Key Takeaways – The Telecom Equipment Market 1H20
We just wrapped up the 2Q20 reporting period for all the Telecommunications Infrastructure programs covered at Dell’Oro Group. Preliminary estimates suggest the overall telecom equipment market – Broadband Access, Microwave & Optical Transport, Mobile Core & Radio Access Network, SP Router & Carrier Ethernet Switch (CES) – advanced 4% Y/Y for the 1H20 period.
Open RAN Outlook is Improving
Open RAN and virtualized RAN technologies have many of the right ingredients to address both supply and demand related challenges that continue to characterize the mobile infrastructure market. When it comes to the broader movement
New Technologies Expected to Drive Service Provider Router Market Past $15 Billion in 2024
We recently published an update to our Service Provider (SP) Router and Carrier Ethernet Switch (CES) five-year market forecast report. Compared to our prior forecast in January, we made some significant adjustments to incorporate the impact of the COVID-19 pandemic. On the other hand, our view of emerging technology trends remains largely unchanged, and that demand will remain healthy over the coming years. Our forecast isn’t as rosy as our January outlook, but we still expect The SP Router and CES market to grow annually from 2021 and to top $15 billion by 2024.
Spending on Data Center Switches to Grow at a 4% CAGR from 2019 to 2024, Despite the Pandemic
Dell’Oro Group published an update to its Data Center switch market five-year forecast report. The report shows that the data center switch market is expected to grow at a 4% CAGR from 2019 to 2024, approaching $17 B by the end of our forecast period. Despite the COVID-19 pandemic, our revised forecast of 4% CAGR shows only a slight downward adjustment from our prior January forecast of 5%.
Network Security and ADC Market to Grow 6 Percent CAGR from 2019 to 2024
The Network Security and Data Center Appliance market, consisting of the Firewall, Content Security, Intrusion Detection System and Intrusion Prevention System (IDS and IPS), and Application Delivery Controller (ADC) markets, is forecasted to grow at 6% five-year CAGR and go from $14 B in 2019 to $19 B in 2024. Growth at 6% is slightly weaker than the typical high single-digit pattern we have seen over the last decade, but considering the ongoing COVID-19 pandemic is explicable. Several of the key takeaways from our forecast report include:
The Total Campus Switch Market Forecast to Decline at 1 Percent CAGR from 2019 to 2024
Dell’Oro Group published an update to its Campus switch market five-year forecast report. The report shows that the campus switch market is expected to be profoundly impacted by the COVID19- pandemic and to decline at 1% CAGR from 2019 to 2024, compared to our prior January forecast of + 3% CAGR.
Wi-Fi 6E: The Sooner, The Better!
The enterprise-class Wireless LAN (WLAN) market has enjoyed high single-digit revenue growth rates for the past several years. In 2019 sales decelerated as a result of broad-based economic uncertainty causing customers to delay expenditures. Customer hesitation correlated with rising trade war tensions and tariffs, Brexit, and economic slowdown in all macro-regions of the world. The pandemic emerging in 2020 amplified the deceleration.
The Total MEC Market to Grow at a 169% CAGR from 2019 to 2024
We just published the July 2020 Multi-Access Edge Computing (MEC) market forecast report. The industry collaboration and the momentum being achieved, our July 2020 five-year MEC forecast (2019 to 2024) has doubled from our January 2020 forecast. The market is still expected to start slow but greatly accelerates in the second half of the forecast period. We expect the China market will be leading in the scale of MEC deployments and will represent the largest regional market. Here are some key takeaways from the report
Network Equipment Services Market—July 2020 Advanced Research Report
Following five consecutive years of market contraction, the NE Services market began to reverse direction, growing slightly in 2019 due to positive developments with Network Rollout Services and Consulting Services offsetting reduced demand for Managed Services. We expect the improved market sentiment in 2019 will extend through the forecast period, resulting in the market registering $46 billion in 2024.
Home Networking Equipment Unit Shipments Expected to Drop Only 1% in 2020
Global home networking unit shipments are only expected to decline by 1% in 2020, dipping from 193.9 M worldwide to 192.1 M. Included devices are residential access points, residential WiFi routers, including mesh routers, as well as broadband CPE with integrated WiFi capabilities.
