Communication Equipment (Global Market)

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• Optical Transport Network (OTN)
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• Wireless Networking Equipment (WLAN) - Global Market
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Cell phones

• Cell Phones (Global Market)
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• Enterprise Telephony Solutions (Global)
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• PBX - Office PBXs (Russian Market)

2023

Global telecom tower spending up 6% year-on-year to $59.72 billion

In 2023, the global telecommunications tower market reached $59.72 billion. The result of the previous year, when expenses in this area were estimated at $56.4 billion, was exceeded by almost 6%. This is stated in the Market Research Future study, the results of which are presented at the end of November 2024.

The expansion of mobile network infrastructure is one of the main factors in the growth of the industry under consideration. Telecommunications companies around the world are looking to improve network coverage and customer experience, leading to increased investment in the tower ecosystem. In addition, operators are actively upgrading existing towers to meet higher capacity requirements. It is noted that the need to ensure a reliable connection - especially in large cities - puts significant pressure on telecommunications providers. Plus, the development of cellular communications in rural and underserved areas continues.

Another driver of the market is technological advances. In particular, the introduction of the 5G standard requires the deployment of modern telecommunications towers. At the same time, the integration of intelligent technologies increases operational efficiency, reduces maintenance costs and improves reliability: this encourages companies to invest in advanced equipment. The ongoing development of the Internet of Things (IoT) also has a stimulating effect on the industry. Applying IoT to areas such as manufacturing, transportation, healthcare and smart cities requires reliable telecommunications infrastructure. Against this background, operators are expanding their tower assets. The companies are also strengthening partnerships and collaborations to improve services and increase geographic reach.

The authors of the study identify four key market segments: frame towers, monopoly towers, Stealth towers (merge with the environment) and guy mast communication masts. In 2023, the first of these sectors accounted for $20.5 billion. Monopoly towers provided revenues of $18 billion, and Stealth solutions - about $10 billion. The contribution of communication masts with guy lines is estimated at $11.22 billion. The largest market players are named:

• Mosaic Telecom;
• American Tower;
• Phoenix Tower International;
• SBM Offshore;
• Airtel;
• Tower Company;
• Rural Broadband Solutions;
• IXP;
• Telesites;
• Inwit;
• Crown Castle;
• China Tower;
• Telxius;
• Cellnex;
• Indus Towers.

In 2023, North America became the leader in terms of geography, where the cost of telecommunications towers amounted to about $20 billion. In second place is the Asia-Pacific region with a result of $18 billion, and Europe closes the top three with $15 billion. South America secured a contribution of approximately $4 billion.

The overall landscape of the telecommunications tower market demonstrates constant evolution driven by technological advancements and changing consumer expectations, the study said.

At the end of 2024, revenue in the area under consideration is estimated at $63.24 billion. Market Research Future analysts believe that in the future, the CAGR (average annual growth rate in complex percentages) will be 5.89%. As a result, by 2032, costs on a global scale could rise to $100 billion. The main drivers of the global market will remain high-speed data transmission services, mobile communications and broadcasting services.^[1]

The volume of the global market for telecom equipment fastening systems grew by 4% over the year, to $5.93 billion

In 2023, costs in the global market for telecommunications equipment fastening systems reached $5.93 billion. This is about 4% more compared to 2022, when expenses in this area were estimated at $5.68 billion. Industry trends are addressed in the Market Research Future survey published in late November 2024.

One of the drivers of the market under consideration is the expansion of the communication infrastructure. Providers around the world are developing networks and updating existing equipment, thereby stimulating demand for mounting systems. Another factor in the growth is the rapid adoption of 5G technologies: specialized mounting solutions are required to install new generation cells. In addition, the demand for telecom equipment attachment systems is increasing amid the implementation of smart cities projects and the expansion of the Internet of Things (IoT) ecosystem.

The authors of the study identify four main market segments: cellular network infrastructure, broadcasting, satellite communications and data centers. In 2023, the first of these areas provided revenue in the amount of $2.55 billion. Broadcasting accounted for about $1.25 billion, satellite communications - $1.03 billion. In the segment of data centers, expenses are estimated at $1.1 billion. The key players in the industry are:

• Belden;
• Molex;
• 3M;
• General Cable;
• AFL;
• Viavi Solutions;
• Barrett Communications;
• RFS;
• Amphenol;
• CommScope;
• Netset;
• PCT International;
• TE Connectivity;
• Harris Wireless;
• Rosenberger.;

Geographically, North America leads with costs of more than $2 billion. This is followed by Asia-Pacific and Europe. South America accounted for $0.8 billion, the Middle East and Africa - 0.35 billion. At the end of 2024, costs on a global scale are estimated at $6.19 billion.^[2]

Decrease in sales of broadband access equipment by 9% to $17.5 billion

In 2023, the global broadband Internet access (broadband access) equipment market amounted to approximately $17.5 billion. This is 9% less than in the previous year, when costs in this area were estimated at $19.2 billion. Such data are provided in a study by Dell'Oro Group, the results of which TAdviser got acquainted with at the end of October 2024.

