Domestic manufacturers dominate the global 5G equipment, ZTE and Huawei have won nearly half of the share

According to foreign media reports, compared with the data in the fourth quarter of 2019, Huawei’s market share increased by 0.4 percentage points, Ericsson increased by 0.8 percentage points, Nokia fell sharply by 4.5 percentage points, ZTE increased by 3 percentage points, and Samsung declined. up 1.2 percentage points.

According to the market data of 5G telecommunications equipment previously released by Dell’Oro Group from the fourth quarter of 2018 to the fourth quarter of 2019, even in the context of US sanctions, Chinese telecommunications equipment manufacturer Huawei’s market share is still in the main body. It maintained a steady growth trend and successfully surpassed Samsung in the second quarter of last year, ranking first.

Source: Dell’Oro

It is reported that the data disclosed by Ding Yun, Huawei’s executive director and president of the operator’s BG, shows that Huawei has won 91 5G commercial contracts, and the global shipment of 5G Massive MIMO AAU (Active Antenna Unit) modules exceeds 600,000.

ZTE, another major telecom equipment manufacturer in China, also performed well. ZTE’s market share in 5G telecom equipment is almost zero, but it has experienced rapid growth since the second quarter of 2019, and the third quarter of 2019 is even more explosive. After reaching a market share of 9.7%, it maintained a sustained and rapid growth in the following two quarters, winning a market share of 13.2%, ranking fourth.

Shipments of ZTE’s 5G base stations started in the second quarter of 2019. According to previous data released by ZTE, as of September 2019, ZTE has won 35 5G commercial contracts around the world, and has carried out 5G cooperation with more than 60 operators around the world. The global shipment of 5G base stations has exceeded 50,000. By the end of 2019, ZTE had shipped more than 100,000 5G base stations. At present, the 5G base stations shipped by ZTE in large quantities are equipped with ZTE’s self-developed 7nm 5G base station chips.

Xu Ziyang, executive director and president of ZTE, said that in terms of 5G base station chips, ZTE’s 7nm process (base station) chips have been designed and mass-produced, and 5G chips with 5nm process are being developed. ZTE’s 5nm base station chip is also in the technology introduction stage, and it is expected to be mass-produced for commercial use next year. This is also expected to further promote ZTE’s continued growth in the 5G telecom equipment market share. The continued growth of Huawei and ZTE’s 5G telecom market share also benefited from the acceleration of China’s 5G investment and construction.

It is estimated that by the end of this year, my country will build more than 600,000 5G base stations, covering cities above the prefecture level nationwide.

For Samsung, thanks to its first launch of 5G baseband chips in the third quarter of 2018 and its successful mass production in the fourth quarter, it has also gained a certain first-mover advantage in the 5G telecom equipment market. South Korea’s 5G telecommunications network construction is slightly ahead of China and the United States, and Samsung, as a local 5G telecommunications equipment supplier in South Korea, naturally benefits directly.

Due to the crowding out of Huawei’s telecommunications equipment by the United States and its allies, telecom operators in the United States and its allies have signed long-term 5G equipment purchase agreements with Ericsson and Nokia, while also assigning a lot of 5G orders to Samsung. This also allowed Samsung to successfully become the No. 1 brother in the 5G telecom equipment market in the fourth quarter of 2018, and won a market share of 37.8% in the entire market in the first quarter of last year. It can be said that the newborn calf is not afraid of tigers, and there is a tendency to “kill the old master with random fists”.

With the large-scale shipments of 5G base stations from established telecom equipment manufacturers Huawei and ZTE, as well as the growth of Nokia’s 5G equipment shipments, Samsung’s market share has been accelerating since then, and its share in the first quarter of this year has fallen to 9.3%, and it has changed from the No. 1 market share leader to No. 5 in one year.

Although Samsung signed a 5G equipment supply contract with Canadian operator Vidéotron, and in February and March this year, it signed supply contracts with operators such as US Cellular in the United States and Spark in New Zealand. Recently, Samsung also received some 5G orders from Canadian operator Telus. But the decline has not stopped.

Judging from the changes in the market share of 5G telecom equipment from the first quarter of 2018 to the first quarter of 2020, Ericsson’s market share has been relatively stable, basically staying between 24.6% and 26.9%. The latest data shows that as of mid-June 2020, Ericsson has won 93 5G commercial contracts (including 40 live 5G networks) on four continents, exceeding the number of 5G commercial contracts announced by Huawei in February (but these few The number of Huawei’s 4G commercial contracts should also increase over the past month). At the same time, it is also significantly ahead of Nokia.

From the perspective of changes in Nokia’s 5G telecom equipment market share, the overall growth trend in 2019 was maintained, reaching 20.3% in the fourth quarter of 2019. However, in the first quarter of this year, it fell by 4.5 percentage points. The decline in Nokia’s 5G telecom equipment market share was mainly due to its losses in the Chinese market.

China Telecom and China Unicom announced the bidding results of 250,000 5G SA base stations in 2020. Huawei, ZTE, Ericsson and Datang Mobile won the bid, and Nokia returned with a bad feat. In March of this year, the total demand for 232,143 stations and the purchase amount of more than 37.1 billion yuan in China Mobile’s 2020 5G Phase II wireless network main equipment centralized procurement bidding, Huawei, ZTE, Ericsson and China Xinke were shortlisted, and Nokia was also shortlisted. is nothing. And this may be the main reason for Nokia’s decline in the market share of 5G telecom equipment in the first quarter of this year.

Even under the background of continuous suppression by the United States, Huawei is still firmly seated at the top of the market, and its market share is still growing. In addition, since the second quarter of last year, ZTE’s market share has also been rising. In the first quarter of this year, Huawei and ZTE have jointly won nearly half of the global 5G telecom equipment market.

Even from the perspective of the entire telecom equipment market (including broadband access, microwave and optical transmission, mobile core network and radio access network, SP routers and CE switches), Huawei is still the leader in the market. name (calculated by sales revenue).

Regarding the impact of the new crown epidemic on the telecommunications equipment market, it lowered the growth target of the entire telecommunications equipment market in 2020 from the original 2% to 1%.