As the digital revolution is making its way around the globe, businesses are increasingly adopting advanced technologies that could play a crucial role in increasing business opportunities exponentially, growing demand for the communication equipment industry. While the semiconductor chip shortage and supply chain crisis exacerbated by the Russia-Ukraine crisis remains a concern, communication equipment is expected to keep witnessing increasing demand in the current cloud computing, 5G connectivity, and the internet of things (IoT) era. According to a Market Research Future report, the global telecom equipment market is expected to grow at a CAGR of 11.23% by 2025. As a result, both Telefon AB L.M. Ericsson ADR (ERIC) and Nokia Corporation (NOK) should benefit.
ERIC provides communication infrastructure, services, and software solutions to the telecom sector. It operates through four segments: Networks; Digital Services; Managed Services; and Emerging Business and Other. NOK provides mobile and fixed network solutions worldwide. It operates through four segments: Mobile Networks; Network Infrastructure; Cloud and Network Services; and Nokia Technologies.
