After two years of declining investments, the global telecom equipment market is showing signs of a rebound. According to a new report from Dell’Oro Group, worldwide telecom equipment revenue grew 4% year-over-year in the first half of 2025, with positive momentum driven by easier year-over-year comparisons, inventory stabilization, and favorable currency movements.
The recovery was particularly strong in regions outside of China, where revenues increased by 8% year-over-year. The growth was broad-based across the six telecom equipment programs tracked by Dell’Oro Group: Broadband Access, Microwave & Optical Transport, Mobile Core Network (MCN), Radio Access Network (RAN), and Service Provider Router & Switch. The MCN, Optical Transport, and SP Router & Switch segments led the gains.
This turnaround follows other recent data that suggests a stabilization in capital expenditures. As reported in September, global telecom CapEx stabilized in the second quarter of 2025 after two years of reductions.
The vendor landscape has also remained relatively stable, with Huawei continuing to gain market share, while Ericsson and Nokia experienced slight declines compared to 2024. This trend is consistent with earlier reports from the first quarter of 2025, which showed Huawei leading in the MCN market and among the top RAN suppliers.
Looking ahead, Dell’Oro Group has revised its full-year 2025 forecast upward, now projecting 2% to 3% growth for the global telecom equipment market, an improvement from the previously flat outlook. This more optimistic forecast is supported by strong growth in related sectors, such as the optical transport market, which saw a 14% year-over-year increase in the second quarter of 2025, largely driven by investments from cloud providers.
