RAN Market Down 10 to 20 percent 1Q-3Q24, According to Dell'Oro Group

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Nov 13, 2024, 08:00 ET

Huawei and Ericsson Gaining Share

REDWOOD CITY, Calif., Nov. 13, 2024 /PRNewswire/ -- According to a recently published report from Dell'Oro Group, the trusted source for market information about the telecommunications, security, networks, and data center industries, preliminary findings reveal that Radio Access Network (RAN) market conditions are slowly improving but remain challenging as regional imbalances still weigh on the market. Initial calculations show that the overall RAN market—including baseband plus radio hardware and software, excluding services—declined in 3Q24, marking a sixth consecutive quarter of year-over-year (Y/Y) revenue decline.

"Tougher comparisons, excess capacity, monetization challenges, and capex fatigue negatively affect both capex levels and investment priorities, providing operators with an opportunity to calibrate their RAN budgets to better align with historical capital intensity and RAN/capex ratios," said Stefan Pongratz, Vice President of RAN and Telecom Capex research at the Dell'Oro Group. "So, the problem is not just lower capex levels. Operators are also adjusting the proportion of the capex allocated for RAN," continued Pongratz.

Additional highlights from the 3Q 2024 RAN report:

Worldwide RAN revenues are tracking below expectations, down 10 to 20 percent Y/Y in the first nine months.
The top 5 RAN suppliers for the 1Q24-3Q24 period based on worldwide revenues are Huawei, Ericsson, Nokia, ZTE, and Samsung.
The top 5 RAN suppliers for the 1Q24-3Q24 based on worldwide revenues excluding China are Ericsson, Huawei, Nokia, Samsung, and ZTE.
Huawei and Ericsson's worldwide RAN revenue share improved in the first nine months, while Nokia, Samsung, and ZTE lost some ground over the same period.
Growth projections for 2025 are mostly unchanged. However, overall revenues have been revised downward to reflect the lower starting point. The worldwide RAN market is expected to advance at a low single-digit rate in 2025, underpinned by growth in North America and APAC, Excluding China. The Chinese RAN market is on track to decline in 2024, and the trajectory is expected to remain negative in 2025.

About the Report

Dell'Oro Group's RAN Quarterly Report offers a complete overview of the RAN industry, with tables covering manufacturers' and market revenue for multiple RAN segments including 5G NR Sub-7 GHz, 5G NR mmWave, LTE, macro base stations and radios, small cells, Massive MIMO, Open RAN, and vRAN. The report also tracks the RAN market by region and includes a four-quarter outlook. 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, 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 https://www.delloro.com.

SOURCE Dell'Oro Group