Open RAN forecast up 50 percent to $15bn

Open RAN forecast up 50 percent to $15bn

Market news |
By Nick Flaherty

The predicted market for Open RAN radio and baseband equipment revenues is now $15bn between 2020 and 2025 says US market research firm Dell’Oro.

“The momentum with both commercial deployments and the broader Open RAN movement continued to improve during 1H21, bolstering the thesis that Open RAN is here to say,” said Stefan Pongratz, Vice President and analyst with the Dell’Oro Group. “We are adjusting the forecast upward to reflect the higher baseline and the improved pipeline,” he said.

Open RAN allows different part so fthe Radio Access Network to be provided by different suppliers with standards at the chip, board, sub-system and software level. This avoids being locked into vertically integrated suppliers, particularly for private 5G and IoT networks, and drives down costs, but faces challenges to optimise performnce and power consumption across the whole signal chain.

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The Dell’Oro report sees Open RAN revenues expected to account for more than 10 percent of the overall RAN market by 2025, with traction in multiple regions with both basic and advanced radios. The shift towards Virtualized RAN (V-RAN) is progressing at a slightly slower pace than Open RAN. This moves the RAN function into the cloud, and Dell’Oro sees the total V-RAN projections relatively unchanged, approaching $2bn to $3bn by 2025.

The Dell’Oro report is at: Open RAN Advanced Research Report

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