The report noted that global spending on cable equipment in 2023 decreased by 3%, while the cost of Remote PHY Devices (Remote PHY Devices) rose by 21% after a 99% increase in 2022. Total sales of PON equipment (passive optical networks) decreased by 7% compared to 2022, due to a 10% reduction in costs for PON OLT (Optical Linear Terminal).

Cable operators continue to upgrade their networks by deploying Distributed Access Architectures (DAAs). While macroeconomic complexities and ongoing challenges in supply chains continue to have a negative impact on the industry, there is little doubt that cable operators will invest in increasing the bandwidth of networks and data processing systems on the periphery, says Jeff Heynen, vice president of Dell'Oro Group.

The use of the DAA architecture, which helps operators improve signal quality, was a highlight for the cable infrastructure market in 2023, Heinen said. In addition, DAA paves the way for the introduction of DOCSIS 4.0 technology, which provides symmetrical multi-gigabit Internet access over conventional cable television networks. DOCSIS, or Data Over Cable System Interface Specifications, is a family of data transmission standards on coaxial (television) cable. In the case of DOCSIS 4.0, a data transfer rate of up to 10 Gb/s can be achieved.

The Dell'Oro Group study said sales of fixed-line wireless telecommunications equipment, which is installed on the subscriber/customer (CPE) side, rose 7% in 2023, driven by strong demand for solutions in North America. The total supply of routers and broadband CPE equipment of Wi-Fi 6E and Wi-Fi 7 standards in 2023 reached 10 million units.

At the same time, Market Research Future analysts estimate the volume of the global broadband access market as a whole at $139.71 billion at the end of 2023. This is about 6% more compared to 2022, when costs on a global scale were about $132.09 billion. The main drivers of the industry are the increase in the number of users, Internet the spread of IoT devices and the growing adoption of cloud services. Government initiatives aimed at expanding the broadband access infrastructure are another stimulating factor. Plus, technological advances, including the development of next-generation fiber-optic networks, are having a positive impact on the industry. Among the key players in the market under consideration are:

• Nokia;
• Samsung;
• Infinera;
• Harmonic;
• Arris;
• Ericsson;
• Netgear;
• Huawei;
• Cisco;
• Juniper Networks;
• Casa Systems;
• Adtran;
• Calix;
• Siae Microelettronica.

At the end of 2024, the global broadband access market is estimated at $147.77 billion. Market Research Future analysts believe that in the future, the CAGR (average annual growth rate in complex percentages) will be 5.77%. Thus, by 2032, costs on a global scale are expected to rise to $231.33 billion.^[3][4]

The leaders of the global telecom equipment market are named

At the end of 2023, Huawei became the largest supplier of telecommunications equipment on a global scale with a share of approximately 30%. For comparison, a year earlier it occupied 28% of the industry. This is stated in a study by Dell'Oro Group, the results of which were published on March 13, 2024.

After five and a half years of growth, the industry declined in the second half of 2023. As a result, sales in 2023 as a whole decreased by about 5% compared to the previous year. Dell'Oro Group analysts consider sales in six key categories: broadband, microwave, optical, mobile core network (MCN), and radio access network (RAN) devices, as well as switches and routers for service providers.

Experts explain the sharp decline in investment in equipment for telecommunications platforms for several reasons. One of them is the difficulties with the deployment of 5G networks. It is said that in a number of regions the introduction of 5G services with autonomous architecture (5G SA) is slower than predicted. In addition, against the backdrop of the COVID-19 pandemic during 2021-2022, the rapid development of PON networks (passive optical network) was observed. However, telecom operators then reduced the capital cost of expanding broadband access channels for home users. Positive dynamics in the sectors of optical lines and routers for service providers could not compensate for the sharp decline in the PON area.

From a regional point of view, North America showed a more significant pace of decline than expected. The data obtained during the study suggests that the cumulative market for telecommunications equipment in this region fell by about one fifth compared to the previous year. This is due to weak activity in the RAN industry and in the broadband market. At the same time, in the Asia-Pacific region, an increase in the supply of telecom equipment was noted.

