Showing posts with label Research. Show all posts
Showing posts with label Research. Show all posts

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.

Wednesday, March 3, 2021

Dell'Oro: Optical transport market slowed in 4Q2020

 Optical transport equipment revenue increased 1 percent in 2020 reaching $16 billion with growth in all regions with the exception of North America and Latin America, according to a new report from Dell'Oro Group.

“Between concerns on starting new optical builds during the start of the pandemic and aggressive plans on 5G deployments that required a larger share of a service provider’s capital budget, the spending on optical transport dramatically slowed by the end of 2020,” said Jimmy Yu, Vice President at Dell’Oro Group. “It was a really dramatic drop in optical equipment purchases in the fourth quarter. While we anticipated a slowdown near the end of the year due to concerns around COVID-19, we were surprised by a 29 percent year-over-year decline in WDM purchases in North America as well as a 12 percent decline in China. That said, there was good growth in the other parts of the world, especially Japan,” continued Yu.

https://www.delloro.com/news/optical-transport-equipment-market-grew-1-percent-in-2020-to-16-billion/

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/

Monday, March 1, 2021

Cignal AI: North American Transport Spending Plummets in Q4

North American network operator purchases of optical and packet transport hardware dropped sharply in the fourth quarter, according to the most recent Transport Hardware Report from research firm Cignal AI, while European spending trends improved in Q4 but were also down on an exchange rate adjusted basis.

“Despite the massive disruptions during 2020, overall spending declined only slightly in 2020,” said Scott Wilkinson, Transport Hardware lead analyst at Cignal AI. “But this quarter, almost all vendors felt the impact of capex pulled forward in the year due to operators scrambling to secure safety stock.”

Additional 4Q20 Transport Hardware Report Findings:

For the entire year of 2020, NA optical transport hardware spending was down slightly vs. 2019, with Ciena and Infinera reporting flat YoY sales and Cisco, Nokia, and Fujitsu reporting declines.

Optical sales growth in EMEA was steady for the quarter and for the year, while sales in China were flat. Huawei continued to lead market share in both regions despite political pressure and new design wins by competitors.

The pattern of NA packet switching and routing sales closely mirrored that of optical sales, producing a decline of almost -20% this quarter. Nokia sales grew for the quarter and the year, while Cisco market share declined. Nokia gained share in the region, and Ribbon led YoY growth as it secured a significant win in the region to boost sales by more than 10x.

https://cignal.ai/2021/03/north-american-transport-spending-plummets-in-q4/

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/

Thursday, February 4, 2021

650 Group: Multi-Cloud to Drive Significant Workload Growth

The worldwide number of workloads being deployed will increase nearly 500% by 2025, according to a new report published this week by 650 Group titled Workloads and Multi-Cloud Forecast 2020-2025

Workloads continue to evolve for both search and social clouds, as well as IaaS and SaaS providers. The report discusses the impact of the changes to component suppliers, end-users, system vendors, and is targeted for system vendors, ASIC suppliers, and component suppliers in the cloud infrastructure market.

Workload definitions evolve as technology expands. Historically, the context of a workload tied it directly to the number of servers, and later, it was the number of virtual machines (VMs) or applications that spanned machines. Today, the context evolves to the number of containers or individual serverless code-snippets. The compute, storage, and networking infrastructure had to evolve to support how the application changes.

"Multi-Cloud and new AI /ML workloads are driving significant investment in data centers with new compute and networking infrastructures emerging to address new workloads," said Alan Weckel, Technology Analyst at 650 Group. “The time has passed for an application and its data to reside in one data center. There is a tremendous opportunity for new vendors in multi-cloud, as well as co-location, to address evolving enterprise needs.”

https://www.650group.com/

Wednesday, January 27, 2021

Cignal AI: Big shifts in spending on optical and packet transport

Expenditures by North American cloud and colocation operators on optical and packet transport equipment declined 20 percent year over year in the third quarter of 2020 (3Q20), while incumbent operator spending increased 2 percent, according to the 3Q20 Transport Customer Markets Report from market research firm Cignal AI.

“Equipment suppliers to cloud operators report that sales in the third quarter were depressed because service providers absorbed capacity on networks that were built during the first half of 2020,” said Scott Wilkinson, lead analyst at Cignal AI. “Both incumbent and cloud operators, especially in North America, spent significantly more of their annual budget than typical in the first half of the year.”

