufacturing.
  • Industrial Ethernet switches were in high demand exiting the year.
  • 5/5.0 Gbps port shipments were up more than 60 percent in 2020, as the pandemic has accelerated the adoption of higher speeds and new technologies.
  • Major vendors with revenue share gain for the quarter as well as for the year are H3C, HPE, and Huawei.

Tuesday, March 2, 2021

Dell'Oro: SD-WAN market Surged 50% in 4Q2020

The worldwide SD-WAN market grew 50 percent in the fourth quarter of 2020 compared to the prior year, according to a new report from Dell'Oro Group. The top five vendors in revenue share for the full-year 2020 were led by Cisco, followed by VMware, Fortinet, Versa, and HPE/Silver Peak.



“The combination of pent-up demand caused by the COVID-19 pandemic and an acceleration away from legacy technologies created a surge in SD-WAN adoption during the fourth quarter,” said Shin Umeda, Vice President at Dell’Oro Group. “On a full-year basis, the market grew 32 percent in 2020, which was about half the rate of the prior year, but very impressive given the challenging macroeconomic environment that we faced throughout the year,” added Umeda.

Additional highlights from the 4Q 2020 SD-WAN Report:

  • Dell’Oro Group’s quarterly tracking of the SD-WAN market is now available as a separate research report.
  • SD-WAN market share for 2020 saw increasing concentration in a small number of vendors. The top five vendors accounted for almost two-thirds of revenue share.
  • Vendors are increasingly leveraging security functionality to differentiate their SD-WAN solution and driving growth.
https://www.delloro.com/news/sd-wan-market-surged-50-percent-in-the-fourth-quarter-of-2020/

Wednesday, February 24, 2021

Dell'Oro: Microwave transmission equipment market dipped 6% in 2020

The market for Microwave Transmission equipment declined 6 percent in 2020 but is positioned for growth in 2021, according to new report from Dell'Oro Group.

“It was a difficult market environment for Microwave Transmission sales in 2020,” said Jimmy Yu, Vice President at Dell’Oro Group. “The pandemic, of course, was the main cause for the market decline, especially in regions of the world that placed strict rules on travel. But throughout the year, following a sharp decline in the first quarter, the market steadily strengthened, resulting in quarter-over-quarter revenue growth in each quarter following 1Q20,” added Yu.


Some highlights:

  • Huawei continued to hold the highest market share in each quarter of the year, and ultimately gained share against some of its competitors by the year’s end. 
  • Huawei achieved its highest market share level in 2020, surpassing its record level set back in 2016. 
  • The vendors with the next highest shares were Ericsson and Nokia, both of which benefited from the strengthening European market.
  • Only two regions—North America and Europe—grew year-over-year in the fourth quarter and full-year 2020. 

“We believe the North American market improvement was driven by growing demand in the Verticals market for public safety and Internet services, and that the European market grew due to an increasing demand for mobile backhaul,” stated Yu.

https://www.delloro.com/news/microwave-transmission-equipment-market-declined-6-percent-in-2020/

Wednesday, December 9, 2020

Dell'Oro: Strong demand for 25 Gbps Ethernet adapters

Strong demand for 25 Gbps Ethernet adapters propelled the market to the highest revenue of $638 million in 3Q 2020, according to a new report from Dell'Oro Group. Nvidia gained share on a one-time sale of Ethernet controllers and adapters sufficient to satisfy the multi-year demand of a Chinese OEM, presumed to be Huawei, ahead of its sourcing ban from US vendors.

“More than 3.3 million of 25 Gbps Ethernet controllers and adapters ports were shipped in 3Q20, surpassing the previous record set in the prior quarter, with strong demand from Tier 1 China-based Cloud SPs and Tier 1 server OEMs as they embraced the technology,” said Baron Fung, Research Director at Dell’Oro Group. “However, shipments of 50 Gbps Ethernet controller and adapter ports declined from the prior quarter as some of the Tier 1 Cloud service providers have entered a digestion cycle and reduced server deployments,” added Fung.


