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

Monday, March 25, 2019

Dell'Oro: Sales of broadband access equipment rose 8% in 4Q18

Global revenue for broadband access equipment revenue reached $3.4 billion, growing 8 percent Y/Y in 4Q 2018. Increased shipments of GPON OLTs and DOCSIS 3.1 CPE offset CCAP spending declines, according to a new report from Dell'Oro Group.

“FTTH deployments globally continue to show strength,” said Jeff Heynen, Research Director, Broadband Access and Home Networking. “Both 2.5 Gbps GPON and 10 Gbps EPON equipment marked Y/Y increases, particularly in China. The gains on the telco side helped to offset surprising weakness in cable CCAP spending, as MSOs delay new capacity purchases while they determine how to move forward with distributed access architectures (DAA),” explained Heynen.

Some highlights from Dell'Oro's 4Q 2018 Broadband Access Quarterly Report:

  • Total DSL port shipments increased 16 percent Y/Y, with VDSL ports increasing 13 percent and Gfast ports increasing 232 percent.
  • Total PON ONT unit shipments increased 6 percent Y/Y, driven by strong demand for 2.5 Gbps GPON units in China and the Asia-Pacific region as a whole.
  • Total cable access concentrator revenue decreased 18 percent Y/Y to $380 M, driven by a slowdown in CCAP license purchases in North America.
  • 2.5 Gbps GPON, 10 Gbps EPON, and G.fast equipment all saw spending increases in the quarter.


Thursday, March 7, 2019

Dell'Oro: Wireless Packet Core revenues up 7% in 4Q18

Wireless Packet Core (WPC) market revenues grew 7 percent Y/Y in 4Q 2018, according to a new report from Dell'Oro Group. For the full-year 2018, Huawei was the top-ranked vendor, achieving this annual designation for the first time ever.

Other findings in the report for the top-three Core vendor rankings for the full-year revenues in 2018 were as follows:

  • Wireless Packet Core (2G/3G/4G): Huawei, Ericsson, Nokia
  • Traditional Packet Core (2G/3G): Huawei, Ericsson, Nokia
  • Evolved Packet Core (4G): Ericsson, Huawei, Nokia

"The modest growth of the WPC market in 4Q 2018 was due to the 4G Evolved Packet Core (EPC) technologies that service providers are using for 4G networks, but also for EPC use in upcoming 5G network deployments," said Dave Bolan, senior analyst at Dell'Oro Group. "For 2018 WPC market shares, Huawei was the number on vendor based on revenues; however, Ericsson, retained its first-place ranking for the EPC market that was the largest sub-segment of the wireless packet core market," Bolan added.

http://www.delloro.com

Wednesday, March 6, 2019

Dell'Oro: Double digit growth for WLAN market in Q4

Double-digit growth characterizes Wireless LAN (WLAN) market in 4Q and full-year 2018, despite a soft China, according to a new report from Dell'Oro Group. China sees a comeback in 4Q 2018, particularly Huawei.

"The growth of the WLAN market in 4Q and full-year 2018 came primarily from a surge in North America as users refreshed networks with 802.11ac Wave2 products, and opted for extra applications such as higher levels of security, location finding, and cloud-managed," said Ritesh Patel, WLAN analyst at Dell'Oro Group. "We predict 2019 sales to accelerate as WiFi 6 shifts from an early shipment phase to widespread availability, and vendors bring more applications to market targeted at specific verticals," added Patel.

Other findings in the report include:

  • Huawei reported a seasonally strong 4Q, a remarkable comeback after its low in 1H 2018 when Chinese Service Providers stopped deploying WLAN in mobile environments.
  • We predict the WLAN market to enter a period when revenue growth out paces unit growth as users opt for higher-featured, higher-priced WiFi 6 products, and applications deployed via cloud-managed license subscriptions.
  • During 2018, cloud managed subscription license revenue eclipsed hardware revenue.
  • SOHO Wireless Router sales rose 20% during 2018, driven by Whole Home Mesh.

Thursday, February 28, 2019

Dell’Oro: Cable infrastructure investments to hit $2B by 2023

Investments in cable infrastructure is projected to reach $2 billion by 2023, according to a newly published report by Dell’Oro Group.

