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

Monday, December 20, 2021

Dell'Oro: Strong demand for fiber and fixed wireless CPE

Total global revenue for the Broadband Access equipment market increased to $3.9 B in 3Q 2021, up 7 percent year-over-year (Y/Y), according to a new report from Dell'Oro Group. Growth came from spending on both PON infrastructure and fixed wireless CPE.

"5G fixed wireless deployments joined fiber as the primary drivers for spending this quarter," noted Jeff Heynen, Vice President, Broadband Access and Home Networking at Dell'Oro Group. "Despite supply chain constraints and increased costs, operators continue to focus on expanding broadband connectivity," explained Heynen.

Additional highlights from the 3Q 2021 Broadband Access and Home Networking quarterly report:

  • Total cable access concentrator revenue decreased 27 percent Y/Y to $257 M. There was a clear mix shift this quarter to remote PHY and remote MACPHY devices, both of which saw Y/Y revenue increases.
  • Total PON ONT unit shipments reached 32 M units, marking the fourth quarter in row-unit shipments have exceeded 30 M globally.
  • Component shortages are clearly impacting cable CPE and home networking device sales, with unit shipments down markedly Y/Y.

https://www.delloro.com/news/strong-demand-for-fiber-and-fixed-wireless-cpe-fuels-7-percent-y-y-broadband-equipment-growth/

Sunday, December 19, 2021

Dell'Oro: 3Q 2021 Campus Switch sales hit all-time high

The worldwide Campus Switch market revenue reached a record level in 3Q 2021, according to a recent report by Dell’Oro Group. Growth was mostly propelled by 1 Gbps, which reached a record level in shipments during the quarter, while NBase-T ports were down Y/Y.

“We have been predicting the demand in the market to remain strong, but what surprised us is the level of shipments and revenues that vendors were able to achieve during the quarter, despite ongoing supply challenges,” said Sameh Boujelbene, Senior Director at Dell’Oro Group. “It appears, however, that these supply challenges are impacting the newer technologies more than the older ones, due to a less diversified ecosystem, and in some cases, a less mature supply chain,” added Boujelbene.

Additional highlights from the 3Q 2021 Ethernet Switch – Campus Report:

  • Extreme, HPE, and Juniper each gained more than one point of revenue share in Europe, Middle East and Africa (EMEA)
  • H3C outperformed the market and captured the revenue leading position in China
  • Power-over-Ethernet (PoE) ports up strong double-digits and comprised 30 percent of the total ports

https://www.delloro.com/news/3q-2021-campus-switch-sales-catapulted-to-an-all-time-high-despite-supply-challenges/

Dell’Oro: SaaS-based Network Security Rockets up 26% in Q3

The pent-up demand created after the 2020 pandemic shutdowns has combined with the attention on enterprise digitalization and new threats to provide the network security market an enormous boost, according to a new report from Dell'Oro Group.  Further amplifying demand is the copious amounts of fiscal stimulus by governments helping to increase macro-economic confidence.  Thus far, the network security industry has largely overcome the supply chain chaos affecting other markets, as vendors have deftly maneuvered to satisfy demand.

“This quarter’s growth reflects an uncommon alignment between enterprise IT teams asking for more security investment and business leadership willing to do so,” said Mauricio Sanchez, Research Director, Network Security at Dell’Oro Group. “While spend on more modern Secure Access Service Edge (SASE) and Zero Trust approaches skyrocketed, even that for the more traditional perimeter firewall experienced healthy growth.”

Additional highlights from the 3Q 2021 Network Security Quarterly Report:

  • Software-as-a-Service (SaaS)-based Network Security, consisting of cloud-delivered Email Security, Secure Web Gateway (SWG), and Web Application Firewall (WAF), achieved a total of $1.2 B in 3Q 2021, representing 26 percent growth year-over-year (Y/Y).
  • SaaS-based SWGs which are vital to SASE and starting to go by the Secure Service Edge (SSE) name, were up 35 percent Y/Y and on track to surpass $2 B for full-year 2021.
  • Physical firewall appliance revenue rose 14 percent and is on trajectory to crack $10 billion for full-year 2021.

https://www.delloro.com/news/saas-based-network-security-rockets-up-26-percent-in-3q-2021/

Thursday, December 9, 2021

Dell'Oro: SD-WAN market surges ahead 45% in Q3

The worldwide SD-WAN market grew 45 percent in the third quarter of 2021 compared to the prior year, according to a new report from Dell'Oro Group. Cisco maintained the top position for the revenue share for the quarter and was followed by Fortinet and VMware in the second and third spots.

