Networking Equipment (Global Market)

• Optical Transport Network (OTN)
• Equipment for LTE networks
• Equipment for IP networks (global market)
• Ethernet LAN Switches (Global Market)
• Wireless Network Equipment (WLAN) - Global Market
• Mobile Infrastructure (Global Market)

2020: Market leaders in networking equipment for companies

In 2020, Cisco and Huawei continued to dominate the corporate network equipment market, although the gap between them narrowed slightly. In general, sales of such devices on a global scale decreased by 2%, to $48.5 billion. This is evidenced by the data of the research company Dell'Oro Group.

According to analysts, the decline was mainly caused by changes in operations. Data Center Corporate costs increased both on and routers on security, and in the case of wireless local networks they remained the same. The increase in the number of routers and security tools was actually due to software subscription-based products (, SD-WAN virtual security and security). SaaS Even in the WLAN segment, there was an increase in the number of controllers and licenses. Meanwhile, the cost of hardware products (routers, physical, firewall wireless LAN access points, and) switchboards Ethernet decreased.

Global Network Sales Down 2%

The decline in the corporate network equipment market as a whole was more noticeable in the first half of the year. However, starting from the third quarter of 2020, network equipment costs began to recover, as enterprises showed confidence in investing in the future. Researchers estimated that enterprises increased their costs for network equipment by about $400 million in the second half of 2020 (compared to the second half of 2019). About 70% of them were allocated to a wireless local area network.

Performance of the top five network equipment suppliers

Huawei and Cisco accounted for about 50% of the corporate network equipment market in 2020. They turned out to be the only two suppliers with a revenue share of more than 10%.

Cisco remained the market leader in all segments. However, in 2020, the company faced a loss of revenue share. Huawei managed to increase its revenue share by 1 percentage point, reaching 10% by the end of 2020. Dell'Oro Group analyst Sameh Bujelbene noted in the report that the differences in directions between the two suppliers were due to "the high degree of exposure of Cisco to hardware and low dependence on China."

Leading Network Equipment Suppliers for Companies

Meanwhile, Fortinet climbed to fifth place, displacing the H3C. Fortinet has a high impact on the security market, while H3C has a high impact on the switching market. Hewlett Packard Enterprise (HPE) Aruba still ranked third in the market with a steady revenue share of 5% year-on-year. Palo Alto Networks also maintained its fourth position and stable revenue share of 4% in 2020. Juniper, Check Point and Symantec/Blue Coat completed the rating, each of the suppliers has a stable revenue share of 2% in both 2019 and 2020.

Network Equipment Market Forecast

Dell'Oro analysts are optimistic about the prospects for 2021 and forecast a 5% growth in the entire enterprise network equipment market. This optimism is due to improved macroeconomic conditions and business confidence, as well as continued government stimulus. In addition, according to Dell's Oro analysts, their interviews with end users, system integrators and value-added resellers (VARs) showed that if part of the workforce returns to work by the end of 2021, network infrastructure costs in preparation for such development should begin several months ahead, possibly as early as the second or third quarter of 2021^[1]

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