“Global cable operators are investing heavily in distributed access architectures to make their networks more efficient, offer premium bandwidth, and stay ahead of fiber-based competitors,” noted Jeff Heynen, Research Director at Dell’Oro Group. “Today’s investments in DAAs will prepare cable operators for a future of 10 Gbps services using a combination of extended spectrum DOCSIS, full duplex DOCSIS 3.1 and, ultimately, fiber to the home,” continued Heynen.

Additional highlights from the Broadband Access 5-Year Forecast Report:
  • Sales of cable broadband access equipment will increase from $1.5 billion in 2019 to $2 billion in 2023, driven by spending on remote PHY and MACPHY devices, as well as virtual CCAP platforms. Spending on cable equipment will grow faster than PON equipment over the same period.
  • XGS-PON will outpace NG-PON2 deployments throughout our forecast period, owing to lower component and equipment costs.
  • VDSL Profile 35b and Gfast will offset some—not all of the revenue loss from declining ADSL port shipments. Some major Gfast deployments are already seeing signs of shrinking, as governments lobby operators to increase their investments in fiber.

Monday, February 25, 2019

Dell'Oro: Worldwide mobile infrastructure market better than expected

The worldwide Mobile Infrastructure Radio Access Network (RAN) market surprised on the upside and performed better than expected for the full-year 2018, according to a new report from Dell'Oro Group.

Huawei, Ericsson and Nokia were the top three vendors for 4Q18 and 2018.

Some highlights from the report:
  • The year 2018 also turned out to be a pivotal one for Massive MIMO as demand increased at a significantly faster pace than expected, adding confidence the technology will play a fundamental role going forward.
  • 5G steps into a tangible commercial cycle – NR revenues expected to accelerate rapidly in 2019.
  • The short-term outlook is now more favorable – projections have been adjusted upward for 2019.

“The global upswing that began in the second half of 2018 was broader and deeper than previously expected, validating the message we have communicated for some time; namely, there are reasons to be optimistic about the RAN market,” said Stefan Pongratz, senior director at Dell’Oro Group. “In addition to the strong focus on LTE and LTE-Advanced, the shift toward 5G NR continued to accelerate throughout the year. And while the 5G narrative has morphed somewhat over the past couple of years as expectations gradually shift from the long-term vision to what will drive the business case today, the reality is that the technology is now ready for the first phase of the 5G NR launch supporting the eMBB and FWA use cases,” continued Pongratz.

http://www.delloro.com

Sunday, February 10, 2019

Dell'Oro: Huawei led in Network Equipment Services for 2018

Cumulative revenue for Network Equipment Services to service providers is projected to range between $200 and $250 billion over the next five years, according to a new report from Dell’Oro Group.

The top four vendors comprise more than 80 percent of the market.

  • Huawei had the highest market share since 2016, over 30 percent in 2018.
  • Huawei’s services share improved more than 70 percent between 2013 and 2017.
  • Professional services such as consulting are projected to grow at the fastest pace over the forecast period, however, Network Rollout will remain the largest segment.

“While we envision that the coupling between equipment and services will remain strong for product attached services, we are increasingly optimistic about the role non-product attached services will play to help operators navigate the network of tomorrow,” said Stefan Pongratz, Director of Network Equipment Services Research at Dell’Oro Group. “We believe that network complexity will dramatically increase in the future as service providers strive to incorporate SDN/NFV and deliver new products related to IoT and 5G. As a result, we believe the software component of networks and the amount of Services will be larger in the future,” continued Pongratz.

http://www.delloro.com/news/network-equipment-services-revenue-approach-250-billion-next-five-years

Monday, January 21, 2019

Dell'Oro: 5G RAN investment to approach $160 billion in 5 years

Robust demand for 5G NR will propel the cumulative worldwide RAN market to approach $160 B over the next five years, according to a new forecast report from Dell'Oro Group.

