Telecom’s biggest vendors, 2Q25: Vendor market bounces back, but tariffs cast a long shadow

The goal of this report series is to equip telecom industry decision-makers with a comprehensive view of spending trends and vendor market power in their industry. To do this we assess technology vendors’ revenues in the telecom vertical, across a wide range of company types and technology segments. We call this market “telco network infrastructure”, or “Telco NI.” This study tracks 137 Telco NI vendors, providing revenue and market share estimates for the 1Q13-2Q25 period (i.e. 50 quarters). Of these 137 vendors, 111 are actively selling to telcos; most others have been acquired by other companies in the database. For instance, ADVA is now part of Adtran, but both companies remain in the database because of historic sales.

Below are the key highlights of the report:

Revenues: Telco Network Infrastructure (NI) vendor revenues reached approximately $54.3 billion in 2Q25, representing a 2.0% YoY increase. Annualized revenue edged up 0.7% to about $207.7 billion, snapping a nine-quarter contraction and signaling a modest recovery in network infrastructure investments. Huawei, which assisted in softening the market decline earlier in 2024, reverted to a downtrend in 2Q25. Without Huawei’s data included, market revenue growth is much stronger.

Top vendors: The traditional leaders Huawei, Ericsson, and Nokia accounted for roughly 35% of the Telco NI market on an annualized basis and 36.8% in 2Q25 alone. Huawei’s market share has weakened notably since 2021 and faced persistent pressure outside China in 2025. Meanwhile, vendors like China Comservice and ZTE maintained their fight for the 4th and 5th positions.

Key vendors by YoY revenue growth: Dixon Technologies and Wiwynn led YoY revenue growth in 2Q25, fueled by Dixon’s a low year-ago base, and Wiwynn’s expansion in data center infrastructure linked to AI-driven digital transformation. Broadcom’s surge continues, boosted by its VMware acquisition. Meanwhile, Alphabet, Microsoft, Amazon, Dell Technologies, and Harmonic grew through their digital transformation offerings. 

Spending outlook: The outlook for 2H25 and beyond remains cautious, with gradual growth expected but tempered by macroeconomic uncertainty, tariffs, and geopolitical tensions. Capital spending will vary by region and operator readiness, as the broader market navigates evolving technology cycles and geopolitical complexities.

Note: Several companies, including Ciena, were estimated for 2Q results due to the unavailability of official financial reports for the April-June period on a calendar-year basis. These estimates will be revised and updated as more accurate data becomes available.