Cisco won big in 2021 as telecom infrastructure spending continued shifting away from traditional radio access network (RAN) equipment to IP infrastructure, optical, microwave, and fixed broadband, according to MTN Consulting. 

More than 100 vendors sell gear and software to network operators, and Cisco gained the largest share of the total market last year, explained Matt Walker, chief analyst at the market research firm. 

“Cisco clearly came out on top, gaining 0.7% share in a market worth $231.4 billion. Cisco was helped both by a telco shift in 5G spending toward core networks and Huawei’s entity list troubles,” he wrote.

Samsung and Microsoft each followed with 0.3% market share gains in 2021. Amazon, VMware and Dell, and Corning each grabbed 0.2% market share gains last year, and ZTE notched a 0.1% market share gain, according to MTN Consulting’s report.

“Samsung’s share growth of 0.3% was due to a big win with Verizon and a growing telco interest in seeking RAN alternatives beyond Ericsson and Nokia. ZTE, which has escaped the U.S. entity list to date, also picked up some unexpected 5G wins but its growth is more broad based due to optical, fixed broadband, and emerging market 4G business,” Walker wrote. 

Samsung inked a $6.64 billion deal with Verizon in mid-2020 to supply the carrier with 5G RAN equipment through 2025. The agreement effectively marked the end of Nokia’s long established RAN contract with Verizon. 

Share gains at Dell, VMware, Microsoft, and Amazon are largely attributed to increased spending in 5G core and cloud technologies, according to Walker. Amazon Web Services (AWS) plays a central role in Dish Network’s yet-to-be-activated 5G open RAN, and Microsoft Azure continues to bolster its telco offering, including the integration of cloud technology and software it acquired from AT&T last year. 

Walker described Corning as an “unexpected winner in 2021,” adding that the company made its gains on the back of fiber-rich wireless deployments and government support for rural fiber builds.

Ericsson and Nokia lost 0.2% and 0.4% of the market, respectively, further signifying the shift in telco network infrastructure priorities among carriers. 

Meanwhile, Huawei’s market share slipped 1.5% to 18.9% in 2021, reflecting a decline from its roughly 20% market share in 2019 and 2020, according to MTN Consulting. Indeed, Huawei reported a 29% decline in revenue in 2021, which it blamed on U.S. sanctions, supply chain challenges, and decreased demand for 5G in China.

“To date, Huawei’s troubles have impacted RAN markets the most, but in 2022 and 2023 will begin spreading more clearly to IP infrastructure, optical, microwave, fixed broadband, and other areas,” Walker explained. 

“Huawei has been unable to fully adapt to the supply chain restrictions put in place in 2019. It remains the global No. 1 in telco network infrastructure, however, due to dominance in China and a huge installed base across the globe,” Walker added. “One certainty is that it won’t simply fade away, despite the current decline.”