Telecom Equipment Market Size & Share Analysis - Growth Trends And Forecast (2025 - 2030)

Global Telecom Equipment Market Trends and Insights

Accelerated 5G Standalone Roll-outs Drive Infrastructure Refresh

Operators transitioning from 5G NSA to SA architectures must replace the entire core network, triggering comprehensive refresh cycles spanning radio, transport and packet-core domains ^{[1]CMS Law, “5G Regulation and Law in South Korea,” cms.law}. SK Telecom and Samsung validated SA Option 4 interworking that matches NSA performance, convincing carriers to prioritise SA for network slicing and ultra-low-latency services netmanias.com. Core equipment commands 30-40% price premiums over 4G nodes, lifting vendor average selling prices. Integrated equipment suites create vendor lock-in, favouring suppliers that deliver radio, core and orchestration in one stack. As SA coverage widens, multivendor trials shrink, consolidating demand around a narrower group of full-portfolio players. 

Growing Data-Traffic Fueled Optical Transport Demand

Hyperscale data centers and 5G backhaul require 400G-800G coherent optics for links beyond 80 km, expanding the addressable transport market well beyond traditional metro applications. Cloud providers deploy vertically integrated solutions, and component shortages in coherent DSPs shift bargaining power to vendors with in-house silicon. Optical platforms enjoy 7-10 year lifecycles, smoothing revenue compared with RAN refresh rhythms. The segment also benefits from AI workload placement at regional data hubs, demanding low-latency, high-capacity interconnects. Together, these trends underpin the 9.5% CAGR for coherent systems through 2030. 

Cloud-Native Network Transformation Reshapes Deployment Models

Software-defined networking and NFV let carriers decouple functions from proprietary hardware, reducing service launch times by 40% as evidenced by BT’s Network Cloud program. Telefónica’s multi-national cloud-native core underscores the scalability of virtual functions versus appliance-based solutions. Consumption-based pricing aligns vendor revenue with actual utilisation, shifting emphasis to recurring software licences and lifecycle services. Traditional hardware vendors respond with Kubernetes-ready network stacks, yet they must avoid cannibalising legacy appliance margins. For enterprises, cloud-native architectures allow on-premises, public-cloud or hybrid deployment, broadening addressable demand beyond telecom operators. 

Government-Funded Broadband Stimulus Accelerates Rural Deployment

The USD 42.5 billion BEAD program mandates high-speed rural connectivity, fuelling orders for fibre PON OLTs, coherent transport, and fixed-wireless CPE ^{[2]NTIA, “Broadband Equity Access and Deployment (BEAD) Program,” ntia.gov} . Buy-America clauses benefit vendors with U.S. manufacturing, such as Ciena’s partnership with Flex for pluggable optics. Similar subsidies across the EU and Japan boost FTTH roll-outs that favour premium technology over legacy copper. Stimulus milestones run to 2027, concentrating demand in the next two budget cycles. Vendors with government contracting expertise gain an early-mover edge, reinforcing the positive 0.7% CAGR contribution. 

Geopolitical Trade Restrictions Reshape Vendor Landscape

Germany and other EU states mandate phased removal of Huawei and ZTE gear by 2029, forcing operators to dual-source replacement RAN and transport equipment. Transition delays stretch to 24 months, depressing near-term revenue but opening premium opportunities for Nokia, Ericsson and Samsung. Component-level bans extend to sub-assemblies, compelling redesigns and alternative silicon qualification. Supply fragmentation erodes economies of scale and raises costs for smaller vendors once reliant on Chinese manufacturing. Net effect is a 1.1% negative pull on forecast CAGR. 

Semiconductor Supply-Chain Volatility

Radio units and coherent optics rely on advanced radio-frequency and photonic ICs fabricated in limited foundries, leaving production vulnerable to geopolitical shocks and natural disasters ^{[3]VIAVI Solutions, “5G Network Energy Consumption White Paper,” viavisolutions.com} . Shortages trigger 4-6 month lead-time extensions, compelling operators to hold buffer inventory or delay roll-outs. Vendors diversify sourcing but second-source silicon often lags by one tech node, dampening performance gains. The resulting mismatch between hardware availability and build-out schedules subtracts 0.8% from projected CAGR, particularly in the short term before new fabs come online. 