It is said that macroeconomic factors, inflation and currency fluctuations have a negative impact on the market as a whole. In particular, the growth of the US dollar against the yuan and yen affects the estimates of equipment revenues in US dollars in China and Japan.

According to calculations, in second place in the ranking of leading players in the world market after Huawei in 2023 is located, Nokia which controls 15% of the industry. the Finnish This company showed approximately the same result a year earlier. Closes the top three, Ericsson whose share decreased from 14% in 2022 to 13% in 2023. Next come ZTE Cisco with a result of 11% (the same indicator was recorded in 2022) and 6% (about 5% in 2022), respectively. Another about 4% of the market occupies (Ciena about 3% in 2022), 2% - (3% Samsung in 2022). Thus, the seven leading manufacturers together hold more than 80% of the global telecommunications equipment industry.

It is noted that Huawei, the world market leader, was able to increase its share in 2023, despite tough sanctions from the United States. The company is actively developing the 5G direction and conducting research in the field of next-generation communication systems.

Market conditions are expected to remain challenging in 2024, although the downturn is forecast by Dell'Oro Group to be less severe than in 2023. Analysts predict that the reduction in global revenues from the supply of telecommunications equipment in 2024 will be in the range from 0% to 5^[5]

2022

How the world is developing new wireless technologies, in which $118 billion was invested over the year

New wireless technologies are driving business growth and productivity growth across industries. Investments in related solutions in 2022 reached $118 billion, as stated in a report by McKinsey, which was published on July 20, 2023.

Analysts highlight several key areas of development of the wireless communication market. These are, in particular, cellular services/that 5G6G provide high bandwidth and low latency connections. In parallel, technologies 6 Wi-Fi (including Wi-Fi 6Ye) and Wi-Fi 7 are developing, also characterized by high data transfer rates. Other areas include next-generation fiber-optic infrastructures, low-power global networks (narrowband, internet of things LTE-M, LoRa, Sigfox) and low-orbit satellite constellations designed to organize broadband information transmission channels.

According to McKinsey estimates, in 2022, the number of announcements about the search for employees in the field of new wireless technologies increased by about 7% compared to 2021. Most in demand are software developers, as well as specialists in the field of network engineering and electronics.

At the same time, the report notes, price wars, the struggle of telecommunications operators to monetize services, constantly growing traffic and the increasing cost of deploying networks have led to a decrease in investment returns for companies around the world. 5G adoption is slower than expected, and many industrials have chosen to wait with the rollout of private 5G networks because of the complexity and lack of understanding of their benefits. Against this background, the integration of various technologies is growing, for example, Wi-Fi, cellular communications and satellite connections, which allows you to implement various use cases.^[6]

Global broadband access equipment Market Growth by 17%

Costs in the global broadband Internet access (broadband access) equipment market reached approximately $19 billion in 2022, up 17% from the previous year. This is evidenced by a study by Dell'Oro Group, the results of which were published on March 15, 2023.

The statistics cover sales of solutions for various network technologies, including DSL (Digital Subscriber Line), PON (Passive Optical Network) and cable systems. Shipments of devices such as access multiplexers, optical line terminals, routers for mesh wireless networks, etc., have been evaluated.

It is noted that the global broadband access industry has demonstrated significant growth due to good demand in the PON segment. In particular, at the end of 2022, revenue from the sale of PON OLT and ONT equipment reached $11.7 billion. The total supply of XGS-PON OLT ports exceeded 2 million, amounting to 2.3 million worldwide. Total sales of PON equipment increased by 25% on an annualized basis: this means that this segment as of the end of 2022 showed annual revenue growth for five consecutive years.

The total income from cable access hubs rose by 1% compared to 2021 and amounted to about $1 billion. Cable operators continued to deploy DAA (distributed access architecture) networks, as well as fiber optic lines.

In 2022, operators around the world focused on upgrading and expanding broadband networks. We believe that this area will remain an important area of ​ ​ investment, as providers increase data bandwidth and improve the quality of services available to subscribers, "said Jeff Heynen, vice president of Dell'Oro Group.

Analysts at Dell'Oro Group believe that sales of PON equipment for deploying fiber-to-home services, cable broadband devices and fixed wireless access will steadily increase until 2027. This is due to the fact that service providers continue to expand their infrastructure and DOCSIS 4.0 systems, designed to transmit data over cable television networks over coaxial cable.