Additional highlights from the 3Q 2020 Ethernet Controller and Adapter report include:

  • Total Ethernet controller and adapter port shipments increased 8 percent quarter-over-quarter.
  • Shipments of 100 Gbps ports grew quarter-over-quarter to 425 K ports, an all-time-high, to support the growing demands of accelerated computing.
  • Amazon commanded 73 percent revenue share of the Smart NIC market in 3Q 2020. Broadcom led the Ethernet adapter vendors in port shipments, followed by Marvell and Nvidia.

Dell'Oro: Campus switch revenue returned to growth in Q3

Worldwide campus switch revenue recovered after two consecutive quarters of high single-digit decline, according to a new report from Dell'Oro Group. Huawei, HPE, H3C, and Arista Networks drove most of the growth in 3Q 2020 and comprised more than 28 percent of the market sales, up nearly three percentage points year-over-year (Y/Y).

Additional highlights from the 3Q 2020 Ethernet Switch – Campus Report:

The revenue recovery was broad-based across all major regions: North America, Europe, and the Asia Pacific, with the majority of the growth driven by North America.

5/5.0 Gbps port shipments were up 60 percent Y/Y, surpassing 1.5 M ports during the quarter as the pandemic is accelerating the adoption of higher speeds and new technologies.


“Government funding around the world and particularly in North America propelled growth in the market,” said Sameh Boujelbene, Senior Research Director at Dell’Oro Group. “Additionally, the market benefited from backlog fulfillment during the quarter as supply challenges improved from the first half of the year. While government funding may have benefited mostly the public sector and lower education verticals, we have started to see some signs of recovery in large and even some mid-size enterprises as they resumed spending on campus network upgrades,” added Boujelbene.

https://www.delloro.com/news/campus-switch-revenue-returned-to-year-over-year-growth-in-3q-2020/

Thursday, November 19, 2020

Dell'Oro: Optical transport equipment market grew 9% in 3Q 2020

Thanks to higher demand in Asia Pacific, optical transport equipment revenue increased 9 percent year-over-year in 3Q 2020 reaching $3.8 billion, according to a new report from Dell'Oro Group.

“Sales slowed in North America following a strong first half of the year,” said Jimmy Yu, Vice President at Dell’Oro Group. “Whether it was due to network demand caused by people working and studying from home or new projects at the beginning of the year, the demand for optical equipment in the region rose 11 percent in the first half of 2020. But I think there was enough concern surrounding the longevity of the pandemic that service providers grew cautious and refrained from overextending their capital. As a result, optical revenue in North America declined 7 percent in the third quarter,” continued Yu.


Highlights:

  • Growth in Asia Pacific more than offset the lower revenue in North America and Latin America. 
  • Optical revenue grew 22 percent year-over-year in Asia Pacific, driven largely by higher deployments in China and Japan. 
  • With lockdown restrictions easing, some regions such as Middle East and Africa (MEA), significantly rebounded in the quarter following a sharp decline in 1H 2020. 
  • Sales in China, Japan, and MEA each grew over 25 percent.

https://www.delloro.com/news/optical-transport-equipment-market-grew-9-percent-in-3q-2020-to-3-8-billion/

Dell'Oro: Surging demand for 5G accelerates RAN growth

Preliminary readings indicate that the positive momentum that has characterized the radio access network (RAN) market since the upswing began in the second half of 2018 extended into the third quarter, with surging demand for 5G propelling the RAN market to robust year-over-year growth, according to Dell'Oro Group.

“While we correctly identified that the RAN market would appear disconnected from the underlying economy throughout this year, we also underestimated the pace and the magnitude of these 5G rollouts,” said Stefan Pongratz, analyst with the Dell’Oro Group. “This shift from 4G to 5G, including low-band-and mid-band 5G NR, continued to accelerate at a torrid pace in the quarter, underpinned by stronger-than-expected 5G activity in multiple regions.”


Highlights:

  • RAN revenue shares were impacted to some degree by the state of the 5G rollouts in China and North America, resulting in share gains for both Huawei and ZTE over the 1Q20-3Q20 period.
  • The near-term outlook remains favorable for both macro and small cells, with combined 2020 and 2021 2G-4G and 5G base station shipments projected to eclipse 10 M units.
  • We have adjusted the near-term RAN market outlook upward, to reflect stronger than expected activity in China, Europe, and North America, with total RAN projected to approach $70 B to $80 B for the combined 2020 and 2021 period.

