Dell’Oro now expects total telecom equipment revenues across the six tracked segments to grow between 2% and 3% in 2025
In sum – what to know:
Global telecom market rebounds 4% – After two years of decline, revenues rose in 1H25 thanks to inventory stabilization, currency tailwinds, and easier y-o-y comparisons.
Recovery led by EMEA, NA – Stronger demand in these regions offset weakness in Asia-Pacific, particularly in optical and core network segments.
Huawei strengthens position – The vendor’s market share has grown about three points since U.S. restrictions began, sustaining growth where it remains active.
After two consecutive years of declining investment, the global telecom equipment market showed signs of recovery in the first half of 2025 after two consecutive years of declining investment, according to preliminary data from Dell’Oro Group.
The report indicates that aggregate worldwide revenues across six major segments — broadband access, microwave and optical transport, mobile core network (MCN), radio access network (RAN), and service provider router and switch — grew by 4% year-over-year in the first half of the year.
Dell’Oro noted that the rebound was chiefly fueled by a combination of easier year-over-year comparisons, stabilized inventories, and favorable currency movements. The recovery was broad-based across all telecom programs, with optical transport, mobile core, and routing leading the gains.
“The broader market was boosted by favorable developments in EMEA and North America, which helped to offset more challenging conditions in the APAC region,” Stefan Pongratz, vice president at Dell’Oro Group, told RCR Wireless News.
Market conditions outside China were particularly strong, with revenues climbing 8% year over year during the first half of 2025. While overall global supplier rankings remained largely unchanged, revenue shares shifted modestly. Huawei continued to strengthen its position, while Ericsson and Nokia saw slight declines compared with 2024.
“Regarding Huawei’s share gains, we estimate that its overall revenue share has increased by roughly three percentage points since efforts by the US government to curtail the company’s growth began. While there is no question that its TAM has contracted, Huawei has delivered remarkable results in the markets where it remains active,” Pongratz added.
Following the stronger-than-expected first half, Dell’Oro revised its short-term outlook upward. The firm now expects total telecom equipment revenues across the six tracked segments to grow between 2% and 3% in 2025, compared with a flat forecast in its previous update.
Global telecom capital expenditures stabilized in the second quarter of 2025 after two years of reductions, according to a previous report from Dell’Oro Group.
The Dell’Oro report notes that while Q2 showed stabilization, total first-half 2025 capex was still down year-over-year due to steep Q1 declines. Overall, the investment environment is expected to remain challenging for both capex and telecom equipment revenues, it added.
By 2029, capex-to-revenue ratios are projected to approach 15%, about three points lower than the 2022 peak. Wireless capital intensity is forecast to reach 12–13% by 2029, down five to six points from the 5G rollout highs.