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

  • 5G NR will scale at a significantly faster pace than LTE.
  • Sub 6 GHz spectrum is expected to drive the lion share of the RAN capex (Figure 1)
  • New capex to address IoT, Fixed Wireless Access, In-Building, and Public Safety opportunities for both private and public deployments will comprise a double-digit share of the RAN market by the outer part of the forecast period.
  • Sub 6 GHz Massive MIMO transceiver shipments are projected to eclipse 200 million.

“Even if 5G will be just another G initially, the reality is that for the carriers with the right spectrum assets, the mid-band Massive MIMO business case can be extremely compelling for the MBB use case,” said Stefan Pongratz, analyst with the Dell’Oro Group. “At the same time, we are more optimistic today about the mmW opportunity than we were a year ago. But clearly it will take some with the current inter-site distances before the cost per GB economics will be as favorable with the mmW spectrum as the mid-band sub 6 GHz spectrum using the existing macro grid and Massive MIMO,” continued Pongratz.

http://www.delloro.com/5-year-forecast-report/robust-5g-nr-growth-propels-total-ran-investments-toward-160-b

Monday, December 17, 2018

Dell'Oro: Cloud-native Evolved Packet Core revenues up 145%

Cloud-native evolved packet core (EPC) revenues reached new heights in 3Q18 with a 145 percent Y/Y growth rate, according to a recently published report from Dell'Oro Group.

Huawei ranked first in revenue share for the quarter, and was followed by Ericsson.

"Service providers are moving aggressively to deploy cloud-native EPC for 5G network launches," observed David Bolan, Senior Analyst at Dell'Oro Group. "We see examples of these EPC deployments with the recent announcements of 5G network launches in Korea and the anticipated launch by AT&T in the US by the end of the year."

"During the quarter, Huawei moved into first place in vendor rankings as Ericsson slid into second place. Huawei capitalized on the strong subscriber growth in China, adding over 40 million LTE subscribers. Nokia retained its third place ranking and ZTE moved into fourth place rebounding after the end of the US ban," Bolan added.

Additional highlights of the Wireless Packet Core 3Q18 report include:

  • 4G core is growing to handle more data, Voice over LTE (VoLTE), Internet of Things (IoT), and connected devices (watches, tablets, PCs, and cars).
  • Regional rankings for 3Q18 by sessions was Asia Pacific, Europe, Middle East, and Africa, North America, Caribbean and Latin America.

Thursday, December 13, 2018

Dell'Oro: WLAN market accelerates

The Wireless LAN (WLAN) market accelerated in the second half 2018, boosted by higher-end products. WLAN prices rise with mix shift to Wave 2, 802.11ax and NBASE-T, according to a new report from Dell'Oro Group.

“The WLAN market outperformed in 3Q18, as price erosion slowed. Users opted for feature-rich products, such as Wave 2 access points and premises managed Controllers,” said Ritesh Patel, Industry Analyst at Dell’Oro Group. “This indicates purchases are coming from sophisticated users, which relate to large enterprises upgrading Ethernet switches and pulling along wireless LAN sales. We see the WLAN market entering a period when revenue growth may outpace unit growth, particularly as 802.11ax access points become material. The early to market 802.11ax products from Aerohive, Arris Ruckus, Huawei, and HPE are midrange or high-end boasting NBASE-T Ethernet. It will be a few more quarters before we see lower-end products” added Mr. Patel.

Additional highlights from the 3Q18 Wireless LAN Quarterly Report:

  • Arris Ruckus, Cisco, HPE, and Ubiquiti gained share vs. the year-ago period.
  • For the second sequential quarter North America led other regions
  • Project delays weigh on China—but not for long.
  • 802.11ac Wave 2 access points jumped over 10 points from the year-ago period.


Tuesday, December 11, 2018

Dell’Oro: Data Center Interconnect market to grow 85% by 2022

The aggregate sales of equipment for Data Center Interconnect (DCI) infrastructure will grow by 85 percent over the next five years, according to a new report published by Dell’Oro Group.  The report looks at the infrastructure market from three network perspectives: Optical Transport, Data Center Core, and Wide Area Networks (WAN).