More Key Findings from the 3Q20 Transport Customer Markets Report

  • After uncharacteristically strong growth in 2Q20, sales to cloud and colocation operators in Asia Pacific (APAC) rose dramatically again in the third quarter
  • Despite a year-over-year decline in sales, Ciena maintained its worldwide market share leadership in sales to cloud and colocation operators in 3Q20
  • The fourth quarter is expected to be challenging for sales outside APAC, with traditional telco and cloud and colocation purchases anticipated to wane worldwide

https://cignal.ai/2020/12/3q20-transport-customer-markets-report/

Sunday, January 24, 2021

Cignal AI: Strong demand for 400ZR pluggables

Global compact modular revenue grew 24 percent in the third quarter of 2020 (3Q20) over the prior year, versus just 7 percent growth for the total optical market, according to the latest Transport Applications Report from market research firm Cignal AI. Cignal AI defines “compact modular” as small form factor optical hardware that is designed for use in open and disaggregated networks.

“Compact modular is gaining popularity with a wider set of network applications and operators due to the continued adoption of disaggregation outside cloud and colocation,” said Scott Wilkinson, lead analyst at Cignal AI. “The market saw extraordinary growth in Asia Pacific over the last two quarters, with sales in the region now approaching those of EMEA.”




Meanwhile, the 400ZR market is getting underway, with several hundred modules shipped for testing and evaluation in 3Q20. “The demand pipeline for 400ZR remains strong and operators are pleased with the prototypes under evaluation,” said Andrew Schmitt, directing analyst at Cignal AI. “Acacia had a huge quarter thanks to a large buildout at Amazon AWS.”

More Key Findings from the 3Q20 Applications Report

  • Although Ciena reported a flat quarter overall for optical sales, its compact modular sales were up 18 percent year over year, and the company maintained its market leadership by a wide margin
  • Compact modular sales in APAC grew by more than 75 percent in the quarter; Huawei (mostly in China), Fujitsu (in Japan) and Nokia all more than doubled their sales in the region
  • Year-over-year sales of packet-OTN equipment grew only in APAC this quarter, and sales in North America declined by more than 25 percent
  • Overall compact modular sales growth is forecast to decelerate to low single digits in 4Q20 as capex budgets evaporate, especially in North America
  • Pluggable coherent optics are projected to account for 40 percent of the high-performance optical market by 2024
  • Shipments of fixed 400 Gbps+ coherent ports jumped 65 percent sequentially, to over 35,000 ports in the quarter
https://cignal.ai/2021/01/compact-modular-grows-faster-than-overall-optical-market-in-3q20/

Thursday, January 14, 2021

IDC: Private LTE/5G infrastructure market to reach $5.7 billion in 2024

 Worldwide revenue attributable to the sales of private LTE/5G infrastructure will grow from $945 million in 2019 to an estimated $5.7 billion in 2024 with a 5-year compound annual growth rate (CAGR) of 43.4%, according to International Data Corporation (IDC) . This includes aggregated spending on RAN, core, and transport infrastructure.


"Private LTE infrastructure is already used by select verticals worldwide to solve mission-critical networking challenges. However, the barrier to consumption has remained high, limiting adoption to organizations possessing in-house competency and access to dedicated spectrum," said Patrick Filkins, senior research analyst, IoT and Mobile Network Infrastructure. "With more spectrum being made available for enterprise uses, coinciding with the arrival of commercial 5G, interest has grown toward using private LTE/5G solutions as a basis for connectivity across a multitude of mission-critical, industrial and traditional enterprise organizations."

https://www.idc.com/getdoc.jsp?containerId=prUS47318621

Tuesday, January 12, 2021

IDC: Public cloud IT infrastructure revenue growth stays strong

Vendor revenue from sales of IT infrastructure products (server, enterprise storage, and Ethernet switch) for cloud environments, including public and private cloud, increased 9.4% year over year in the third quarter of 2020 (3Q20), according to the International Data Corporation (IDC) Worldwide Quarterly Cloud IT Infrastructure Tracker. Investments in traditional, non-cloud, IT infrastructure declined -8.3% year over year in 3Q20.

