Dell’Oro Reports RAN Market Growth Outside China, Highlighting Regional Divergence

What's Happening?

The Radio Access Network (RAN) market is showing signs of recovery outside China, according to preliminary data from the Dell’Oro Group. After experiencing two years of contraction, global RAN revenues have risen for the third consecutive quarter outside of China. This growth is primarily driven by gains in Europe and the Middle East and Africa, which have nearly offset declines in Latin America and Asia Pacific. The report highlights that the market remains cautious, with no swift recovery expected. Major players like Ericsson and Huawei continue to dominate, holding over 60% of the RAN market share in North America and China, respectively. The top five global RAN vendors, based on revenue, include Huawei, Ericsson, Nokia, ZTE, and Samsung.

Why It's Important?

The recovery of the RAN market outside China is significant for the global telecommunications industry, as it indicates a stabilization after years of decline. This growth could lead to increased investments and innovations in network infrastructure, particularly in regions like Europe and the Middle East and Africa. The dominance of major vendors like Ericsson and Huawei suggests a competitive market landscape, which could influence pricing and technology development. The ongoing expansion of 5G networks and the adoption of new technologies like Multi-Access Edge Computing (MEC) are expected to drive further growth, potentially impacting mobile network operators and consumers by enhancing connectivity and reducing operational costs.

What's Next?

Looking ahead, the Dell’Oro Group anticipates that the RAN market will continue to stabilize throughout 2025, without a sharp rebound. The global 5G Mobile Core Network (MCN) market is projected to grow at a 6% compound annual growth rate (CAGR) from 2024 to 2029, driven by the adoption of 5G Standalone architecture. Additionally, the MEC segment is expected to expand at a 17% CAGR, fueled by network slicing and the increasing use of network APIs. These developments could lead to expanded network capacity and reduced costs for mobile network operators, potentially accelerating the deployment of advanced network capabilities.