2Q 2020 Sales of Data Center Switches Rebounded in China, up Nearly 30 Percent Y/Y, According to Dell’Oro Group
|“An early control of the COVID-19 pandemic in China, combined with government stimulus as well as a strong demand from Chinese Cloud Service Providers (SPs) boosted revenue growth in the region in the second quarter,” said Sameh Boujelbene, Senior Director at Dell’Oro Group. “Additionally, this strong demand in China was not hindered by major supply issues as Chinese vendors were so far able to secure enough inventory to meet the demand in the quarter. Meanwhile, revenue outside of China were challenged by both supplies as well as demand headwinds,” added Boujelbene.
5G Core Network Revenues Expected to Approach $1 B in 2020, According to Dell’Oro Group
|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.
Microwave Transmission Equipment Market Declined 14 Percent Y/Y in First Half 2020, According to Dell’Oro Group
|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.
RAN Market Growth Accelerated in 1H20, According to Dell’Oro Group
|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.
New Technologies Expected to Drive Service Provider Router Market Past $15 Billion in 2024
|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.