Some highlights:

  • Spending on public cloud IT infrastructure increased 13.1% year over year in 3Q20, reaching $13.3 billion. During the previous quarter spending on public cloud IT infrastructure exceeded non-cloud IT infrastructure spending for the first time ever, but non-cloud IT infrastructure spending was back on top in 3Q20 at $13.7 billion. 
  • IDC expects public cloud IT infrastructure spending to surpass non-cloud IT infrastructure spending again in the near future and expand its lead going forward.
  • Spending on private cloud infrastructure increased 0.6% year over year in 3Q20 to $5.0 billion with on-premises private clouds accounting for 63.2% of this amount.
  • IDC believes the hardware infrastructure market has reached a tipping point and cloud environments will continue to account for an increasingly greater share of overall spending. 
  • Within cloud deployment environments in 2020, compute platforms will remain the largest segment (49.1%) of spending, growing at 2.3% to $36.4 billion while storage platforms will be the fastest growing segment with spending increasing 27.4% to $29.2 billion, and the Ethernet switch segment will grow 4.0% year over year to $8.5 billion.
  • Spending on cloud IT infrastructure increased across most regions in 3Q20, with the highest annual growth rates in Canada (32.8%), China (29.4%), and Latin America (23.4%). Growth in the United States was 4.7%. Japan and Western Europe declined by -6.7% and -3.4%, respectively. In all regions except Canada and Japan, growth in public cloud infrastructure exceeded growth in private cloud IT.
  • Inspur, Huawei, and Lenovo had double-digit year-over-year growth while most other major vendors, including the ODM Direct group of vendors, had single-digit growth. Cisco was the only major vendor with a year-over-year decline.


IDC: PC sales rocket ahead at 26% growth rate

 Due to ongoing work-from-home and school-from-home trends during the pandemic, global sales of traditional PCs (inclusive of desktops, notebooks, and workstations) experienced a 26.1% year over year growth during Q4 2020 to 91.6 million units, according to preliminary results from the International Data Corporation (IDC) Worldwide Quarterly Personal Computing Device Tracker. The same category of devices grew 13.1% year over year for the full year 2020 with the catalysts being work from home, remote learning, and restored consumer demand.

"Every segment of the supply chain was stretched to its limits as production once again lagged behind demand during the quarter," said Jitesh Ubrani research manager for IDC's Mobile Device Trackers. "Not only were PC makers and ODMs dealing with component and production capacity shortages, but logistics remained an issue as vendors were forced to resort to air freight, upping costs at the expense of reducing delivery times."

https://www.idc.com/getdoc.jsp?containerId=prUS47274421


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/

IDC: Worldwide server market revenue up 2.2% in Q3

Vendor revenue in the worldwide server market grew 2.2% year over year to $22.6 billion during the third quarter of 2020 (3Q20), according to the International Data Corporation (IDC) Worldwide Quarterly Server Tracker. Worldwide server shipments declined 0.2% year over year to nearly 3.1 million units in 3Q20.

Volume server revenue was up 5.8% to $19.0 billion, while midrange server revenue declined 13.9% to $2.6 billion, and high-end servers declined by 12.6% to $937 million.

"Global demand for enterprise servers was a bit muted during the third quarter of 2020 although we did see areas of strong demand," said Paul Maguranis, senior research analyst, Infrastructure Platforms and Technologies at IDC. "From a regional perspective, server revenue within China grew 14.2% year over year. And worldwide revenues for servers running AMD CPUs were up 112.4% year over year while ARM-based servers grew revenues 430.5% year over year, albeit on a very small base of revenue."

  • Dell Technologies and HPE/New H3C Group were tied for the top position in the 3Q20 worldwide server market with 16.7% and 15.9% revenue share respectively. 
  • Inspur/Inspur Power Systems finished third with a 9.4% share of revenue. 
  • Lenovo was fourth with a 5.9% share and Huawei was fifth with a 4.9% share. 
  • The ODM Direct group of vendors accounted for 28.0% of total server revenue, up 8.4% year over year.


Sunday, December 6, 2020

Study: 5G is up to 90% more energy efficient per traffic unit than 4G

5G networks are up to 90 percent more energy efficient per traffic unit than legacy 4G networks, according to a new study by Nokia and Telefónica.

The research, which was conducted over a three-month period, focused on the power consumption of the Radio Access Network (RAN) in Telefónica’s network. 

Extensive testing examined eleven different pre-defined traffic load scenarios that measured the energy consumed per Mbps based on the traffic load distribution. The results highlighted that 5G RAN technology is significantly more efficient than legacy technologies when it comes to energy consumption per data traffic capacity with several hardware and software features that help to save energy. 

The study, which utilized Nokia’s AirScale portfolio, including AirScale Base Stations and AirScale Massive MIMO Active Antenna solutions, combined actual on-site base station energy consumption readings in different traffic load scenarios, ranging from 0 percent to 100 percent, as well as remote monitoring of actual power consumption through the network management systems.

