Future of Cloud RAN: Expected Growth in Market Share Over Purpose-Built RAN

Opening the Door to Cloud RAN Growth

In a comprehensive report by the Dell'Oro Group, insights on the future of Cloud RAN reveal significant market shifts expected by 2029. While the present landscape for both Open RAN and Cloud RAN appears challenging, with revenues declining in 2024, the long-term outlook indicates a robust trajectory towards growth.

Current Market Realities

As highlighted by Stefan Pongratz, the Vice President of RAN market research, operators are gradually adopting more open, virtualized, intelligent, and automated frameworks in their Radio Access Networks (RAN). This shift, however, is not without its hurdles. The expected transition from 'O-RAN ready' to full-fledged Open RAN is progressing slowly, which has led to downwards adjustments in short-term projections. Pongratz mentions that the anticipated exponential growth associated with Open RAN might be losing momentum.

Long-term Projections

Despite the existing challenges, the Dell'Oro Group predicts a significant long-term growth in Cloud RAN shares. The report projects that, by 2029, Open RAN could account for over 25% of the total RAN market, whereas purpose-built RANs are expected to diminish in value by roughly 20%. The market dynamics are expected to differ markedly across regions, with North America and Asia Pacific jointly forecasted to drive approximately 80% of the vRAN forecast.

The Influence of Open RAN

One of the promising aspects of this market evolution is the role of Open RAN in facilitating a multi-vendor environment. Operators are anticipated to benefit from this new model by enjoying reduced costs and greater flexibility in the vendor ecosystem. However, as operators work to incorporate Open RAN technologies, the realization of these benefits will depend on how quickly they can adapt to new standards and practices; they must carefully consider the balance between innovation and operational stability. More specifically, the rate of integration of O-RAN radios and vRAN baseband solutions will significantly influence the overall adoption pace.

The Dell'Oro Group's Comprehensive Analysis

The Dell'Oro Group's Open RAN Advanced Research Report delves into not just the revenue potential but also the broader implications of these transitions across various market segments. The report provides a five-year outlook for Open RAN, highlighting areas such as single-vendor and multi-vendor deployment strategies as well as regional considerations.

Conclusion

The RAN market stands on the cusp of significant transformation, driven by the shift toward Cloud and Open RAN platforms. Despite immediate setbacks, the potential for innovation and market share growth is immense, suggesting that the telecommunications landscape will continue to evolve dramatically in the coming years. As businesses adapt to this new reality, tracking the development of O-RAN will be essential for stakeholders seeking competitive advantages in the global market.

For detailed insights and strategic guidance, the full Dell'Oro Group report is available for purchase, promising to equip telecom leaders with the necessary data to navigate the shifting trends effectively.