Telecom’s biggest vendors – 2Q24 edition Vendor market decline moderates to 3.4% in 2Q24 as Huawei's recovery gains momentum; cautious optimism for 2H24 growth

The goal of this report series is to equip telecom industry decision-makers with a comprehensive view of spending trends and vendor market power in their industry. To do this we assess technology vendors’ revenues in the telecom vertical, across a wide range of company types and technology segments. We call this market “telco network infrastructure”, or “Telco NI.” This study tracks 134 Telco NI vendors, providing revenue and market share estimates for the 1Q13-2Q24 period. Of these 134 vendors, 108 are actively selling to telcos; most others have been acquired by other companies in the database. Below are the key highlights of the report: Revenues: Telco NI vendor revenues were $53.3B in 2Q24 and $205.7B for the annualized 2Q24 period overall, down 3.4% and 8.9% on a YoY basis, respectively. Huawei lifted the market: excluding Huawei, the total market declined by 7.3% in the latest single quarter and by 11.2% in annualized 2Q24 on a YoY basis. After many disappointing quarters, Huawei appears to have turned a corner in the latest three quarters. Top vendors: The top three Telco NI vendors remain the usual trio: Huawei, Ericsson, and Nokia. They account for 37.7% of the total market in annualized 2Q24, or 40.3% in 2Q24 alone. China Comservice and ZTE have been jostling for the 4th and 5th positions since early 2019. Key vendors by YoY revenue growth: The top three vendors, in terms of YoY revenue growth, are common to both single quarter and annualized 2Q24: Tejas Networks, Broadcom, and Alphabet. Respectively, their jumps were due to BSNL’s 4G rollout in India (Tejas), acquisition of VMWare in Nov 2023 (Broadcom), and improved penetration of the telecom vertical with cloud services (Alphabet).