Experts believe that revenue from PON equipment will rise to $13.2 billion in 2027 - mainly due to the deployment of XGS-PON in, in North America the regions (EMEA Europe Middle East Africa and) and CALA (Caribbean and Latin America). Sales of distributed access cable equipment may be at the level of $1.5 billion by 2027. Revenue in the segment of client devices for organizing fixed wireless access, according to analysts, will amount to approximately $2.2 billion in 2027: the development of this segment will be facilitated by the deployment of 5G services in the frequency range below 6 GHz and in the millimeter wave range. It is said about the demand for consumer routers of 6E standards (Wi-Fi frequency bands 2.4; 5 and 6 GHz) and Wi-Fi 7.

Service providers around the world continue to shift their broadband networks to fiber and abandon existing copper cable-based networks. As markets are expected to become more competitive, broadband access providers will continue to invest in their infrastructures to differentiate services not only by increasing data rates, but also by reducing delays and expanding managed Wi-Fi services, Heinen said.[7][8]

Telecom Equipment Market Growth by 3%

At the end of 2022, the global telecommunications equipment industry showed growth in monetary terms by 3% compared to the previous year. For comparison, in 2021, costs in this segment on an annualized basis increased by 8%. Such figures are given in the report of Dell'Oro Group, which was released on March 16, 2023.

The study takes into account the supply of broadband Internet access (broadband access Internet access) equipment, devices for radio relay and optical transport networks, solutions for mobile communication infrastructure and radio access networks, as well as operator-class routers and Ethernet switches.

The results shown in 2022 did not meet the expectations of analysts who spoke of growth at 4% compared to 2021. This is due to a number of factors, in particular, with problems in supply chains, a shortage of electronic components, the current macroeconomic and geopolitical situation. The departure of many foreign manufacturers had a negative impact on the Russian market.

Geographically, strong growth in North America was recorded in 2022: it was enough to compensate for the decline in sales in the EMEA region (Europe Middle East and Africa) and in the Asia-Pacific region. In China, revenue growth from telecom equipment sales was approximately 4%, while in all other regions combined sales rose 3%.

If we consider the industry from a technological point of view, then, as noted by Dell'Oro Group, in 2022 there was a redistribution of investment between wireless and wired communications. In particular, revenues from the supply of broadband Internet equipment rose sharply, but double-digit growth in this segment was smoothed out due to slight or absent positive dynamics in other market sectors.

The dynamics of sales from the largest suppliers was relatively stable from 2021 to 2022. At the same time, seven leading manufacturers of telecom equipment accounted for about 80% of total revenue. Despite the harsh US sanctions against Huawei, this Chinese company in 2022 still led the world market. It is noted that Huawei remained a key equipment supplier in five of the six segments of the telecommunications industry. At the same time, Huawei has somewhat lost ground outside China. In general, Nokia, Ericsson and Huawei became the three leading suppliers in the world market excluding the PRC in 2022: the share of the first of these companies was approximately 20%, the other two - 18% each.

At the same time, MTN Consulting analysts note that the cost of network infrastructure in the global telecommunications market in 2022 rose by 2% on an annualized basis. In 2021, growth was significantly higher - plus 9%. It says that for the industry as a whole, some decline in growth was inevitable. This is due to the fact that telecommunications companies have slowed down the deployment of 5G mobile networks, while revenues from related services do not justify the costs. Other negative factors are higher electricity costs, a deteriorating economic situation, as well as a slowdown in the construction of new network infrastructures due to increased penetration of cloud services. Against this background, by the end of 2022, cloud providers AWS, Microsoft Azure and Google Cloud showed growth, while Cisco, Ericsson and ZTE faced significant sales declines.^[9]

2021

The world's largest manufacturers of telecommunications equipment

On April 8, 2022, analysts at MTN Consulting published a study on the network infrastructure market for telecommunications networks (Telco NI). The total revenues of manufacturers of such equipment increased by 7.8% compared to 2020 and amounted to $232.1 billion. This was the largest market size and the highest overall growth, for at least the last 8 years.

High revenues of vendors corresponded to the dynamics of customer expenses: in 2021, capital costs for telecommunications increased by 10% compared to 2020, to $325 billion, and operating costs increased by about 5%.

Final telecom equipment (NEP) manufacturers dominate the top ten, but telecoms companies also rely on dozens of service, software and connectivity professionals.

The three leading suppliers in the Telco NI market in 2021, as usual, were the three largest traditional suppliers of network equipment: Huawei, Ericsson and Nokia. Their shares in 2021 amounted to 18.8%, 11.2% and 9.1%, respectively. China Comservice is the largest non-NEP and finished the year in fourth place; most of its revenue comes from Chinese network construction and maintenance projects. ZTE and Cisco, both non-NEP companies, took 5th and 6th places, respectively. Intel ranks 7th. Although viewed as a NEP in the ranking, Intel is in its own segment: some of its sales to telecoms companies are through OEM relationships, and most of the cost of its offerings to telecoms companies comes from chips and software. CommScope follows in 8th place.