“Enterprises are upgrading network infrastructures at accelerated rates compared to pre-pandemic times, and our research finds that the SD-WAN market is growing at strong double-digit rates in all regions of the world,” said Shin Umeda, Vice President at Dell’Oro Group. “Because SD-WAN is software-based technology, the global supply chain disruptions have had less of an effect compared to hardware-based networking products,” added Umeda.

Additional highlights from the 3Q 2021 SD-WAN Report:

  • The SD-WAN market continues to consolidate around a small number of vendors with the top six vendors accounting for 69 percent market share in 3Q 2021.
  • Cisco’s quarterly SD-WAN revenue nearly doubled in 3Q 2021 with especially strong growth in the North America region.
  • The market for hardware-based Access Routers grew quarterly revenues for the first time in almost two years.

https://www.delloro.com/news/sd-wan-market-surged-45-percent-to-a-record-level-in-3q-2021/

Wednesday, December 8, 2021

Dell'Oro: Ethernet adapter shipments stalled by supply constraints

Ethernet adapter shipments were stalled by supply constraints in 3Q, according to a new report by Dell'Oro Group, however shipments are forecast to return to double-digit growth in 2022, as supply restrictions ease, and as Smart NICs create growth opportunities.

“Ethernet adapter port shipments declined seven percent year-over-year in 3Q 2021, as vendors faced various component sourcing challenges, with lead-times extending beyond 52 weeks in some extreme cases,” said Baron Fung, Research Director at Dell’Oro Group. “In contrast, Ethernet controller shipments have approached record levels, as we believe server vendors are increasing their inventories of controllers in anticipation of stronger cloud and enterprise demand ahead,” added Fung.

Additional highlights from the 3Q 2021 Ethernet Controller and Adapter report include:

  • Total Ethernet controller and adapter revenue forecast to grow 27 percent in 2021.
  • Major cloud service providers are upgrading server connectivity to 100 and 200 Gbps port speeds in conjunction with network upgrades.
  • Smart NICs developed internally by cloud service providers, such as Amazon and Microsoft, for their data centers have accounted for the majority of the shipments. Vendors such as Marvell and Nvidia, are expected to increase their share in 2022 as customer qualifications make progress.

https://www.delloro.com/news/ethernet-adapter-shipments-stalled-by-supply-constraints-in-3q-2021/

Tuesday, December 7, 2021

Dell'Oro: Data Center Switch Sales Soar

According to a recent report by Dell’Oro Group, the trusted source for information about the telecommunications, networks, and data center IT industries, 

Global Data Center Switch revenue was up 11 percent year-over-year in 3Q 2021, reaching an all-time high, according to a recent report from Dell'Oro Group. Arista and white box switch suppliers captured most of the growth and gained more than one point of revenue share each.

“We have been predicting the strong demand in the market to persist for various reasons explained in our report, but what surprised us is the level of sales that the vendors were able to fulfill during the quarter, despite ongoing supply challenges,” said Sameh Boujelbene, Senior Research Director at Dell’Oro Group. “What was clear though is that certain vendors, for instance, Arista and certainly white box suppliers have been so far able to better navigate the supply issues and take advantage of the situation to gain share, ” added Boujelbene.

Additional highlights from the 3Q 2021 Ethernet Switch – Data Center Report:

  • 400 Gbps cumulative shipments eclipsed 3 Million ports, the vast majority of which are still driven by Google and Amazon.
  • Microsoft initiated 400 Gbps deployments in 3Q 2021, the vast majority of which were reported under deferred revenue due to pending qualification cycle.
  • Huawei, Star-Net Ruijie, and Juniper Networks recorded double-digit revenue growth.

The Dell’Oro Group Ethernet Switch – Data Center Quarterly Report offers a detailed view of the market, including Ethernet switches for server access, server aggregation, and data center core. (Software is addressed separately.) The report contains in-depth market and vendor-level information on manufacturers’ revenue; ports shipped; average selling prices for both Modular and Fixed Managed and Unmanaged Ethernet Switches (1000 Mbps,10, 25, 40, 50, 100, 200, and 400 Gbps); revenue split by market segments as well as regional breakouts. 

https://www.delloro.com/news/data-center-switch-sales-soar-to-record-high-despite-ongoing-supply-challenges/

Monday, December 6, 2021

Dell'Oro: Mobile backhaul drives recovery in microwave transmission

Demand for Microwave Transmission equipment is recovering from the market contraction that was caused by the COVID-19 pandemic beginning in 2020, according to a new report from Dell'Oro Group.

