Ericsson, Nokia Lost Mobile Infrastructure Market Share to Huawei
Huawei is the largest telecommunications equipment manufacturer with a share of 28% at the end of 2017, up from 25% in 2016.
Huawei led the mobile infrastructure market in 2017
In the previous part of this series, we saw that Ericsson (ERIC) leads the global evolved packet core market. However, in terms of the global mobile infrastructure market, IHS Markit has declared Huawei the leader.
The IHS Market report states that Huawei is the largest telecommunications equipment manufacturer with a 28% share at the end of 2017, up from 25% in 2016. In fact, Huawei was the only player to gain market share.
Ericsson’s market share in mobile infrastructure fell from 28% to 27%, while Nokia’s (NOK) share declined to 23% from 24%. According to a report by TelecomLead, Ericsson is “struggling to find networking deals in several markets.”
Ericsson announced some major deals at the Mobile World Congress this year and might be on the verge of a comeback by the end of 2019.
Global mobile infrastructure market fell 14% last year
The global infrastructure market fell 10% in the fourth quarter of 2017 and 14% in 2017 to $37.2 billion. China led the decline, while developed markets such as North America and Japan were stable.
IHS has estimated the 2G, 3G, and 4G[1. second-generation, third-generation, and fourth-generation] mobile infrastructure hardware market to fall to $13 billion by 2022, indicating a CAGR (compound annual growth rate) decline of 18.4%. After considering the growth of the 5G[2. fifth-generation] market, the decline will be ~7.8% by 2022, and revenue is estimated at ~$25 billion.
Revenue for 5G hardware is estimated at $11 billion by 2022.