Trends
Telecom Equipment Spending Rises 4 % in H1 2025
After two years of shrinkage, the telecoms equipment market appears to be shifting. According to Dell’Oro’s preliminary data, global revenues are up, particularly outside China, as stabilising inventories, favourable currency swings, and easier comparisons drive growth. But does this signal sustaine…
Headline
After two years of shrinkage, the telecoms equipment market appears to be shifting. According to Dell’Oro’s preliminary data, global revenues are up, particularly outside China, as stabilising inventories, favourable currency swings, and easier comparisons drive growth. But does…
Context
What happened: Global telecoms Equipment market shows broad-based recovery, led by growth outside China Analyst Dell’Oro reports that aggregate revenues for telecom equipment rose by 4 % globally in the first half of 2025 across six major categories: broadband access, microwave and optical transport, mobile core network, radio access network (RAN), and service provider routers and switches.
Evidence
Pending intelligence enrichment.
Analysis
The recovery is strongest outside China, where revenues increased by 8 % year-on-year. Among the segments leading the growth are mobile core networks (MCN), optical transport, and service provider routers and switches. Dell’Oro attributes the improvement to a combination of factors: easier comparisons with weak performance in prior periods; inventory stabilisation in the supply chain; and favourable currency movements benefitting revenues denominated in stronger currencies. Also notable: the broadband access equipment market grew by 1 % year-on-year in Q2 2025 (7 % up versus the previous quarter), with fibre and fixed wireless access (FWA) gaining at the expense of cable. Given the improved figures, Dell’Oro has revised its outlook for 2025 upward, now expecting 2-3 % growth in equipment revenues, instead of a flat performance.
Key Points
- Worldwide equipment revenues across six telecom segments rose 4 % year-on-year in the first half of 2025, with markets outside China growing by about 8 %.
- Dell’Oro has lifted its short-term forecast for the full year to 2-3 % growth, up from a previously flat outlook. Still, questions remain over whether this is the start of a long-term turnaround.
Actions
Pending intelligence enrichment.