Tuesday, November 17, 2020

Dell'Oro: Microwave Transmission Equipment Market up 6% in 3Q

The market for Microwave Transmission equipment grew 6 percent year-over-year in 3Q 2020 following a steep decline in the first half of the year, according to a new report from Dell'Oro Group.

“The wireless backhaul market began to recover in the third quarter following the end of COVID-19 related lock downs,” stated Jimmy Yu, Vice President at Dell’Oro Group. “We think there is more growth to come for this market and remain positive that demand for Microwave Transmission equipment will continue to increase. Assuming the worst of the pandemic is behind us, the economy recovers, and 5G mobile radio deployments stay on pace, we are predicting the microwave market to grow 4 percent next year to $3.1 billion,” added Yu.


For the year-to-date period, which includes the first nine months of 2020, the top six microwave vendors with a collective revenue share of nearly 80 percent were Huawei, Ericsson, Nokia, Ceragon, NEC, and Aviat. Among these vendors, three (Aviat, Huawei, and Nokia) outperformed the market and increased their individual market shares by at least one percentage point in the year-to-date period compared to last year.

The vendors with the highest share in the fast growing E/V Band market, which grew 35 percent year-over-year in 3Q 2020, were Huawei, Nokia, Ericsson, and Siklu. In the year-to-date period, Nokia’s share of the E/V Band market sharply increased by eight percentage points.

https://www.delloro.com/news/microwave-transmission-equipment-market-increased-6-percent-in-3q-2020-according-to-delloro-group/

Thursday, September 3, 2020

Dell’Oro: Open RAN market to eclipse $5 billion

The worldwide sales of Virtualized Open RAN technologies are forecasted to grow at double-digit rates over the next five years with cumulative Open RAN investments – including hardware, software, and firmware excluding services – projected to surpass $5 B over the forecast period, according to a new report from Dell'Oro Group.

“At a first glance it might appear overly optimistic with a baseline scenario suggesting a new technology, which remains relatively untested and some officials believe would need a decade to get off the ground, would be able to become a billion-dollar market comprising a sizable portion of the overall RAN segment in just half a decade,” said Stefan Pongratz, Vice President and analyst with the Dell’Oro Group. “At the same time, the momentum is improving, and we have adjusted the outlook upward to reflect a confluence of factors including promising results from initial commercial deployments, growing support from the incumbent RAN suppliers, and increased geopolitical uncertainty acting as a catalyst for operators to rethink their supplier strategies,” continued Pongratz.

Additional highlights:

  • Cumulative Virtualized RAN revenues—here defined as the proportion of RAN baseband/compute capex that will utilize general-purpose processors for CU and/or DU—are projected to approach $3 B to 5 B over the next five years.
  • Cumulative Open RAN radio shipments – including macro and small cells – are projected to surpass 1 M over the forecast period.

https://www.delloro.com/news/open-ran-market-expected-to-eclipse-5b/

Tuesday, August 11, 2020

Dell'Oro: Network Security and ADC market to grow at 6% CAGR

The Network Security and Data Center Appliance market, consisting of the Firewall, Content Security, Intrusion Detection System and Intrusion Prevention System (IDS and IPS), and Application Delivery Controller (ADC) markets, is forecasted to grow at 6% five-year CAGR and go from $14 B in 2019 to $19 B in 2024, according to Dell'Oro Group's newly published 5-Year Forecast report.

Some highlights:

  • The ongoing COVID-19 pandemic will continue to impact the market both negatively and positively throughout 2020 and into the first half of 2021, assuming that an effective therapy or a vaccine is developed that allows society to restabilize.
  • In aggregate, the network security market, which consists of the Firewall, Content Security, IDS, and IPS markets, will continue to experience both positive and negative factors. The negative factor of delayed spending will have a slight advantage, however, leading to flat Y/Y growth in 2020.
  • Dell'Oro expects that post-pandemic, the network security market will return to the overall growth of 8% Y/Y from 2021 to 2024 and reach $17.1 B in 2024.
  • The network security market will vary significantly from historical growth trends during the pandemic. The report predicts that the Content Security and Firewall market will rebound and return to nominal growth post-pandemic. However, the IPS and IDS market will not and will continue to its long decline.
  • During the pandemic, the ADC market will be affected by both positive and negative factors. Overall, we anticipate that the positive factor of surge spending will keep growth in positive territory at 1% Y/Y in 2020.
  • Post-pandemic, we expect that the ADC market will accelerate slightly faster than Dell'Oro predicted in its previous forecast due to the combination of positive factors ranging from market demand and vendor dynamics. The five-year CAGR forecast is 1% versus our prior forecast of flat growth.

