The global telecom equipment market returned to growth in 2025 after experiencing a significant downturn between 2022 and 2024.
Worldwide telecom equipment revenues increased by 4 percent in 2025 across six key segments tracked, according to Dell’Oro Group report.
The sectors analyzed include Broadband Access, Microwave and Optical Transport, Mobile Core Network (MCN), Radio Access Network (RAN), and Service Provider Router and Switch. The recovery was supported by strong demand across both wireless and wireline infrastructure, along with increased investments from cloud service providers and improved macroeconomic conditions.
Market Recovery After Two Years of Decline
The telecom equipment industry faced a challenging period between 2022 and 2024, during which revenues declined by 14 percent. However, market conditions improved significantly in 2025. A particularly strong fourth quarter helped boost overall performance, accounting for 29 percent of total annual revenue.
Several factors contributed to the recovery, including improved comparisons, stabilization of inventory levels across telecom operators, favorable currency movements, and continued infrastructure upgrades. Growing demand for high-capacity networks and data center connectivity also supported investments in telecom infrastructure.
Optical Transport and Service Provider Routers Lead Growth
Among the six segments tracked, Optical Transport and Service Provider Router and Switch emerged as the strongest performers in 2025. These segments benefited heavily from expanding data center infrastructure and rising traffic demands driven by cloud computing, artificial intelligence workloads, and high-speed broadband services.
Meanwhile, the Mobile Core Network market reached a key turning point in 2025 as the 5G MCN segment entered a new growth phase. This development indicates that telecom operators are accelerating investments in next-generation core network technologies to support advanced 5G services.
Regional Growth Led by North America and EMEA
From a geographic perspective, telecom equipment spending trends varied significantly. North America and EMEA (Europe, Middle East, and Africa) recorded double-digit growth in 2025, helping offset weaker conditions in the Asia Pacific region.
North America and China together represented slightly more than half of the global telecom equipment market during the year, reflecting their large-scale investments in telecom infrastructure and next-generation network deployment.
Vendor Competition Intensifies as Market Shares Shift
While the overall supplier rankings remained largely unchanged, the competitive landscape saw modest shifts in market share among leading telecom vendors.
Nokia increased its share of global telecom equipment revenue in 2025, partly driven by its acquisition of Infinera. Meanwhile, Huawei and Ericsson maintained broadly stable market positions.
Regional dynamics played a significant role in shaping vendor competition. Excluding China, revenue distribution among the top three suppliers appeared relatively balanced. However, outside North America, Huawei strengthened its position significantly, with its global revenue share reaching 41 percent in 2025.
Huawei’s Strategy Strengthens Its Market Position
Huawei’s strong performance in markets where it remains active can be attributed to several strategic advantages.
First, the company has implemented a comprehensive telecom strategy, ranking as the top supplier by revenue across all six telecom infrastructure programs tracked by Dell’Oro. Second, Huawei continues to maintain technology leadership through significant research and development investments that exceed those of many competitors. Third, the company has expanded its presence in regions where it faces fewer geopolitical restrictions, focusing on gaining market share in accessible markets.
Telecom Equipment Market Outlook for 2026
Looking ahead, analysts expect the positive momentum in telecom equipment spending to continue into 2026. Dell’Oro Group forecasts global telecom equipment revenue across the six tracked segments to grow between 2 percent and 4 percent next year.
However, growth in wireless infrastructure segments is expected to remain relatively moderate compared with wireline infrastructure and data center-related investments. Continued expansion of cloud infrastructure, rising demand for high-speed connectivity, and ongoing 5G network evolution are expected to remain key drivers of telecom equipment spending worldwide.
BABURAJAN KIZHAKEDATH