Rising Demand for 5G Services to Drive Telecom Equipment Market
The global telecom equipment market is expected to exhibit a strong 11.23% CAGR over the forecast period from 2019 to 2025, according to the latest research report from Market Research Future (MRFR). The global telecom equipment market report provides a detailed overview of the global telecom equipment market, leading readers on a detailed journey across the market’s historical standing, current statistics, and future projections. The leading drivers and restraints acting on the global telecom equipment market are also profiled in detail in the report. The major players operating in the global telecom equipment market are also analyzed in the report. In addition, the report also covers the effect of the COVID-19 pandemic on the global telecom equipment market.
The telecom equipment market has been majorly driven by the growing government support to the growth of the telecom sector and the increasing innovations in technology behind 5G and other telecom industry innovations. The increasing growth of cellular stations has been a major driver for the global telecom equipment market over the last few years. As the number of mobile phone users has grown, cellular infrastructure has also had to expand to accommodate the rising number of users. Increasing price competition in the mobile phone market has led to increasing ownership of mobile phones across the world, as cheaper mobile phones have become available with high standards of technological advancement. This is likely to remain a major driver for the telecom equipment market over the forecast period, as this is likely to necessitate the construction of new telecom infrastructure in the coming years.
The development of 5G telecom standards is likely to be a major driver for the global telecom equipment market over the forecast period. 5G is the latest advancement in telecom standards and represents the peak of telecommunications technology. Widespread access to 5G networks has necessitated renovation and development of a wide range of telecom equipment, leading to growing demand from the global telecom equipment market. This is likely to remain a key driver for the global telecom equipment market over the forecast period, as governments around the world are likely to support the development of 5G infrastructure in the coming years.
Leading players in the global telecom equipment market include NEC Corporation, Ribbon Communications Operating Company Inc., Extreme Networks Inc., CommScope Holding Co. Inc., Juniper Networks Inc., Samsung Group, Qualcomm Technologies Inc., Telefonaktiebolaget LM Ericsson, Fujitsu Ltd., Cisco Systems Inc., ZTE Corporation, Nokia, Ciena, and Huawei Technologies Co. Ltd.
In March 2020, Nokia expanded its fiber access portfolio to include new solutions and innovations that will enable service providers to deliver a gigabit experience to everyone, smoothly.
In February 2020, Huawei Technologies Co., Ltd. launched the Smart 8T8R solution. The solution embeds software-defined antennas (SDA), FDD dual-band 8T8R RRUs, and innovative algorithms. It supports on-demand multi-sector deployments across 2G, 3G, and 4G networks based on software configuration that helps in achieving simplified development to 5G.
In June 2019, Extreme Networks, Inc. acquired Aerohive Networks, a pioneer in cloud-managed networking. Under the terms of the agreement, Extreme will acquire all of the outstanding shares of Aerohive’s common stock at $4.45 per share in cash, with a total purchase price of USD 272 million.
The global telecom equipment market is segmented on the basis of offering, infrastructure, end user, and region.
By offering, the global telecom equipment market is segmented into products, software, and services. The products segment is further sub-segmented into broadband access and core network. The core network segment is further sub-segmented into evolved packet core, IP multimedia subsystem, signal transfer point, and multi-access edge computing. The services segment is further sub-segmented into professional services and managed services, of which the professional services segment is further sub-segmented into consulting services, installation and implementation services, maintenance services, and other support services.
By infrastructure, the global telecom equipment market is segmented into wireless and wired infrastructure.
By end use, the global telecom equipment market is segmented into consumer electronics, BFSI, retail, media, defense, and others.
North America accounted for the largest share of 38% in 2018, accounting for a valuation of USD 66.38 billion. The regional market is expected to register a strong 10.25% CAGR over the forecast period.