Huawei retains lead in telecom equipment market in first half

Telecom equipment market revenue increased 3 percent year-over-year during the first half of 2022 as against 7 percent increase in 2021.

Huawei, Nokia, Ericsson, ZTE, Cisco, Ciena and Samsung are the top vendors in the global telecom equipment market.
Challenging comparisons in 5G markets, component shortages, the strengthening USD, supplier exits in Russia, and slower wireless activity in Japan and India weighed on some of the technology segments in the first half.

Surging demand for broadband equipment was not enough to offset tepid developments in RAN, optical transport, and routers in second quarter of 2022.

Telecom equipment business in North America and China grew at a double-digit rate and a high single-digit rate in the first half, respectively. Market conditions were challenging in the Asia Pacific region (APAC). Telecom equipment revenues in Europe turned negative in the second quarter, reflecting the stronger USD and supplier exits in Russia.

A report from Dell’Oro said telecom equipment vendor dynamics were stable between 2021 and 1H22, with the top 7 suppliers driving around 80 percent of the overall market.

Huawei benefitted from its telecom equipment leadership position in China during 1H22. Huawei’s telecom equipment revenue share decline outside of China was negligible. Huawei accounted for 18 percent of the telecom equipment market in H1.
Global telecom equipment revenues are projected to increase 4 percent in 2022 and record a fifth consecutive year of growth, Dell’Oro said.

Dell’Oro’s Telecom Capex report suggests that the majority of the mobile operators are not revising their Capex guidance at this juncture. USD-based Capex projections have been revised downward to reflect the USD gains against most other major currencies in recent months.