“The Microwave Transmission market grew eight percent in the first nine months of the year,” stated Jimmy Yu, Vice President at Dell’Oro Group. “The demand for microwave equipment has sharply increased this year due to mobile radio backhaul, and the outlook continues to improve as 5G deployments proliferate. Our biggest concern, however, is that the supply chain is not keeping up with demand, delaying some shipments and raising costs,” added Yu.

Highlights from the 3Q 2021 Quarterly Report:

  • Microwave Transmission revenue from mobile backhaul grew 11 percent year-over-year in the first nine months of 2021. Growth was driven by both 4G and 5G radio deployments.
  • Huawei maintained the highest revenue share. The manufacturers with the second and third highest shares were Ericsson and Nokia, respectively. In the first nine months of 2021, Ericsson outperformed the market, increasing its market share by three percentage points.
  • E/V Band radios continued to drive the Microwave Transmission market growth. Growth rates of this equipment, which can enable up to 10 Gbps of capacity over a single carrier, has outpaced that of the total market for over nine years.

https://www.delloro.com/news/microwave-transmission-equipment-revenue-bounced-back-in-2021/

Tuesday, November 30, 2021

Dell'Oro: Sharp decline in China optical transport equipment market

The Optical Transport equipment market contracted 2 percent year-over-year in the first nine months of 2021 due to lower sales in China, according to a recently published report from Dell’Oro Group. Outside of China, however, the demand for optical equipment continued to increase, outpacing supply.

“Optical equipment revenue in China took a sharp turn for the worse in 3Q 2021,” said Jimmy Yu, Vice President at Dell’Oro Group. “As a result, optical revenue in China declined at a double-digit rate in the quarter, resulting in a 9 percent decline for the first nine months of 2021. At this rate, we are expecting a full year optical market contraction in the country. Something that has not occurred since 2012. Helping to offset some of this lower equipment revenue from China was the robust demand in North America, Europe, and Latin America.”

“We estimate that Optical Transport equipment revenue outside of China grew 6 percent year-over-year in the third quarter. However, we believe this growth rate could have been higher, closer to 10 percent, if it was not for component shortages and other supply issues plaguing the industry. So, fortunately while optical demand is hitting a rough patch in China, it seems to be accelerating in other parts of the world,” added Yu.

https://www.delloro.com/news/optical-transport-market-down-2-percent-in-first-nine-months-of-2021/

Tuesday, November 23, 2021

Dell'Oro: Supply chain is impacting but not derailing RAN momentum

 The ongoing supply chain shortage impacted the radio access network (RAN) market in the third quarter, with multiple suppliers and operators now raising flags, according to a new report from Dell'Oro Group. However, preliminary estimates suggest that the overall 2G-5G RAN infrastructure equipment market recorded a seventh consecutive quarter of year-over-year growth in the third quarter.

“The RAN market remains on track for a fourth consecutive year of robust growth, underpinned by healthy demand for connectivity”, said Stefan Pongratz, analyst with the Dell’Oro Group. “At the same time, more challenging comparisons combined with increased risks surrounding the supply chain will weigh on the market in 2022,” continued Pongratz.

Additional highlights from the 3Q 2021 RAN report:

  • Global RAN rankings remained unchanged with Huawei, Ericsson, Nokia, ZTE, and Samsung leading the market.
  • RAN revenue shares are changing as on-going efforts by the US government to curb the rise of Huawei and improve supplier diversification are starting to show in the numbers, especially with new footprints outside of China.
  • Preliminary estimates suggest Ericsson, Nokia, and Samsung were the top three 5G RAN suppliers outside of China in the quarter.
  • Following two consecutive years of double-digit growth, total RAN revenues are projected to advance 3 percent in 2022.

https://www.delloro.com/news/supply-chain-is-impacting-but-not-derailing-ran-momentum/

Thursday, September 30, 2021

Dell'Oro: Worldwide telecom capex on track for 5~10% rise

Preliminary readings suggest that worldwide telecom capex — the sum of wireless and wireline telecom investments — increased 3 percent year-over-year in nominal USD terms and remain on track to advance 5 percent to 10 percent in 2021, according to a new report from Dell'Oro Group.


