This is the first quarter vendors started to report 5GC revenues, and revenues came in surprisingly strong. Huawei and ZTE led the charge, making them the first and second-ranked vendors for 5GC in 2Q20. Mavenir also surprised with 5GC revenues,” stated David Bolan, Research Director at Dell’Oro Group. “The ramp-up in the second half of 2020 has already begun, with T-Mobile commercially launching its 5G Standalone network in August, recognizing Cisco and Nokia, as their 5GC suppliers,” Bolan added.
Most of the decline in the Microwave Transmission market was due to lockdowns instituted by governments to stop the spread of COVID-19,” stated Jimmy Yu, Vice President at Dell’Oro Group. “As a result of these national lockdowns, microwave manufacturers often faced difficulties in obtaining components, shipping products to customers, installing equipment, and obtaining permits and licenses. We believe with fewer lockdowns in second half of 2020, the demand for microwave gear will improve,” continued Yu.
Initial findings suggest that we correctly assumed that the importance of connectivity in combination with the on-going 5G rollouts by the early adopters would be enough to offset weaker developments in the less advanced MBB markets resulting in a RAN market that appears disconnected from the underlying economy,” said Stefan Pongratz, Vice President with the Dell’Oro Group.
The COVID-19 pandemic led to a major reset of our forecast assumptions and market growth profile for the next five years. For the short term through 2020, market growth will be suppressed due to supply and human resource constraints, as well as weakened macroeconomic conditions. Over the longer term, from 2021 through 2024, we expect the technology and use case drivers of our prior forecasts to remain largely intact and drive annual growth.
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:
Are content delivery networks (CDN) the dark horses of the SASE market? Dell’Oro Group Research Director Mauricio Sanchez thinks they might be. “CDN vendors should not be counted out of the SASE race for a
COVID-19 has not killed the radio access network (RAN) market. In fact, the Dell’Oro Group just upwardly revised its projections for the sector, saying the RAN market will grow at a healthy pace over the next three years. Cumulative investments over the 2019-2024 forecast period are expected to be over $200 billion.
But while the acquisition will no doubt open new doors for HPE, it also stands to raise Aruba’s profile in the competitive SD-WAN market, and position the vendor to directly challenge Cisco, said Shin Umeda, VP at Dell’Oro Group, in an interview with SDxCentral.