“Data traffic within the cloud is increasing at unabated rates, and DCI networks are integral to carrying the traffic,” said Shin Umeda, Vice President at Dell’Oro Group. “We see strong demand for a wide range of networking gear for DCI, from the fiber optic layer up to the packet forwarding layer, and our forecast takes into account how these network layers are interrelated,” added Umeda.

Highlights from Dell'Oro:

  • DCI will drive strong demand for Optical Transport, Ethernet Data Center Switch, and Routing technologies.
  • Optical Transport networks will account for the majority of the DCI market value over the next five years.
  • DCI market share leaders for 2017 were Ciena for Optical Transport networks, and Juniper for WAN and Data Center Core networks.

http://www.delloro.com

Sunday, December 9, 2018

Dell'Oro: Huawei represents 28% of global telecom equipment market

Huawei captured a 28 percent share of the telecom equipment market in 3Q18, according to Dell'Oro Group. This represents a 4 percent gain market share since 2015. During this period, Ericsson’s and Nokia’s market share declined one and three percentage points, respectively.

Some highlights from Dell'Oro:

  • For the first nine months of 2018, the top five equipment manufacturers were Huawei, Nokia, Ericsson, Cisco, and ZTE. Combined these five companies accounted for about 75% of the worldwide service provider equipment market revenue.
  • The overall telecom equipment market declined 2 percent year-over-year for the 1Q 2018 through 3Q18 period. Robust demand for Optical Transport and Microwave Transmission equipment was not enough to offset declining Core and Service Provider Router revenues.
  • Huawei’s telecom equipment revenue is nearly as large as Nokia and Ericsson combined.
  • Huawei’s revenue share gains over the past four years have been most pronounced in the Core, Router, and Optical Transport Markets.

http://www.delloro.com/delloro-group/key-takeaways-telecom-equipment-market-3q-2018

Tuesday, November 27, 2018

Dell'Oro: WDM equipment market grew 15% in 3Q 2018

The Optical Transport WDM equipment market grew 15 percent year-over-year in 3Q 2018, according to a new report from Dell'Oro Group. coherent wavelength shipments grew 30 percent.

“The Optical market outperformed in the third quarter,” said Jimmy Yu, Vice President at Dell’Oro Group. “All of the growth was driven by rising demand for coherent wavelengths in metro and long haul WDM systems.  Shipment of 100 Gbps wavelengths continued to rise, but it was a newer, higher speed wavelengths operating at 200 Gbps that truly moved the market revenue higher,” added Yu.

Additional highlights from the 3Q 2018 Optical Transport Quarterly Report:

  • Majority of optical transport WDM equipment revenue growth occurred in the Asia Pacific region.
  • Lead manufacturers of WDM systems on a revenue basis were Huawei, Ciena, ZTE, and Nokia.
  • Shipment of 100 Gbps wavelengths grew nearly 15 percent year-over-year.
  • Shipment of 200+ Gbps wavelengths (speeds higher than 100 Gbps) more than doubled year-over-year.

http://www.delloro.com/news/optical-transport-wdm-equipment-market-grew-15-percent-3q-2018

Sunday, November 18, 2018

Dell'Oro: Mobile infrastructure market growing at fastest clip since '14

Following three consecutive years of contracting worldwide Radio Access Networks (RAN) revenues, the overall Mobile Infrastructure market improved at a high single-digit rate in the third quarter—recording the strongest growth rate since 2014, according to Dell'Oro Group.

ZTE’s RAN business gained five points share and recovered rapidly in the quarter. The vendor was able to reclaim its number four position during 3Q 2018.

“The results in the quarter support the thesis we have communicated for some time that market conditions are improving,” said Stefan Pongratz, Senior Director with Dell’Oro Group. “In addition to resurging investments in the North America region propelled by operators investing in LTE and 5G ready networks, the Asia Pacific region rebounded after multiple quarters of steep declines, reflecting improved momentum in China,” continued Pongratz.

The report also shows that while the vendor rankings for the top three vendors remained unchanged with Huawei, Ericsson, and Nokia leading the market, the gap between Huawei and Ericsson narrowed sequentially. ZTE was able to reclaim its number four position after Samsung briefly surpassed ZTE during 2Q 2018.

http://www.delloro.com/

Monday, October 1, 2018

Dell'Oro: Network Security Appliance market growing at 9% clip

Network Security Appliance market revenue grew nine percent year-over-year in 2Q 2018, according to a new report from Dell'Oro Group.