CommScope is seen in the ranking as a connectivity specialist rather than a NEP, but it provides telecommunications companies with equipment that goes far beyond connectivity (such as small cell base band controllers). NEC ranks 9th in 2021, its revenue base consists of mobile infrared, microwave and wired communications.

The last supplier in the top ten is Amdocs, which in this study is considered an IT service provider; its strengths are telecommunications software and managed services.

While the top 10 companies account for 64% of revenues, there is a long tail of smaller players holding key positions in the Telco NI market. Some of them ceased operations due to acquisition, privatization or bankruptcy, but 106 of them were active as of the 4th quarter of 2021. 89 of them in 2021 had revenues from the sphere of telecommunications networks exceeding $100 million.

Key suppliers of fiber optic and interconnect products to telecoms companies, for example, include Hengtong, Fiberhome and Corning, which are ranked 11th, 12th and 14th overall for 2021. Ciena and Juniper hold strong positions in the package optics market, ranking 20th and 25th in 2021, respectively. At the tail end, the smallest telecom network solution providers are Allied Telesis, Net Insight and SeaChange, with estimated revenues of $17M, $9M and $20M in the Telco NI market in 2021.

If we compare the growth indicators of Telco NI market share between companies in 2021 and 2020, then Cisco clearly came out on top, gaining 0.64% market share worth $232.1 billion. Cisco has helped both the shift in telecoms spending on 5G toward backbone networks and Huawei's problems in the US.

The next largest was Samsung, which increased its share by 0.32%. This was due to a major deal with Verizon and the growing interest of telecommunications companies in finding alternatives to RAN in addition to Ericsson and Nokia. ZTE's share increased by 0.07%. ZTE managed to avoid being included in the US sanctions list and achieve several 5G victories in 2021, but the company's growth is broader due to optics, fixed broadband and 4G business in emerging markets.

On the opposite side, Nokia and Ericsson lost share in the overall telecom NI market in 2021. Their revenues from RAN have increased thanks to Huawei's troubles in 2020, but since then telcos' spending has shifted towards commodity areas with higher competition. Both manufacturers are trying to diversify outside the telecommunications market, with Nokia having had more success so far, with revenues outside of telecommunications up 12% in 2021.

Huawei 's share of Telco NI fell to 18.8% in 2021, down from just over 20% in each of the previous three years. The Commerce Department's listing of the company USA was launched in May 2019, but it hit hard at the end of 2020 and 2021 after Huawei's inventory began to run out.^[10]

The global telecom equipment market added 7% over the year

The volume of the global telecommunications equipment market in 2021 reached $100 billion, an increase of 7% compared to the previous year. Compared to 2017, sales of this device increased by more than 20%, according to data from Dell'Oro analysts, released in March 2022.

We are talking about equipment used in broadband access networks (BAP), optical transport networks, microwave telecommunication systems, GSM backbone networks and radio access networks (RAN). Sales of carrier-class switches and routers are included in the calculation. Initially, Dell'Oro expected a 15% increase in the global telecom equipment market by the end of 2021, but during the year the forecasts were repeatedly revised downward due to problems with the supply of finished products and components for them.

According to experts, despite a sufficiently weak fourth quarter, when sales of equipment for communication networks increased by only 2%, according to the results of all 2021, the rise remained for the fourth year in a row. This was facilitated by the growing revenues of manufacturers of mobile products, as well as "healthy demand for wired equipment," the study said.

According to Dell'Oro estimates, in 2021, the seven largest manufacturers of telecommunications equipment recorded about 80% of the total turnover in the market, and from 2020 to 2021 this share remained relatively stable.

The ongoing efforts of the American authorities to limit the use of Huawei equipment continue to affect the position of the Chinese vendor outside the PRC. However, despite this, Huawei still leads the global telecommunications equipment market with a share of more than 25% at the end of 2021, which is facilitated by the company's dominance in its homeland, an extensive range of products for the telecom sector and the stability of existing positions. In second and third place are Ericsson and Nokia with presence rates slightly above 16%.

If you exclude the Chinese market from the calculations, then the distribution of shares between vendors looks more uniform. Excluding revenue in China, Ericsson and Nokia in 2021 provided about 20% of turnover, and Huawei's contribution amounted to approximately 18%. In addition, Dell'Oro specialists included Cisco, ZTE, Samsung and Ciena among the seven largest market participants, but their market shares were not specified in the press release.

