5 Year Forecast: Advances in Server Architecture Projected to Lift Data Center Capex by Six Percent by 2025
In our latest forecast published in January 2021, the worldwide capex on data center infrastructure is projected to increase at a 7% compound annual growth rate (CAGR) from 2020 to 2025 to $278 billion. We anticipate the growth of data center capex to vary depending on the customer segment. The Cloud will continue to gain share over enterprise/on-premise data center deployments, with COVID-19 accelerating Cloud adoption to some extent. Edge computing deployed over Telco networks could emerge near the tail end of the forecast period.
5-Year Forecast: Data Center Switch Market to Grow nearly Six percent CAGR from 2020 to 2025
We just published the latest edition of our 5-year forecast for the data center switch market. Six months ago, when we published our July 5-Year forecast, we predicted that the data center switch market will be for the most part resilient to the pandemic. We also explained that most of the downward adjustment relative to our January 2020 Pre-pandemic forecast was driven by the non-Cloud segments, which include enterprises as well as Telco Service Providers (SPs). In the meantime, our July 2020 forecast for the Cloud segment showed only a slight downward revision relative to our pre-pandemic January forecast.
5-Year Forecast: Mobile Core Network Market Revenues to Approach $60B from 2021 and 2025
Dell’Oro Group published a January 2021 Mobile Core Network market five-year forecast report The Mobile Core Network (MCN) market’s cumulative manufacturing revenues are expected to approach $60 B from 2021 to 2025. The first 5G
5-Year Forecast: Network Security Market to Grow 10 Percent CAGR
We just published the latest edition of our 5-year forecast for the Network and Security and Data Center Appliance (NSDCA) Market that spans Firewalls, Secure Web Gateways, Email Security, IDS/IPS, Application Delivery Controllers, and Web Application Firewalls. A year ago, we debated the effects of the US and China relationship and Brexit on the market, but this year all attention is on the COVID-19 pandemic. The pandemic is reverberating through the market with both near-term and long-term consequences.
5-Year Forecast: Broadband Spending to Remain Strong Through 2025
Global spending on broadband access equipment and CPE is expected to drop only 2% in 2020, a significant improvement from our July 2020 forecast, which anticipated spending dropping by 7% in 2020. The combination of significant residential subscriber growth and increased capacity utilization rates noted by global broadband providers nearly offset the negative impacts of trade tussles, component shortages, and labor limitations
5-Year Forecast: Demand for Optical Transport Equipment Rising
Dell’Oro Group published an update to the Optical Transport Five-Year Forecast report in January 2021. Learn more
5-Year Forecast: Microwave Transmission & Mobile Backhaul Transport Growth Projected
Dell’Oro Group published an update to the Microwave Transmission & Mobile Backhaul Transport Five-Year Forecast report in January 2021. Here are some key takeaways from the report… read more
5-Year Forecast: Radio Access Network Market to Grow Over the Near-Term
With the overall RAN market now growing at the fastest pace in nearly ten years and on track to approach revenue levels not seen since the Chinese operators rolled out 3G, one of the fundamental questions is simply whether there is more room to grow with this elevated baseline, keeping in mind the historically tight coupling between RAN revenue and wireless capital intensity. And if so—where will this growth come from?
Predictions 2021–Wireless LAN Market
At the beginning of 2020, we expected a solid year for the WLAN market, driven by a still humming economy and a technology upgrade cycle to Wi-Fi 6. After the pandemic hit, we revised our forecast down steeply (double digit decline)—similar to prior economic declines. As the year progressed, however, WLAN proved resilient and 2020 revenue is on track to come slightly lower than 2019—a remarkable result of government stimulus coming primarily from the US, followed by China and select countries in EMEA such as Germany. For example, the US’ E-Rate program, which provides telecommunications funding for K-12 schools, was opened to a second round in September 2020 to allow schools to request additional funds for 2020-21 to address surging bandwidth demand stemming from remote learning. In China, the government’s Made in China 2025 initiative has provided incentives for manufacturers to modernize their processes.
Predictions 2021 – Data Center Switch Market
For the full year of 2020, we now predict the market to decline only low-single-digit, compared to our prior forecast of mid-single-digit decline. We expect the Cloud segment to grow at a low single-digit rate, in line with our prior predictions. However, we adjusted our forecast for the non-Cloud segment from high single-digit to mid-single-digit decline, as the anticipated recovery in 2H2020 will offset some of the weakness in the first half of the year (The non-Cloud segment was down 8% Y/Y in 1H2020).