Monday, August 3, 2020

Dell'Oro: Network equipment services market returning to growth

Following five consecutive years of market contraction, the network equipment services market is returning to growth, growing slightly in 2019 due to positive developments with Network Rollout Services and Consulting Service, according to the latest Dell'Oro Network Equipment Service Market advanced research report. This growth is offset by declines in Managed Services this year.

Some highlights:

  • Managed Services is expected to weigh on the market in the near term as vendors continue to exit contracts that are unprofitable and non-strategic.
  • Network Equipment Services are becoming more complex.
  • Following five years of dynamic share shifts, the top three vendors—Huawei, Ericsson, and Nokia—have held their market share for the past three years. Together these three vendors accounted for about 75 percent of the NE Services market in 2019.

http://www.delloro.com

Sunday, August 2, 2020

Dell'Oro: Broadband access equipment spending to drop 7% in 2020

Global spending on broadband access equipment and CPE is expected to drop 7% in 2020, dipping to $11.4 B, before increasing 5% in 2021, according to a newly updated forecast from Dell'Oro Group. In January 2020 Dell'Oro forecasted a 5% decline in total revenue in 2020.

Some highlights:

  • Dell'Oro increased its five-year CAGR (2019-2024) from -2% from our January forecast to -0.9%. In response to the worldwide COVID-19 pandemic, new initiatives to improve broadband access are either underway or will be shortly. 
  • The five-year CAGR for PON equipment has been increased from 0% to just under 1%. China, which has historically accounted for anywhere from 65-80% of total PON spending, has peaked in terms of total ONT units consumed on an annual basis. The Chinese FTTH market has matured, with broadband penetration in the country reportedly nearing 80%. Though subscriber growth is slowing, there is still a tremendous installed base of subscribers that will continue to require new ONTs. This is especially the case beginning this year, when all three major operators begin purchasing 10 G units, based on either 10G EPON or the asymmetric XG-PON technologies. The 10 G upgrade cycle in China for ONTs will be extended over a longer period of time than the initial 1G EPON and 2.5 G GPON rollouts, as individual systems announce gigabit city initiatives.
  • The glut of DOCSIS channel capacity that helped push down cable equipment revenue in 2019 has actually been beneficial to operators this year as they have been able to address significant increases in both upstream and downstream traffic during the pandemic with minimal increases in spending. 

https://www.delloro.com/news/broadband-access-equipment-spending-to-drop-7-in-2020/\

Wednesday, July 22, 2020

Dell'Oro: RAN investments to surpass $200 billion

Dell'Oro Group is forecasting that the RAN market will grow at a healthy pace over the next three years, before growth tapers off in the outer part of the forecast period, resulting in a mid-single digit CAGR between 2018 and 2022. Cumulative investments over the 2019-2024 period are expected to eclipse $200 billion.

Some highlights of Dell'Oro's 5-Year RAN Forecast:

  • The Millimeter Wave outlook has been revised upward driven by improved momentum in the Asia Pacific region.
  • The pickup in mid-band deployments has propelled the demand for Massive MIMO. In this forecast, 5G NR Massive MIMO is projected to comprise more than half of the cumulative 5G NR capex.
  • The underlying assumptions driving the regional projections remain fairly unchanged, with the APAC region being the main near-term growth vehicle.
  • With more clarity about the 5G rollout plans in the North America region, we have adjusted the near-term outlook upward and now forecast the North American RAN market to continue advancing over the near-term.
  • Global macro base station (BTS) shipments are projected to remain elevated between 2020 and 2022, underpinning projections that 5G activity is set for an upturn. This positive momentum will eventually slow, resulting in some softness in the outer part of the forecast period.
  • The high level small cell vision has not changed. We expect unlicensed WiFi systems to coexist with cellular technologies. For upper mid-band deployments, operators will need to accelerate indoor deployments rapidly while the sub 6 GHz micro adoption phase will be more gradual.
  • Since the last forecast, we have adjusted the outdoor small cell outlook upward, driven primarily by a more favorable Millimeter Wave forecast.
  • Fixed Wireless Access (FWA) Radio Access Network (RAN) investments, including mobile network and dedicated fixed networks, are projected to comprise a growing share of the overall RAN capex envelope over the next five years, reflecting the size of the potential upside, various technology advancements, and improving market sentiment for both basic and high performance connectivity