Huawei and ZTE are leading providers of 5G equipment, including base stations, for Chinese operators China Mobile, China Unicom and China Telecom. These operators are expected to operate a network of 2 million 5G base stations in 2022.

Against the backdrop of the COVID-19 pandemic, operators continue to expand the bandwidth of their fiber and cable communication lines at an accelerated pace, "said Jeff Heynen, senior director of broadband access and home network research at Dell'Oro.

According to the specialist, the end result of this will be a faster transition to gigabit tariffs.

Dell'Oro has revised its 2022 market growth forecast (expected + 4%) to reflect current manufacturer capital investment plans and supply chain situations. According to the researchers, "the risks are generally balanced": the impact of the Russian special operation in Ukraine, ongoing restrictions due to the COVID-19 coronavirus pandemic and supply chain disruptions are offset by the expected growth in investments by American^[11]

2018-2019: 6% Market Growth - Dell'Oro

The volume of the global telecommunications equipment market in the 12-month period, the end of which fell on June 2019 of the calendar year, increased by 6% compared to the same period of time in 2018. Such data at the end of August 2019 led to the research company Dell'Oro.

The main promoters of the growth in sales of operator equipment were devices for mobile communications networks (Mobile RAN) and solutions for optical transport networks (Optical Transport), the annual sale of which increased by 10% and 8%, respectively.

The segment of technologies for optical transport networks has grown for the fourth year in a row due to strong sales of DWDM equipment in China and large Internet providers using data center interconnect technologies.

The study says that the telecommunications equipment market has been growing since the third quarter of 2018 after a decline that lasted about three years. For the 12-month period that ended at the end of June 2019, many of the largest manufacturers recorded revenue growth, but Samsung, ZTE and Ciena showed the highest dynamics (which one is not specified).

Huawei remained the market leader with a share of 28.1% in the four quarters under consideration. Apparently, American sanctions had a slight impact on the telecommunications business of the Chinese company - at least in the first half of 2019.

Moreover, Huawei completed 2018 with a 27 percent share in the telecom equipment market, and by mid-2019 the company had concluded the most contracts for the supply of 5G equipment to operators - more than 50. For comparison, Nokia at that time had 43 deals, ZTE - 25%, Ericsson - 22.

Huawei is followed by Nokia, which is among the four largest vendors in all seven market segments, the study said. At the same time, Nokia's share decreased to 15.7% from 16.8% at the end of 2018. Ericsson's presence rate (third overall) during this time decreased from 16.6% to 13.1%. Earlier, the shares of Nokia and Ericsson decreased by about 1 percentage point per year, in 2018 the companies managed to stop the fall, and in 2019 the regression resumed.

ZTE is showing positive dynamics, which accounted for 9.6% of the global market for equipment for telecommunications networks in four quarters, the last of which is the period April-June 2019. Six months earlier, the share of the Chinese vendor was measured at 8%. According to Jimmy Yu, vice president of Dell'Oro Group, and Stefan Pongratz, senior director of the company, ZTE's revenue growth indicates customer loyalty. After the lifting of US sanctions, ZTE's market revenues immediately returned to their previous level, analysts say.

At the end of 2018, the seven largest manufacturers were as follows: Huawei, Nokia, Ericsson, Cisco, ZTE, Ciena and Samsung. These companies controlled about 80% of cash sales of equipment for telecom operators.

Experts say the further balance of power in the telecommunications equipment market will depend on orders for 5G network construction projects. Huawei by the beginning of September 2019 delivered a total of more than 200 thousand base stations for 5G networks against 150 thousand in July 2019. What results have been achieved by competitors in this area is not reported.

According to analysts at Zion Market Research, the volume of the global infrastructure market for fifth-generation networks in 2018 amounted to $1.3 billion, and by 2025 the figure will increase to $22.5 billion.^[12]

2012

Demand Growth Forecast for Switches and Routers

On March 19, 2012, the research company Ovum published a report according to which rapidly growing volumes of Internet traffic stimulate a sharp increase in demand for switches and routers to expand service provider networks. Analysts cite the huge popularity of mobile gadgets as factors contributing to this development of the scenario, with an extensive database of bandwidth-demanding communication channels for applications, primarily for working with video. The growing penetration of broadband mobile and fixed networks also contributes. As a result, the market volume will increase from $13.3 billion in 2010 to $20.5 billion in 2017. IDC and Cisco Systems agree with the indicated trend, which give similar numbers in their forecasts.

