Huawei to capture 28.5% of global mobile base station market in 2020

Chinese vendor Huawei is forecast to lead the global mobile base station market this year with a total share of 28.5%, up from 27.5% in 2019, according to a report by Taiwan-based research firm TrendForce.

The second position will be occupied by Swedish vendor Ericsson, with a market share of 26.5%, down from a global market share of 30% in 2019.

Nokia’s  share in the global mobile base station market is expected to reach 22% in 2020, down from a share of 24.5% while Korean vendor Samsung will increase its share from 6.5% last year to 8.5% in 2020.

Chinese vendor ZTE is expected to reach a market share of 5% this year, down from 6.5% last year, TrendForce said.

“Chinese and European equipment manufacturers captured more than 85% market share in the global mobile base station industry in 2019, with Ericsson, Huawei, and Nokia as the three largest suppliers. However, owing to the U.S.-China trade war and the export controls issued by the U.S. government, Huawei subsequently was unable to procure key components from U.S.-based RF-front end manufacturers, in turn affecting the sales performance of its base stations in the overseas markets. As such, Huawei is expected to focus its base station construction this year primarily in domestic China,” TrendForce said.

By the end of the first half of 2020, the three major Chinese mobile network operators, including China Mobile, China Unicom, and China Telecom, had built more than 250,000 5G base stations in China. This number is projected to reach 600,000 by the end of this year, with network coverage in prefecture-level cities in China. In addition, emerging infrastructures such as 5G networks and all-optical networks will generate commercial opportunities for Huawei, the research firm said.

“On the other hand, thanks to successful 5G commercialization efforts in Korea, Samsung has seen a surge in its base station equipment. The company has provided base stations for the three major mobile network operators in Korea, including SK Telecom, KT, and LG Uplus, in addition to collaborating with U.S. operators, such as AT&T, Sprint, and Verizon. As well, since the British government is now targeting Japan-based NEC and Fujitsu as replacement suppliers of 5G equipment, and European and American governments alike have implemented sanctions against Huawei, Japanese equipment suppliers now have the perfect opportunity to raise their market shares in Europe and the U.S.”

5G communications have seen various uses in telemedicine and industrial IoT during the spread of COVID-19, according to TrendForce’s latest investigations. Primary applications of 5G during this period include contactless disinfection robots, remote work, and distance learning. Currently, China has been most aggressive in developing 5G networks, with more than 400 5G-related innovative applications in transportation, logistics, manufacturing, and healthcare in the first half of the year. At the same time, the emergence of 5G services has created a corresponding surge in base station demand.

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