https://www.delloro.com/news/radio-access-network-investments-to-surpass-0-2-trillion/

Tuesday, July 21, 2020

Dell'Oro: Sustained growth for the Optical Transport Market

The Dell'Oro Group is forecasting the Optical Transport market, largely comprised of DWDM systems, to expand in 2020 and for the next five years, reaching nearly $18 billion.

Some highlights from Dell'Oro's Optical Transport five-year forecast:

  • By 2024, nearly 30 percent of wavelength shipments will be from an 800 Gbps-capable line card. More than half of these line cards are expected to be used at 400 Gbps.
  • The next wavelength speed following 800 Gbps will be 1200 Gbps (1.2 Tbps). Based on the timing of past coherent DSP introductions and first-line card shipments, we anticipate 1.2 Tbps-capable line cards to enter the market in the 2023-2024 time period (but more likely in 2024).
  • Demand for Optical Transport gear for data center interconnect (DCI) is expected to take a turn in the near future.
  • Disaggregated WDM transponder unit sales are a bright spot of growth, annually growing at a double-digit percentage rate.
  • 400ZR will moderate the market’s growth.

https://www.delloro.com/news/optical-transport-market-to-expand-for-many-more-years-reaching-nearly-18-billion/

Tuesday, June 9, 2020

Dell’Oro: Broadband access equipment sales drop 15% in Q1

Total global revenue for Broadband Access equipment dropped to $2.5 billion, down 15 percent year-over-year (Y/Y) from 1Q 2019, according to a new report from Dell'Oro Group. The first quarter activity, which is seasonally slow to begin with, was hurt by supply chain disruptions throughout Asia-Pacific as a result of the COVID-19 pandemic.

“The first half of 2020 will give way to a sustained rebound in broadband equipment spending in the second half of the year,” said Jeff Heynen, Senior Research Director, Broadband Access and Home Networking. “The need to expand residential broadband speeds and availability will ultimately win out over the current macroeconomic slowdown,” explained Heynen.

Following are additional highlights from the 1Q 2020 Broadband Access Quarterly Report:

  • Total cable access concentrator revenue decreased 22 percent Y/Y to $211 M, driven by a slowdown in CCAP license purchases in North America.
  • Total DOCSIS 3.1 CPE shipments remained strong and increased to 5.8 M, representing 67 percent of total Cable CPE shipments.
  • Total PON ONT unit shipments decreased 15 percent Y/Y, as new installations were limited by the pandemic.
http://www.delloro.com

Sunday, June 7, 2020

Dell’Oro: Data Center Switch market dropped 9% in Q1

The worldwide Data Center Switch market recorded its first decline in nine years, dropping 9 percent year-over-year in the first quarter, according to a new report from Dell'Oro Group.

1Q 2020 revenue level was also the lowest in three years. The softness was broad-based across all major branded vendors, except Juniper Networks and white box vendors. Revenue from white box vendors was propelled mainly by strong demand from Google and Amazon.

“The COVID-19 pandemic has created some positive impact on the market as some customers pulled in orders in anticipation of supply shortage and elongated lead times,” said Sameh Boujelbene, Senior Director at Dell’Oro Group. “Yet this upside dynamic was more than offset by the pandemic’s more pronounced negative impact on customer demand as they paused purchases due to macro-economic uncertainties. Supply constraints were not major headwinds during the first quarter but expected to become more apparent in the next quarter,” added Boujelbene.

Additional highlights from the 1Q 2020 Ethernet Switch – Data Center Report:

  • The revenue decline was broad-based across all regions but was less pronounced in North America.
  • We expect revenue in the market to decline high single-digit in 2020, despite some pockets of strength from certain segments.