Exclusive extracts from this 65-page-long report:
- Who are the key players?
Huawei retained the industry crown in 2018, its market share standing at approx. 29%. The next biggest players are Scandinavian companies Nokia (including Alcatel Lucent) and Ericsson. ZTE's slice of the pie declined, with its entire survival put in doubt in 2018 as the US government barred US tech firms from selling essential 5G components to the company over alleged telecom equipment sales to Iran.
Groups analysed in this report include: Huawei, Nokia, Ericsson, ZTE, Fujitsu, NEC, Cisco Systems, Juniper Networks, Ciena and Infinera.
- What are the players' strategies?
Operators are looking to enhance their networks through automation. This trend has triggered a shift in telecom kit vendors' business models, and they are now tailoring their product mix to provide end-to-end solutions, including software traditionally provided by IT service groups. Moreover, significantly faster, low-latency (5G) networks will become critical infrastructure for a wide range of services (driven by machine communication and generally referred to as the Internet of Things) and business models across industries.
- What are the players' key growth and profitability drivers?
The Chinese vendor has organically reinforced its leadership. While telecom equipment (excluding smartphones) revenue declined slightly in 2018 (-1.3% yoy), Huawei has enjoyed strong demand expansion for its telecom equipment and services over the past five years. Growth was fueled by both domestic and international markets.