Worldwide RAN to Grow a 0 Percent CAGR over Next Five Years
REDWOOD CITY, Calif., Jan. 23, 2025 -- According to a newly published forecast report by Dell'Oro Group, the trusted source for market information about the telecommunications, security, networks, and data center industries, market conditions are improving but remain underwhelming for the broader Radio Access Network (RAN) ecosystem as regional 5G coverage imbalances, slower data traffic growth, and monetization challenges are weighing on the market. Following the intense 5G acceleration phase from 2017 to 2021, RAN investments tapered off in 2023 and 2024. Conditions are expected to improve slightly over the short term, but the long-term outlook remains subdued.
"The underlying message we have communicated for some time has not changed," said Stefan Pongratz, Vice President for RAN market research at Dell'Oro Group. "Regional imbalances will impact the market dynamics over the short term while the long-term trajectory remains flat. This is predicated on the assumption that new RAN revenue streams from private wireless and FWA, taken together with MBB-based capacity growth, are not enough to offset slower MBB coverage-based capex," continued Pongratz.
Additional highlights from the Mobile RAN 5-Year January 2025 Forecast Report:
- Worldwide RAN revenues are projected to grow at a 0 percent CAGR over the next five years, as rapidly declining LTE revenues will offset continued 5G investments.
- Medium-term risks to the baseline are balanced, while the long-term risks are tilted to the downside and characterized by the data growth uncertainty with the existing MBB use case. As the investment focus gradually shifts from coverage to capacity, one of the most significant forecast risks is slowing mobile data traffic growth. Given current network utilization levels and data traffic trends in more advanced markets, there are serious concerns about the timing of capacity upgrades.
- The mix between existing and new use cases has not changed. Private/enterprise RAN is expected to grow at a 20 percent plus CAGR while public RAN investments decline. At the same time, because of the lower starting point, it will take some time for private RAN to move the broader RAN needle.
- 5G-Advanced positions remain unchanged. The technology will play an essential role in the broader 5G journey. However, 5G-Advanced is not expected to fuel another major capex cycle. Instead, operators will gradually transition their spending from 5G towards 5G-Advanced within their confined capex budgets.
- RAN segments that are expected to grow over the next five years include 5G NR, FWA, mmWave, Open RAN, vRAN, private wireless, and small cells.
About the Report
Dell'Oro Group's Mobile RAN 5-Year Forecast Report offers a complete overview of the RAN market by region – North America, Europe, Middle East & Africa, Asia Pacific, China, and Caribbean & Latin America, with tables covering manufacturers' revenue and unit shipments for 5G NR, 5G NR Sub 7 GHz, 5G NR mmW, and LTE base stations. The report also covers Open RAN, Virtualized RAN, small cells, and Massive MIMO. To purchase this report, please contact us by email at dgsales@delloro.com.
About Dell'Oro Group
Dell'Oro Group is a market research firm that specializes in strategic competitive analysis in the telecommunications, security, enterprise networks, and data center infrastructure markets. Our firm provides in-depth quantitative data and qualitative analysis to facilitate critical, fact-based business decisions. For more information, contact Dell'Oro Group at +1.650.622.9400 or visit www.delloro.com.
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