Dell’Oro now expects complete telecom gear revenues throughout the six tracked segments to develop between 2% and three% in 2025
In sum – what to know:
World telecom market rebounds 4% – After two years of decline, revenues rose in 1H25 due to stock stabilization, foreign money tailwinds, and simpler y-o-y comparisons.
Restoration led by EMEA, NA – Stronger demand in these areas offset weak point in Asia-Pacific, notably in optical and core community segments.
Huawei strengthens place – The seller’s market share has grown about three factors since U.S. restrictions started, sustaining progress the place it stays energetic.
After two consecutive years of declining funding, the worldwide telecom gear market confirmed indicators of restoration within the first half of 2025 after two consecutive years of declining funding, in line with preliminary information from Dell’Oro Group.
The report signifies that combination worldwide revenues throughout six main segments — broadband entry, microwave and optical transport, cell core community (MCN), radio entry community (RAN), and repair supplier router and change — grew by 4% year-over-year within the first half of the 12 months.
Dell’Oro famous that the rebound was mainly fueled by a mix of simpler year-over-year comparisons, stabilized inventories, and favorable foreign money actions. The restoration was broad-based throughout all telecom applications, with optical transport, cell core, and routing main the positive aspects.
“The broader market was boosted by favorable developments in EMEA and North America, which helped to offset more difficult circumstances within the APAC area,” Stefan Pongratz, vice chairman at Dell’Oro Group, informed RCR Wi-fi Information.
Market circumstances outdoors China have been notably sturdy, with revenues climbing 8% 12 months over 12 months in the course of the first half of 2025. Whereas general international provider rankings remained largely unchanged, income shares shifted modestly. Huawei continued to strengthen its place, whereas Ericsson and Nokia noticed slight declines in contrast with 2024.
“Concerning Huawei’s share positive aspects, we estimate that its general income share has elevated by roughly three share factors since efforts by the US authorities to curtail the corporate’s progress started. Whereas there isn’t a query that its TAM has contracted, Huawei has delivered exceptional leads to the markets the place it stays energetic,” Pongratz added.
Following the stronger-than-expected first half, Dell’Oro revised its short-term outlook upward. The agency now expects complete telecom gear revenues throughout the six tracked segments to develop between 2% and three% in 2025, in contrast with a flat forecast in its earlier replace.
World telecom capital expenditures stabilized within the second quarter of 2025 after two years of reductions, in line with a earlier report from Dell’Oro Group.
The Dell’Oro report notes that whereas Q2 confirmed stabilization, complete first-half 2025 capex was nonetheless down year-over-year because of steep Q1 declines. Total, the funding setting is anticipated to stay difficult for each capex and telecom gear revenues, it added.
By 2029, capex-to-revenue ratios are projected to strategy 15%, about three factors decrease than the 2022 peak. Wi-fi capital depth is forecast to succeed in 12–13% by 2029, down 5 to 6 factors from the 5G rollout highs.
