What's Happening?
The global telecom equipment market has shown signs of recovery in the first half of 2025, following two years of declining investment. According to Dell'Oro Group, aggregate worldwide revenues across
six major segments, including broadband access and mobile core network, grew by 4% year-over-year. This rebound was driven by stabilized inventories, favorable currency movements, and easier year-over-year comparisons. The recovery was particularly strong in the EMEA and North American regions, offsetting weaker conditions in Asia-Pacific. Huawei has strengthened its market position, gaining approximately three percentage points in revenue share since U.S. restrictions began. Dell'Oro has revised its short-term outlook upward, now expecting total telecom equipment revenues to grow between 2% and 3% in 2025.
Why It's Important?
The rebound in the telecom equipment market is significant for the industry, indicating a stabilization after years of decline. This growth could lead to increased investments and technological advancements, particularly in regions like EMEA and North America. Huawei's strengthened position despite U.S. restrictions highlights the company's resilience and ability to adapt to market challenges. The upward revision of revenue forecasts by Dell'Oro suggests a more optimistic outlook for telecom equipment manufacturers and service providers, potentially leading to more competitive pricing and innovation in the sector.
What's Next?
Dell'Oro's revised forecast suggests continued growth in telecom equipment revenues, which may encourage further investment in infrastructure and technology development. Companies like Huawei, Ericsson, and Nokia may adjust their strategies to capitalize on the recovering market. Stakeholders in the telecom industry, including investors and policymakers, will likely monitor these developments closely to assess the impact on global telecom infrastructure and services.
