The Dell’Oro analyst team is expecting the overall telecom equipment market to advance 2 percent in 2022, down from 8 percent in 2021
The overall telecom equipment market witnessed a sixth consecutive quarter of year-over-year growth, as the positive trends that characterized the broader telecom equipment market in the first half of 2021 extended into the third quarter, as per a report by Dell’Oro.
As per the firm’s findings, the overall telecom equipment market advanced 6 percent YoY in the quarter and 9 percent YoY year-to-date (YTD). The growth in the quarter was underpinned by healthy demand for both wireless and wireline equipment.
While the majority of the suppliers were able to navigate the supply chain situation fairly well in the first half, supply chain disruptions had a greater impact in the third quarter, though clearly this was not enough to derail the positive momentum that has characterized the market over the past six quarters.
Positive market sentiment in the third quarter was driven by strong growth in RAN and Broadband Access, which was more than enough to offset weaker trends in Optical Transport.
The collective global share of the leading suppliers remained relatively stable between 2020 and 1Q21-3Q21, with the top seven vendors comprising around ~80 percent of the total market.
Ongoing efforts by the US government to curb the rise of Huawei is starting to show in the numbers, especially outside of China. At the same time, Huawei continued to dominate the global market, still nearly as large as Ericsson and Nokia combined.
With the pandemic resurging and the visibility surrounding the supply chain weakening, the Dell’Oro analyst team is expecting the overall telecom equipment market to advance 2 percent in 2022, down from 8 percent in 2021.