"The Firewall –Enterprise segment again realized robust growth in 2Q 2018, increasing 15 percent year-over-year to record levels," said Casey Quillin, Director at Dell'Oro Group. "Networks now require protection against numerous vulnerabilities, from securing connectivity for multiple users and device types to mitigating the risks of delivering disparate applications in hybrid Cloud environments. New products addressing, especially those with application-aware or next generation functionality, are driving high-end firewall revenue growth," Quillin continued.

Some highlights:

  • The top Firewall –Enterprise vendors in ranking order are Cisco, Palo Alto Networks, Fortinet, Check Point, Huawei, and Juniper.
  • The Application Delivery Controller market revenue increased four percent year-over-year and unit shipments were up two percent.
  • Virtual WAN Optimization market was flat year-over-year for the third consecutive quarter. Revenue growth in virtual appliances could not offset declines in physical appliance sales.

Tuesday, September 18, 2018

Dell'Oro: SP edge router and switch market down 8% in 1H18

The worldwide service provider edge router and carrier Ethernet switch market declined eight percent in the first half of 2018 compared to 2017, according to a new report from Dell'Oro Group. Multiple factors drove market decline, but potential rebound from new products is on the horizon.

Some highlights:

  • The top four vendors, in rank order were Cisco, Huawei, Nokia, and Juniper.
  • Growth in the Europe partially offset softness in North America and Asia Pacific regions.

“The confluence of tepid telecom spending, maturing 4G mobile backhaul deployments, and new product introductions have contributed to the reduction in demand for routers and switches,” said Shin Umeda, Vice President at Dell’Oro Group. “Telecom operators in the US have pared down their spending well below historical levels as they evaluate new technologies and architectures for 5G backhaul, and on top of that, the massive network buildouts in China are slowing after years of growth.   On the positive side, Cisco, Juniper, and Nokia have introduced major upgrades to their edge router portfolios that should bring customers back in the coming quarters,” added Umeda.

Dell’Oro: CBRS will grow at a rapid pace

The Citizen Broadband Radio Service (CBRS) market will grow at a rapid pace between 2018 and 2022 with total RAN investments approaching $1 billion and CBRS RAN shipments to eclipse half a million units, according to a new report from Dell'Oro Group.

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

  • CBRS investments are not expected to have a significant impact on the WLAN capex.
  • CBRS is projected to account for a double-digit share of the DAS market.
  • More than 20 vendors are planning to launch commercial CBRS RAN solutions. 

“While there is some concern that the mid-band spectrum policies in the U.S. could impact the magnitude and pace of the 5G NR outdoor deployments and as a result enable other countries to take the lead in the 4G to 5G transition, the irony is that the U.S. is currently one of the few countries that is seeking to change the ownership model and the status quo about how networks are built,” said Stefan Pongratz, senior director with Dell’Oro Group. “And more importantly, our conversations with both suppliers and end users suggest that the new ownership model and reduced barriers-to-entry in the CBRS band is already fostering innovation and opening up new opportunities and use cases for a wide range of participants,” continued Pongratz.

Thursday, August 30, 2018

Dell'Oro: Sales of 25 Gbps NICs take off

Sales of 25 Gbps controller and adapter ports is forecasted to grow at a 45 percent compound annual growth rate over the next five years, according to a new report from Dell'Oro Group, as 25 Gbps advances to become the mainstream speed in cloud and enterprise servers.

“25 Gbps has seen a strong initial ramp-up and is now expected to be the dominant speed over the next five years. We have seen Amazon and Facebook as early adopters of 25 Gbps technology, but more end users are transitioning as product availability increases," said Baron Fung, Senior Business Analysis Manager at Dell'Oro Group. "There's been a steady wave of 10 Gbps to 25 Gbps migration as other cloud service providers and high-end enterprises renew and upgrade their servers. Shipment of 25 Gbps ports is expected to peak in 2021, when 50 and 100 Gbps products based on 56 Gbps serial lanes start to ramp-up," said Fung.

