Dell'Oro Report: Global Telecom Equipment Market Growth Slows in H1 2022,

 Market research company Dell'Oro Group released the global overall telecom equipment market report for the first half of 2022. Preliminary findings show that the overall telecom equipment market revenue will increase from 7% in 2021 to 2022. It slowed slightly to 3% in the first half. In addition to the challenges of 5G development, component shortages, a stronger U.S. dollar, the withdrawal of suppliers from Russia, and the slowdown in wireless business development in Japan and India are the main factors behind the slowdown in the global communications equipment market.

Also, while demand for broadband equipment surged in the first half, it was barely enough to offset tepid year-over-year growth in RAN, optical transport, and routers. So while growth is expected to slow in 2022, the slowdown in the second quarter was a bit steeper than expected.

There are differences in the development of the market in different regions of the world. The North American and Chinese markets grew by double-digit percentages and high-single-digit percentages, respectively, in the first half of the year. Market conditions in the wider Asia Pacific region were more challenging, and total revenue growth for the telecom equipment market in the European region turned negative year-on-year in the second quarter of this year after two consecutive years of healthy growth.

From the perspective of manufacturers, the ranking of communication equipment suppliers remained stable in the first half of 2022, and the top 7 manufacturers accounted for about 80% of the market share. In the specific rankings of various manufacturers in the first half of 2022, Huawei ranks first, Nokia ranks second, Ericsson ranks third, ZTE ranks fourth, Cisco ranks fifth, Ciena ranks sixth, and Samsung ranks seventh.

Dell'Oro Group also pointed out that in the first half of 2022, Huawei's market share in the Chinese market reached 58%, ZTE's 32%, and other manufacturers' supply accounted for 10% of the market share. In overseas markets, Huawei's market share has dropped to a negligible level.

Dell'Oro Group forecasts that the global telecom equipment market revenue is expected to grow by 4% in 2022, setting a record for five consecutive years of growth.

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