The companies said that while 5G is a natively greener technology with more data bits per kilowatt of energy, further action is needed to enhance energy efficiency and minimize CO2 emissions that will come with exponentially increased data traffic. There are several energy-saving features at the radio base station and network levels, such as 5G power-saving features, small cell deployments and new 5G architecture and protocols, which can be combined to significantly improve the energy efficiency of wireless networks.

Juan Manuel Caro, Director of Operational Transformation at Global CTIO at Telefónica, said: “We are committed to supporting action on climate change and engender a sustainable culture throughout our entire company. We are proud to work collaboratively with Nokia on this project and others to address a range of initiatives including driving energy efficiencies in the 5G era.”

https://www.nokia.com/about-us/news/releases/2020/12/02/nokia-confirms-5g-as-90-percent-more-energy-efficient/

Monday, November 30, 2020

Ericsson: Mobile network data traffic up 50% from 3Q19 to 3Q20

Mobile network data traffic grew 50 percent between Q3 2019 and Q3 2020, according to the newly updated Ericsson Mobility Report.

A second key finding is that current 5G uptake in subscriptions and population coverage confirms 5G as deploying the fastest of any generation of mobile connectivity. Ericsson estimates that by the end of this year, more than 1 billion people – 15 percent of the world’s population – will live in an area that has 5G coverage rolled out. The company has raised its year-end 2020 estimate for global 5G subscriptions to 220 million, thanks largely to rapid uptake in China, reaching 11 percent of its mobile subscription base. 

Fredrik Jejdling, Executive Vice President and Head of Networks, Ericsson, says: “This year has seen society take a big leap towards digitalization. The pandemic has highlighted the impact connectivity has on our lives and has acted as a catalyst for rapid change, which is also clearly visible in this latest edition of the Ericsson Mobility Report.

Additional highlights:

  • In 2026, 60 percent of the world’s population will have access to 5G coverage, with 5G subscriptions forecast to reach 3.5 billion.
  • North America is expected to end the year with about 4 percent of its mobile subscriptions being 5G. Commercialization is now moving at a rapid pace and by 2026, Ericsson forecasts that 80 percent of North American mobile subscriptions will be 5G, the highest level of any region in the world.
  • Europe will end the year with about 1 percent 5G subscriptions in the region. During the year, some countries delayed auctions of the radio spectrum needed to support 5G deployment.
  • The rate of introducing 5G New Radio (NR) functionality is increasing, with more than 150 5G device models launched commercially. Many devices support 5G Frequency Division Duplex (FDD) and dynamic spectrum sharing (DSS). The first 5G standalone (SA) networks have been launched in Asia and North America, as well as the first devices capable of NR carrier aggregation.
  • The number of service providers offering fixed wireless access (FWA) is on the rise. Almost two-thirds of service providers now have an FWA offering. FWA connections are forecast to grow more than threefold and reach more than 180 million by the end of 2026, accounting for about a quarter of total mobile network data traffic.

https://www.ericsson.com/4adc87/assets/local/mobility-report/documents/2020/november-2020-ericsson-mobility-report.pdf

Thursday, November 19, 2020

Cignal AI: EMEA optical and packet transport spending bounces back

European operators resumed purchases of optical and packet transport hardware in 3Q20 as COVID-related supply chain and operational delays eased, according to the most recent Transport Hardware Report from research firm Cignal AI. At the same time, North American spending weakness spread to the optical hardware segment as the region’s operators paused capex after aggressive deployments in the first half of the year.

“EMEA’s packet and optical transport sales growth was bolstered by sales deferred from Q2 and raised the market overall during the third quarter,” said Scott Wilkinson, Transport Hardware lead analyst at Cignal AI. “The outcome was different in North America, where sales were more frontloaded in the first two quarters than in EMEA, especially by the larger operators. NA annual CapEx budgets are largely exhausted, producing declining sales in the second half of the year for this region.”

Highlights:

  • Optical hardware spending grew by double-digits in EMEA, countering expectations of a flat-to-down quarter in optical spending. Nokia led the robust growth with a boost from sales deferred from Q2. Worldwide, optical hardware spending was up slightly.
  • Packet transport hardware spending also rose in EMEA but declined worldwide. EMEA packet transport revenue for both Huawei and Juniper grew by more than 20% YoY as the two companies gained ground on market leaders Cisco and Nokia.
  • North American optical and packet spending declined this quarter, as anticipated by vendors (Ciena, Cisco) with exposure to large network operators. Ciena continues to lead optical market share with slight YoY revenue growth, while Cisco maintains packet transport market leadership despite a sharp YoY revenue decline.

https://cignal.ai/2020/11/emea-optical-and-packet-transport-spending-bounces-back-in-3q20/

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.