Telecom equipment market revenue rose 3 percent in 2022 as compared with 8 percent in 2021, the latest research report from Dell’Oro Group showed.
Telecommunications Infrastructure programs covered at Dell’Oro Group, include Broadband Access, Microwave & Optical Transport, Mobile Core Network (MCN), Radio Access Network (RAN), and SP Router & Switch.
In addition to challenging comparisons in the advanced 5G markets and the supplier exits in Russia, the strengthening USD weighed on the telecom equipment market. Supply issues also impacted the market negatively during the first half but eased somewhat in the second half.
Telecom equipment market achieved strong growth in North America and CALA. Telecom equipment market faced more challenging conditions in EMEA and the Asia Pacific.
Telecom equipment market in China grew at around 4 percent.
Broadband Access equipment revenues surged in double-digits in 2022. Five segments (Microwave Transport, Mobile Core Network, Optical Transport, RAN, SP Router & Switch) have achieved stable or low-single-digit growth in 2022.
Huawei leads the global telecom equipment market despite efforts by the US government to limit Huawei’s TAM and access to the latest silicon.
Huawei remains the #1 supplier in five out of the six telecom segments. Huawei has lost some ground in the global telecom equipment market outside of China. Nokia (around 20 percent), Ericsson (around 18 percent) and Huawei (around 18 percent) were the top 3 telecom equipment suppliers outside of China in 2022.
The overall telecom equipment market will increase 1 percent in 2023 and record a sixth consecutive year of growth.
Dell’Oro Group analysts will monitor the 5G rollouts in India, Capex cuts in the US, and 5G slowdown in China (preliminary data by MIIT suggest new 5G BTS volumes will drop by a third in 2023 relative to 2022), wireless and broadband investments in Europe, forex fluctuations, and inventory optimization.