According to David Krozier, senior analyst at Ovum's network solutions market, operators have no choice but to increase investment in expanding IP infrastructure. Otherwise, at a certain stage of development, they risk facing serious technical difficulties, when networks will have to work at the limit or even beyond the limits of capabilities. An unpleasant, but expected consequence of a negative scenario for the development of the situation may be the outflow of the subscriber base.

David Krozier points to the futility of deploying 3G networks at the moment, when there is an alternative in the market in the form of LTE (Long-Term Evolution). Moreover, only LTE networks are able to meet the growing needs of subscribers in high-speed mobile Internet.

At the end of 2011, the North American region remained the largest market for switches and routers in the service provider segment. With a minimal margin from it is the Asia-Pacific region, which includes two of the three countries with the most developed economies in the world - China and Japan. However, Ovum analysts predict higher growth rates in the Asia-Pacific region in 2012 - 9.7% versus 4%. If all that happens, very soon North America will have to settle for second place.

Shifting emphasis from voice to data

In the last two decades, the development of the information sphere has been especially intensive. It was characterized by a large-scale implementation of a variety of technologies and applications. The telecommunications industry initially developed through the provision of voice services, and mobile operators have already mastered this market. Now the main market players have shifted their focus to data services.

According to Ovum forecasts, worldwide revenues from the provision of voice services will decrease by 8.4% by 2015: from $663 billion (2010) to $608 billion, while profits from data services will increase by 10%: from $907 billion (2010) to $1 trillion. The exponential growth of digital content, coupled with the rapid growth in the popularity of mobile networks, has led to a sharp increase in the volume of transmitted data.

User experience as an engine of industry development

The era of digital technologies during this period is characterized by a new important component - user experience. This factor determines the development of the telecommunications industry, so it is very important that subscribers have the opportunity to easily and quickly access communication network services. In order to effectively manage this process, manufacturers of equipment and communication networks must optimally respond to user requests. As mobile is becoming more popular and data access is now literally "at the fingertips," streamlining the service delivery process is a key driver for the telecommunications industry.

Subscribers must have access to high-speed networks with minimal time to access the service, as well as to high-quality content (3D, Ultra HD, etc.). It should be borne in mind that the number of mobile Internet subscribers is growing at a faster pace, and users need access to any services and applications at any time and anywhere, devices must be convenient and have ergonomic characteristics, such as voice control.

The provision of services to subscribers and the progress in the field of network technologies are inextricably linked: the quality of user experience stimulates the development of networks, which allows you to improve the process of providing services. The latest services can only be provided in the most modern mobile networks, their creation will become the most profitable for operators.

Rapid development of mobile broadband networks

The growth of mobile broadband networks was especially rapid in the Asia-Pacific region. According to data provided by Wireless Intelligence and the information service of the GSM Association, in mid-2010 2.4 billion (48%) mobile subscribers (more than 5 billion in the world) were registered in the Asia-Pacific region. At the same time, 900 million were subscribers of China, and 700 million were users of India. In India, annual subscriber growth was 47%, in Cambodia and Sri Lanka - more than 30%. Analysts predict that by 2015, the number of mobile users in the Asia-Pacific region will increase by 50%.

Since the development of networks in this region was so rapid and happened relatively recently, Asian subscribers quickly mastered the capabilities of new devices such as smartphones and tablets, as well as information-intensive applications such as R2R and video sharing. Given the overall increase in the number of users, the use of these applications has led to a sharp increase in the degree of bandwidth utilization, which has affected the availability of mobile network services.

The Challenge of Growing Bandwidth Requirements

This problem, together with the issues of improving the quality of customer service and maintaining income levels, will help solve five main aspects of the future development of the telecommunications industry:

• Creating Gigabit Mobile Broadband Networks
• The transition from copper to optics
• Transition to an All-IP infrastructure that will allow the industry to switch to the use of "package" technologies
• Building Data Center-Based Networks with Cloud-Based IT Infrastructure
• Upgrade OSS/BSS systems to adapt to an open and flexible interaction environment.

Moreover, the telecommunications industry needs to adapt to the processing of "big data" to better understand and reduce the response time to customer needs. It is necessary to create intelligent and sustainable networks that support on-demand bandwidth management, integrate the digital content delivery network with the means to distribute it on various platforms, integrate the IT supply chain using cloud computing, improve information security and protect the system from unauthorized access.

Connection for each

Despite the success of the proliferation of mobile and fixed broadband networks, much remains to be done to make communication services accessible to all. A World Bank study found that every 10% increase in mobile penetration growth accelerates economic growth by 1%.