"Even with some decoupling taking place between capex and equipment revenue growth trends in the first half, we expect the relationship to remain significant going forward," said Stefan Pongratz, Vice President with the Dell'Oro Group. "More importantly, healthy end-user fundamental combined with the competitive dynamics and improving carrier revenue trends is spurring operators to ramp investments in multiple technologies and regions," continued Pongratz.

Additional highlights from the September 2021 3-year Telecom Capex Forecast:

  • Total telecom capex projections have been revised upward—carrier capex is expected to advance at a 3 percent CAGR between 2020 and 2023, underpinned by strong growth in 2021.
  • The upward capex revision is primarily driven by the improved investment outlook in the US wireless market.
  • Even with the elevated 5G BTS baseline in China, total capex remains on track to advance at a double-digit rate in nominal USD terms in 2021, predicated on the assumption that the second half will account for 60 percent to 65 percent of the full-year capex in China.

https://www.delloro.com/news/telecom-capex-outlook-confirms-positive-equipment-momentum/

Sunday, September 26, 2021

Dell'Oro: Cloud data center capex on a 20% growth pace

Cloud data center capex is forecast for over 20 percent growth year-over-year in the next four quarters, according to a new report from Dell'Oro Group. However, Enterprise spending, while showing signs of recovery, is expected to be hampered in the near-term by the on-going supply chain constraints.


“The Cloud service providers’ digestion cycle has persisted longer than predicted due to the continued market uncertainty,” said Baron Fung, Research Director at Dell’Oro Group. “We anticipate another Cloud expansion cycle to commence starting in the second half of this year, with the service providers increasing their deployment of the latest generation of servers based on the Intel Ice Lake and AMD EPYC Milan x86 processors. While the on-going supply chain issues may hinder investments, the Enterprise, rather than the Cloud is likely to be impacted,” explained Fung.

Additional highlights from the 2Q 2021 Data Center Capex Quarterly Report:

  • Worldwide data center capex forecast to grow 9 percent in 2021.
  • Network infrastructure spending is projected to outgrow IT infrastructure spending this year.
  • Google and Microsoft to lead all Cloud service providers in data center capex in the next four quarters, collectively launching services in 13 new regions.

Separately, Dell'Oro Group announced the launch of its new Data Center Physical Infrastructure research program. The first report will be released in November 2021.

“We are in the midst of extensive digital transformation, accelerated by the global pandemic, where the limits of power and cooling infrastructure are being tested,” said Lucas Beran, Principal Analyst with Dell’Oro Group. “This is leading to technology transformation related to data center power systems, thermal management, and software monitoring to drive sustainable data centers of the future. I look forward to quantifying and forecasting these market developments with timely, accurate, and detailed analysis,” continued Beran.

https://www.delloro.com/news/data-center-capex-to-grow-20-percent-in-the-next-four-quarters/

Thursday, September 16, 2021

Dell'Oro: Data Center switch demand exceeding supply

Global Data Center Switch revenue were up 7 percent year-over-year in 2Q 2021, marking the second consecutive quarter of revenue growth, according to a recent report from Dell'Oro Group. Arista, Juniper, Star-Net Ruijie outpaced the market and were able to gain revenue share during the quarter.


“It is encouraging to see the robust sales performance being broad-based across all major regions, and customer segments: Cloud Service Providers (SPs), Telco SPs, and Large Enterprises,” said Sameh Boujelbene, Senior Research Director at Dell’Oro Group.

 “Nevertheless, despite these strong results, it is important to note that demand outpaced supply and that sales would have been even stronger had the global semi-conductor industry not been constrained. We expect demand to remain robust in 2H21 but further tightening in the supply chain may hinder market performance,” added Boujelbene.

Additional highlights from the 2Q 2021 Ethernet Switch – Data Center Report:

  • H3C climbed to the leading position in China in 2Q 2021
  • Stockpiling behavior from some Cloud SPs resulted in share shifts in the 100 Gbps segment.
  • Interest in 400 Gbps from enterprises and small Cloud SPs is slowing down but major hyperscalers are still on track for accelerated adoption in 2H21.

Sunday, September 12, 2021

Dell'Oro: Sales of broadband access equipment rise 7% in Q2

Total global revenue for the Broadband Access equipment market increased to $3.6 B in 2Q 2021, up 7 percent year-over-year (Y/Y). Growth came from spending on both Cable and PON infrastructure, according to a new report from Dell'Oro Group.

