Huawei, Ericsson, Nokia, Samsung Electronics, and other global telecommunications corporations increased their research and development (R&D) expenditure last year despite the market contraction. These corporations have been identified as having expanded their investments in R&D to seize next-generation technologies such as 6G (6th generation mobile communication) and artificial intelligence (AI).
According to industry sources on the 11th, Huawei's estimated R&D expense last year was $27.3 billion (about 39.645 trillion won), forecasted to be a 21.1% increase compared to the previous year. Ericsson's R&D expense last year was 53.514 billion Swedish kronor (about 7.1152 trillion won), a 5.6% increase year-on-year. During the same period, Nokia's R&D expense was €11.005 billion (about 16.4781 trillion won), up 3.9% from the previous year. While Samsung Electronics does not separately aggregate the R&D expenses of its network institutional sector, it is reported to have invested a record 35 trillion won in R&D last year, focusing on its DS (semiconductor) sector.
The number of patents, a product of R&D investments, has also increased. In the major telecommunications equipment market of the United States, Huawei reportedly held 3,285 patents, a 44% increase from the previous year. This places it fifth among the top 300 U.S. patent-holding corporations. Samsung Electronics ranked first with 9,304 patents, a 3% increase compared to the previous year. Ericsson recorded 1,530 patents, a 27% increase year-on-year, ranking 22nd, while Nokia had 897 patents, up 38%, landing it in 47th place.
According to market research firm Gartner, the global telecommunications equipment market size was $47.978 billion (about 69.7072 trillion won) last year, projected to decline to $45.682 billion (about 66.3713 trillion won) this year and $43.038 billion (about 62.5299 trillion won) by 2026. The decline is interpreted as a consequence of major countries such as the United States and Japan reaching the final stages of 5G (5th generation mobile communication) network facility construction, resulting in decreased demand for telecommunications equipment.
However, with the rise of AI, high-quality networks are becoming essential, and as major countries prepare for 6G construction, industry insiders predict an increase in demand for telecommunications equipment. Chuck Robbins, CEO of Cisco, noted, "Corporations are aware of the need for infrastructure for AI," adding, "Investments by corporations to prepare for this are ongoing, and patterns have remained the same over the last few quarters." Market research firm MarketsandMarkets projects that the global 6G market size, which was $5.1 billion (about 7.4092 trillion won) last year, will grow at an average annual rate of 34.2%, reaching $40.2 billion (about 58.4025 trillion won) by 2030.
Last year, telecommunications equipment companies focused on securing new technologies. Huawei announced plans to commercialize the 5.5G communication network, an intermediate stage between 5G and 6G, in February of last year. 5.5G is evaluated to provide speeds ten times faster than 5G, serving as a technology for transitioning to 6G. In November, Ericsson developed 6G technology that can reduce power consumption during high-capacity data transmission in collaboration with optical cable company Nubis. Nokia has been selected as a participant in the SNS JU project, which leads the development of 6G technology in Europe, and is driving the development of related solutions. Samsung Electronics successfully developed and validated concepts for AI-based base station wireless transmission technology in collaboration with SK Telecom, NTT Docomo, and Nokia in July of last year.
Song Young-geun, a researcher at the Electronics and Telecommunications Research Institute (ETRI), said, "It appears that telecommunications equipment companies are making strategic investments to adapt to changes toward AI-based networks and secure next-generation technologies such as 6G."