The latest report from TrendForce indicates that Huawei will grab share from Ericsson and Nokia in the base station market in 2021.
Huawei is successful in the global base station market of its strong presence in China, the #1 5G market in the world. China Mobile, China Unicom and China Telecom have established 916,000 5G base stations as of July 2021, which comprise 70 percent of the global total.
China-based Huawei (30 percent), Sweden-based Ericsson (23 percent), and Finland-based Nokia (20 percent) are the top three base station equipment suppliers, according to TrendForce.
Huawei will increase its share in base station equipment market to 30 percent in 2021 from 29 percent in 2020.
Ericsson’s base station equipment market share will drop to 20 percent from 26 percent.
Nokia’s base station equipment share will decrease to 20 percent from 21.5 percent.
Samsung will enhance its share to 12.5 percent from 9 percent in the base station equipment market globally.
ZTE’s base station equipment share will drop to 3.5 percent from 4.5 percent.
Though Huawei remains banned by the US government, the tech company manages to dominate its competitors in terms of market share due to its products’ cost advantages as well as the enormous demand from the domestic Chinese market.
The total mobile service revenues in China are forecast to grow at a compounded annual growth rate (CAGR) of 3.1 percent from $131.3 billion in 2021 to $152.7 billion in 2026, mainly supported by growing 5G subscriptions, according to GlobalData.
Harika Damidi, Telecoms Analyst at GlobalData, said: “5G subscriptions will surpass 4G subscriptions in 2023 and go on to account for 73.8 percent of the total mobile subscriptions share in 2026, driven by the ongoing 5G network expansion by operators and increase in the availability of 5G smartphones.”
Chinese and European suppliers of base station equipment are expected to account for a global market share of more than 70 percent in 2021.
Samsung has benefitted from its low costs and successful 5G commercialization efforts. Samsung has 12.5 percent market share this year to 12.5 percent and secure the fourth place in the global ranking. is Samsung is supplying base station components to three largest mobile network operators in Korea.
Japan-based base station supplier NEC has received its first ever overseas orders this year, from British mobile network Vodafone.
Japan-based Fujitsu has also been chosen by the British government as an alternative supplier of 5G base station equipment in place of Huawei.