Challenging Open RAN Conditions Not Impacting Long-term Forecast, According to Dell'Oro Group

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Feb 06, 2024, 08:00 ET

Open RAN Now Projected to Comprise 20 Percent to 30 Percent of Global RAN by 2028

REDWOOD CITY, Calif., Feb. 6, 2024 /PRNewswire/ -- According to a recently published report by Dell'Oro Group, the trusted source for market information about the telecommunications, security, networks, and data center industries, following an impressive ascent between 2019 and 2022, Open RAN revenues are on track to decline in 2023. Market conditions will remain challenging over the near-term but the long-term forecast remains positive, with Open RAN set to account for 20 percent to 30 percent of worldwide RAN revenues by 2028, up from 7 percent to 10 percent in 2024.

"Current growth deceleration combined with the increased acceptance that Open RAN is not some kind of magic solution that will significantly alter barriers to entry or overall market concentration, is prompting more questions about the rationale behind Open RAN," said Stefan Pongratz, Vice President and Analyst at the Dell'Oro Group. "The fundamental assumptions shaping the role Open RAN will play in this RAN journey have not changed. Over time, operators will incorporate more virtualization, intelligence, automation, and O-RAN into their RAN roadmaps. However, the business case for multi-vendor RAN is less compelling," continued Pongratz.

Additional highlights from the February 2024 Open RAN Report:

Open RAN revenues have been revised upward in the outer part of the forecast period to reflect the improved pipeline in the US.
North America stumbled in 2023 but is set to lead the Open RAN market over the forecast period.
After a slow start, Europe's Open RAN revenue share is projected to nearly double between 2023 and 2028.
The mix between multi- and single-vendor RAN remains mostly unchanged. The analysis in the report shows that single-vendor Open RAN is expected to drive the lion's share of the Open RAN market. Multi-vendor Open RAN is projected to account for 5 percent to 10 percent of total RAN revenues by 2028.

About the Report
The Dell'Oro Group Open RAN Advanced Research Report offers an overview of the Open RAN and Virtualized RAN potential with a 5-year forecast for various Open RAN segments including multi-vendor & single-vendor, macro and small cell, regions, and baseband/radio. The report also includes projections for virtualized RAN along with a discussion about the state of the market, forecast drivers, and the risks. To purchase this report, please contact us by email at [email protected].

About Dell'Oro Group
Dell'Oro Group is a market research firm that specializes in strategic competitive analysis in the telecommunications, security, networks, and data center 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.

SOURCE Dell'Oro Group