Huawei has demonstrated resilience in maintaining its leadership position in the global market, despite a fifth consecutive quarter of decline in high-end router equipment revenue.
According to Dell’Oro Group’s 3Q 2024 service provider router and switch report, Huawei remains one of the top three vendors, alongside Cisco and Nokia, with a notable increase in market share.
Huawei’s market share increased by two percentage points year-to-date, a testament to the company’s ability to adapt amid challenging market conditions.
Alongside Nokia, Huawei is among the few vendors showing positive trends in market share, distinguishing itself from competitors such as Cisco, which saw a decline of six percentage points.
The 24 percent decline in North America, the steepest drop among all regions, underscores broader market challenges. However, Huawei’s robust performance in regions like Asia-Pacific and EMEA has likely bolstered its overall position.
While core router revenues stabilized quarter-over-quarter, the ongoing inventory correction in North America presented hurdles for all vendors, including Huawei.
Huawei has focused on product innovation and regional diversification, enabling it to mitigate the impact of market contractions in specific geographies.
The company’s investments in advanced networking technologies, including routers optimized for 5G and edge computing, position it strongly for the anticipated market recovery in 2025.
The projected 4 percent growth in the high-end router market in 2025 offers Huawei opportunities to expand further, especially as inventory levels stabilize and economic conditions improve globally.
Huawei’s strategic partnerships and focus on enhancing network infrastructure in emerging markets could play a key role in capturing growth as demand rebounds.
While market challenges persist, Huawei’s increased market share in 2024 underscores its resilience and leadership in the High-End Router segment. Through strategic innovation and a strong global presence, Huawei is well-positioned to capitalize on the recovery anticipated in 2025, reinforcing its standing as a key player in the telecom industry.
Baburajan Kizhakedath
