Significant Stabilization of the RAN Market Expected in 1Q 2025

RAN Market Shows Signs of Recovery in Early 2025

According to a report from the renowned market analysis firm Dell'Oro Group, the Radio Access Network (RAN) sector is poised for stabilization in the first quarter of 2025 after experiencing two years of significant decline. The findings present a cautiously optimistic outlook for the telecommunications industry, indicating potential for a growth trajectory that has not been seen since the first quarter of 2023.

Stefan Pongratz, Vice President of RAN market research at Dell'Oro Group, elaborated on the factors contributing to this improvement. He stated that the recovery is largely attributed to favorable regional dynamics alongside lighter comparative figures from the previous year, rather than a shift in the underlying market fundamentals.

Despite this promising news, Pongratz cautioned that challenges remain. The RAN market still faces considerable obstacles such as uneven regional 5G deployment, sluggish data traffic expansion, and ongoing difficulties in revenue generation. These issues continue to hinder broader growth prospects for RAN, painting a complex picture for the telecommunications landscape.

Key Insights from the 1Q 2025 RAN Report

1. Regional Insights: North America showcased strong growth, sufficiently balancing out revenue declines noted in the Caribbean and Latin America (CALA), China, and the Middle East and Africa (MEA). However, outside North America, the RAN market struggled, marking its fifth consecutive quarter of declining figures.

2. Vendor Rankings: Among the top RAN vendors, there was notable consistency in 1Q 2025. The leading companies based on worldwide revenue maintain their positions as follows: Huawei, Ericsson, Nokia, ZTE, and Samsung. When focusing only on data outside of China, the ranking is slightly different, with Ericsson emerging as the leader, followed by Nokia, Huawei, Samsung, and ZTE.

3. Growth Predictions: Looking forward, the general outlook for the RAN sector remains fairly unchanged. Analysts predict that while overall RAN revenue will hold steady through 2025, growth in regions outside of China is anticipated to occur at a modest pace, primarily due to the existing market dynamics and regional variances.

Conclusion

The RAN market's stabilization is a noteworthy development for stakeholders in the telecommunications sector, but it underscores ongoing challenges that require strategic attention. As the industry adapts to the realities of 5G implementation and evolving consumer demands, manufacturers and service providers must navigate a complex economic landscape where opportunities and hurdles coexist. Continued monitoring and responsiveness to these evolving dynamics will be essential as the market aims for sustainable growth in the future.

For detailed statistics and insights into the RAN market, including specific data segments for 5G NR and LTE, businesses can access Dell'Oro Group's comprehensive RAN quarterly report.

About Dell'Oro Group

Dell'Oro Group is widely recognized for its expertise in strategic competitive analysis across various sectors including telecommunications, security, enterprise networks, and data center infrastructures. Their reports offer valuable quantitative and qualitative data, critical for informed business decisions within the fast-paced telecommunications arena.