Telecom’s Biggest Vendors – 3Q24 Edition

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 1Q13-3Q24 period. Of these 134 vendors, 108 are actively selling to telcos; most others have been acquired by other companies in the database. For instance, ADVA is now part of Adtran, but both companies remain in the database because of historic sales.

Below are the key highlights of the report:

Revenues: Telco NI vendor revenues were $49.6B in 3Q24 and $205.7B for the annualized 3Q24 period overall, up 0.3% and down 5.6% on a YoY basis, respectively. Huawei lifted the market: excluding Huawei, the total market declined by 8.3% in annualized 3Q24 on a YoY basis. After many disappointing quarters, Huawei appears to have turned a corner in the last four quarters.

Top vendors: The top three Telco NI vendors remain the usual trio: Huawei, Ericsson, and Nokia. They account for 37.5% of the total market in annualized 3Q24, or 33.6% in 3Q24 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 two vendors, in terms of YoY revenue growth, are common to both single quarter and annualized 3Q24: Tejas Networks and Broadcom. Respectively, their jumps were due to BSNL’s 4G rollout in India (Tejas), and acquisition of VMWare in Nov 2023 (Broadcom).

Spending outlook: Per our latest official forecast, we expect telco capex – the main driver of the Telco NI market – to dip from $314B in 2023 to just below $300B in 2024. Capex will struggle to see any growth over the next few years, likely ending 2028 at ~$280B. The outlook for specific country markets varies. Notably, the spending outlook for the US market is appealing in the short-term due to government funding (BEAD and RDOF).

The information contained in this report was obtained from both primary and secondary research, supplemented by the expertise of MTN Consulting's analyst team.

Please Note: This product is delivered as a zip file. (Excel).