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In 2024, the global telecom equipment market experienced an 11% revenue decline, the steepest in over 20 years, driven by excess inventory, macroeconomic challenges, and slow 5G adoption. Huawei emerged as the leading supplier with 31% market share, while Nokia and Ericsson followed. Despite the downturn, market conditions are expected to stabilize in 2025, though challenges remain.
The global Radio Access Network (RAN) market experienced a significant decline of nearly $9 billion in 2024, marking the steepest drop in over 20 years. Despite this downturn, Huawei and Ericsson gained market share, with Huawei dominating the Chinese market due to strong government support and cost-effective solutions, while Ericsson capitalized on its presence in North America and Europe amid Huawei's regional restrictions. Nokia, Samsung, and ZTE struggled to compete, facing challenges in securing contracts and expanding their global presence.
The Trump administration is pushing for the deployment of Open Radio Access Networks (O-RAN) in the Pacific region, despite challenges and a fading multi-vendor vision, as highlighted by a Dell’Oro Group report predicting a 25% market share by 2029. While major American vendors are absent, partnerships with countries like Japan, Australia, and South Korea are being sought to enhance infrastructure investments. The administration's interest raises speculation about a potential controlling stake in Nordic vendors like Ericsson or Nokia to strengthen U.S. presence in RAN infrastructure.
Stefan Pongratz
People
The information provided herein is generated by experimental artificial intelligence and is for informational purposes only.
global telecom equipment market faces steep decline amid 5G challenges and tariffs
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