"Fiber buildouts for residential, business, and mobile transport applications show no signs of slowing," noted Jeff Heynen, Vice President, Broadband Access and Home Networking at Dell'Oro Group. "Despite supply chain constraints and increased costs, operators continue to prioritize spending on their broadband access networks," explained Heynen.


Additional highlights from the 2Q 2021 Broadband Access and Home Networking quarterly report:

  • Total cable access concentrator revenue increased 12 percent Y/Y to $247 M. Node splitting activity continues, resulting in increased DOCSIS licenses as well as new DAA node purchases.
  • Total DSL Access Concentrator revenue was down 51 percent Y/Y, driven by slower port shipments worldwide as more operators shift their spending to fiber.
  • Total PON ONT unit shipments exceeded 35 M for the second time in three quarters.

https://www.delloro.com/news/accelerating-fiber-deployments-fuel-7-percent-y-y-growth-for-broadband-equipment/

Dell'Oro: Campus switch sales surge 15% yoy in Q2

The worldwide Campus Switch market revenue surged in 2Q 2021, growing 15 percent year-over-year, according to a new report from Dell'Oro Group. The last time we saw such a robust performance was back in 4Q 2018 when Cisco initiated its Catalyst 9K refresh cycle.


“Although a favorable comparison with the year-ago period may have played a role in this rebound, it is very encouraging to see a broad-based growth across all major regions; enterprises of all sizes (from large to small); and nearly all industry verticals, including those that have been hit hard by the pandemic such the hospitality sector,” said Sameh Boujelbene, Senior Director at Dell’Oro Group. “This is an improvement from the prior quarter where the recovery has been driven mostly by government stimulus that benefited mainly the public sector,” added Boujelbene.

Additional highlights from the 2Q 2021 Ethernet Switch – Campus Report:

  • The year-over-year growth was broad-based across nearly all vendors, including those with high exposure to the low-end market.
  • Despite the robust growth, supply constraints impacted to some degree certain products and vendors. A more pronounced impact may manifest in the second half of the year.

https://www.delloro.com/news/the-campus-switch-market-roars-back-in-2q-2021/


Tuesday, September 7, 2021

Dell'Oro: SP router and switch market dipped in 2Q21

 The worldwide Service Provider Router and Switch market declined with a low single-digit revenue decrease in 2Q 2021, according to a new report from Dell'Oro Group. The market contraction was primarily the result of a reduction in revenue in China that offset growth in all other regions.


“The demand for routers in China declined in the second quarter as 5G transport buildouts slowed, but we think this was a temporary situation that a strong rebound is likely in the second half of the year,” said Shin Umeda, Vice President at Dell’Oro Group. “The good news is that revenue from all other regions increased in the second quarter, and service provider router spending for the first half of 2021 have climbed above pre-pandemic levels,” added Umeda.

Additional highlights from the 2Q 2021 Service Provider Router and Switch Report:

  • Cisco remained the top-ranked vendor for market share, followed by Huawei, Nokia, and Juniper.
  • The Service Provider Core Router market is on track to grow at a double-digit rate in 2021, led by the adoption of 400 Gbps technologies.
  • Supply constraints have not had a significant effect on the Service Provider Router and Switch market through the first half of 2021.

Saturday, August 28, 2021

Dell'Oro: Disaggregated DWDM equipment market up 36% in Q2

Disaggregated DWDM systems revenue outperformed the broader optical transport market in 2Q 2021, growing 36 percent year-over-year while the total WDM market was nearly unchanged from the year-ago quarter, according to a new report from Dell'Oro Group. As a result of the strong quarter, the forecast for disaggregated DWDM systems was further raised.

"Disaggregated DWDM systems outperformed the broader market, demonstrating the growing adoption of this platform type," said Jimmy Yu, Vice President at Dell'Oro Group. "Really what we see is that this type of platform architecture, where transponder units are independent of the line systems, is being more widely embraced beyond the Internet content providers. Also, it is no longer just for metro applications. Recently, the highest growth rates have been from long-haul applications," added Yu.

