LightCounting: Wireless infrastructure market down in 2Q-23 (no surprise)
Executive Summary:
As anticipated, it was almost a carbon copy of 1Q23. This sustained declining pattern confirms our prediction that we have entered the post-peak era. While the U.S. market posted its steepest drop, the strong 5G rollouts in China and India along with steady activity in EMEA and Southeast Asia were not enough to keep the wireless infrastructure market out of decline. On the open vRAN front, DISH in the U.S., Rakuten Mobile in Japan, and a few Rakuten Symphony customers failed to produce sequential growth for the market but did create double digit YoY growth. Meanwhile, the mobile packet core market was the only category that grew sequentially.
Despite a weak quarter, Huawei extended its lead over Ericsson, which managed to keep its share stable. In the meantime, once again, Nokia gained market share at the expense of the Japanese vendors. Samsung lost share while ZTE’s remained stable.
“The vibrant secondhand market for 4G and 5G equipment coming from the removal of the Chinese vendors banned in specific countries is not helping either, and that is here to stay and will contribute to the downward trend. In fact, what was supposed to be a boon for Ericsson and Nokia in particular is at this point negatively affecting the short-term market in pockets of EMEA and CALA,” said Stéphane Téral, Chief Analyst at LightCounting Market Research and Founder of Téral Research.
As a result, this year (2023), we expect the market to decline over 2022 with India in the 5G driver’s seat. In the long run, our service provider 20-year wireless infrastructure footprint pattern analysis points to a 2022-2028 CAGR of -3% characterized by low single-digit declines through 2027, which appears to be the bottom leading to flatness or slight growth in 2028. In fact, we expect 5G to slightly pick up in 2027, driven by upgrades needed to prepare networks for 6G. Given the ongoing 6G activity, we believe something labeled 6G will be deployed in 2028.
About the report:
Wireless Infrastructure quarterly report analyzes the wireless infrastructure market worldwide and covers 2G, 3G, 4G and 5G radio access network (RAN) and core network nodes. It presents historical data from 2016 to 2022 of quarterly market size and vendor market shares, and a detailed market forecast through 2028 for 2G/3G/4G/5G RAN, including open vRAN, and core networks (EPC, vEPC, and 5GC) for each region (North America, Europe Middle East Africa, Asia Pacific, Caribbean Latin America). The historical data accounts for the sales of more than 30 wireless infrastructure vendors, including vendors that shared confidential sales data with LightCounting and Téral Research. The market forecast is based on a model correlating wireless infrastructure vendor sales with 20 years of service provider network rollout pattern analysis and upgrade and expansion plans.
More information about the report is available at:
Historical data accounts for sales of the following vendors: | |||
Vendor | Segments | Source of Information | |
Altran | vRAN | Estimates | |
Amdocs | 5GC | Estimates | |
ASOCS | vRAN (DU) | None, supplies other RAN/vRAN vendors | |
Baicell | RAN (RU) | None, supplies other RAN/vRAN vendors | |
Benetel | Open RAN (RU) | None, supplies other RAN/vRAN vendors | |
Cisco | EPC, vEPC, 5GC | Survey data and estimates | |
China Information and Communication Technologies Group (CICT) | RAN | Estimates | |
Comba Telecom | RAN/vRAN (RU) | None, supplies other RAN/vRAN vendors | |
CommScope (acquired Phluido vRAN patents, October 2020) | vRAN (RU, DU) | Estimates | |
Corning | vRAN | Estimates | |
Dell | vRAN (DU) | None, supplies other RAN/vRAN vendors | |
Enea | 5GC | Estimates | |
Ericsson | RAN, vRAN, 2/3G Core, EPC, vEPC, 5GC | Estimates | |
Fairwaves | RAN/vRAN (RU) | None, supplies other RAN/vRAN vendors | |
Fujitsu | RAN | Survey data and estimates | |
HPE | 2G/3G core, 5GC | Estimates | |
Huawei | RAN, vRAN, 2/3G Core, EPC, vEPC, 5GC | Survey data and estimates | |
JMA Wireless | vRAN | Estimates | |
KMW | RAN/vRAN (RU) | None, supplies other RAN/vRAN vendors | |
Kontron | vRAN (DU) | None, supplies other RAN/vRAN vendors | |
Mavenir (acquired ip.access, September 2020) | vEPC, vRAN, 5GC | Survey data and estimates | |
Microsoft (acquired Metaswitch and Affirmed Networks, 2020) | 5GC, vEPC and 2G/3G core | Estimates | |
Movandi | RAN/vRAN (RU/repeater) | Estimates | |
MTI Mobile | vRAN (RU) | None, supplies other RAN/vRAN vendors | |
Node-H | vRAN (small cells) | Estimates | |
Nokia | RAN, vRAN, 2/3G Core, EPC, vEPC, 5GC | Survey data and estimates | |
NEC (including Blue Danube Systems, January 2022) | RAN, vRAN (RU), EPC, 5GC | Survey data and estimates | |
Oracle | 5GC | Estimates | |
Parallel Wireless | vRAN (CU, DU) | Estimates | |
Pivotal | RAN/vRAN (RU/mmWave repeater) | Estimates | |
Quanta Cloud Technology (QCT) | vRAN (DU) | None, supplies other RAN/vRAN vendors | |
Qucell | RAN, vRAN | Estimates | |
Rakuten Symphony (acquired Altiostar, August 2021) | vRAN (CU, DU) | Estimates | |
Ribbon Communications | 2G/3G core | Survey data and estimates | |
Samsung | RAN, vRAN, vEPC, 5GC | Estimates | |
Silicom | Open RAN (DU) | None, supplies other RAN/vRAN vendors | |
SuperMicro Computer | vRAN (DU) | None, supplies other RAN/vRAN vendors | |
Verana Networks | RAN/vRAN (RU/mmWave) | Estimates | |
ZTE | RAN, vRAN, 2/3G Core, EPC, vEPC, 5GC | Survey data and estimates | |