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Finnish kit maker expects low single-digit decline in addressable network market in 2017.
Nokia on Tuesday followed Ericsson in issuing a gloomy outlook for the network infrastructure market next year.
The Finnish kit maker expects low single digit percentage decline in the addressable market for its networks business, with competitive industry dynamics, the timing of major network deployments, and the execution of cost savings and reinvestment plans all contributing factors.
Last week, rival Ericsson said it expects the addressable market for its networks business to see a CAGR of -2%-0% in 2016-2018.
Nokia said its primary addressable market size in 2016 is €113 billion, and is expected to see a CAGR of 1% over the next five years. Meanwhile, its adjacent addressable market size is expected to be €18 billion in 2016, but see a CAGR of 13% over the same period.
The vendor said it aims to outpace the growth of its primary addressable market through continued industry leadership, and disciplined expansion and diversification into adjacent markets.
"Nokia is extremely well-positioned to win in its primary market with communication service providers, and we aim to target superior returns through focused growth into more attractive adjacent markets where high-performance, end-to-end networks are increasingly in demand," said Nokia CEO Rajeev Suri, in a statement.
"Simultaneously, we will remain focused on flawlessly executing our €1.2 billion cost-saving programme," he added.