Additional highlights from the Server 5-Year Forecast Report:
  • The total controller and adapter market is forecasted to grow at a four percent compound annual rate, with 25 Gbps sales driving most of the growth.
  • Smart NICs could offer adapter vendors an opportunity to introduce innovative new products at higher price point, which could lower the total cost of ownership in the data center

Dell'Oro: Server landscape shifts toward white box cloud servers

The server market is on track to surge $10 billion higher in 2018 before growth rates taper, according to a new report from Dell'Oro Group.  Vendor landscape is trending to lower-cost white box cloud servers.

“Although we forecast a five-year compounded annual growth rate of only two percent, the growth of the server market in 2018 will be at an unprecedented level,” said Baron Fung, Senior Business Analysis Manager at Dell’Oro Group. “However, the cloud segment, which consists of a high proportion of lower-cost custom designed servers, will continue to gain unit share over the Enterprise, putting long-term revenue growth under pressure.  Furthermore, the vendor landscape will continue to shift from OEM to white box Servers as the market is shifting towards the cloud,” added Fung.

Additional highlights from the Server 5-Year Forecast Report:


  • The 2018 growth is primarily attributed to rising average selling prices, resulting from vendors passing on higher commodity prices and end-users purchasing higher-end server configurations.
  • We estimate half of all servers shipping this year go to the cloud, and foresee this share growing to two-thirds by 2022.

Wednesday, August 29, 2018

Dell’Oro: WLAN market to hit $18.2 billion by 2022

The WLAN market revenue will grow to $18.2 billion by 2022, according to a new report from Dell'Oro Group. Broadband CPE and Mesh routers will fuel growth for SOHO class WLAN.

“We estimate the Enterprise and SOHO markets to maintain modest growth over the next five years,” said Ritesh Patel, Business Analyst at Dell’Oro Group. “Specifically in the SOHO market, the need for better Wi-Fi coverage and in-home management will be driven by the demand for improved network visibility and application mobility, i.e. having the ability from anywhere in the home to experience high bandwidth applications such as FaceTime, Netflix, and YouTube. Broadband CPE and Wi-Fi Router vendors will fulfill this need by integrating new wireless technology, 802.11ax, and by improving visibility into analytics and management controls. Similarly, vendors will address the need for better coverage through Mesh Routers, which will continue to see modest to high growth over the next five years,” added Patel.

The WLAN 5-Year Forecast Report highlights other key trends, including:


  • Enterprise Cloud license revenue will surpass Cloud Managed AP revenue for the first time.
  • Ethernet switch sales to aggregate WLAN are poised to eclipse switch sales lost to WLAN. See our Campus Networks Advanced Research report.
  • China eclipses the largest region, North America, in terms of units by 2020.

Tuesday, August 28, 2018

Dell'Oro: Huawei recaptures microwave transmission market share

The microwave transmission market maintained its positive momentum in 2Q 2018, according to a new report from Dell'Oro Group. Huawei regained the highest market share in the quarter.

“This was a second consecutive quarter of year-over-year growth for the microwave transmission equipment market,” stated Jimmy Yu, Vice President with Dell’Oro Group. “We are increasingly confident that demand for mobile backhaul is improving, and that it will expand this year following two years of revenue contraction,” continued Yu.

Top Four Microwave Transmission Manufacturers in 2Q 2018

Rank                  Revenue Share
1    Huawei         24 %
2    Ericsson       21 %
3    Nokia         11 %
4    NEC         10 %

Additional highlights from the 2Q 2018 Microwave Transmission Quarterly Report:

  • The point-to-point Microwave Transmission market grew six percent year-over-year in the quarter.
  • Huawei regained the highest market share in the quarter after briefly losing this top spot to NEC in 1Q 2018.
  • Ericsson and Nokia grew their revenue in the quarter, giving them the second and third highest market shares, respectively.
  • The country with the largest demand for Microwave Transmission equipment was India. We estimate radio shipments to India grew about 45 percent year-over-year in the first half of 2018.

http://www.delloro.com

See also