Looking ahead: 2012 marks an important milestone in the continuous search for a universal communications network. Given the linear relationship between industry development and communication opportunities, it is very important to pay special attention to the dissemination of affordable, high-quality broadband solutions for the entire socio-economic area.

2011: Huawei pushes NSN into third place

On April 3, 2012, ABI Research published data from the Wireless Infrastructure Market Data report on the infrastructure wireless equipment market in the fourth quarter of 2011. The first place is occupied by the unchanged leader - the Swedish company Ericsson with sales of approximately $3.5 billion. In the second, unexpected advances took place - Huawei's successes exceeded all expectations, and the company pushed Nokia Networks (formerly NSN) (NSN) to third place. Asian and European manufacturers managed to earn $2.53 billion and $2.4 billion in the fourth quarter, respectively.

Despite the fact that the fourth quarter is traditionally the most successful of the year, sales of infrastructure wireless equipment decreased in 2011. Jim Eller, senior analyst at ABI Research, does not specify how, but connects the current state of affairs with the caution of companies in an uncertain macroeconomic situation.

Despite the general fall in the market, Huawei should definitely suit the results achieved. The Chinese company increased sales by 54% compared to the third quarter and by 38% compared to the same period in 2010. This is all the more important for the vendor's infrastructure wireless hardware business when you recall its recent major market failure in Australia. The government, without explanation, imposed a ban on Huawei's participation in a major project to deploy a national-scale fiber-optic network with a total cost of $38 billion. Local media linked the reason for the refusal with the attacks on computer systems the day before, allegedly of Chinese origin.

Obviously, security issues have become a stumbling block for the continued cooperation of Huawei and Symantec, whose joint venture lasted four years. In November 2011, Symantec representatives announced their intention to sell Huawei their 49% stake in Huawei Symantec, and on March 30, 2012 it became known that the transaction was completed. Its cost amounted to $530 million.

2010: Ethernet, Wireless and Broadband

Research company In-Stat conducted a study on the sales and use of network equipment worldwide in Q4 2010. The study involves three segments:

• Ethernet equipment,
• wireless devices and
• CPE broadband access devices (customer premises equipment).

In particular, the study claims that the market for devices for constant access is stable and shows a slight increase: compared to the 3rd quarter of 2010 (deliveries worldwide - 96.8 million ports) in the 4th quarter, deliveries increased by 1.1% to 98 million ports. Revenues for the same period increased by 3.3% to $5.12 billion in Q4. Devices with a bandwidth of 1 Gbps are the most popular - supply growth in this segment amounted to 4.9%, and profit increased by 4.5%. The top five in this segment is as follows: the first place is occupied by Cisco Systems with a market share of 29.47%, the second, third and fourth places are divided between HP Networking (19.11%), D-Link (16.44% of the market) and TP-LINK (13.48%), and closes the NETGEAR list with a market share size of 7.44%.

Sales of wireless devices, on the other hand, increased during the last quarter of 2010 and "gained weight" by about 9.1%. Compared to the previous quarter, the market volume grew from $1.38 billion to one and a half billion. Compared to 2009, growth in this segment amounted to 18.8%. 802.11n is becoming the most popular standard: the supply of equipment that supports the standard increased by 23.9% in the 4th quarter of 2010. As you might expect, products with support for the previous 802.11g standard are becoming less popular (-6% of deliveries) and losing in price - revenue decreased by 11.5%. The leader in this segment is TP-LINK. The company firmly holds the first position on the list with 20.9% of the global market. D-Link and NETGEAR compete for second and third places, while the shares of vendors are almost the same (17.8% and 17.6%, respectively). Linksys, according to the authors of the study, continues to lose ground - over the year the company has lost 3% of global market share and currently controls 8.8% of the market. The fifth place belongs to Technicolor with 8.5% of the market.

The study closes with information about the market for user broadband access devices: demand stability is also observed in this segment, coupled with a slight increase. In the 4th quarter of 2010, shipments of user broadband access devices amounted to 36.8 million devices, which is 1.2% more than in the previous quarter, and 0.8% more than in the same period in the previous year. In terms of revenue, the situation has not changed compared to the previous quarter - total revenue amounted to $1.6 billion, which is only 0.3% more than in the 4th quarter of 2009. In this area of ​ ​ the market, TP-LINK also became the leader with a global market share of 16.9%. It is followed by D-Link (13.3%), and NETGEAR (10.4%), Technicolor (8.8%) and ZyXEL (6.1%) close the top five.

Russian market

Main article: Communication equipment (Russian market)

Notes