Highlights from 2Q 2021 Quarterly Report:

  • The top manufacturers by revenue share for disaggregated transponder units were Ciena, Infinera, and Cisco.
  • The immediate need to migrate to higher speed, better performing transponder technology has been one of the main drivers for using disaggregated transponder units. As a result, 400+ Gbps wavelengths were the fastest-growing line speeds on these systems.
  • The outlook for disaggregated transponder units was raised due to the higher rate of adoption outside of hyperscalers. We now forecast revenue for this equipment type to surpass $2 billion this year.

https://www.delloro.com/news/disaggregated-dwdm-equipment-market-up-36-percent-in-2q-2021/

Sunday, July 25, 2021

Dell'Oro: Optical transport market reaches $18 billion by 2025

 The Optical Transport market, largely driven by WDM equipment, is forecasted to increase in size annually for the next five years, reaching nearly $18 billion, according to Dell’Oro Group's Optical Transport 5-Year Forecast Report. The top number is unchanged from Dell'Oro's earlier forecast, however, the outlook is lower for  WDM Metro since the coherent 400 Gbps ZR (400ZR) pluggable optics are now available and "interest in using them in an IPoDWDM architecture seems high."


Some highlights:

  • demand for coherent ZR optical pluggables is expected to reach a material amount in 2022, starting with 400ZR. Demand is expected to be high with Internet content providers (ICPs), driving a very high percentage growth rate for the next few years. 
  • 800ZR is expected to enter the market a few years later. 
  • the ZR pluggable optics market will surpass $500 million in annual sales by 2025.
  • Demand for 800 Gbps-capable line cards, first introduced in early 2020, has rapidly increased, demonstrating a strong rate of adoption as well as the market's continued desire for higher performance DWDM transponder cards.
  • The next wavelength speed following 800 Gbps will be 1200 Gbps (1.2 Tbps). 
  • Dell'Oro anticipates that 1.2 Tbps-capable line cards could enter the market before the end of 2023.
  • Dell'Oro forecasts that by 2025 about one-third of all coherent wavelength shipments will be from a line card capable of transmitting a signal at a speed of 800 Gbps or higher.

https://www.delloro.com/5-year-forecast-optical-transport-market-reaches-18-billion-by-2025/

Dell'Oro: Mobile Core Network market to top $50 B from 2021 to 2025

The Mobile Core Network (MCN) to have an overall revenue compound annual growth rate (CAGR) of 3% from 2020 to 2025, according to Dell'Oro Group's updated Mobile Core Network 5-Year Forecast Report which covers the market for Wireless Packet Core, IMS Core, policy, and subscriber management. The report also estimates the 5G portion of the MCN market to have a 33% CAGR. 


Some key highlights:

  • The cumulative investment is expected to be over $50 B from 2021 to 2025, with regional shares in the range for North America – 18 % to 23 %; Europe, Middle East, and Africa – 30 % to 35 %; Asia Pacific – 40 % to 45 %; and Caribbean and Latin America – 5 % to 10 %.
  • By the year 2025, MCN functions associated with 5G are expected to represent over 70 % of the revenue mix between 4G and 5G MCN functions.
  • 5G Core builds by the three incumbent service providers for 5G Standalone (5G SA) networks in China are continuing to exceed our expectations. In addition, in 2021, the new Chinese communications service provider, China Broadcasting Network will be beginning construction of its 5G SA network.
  • Deployments of more 5G SA networks are expected in the latter half of 2021 in Australia, Germany, Japan, South Korea, Switzerland, and the United Kingdom. AT&T and Verizon should begin in earnest in 2022 and 2023 with their 5G SA networks. Geographic coverage is minimal at launch and is expected to grow throughout the forecast period.

Tuesday, July 20, 2021

Dell'Oro: RAN revenues on track for a quarter trillion by 2025


Cumulative worldwide radio access network (RAN) revenues are projected to approach a quarter trillion USD over the 2020 to 2025 forecast period to accommodate the surging demand for 5G, according to a newly published forecast report by Dell'Oro Group.

"The global upswing that began in the second half of 2018 has become deeper and stronger, propelling the overall RAN market to continue to surprise on the upside," said Stefan Pongratz, Vice President and analyst with the Dell’Oro Group. "Even with the market surprising on the upside, we believe that there is room for expansion over the near term as the early adopters continue to roll out 5G at an extraordinary pace, resulting in a more upbeat 5-year outlook relative to our last forecast," continued Pongratz.

Other highlights from the Mobile RAN 5-Year Forecast Report:

  • The unexpected RAN surge is primarily driven by 5G NR. LTE is roughly on target but 5G NR revenues have accelerated.
  • 5G NR RAN revenues to approach $150 Billion to $200 Billion.
  • Cumulative 2020-2025 base station shipments remain on track to surpass 30 M.
  • Global macro and small cell transceiver shipments to approach 0.8 Billion.

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/