Segment Analysis

By Equipment Type: RAN Dominance Faces Optical Transport Challenge

Market revenue remained anchored in RAN, which delivered USD 220 billion and 33.6% telecom equipment market share in 2024. Widespread macro and small-cell deployment under U.S. BEAD and Chinese rural programs sustains volume, although price erosion tempers growth. Coherent optical platforms amassed USD 58 billion, representing the fastest trajectory at 9.5% CAGR on the back of data-center interconnect and 5G xHaul demand. 

Radio portfolios now bundle Massive MIMO, integrated antennas and AI-based energy management, differentiating suppliers on spectral efficiency and power usage. Optical vendors pivot to vertically integrated DSPs and pluggable modules that fit router slots, collapsing network layers and cutting operator capex. Core network equipment maintains mid-single-digit momentum as 5G SA conversion climbs, whereas IP routing commoditises under white-box pressure. Customer-premises equipment benefits from gigabit fibre roll-outs, and test-and-measurement firms enjoy upside from millimetre-wave validation. 

Note: Segment shares of all individual segments available upon report purchase

By Technology Generation: 4G Legacy Transitions to 5G Innovation

4G/LTE platforms generated USD 310 billion and 47.2% of telecom equipment market size in 2024, reflecting persistent deployments in Africa and parts of Southeast Asia. Spend on LTE will contract as spectrum is re-farmed for 5G, yet maintenance revenues continue. 5G SA hardware, by contrast, is accelerating at 21.0% CAGR with USD 90 billion revenue slated for 2030. 

5G NSA shipments already peaked, redirecting budgets to SA upgrades that unlock slicing and URLLC services. 2G/3G sunset programs free 700 MHz and 2100 MHz bands for rural 5G, while 6G prototypes emerge in Korea’s public-private trials targeting commercial readiness by 2028. Vendors offering evolutionary hardware that accommodates 5G Advanced and migration to 6G without site visits will capture replacement cycles. 

By End-User: Private Networks Drive Enterprise Transformation

Telcos remained the anchor buyers, absorbing USD 470 billion and 71.9% telecom equipment market share in 2024. Yet enterprise and industrial buyers propel an emerging private-network segment, forecast to grow 15.0% CAGR to exceed USD 45 billion by 2030. 

Automotive OEMs such as BMW achieve 99.9% uptime for autonomous guided vehicles with private 5G, validating the ROI for dedicated spectrum. Healthcare groups deploy 5G for remote surgery and asset tracking, while ports and mines capitalise on ultra-reliable low-latency links. Neutral-host and tower-company models escalate as carriers offload passive assets, pivoting capital to core and software upgrades. Governments remain niche but steady buyers of secure mission-critical networks. 

Note: Segment shares of all individual segments available upon report purchase

By Component: Services Growth Outpaces Hardware

Software revenue hit USD 430 billion with 65.8% share of telecom equipment market size in 2024. Demand for containerised network functions, orchestration and analytics underpins resilience even when hardware cycles soften. Services, though smaller at USD 180 billion, are the fastest-rising component at 20.0% CAGR as carriers outsource design, integration and lifecycle operations. 

Vendor strategies pivot to three-year managed-service contracts that embed AI-driven assurance and energy optimisation, creating stickier relationships and predictable revenue. Hardware remains essential for spectrum-specific radios and high-performance optics, but margin pools tilt toward software and services. White-box hardware penetration in aggregation layers reinforces the pivot away from proprietary appliances, compelling legacy suppliers to monetise intellectual property through licences and subscriptions. 

Geography Analysis

North America retained leadership with 38.9% revenue share in 2024, buoyed by BEAD-funded fibre builds and domestic manufacturing mandates that channel spend to local plants in Texas and New York. U.S. operators advance SA upgrades while Canada densifies urban 5G, jointly underpinning a stable, security-centric procurement environment. 

Asia-Pacific is the locomotive, set to log 21.0% CAGR and account for nearly half of incremental revenue through 2030. China already hosts 3.6 million 5G base stations and extends coverage to villages, while South Korea’s penetration reached 65.4% with average 1 Gbps user speeds. Japan nurtures enterprise sub-6 GHz and mmWave pilots, and India’s production-linked incentives lure component makers, accelerating local supply chain depth. 

Europe experiences moderate, mixed-vendor growth as operators replace Huawei radio units and trial Open RAN with Vodafone and Telefónica. Regulatory strictness elevates costs yet grants share gains to Nokia and Ericsson. Middle East carriers push early 5G SA and private-network proofs for energy and ports, whereas Africa prioritises LTE coverage but earmarks spectrum for future 5G.