Open RAN market to grow at double-digit rates

Open RAN market to grow at double-digit rates

Market news |
By Jean-Pierre Joosting

A recent by Dell’Oro Group finds that the worldwide sales of Virtualized Open RAN technologies are expected to grow at double-digit rates over the next five years. Cumulative Open RAN investments – including hardware, software, and firmware excluding services – are projected to surpass $5 B over the forecast period.

“At a first glance it might appear overly optimistic with a baseline scenario suggesting a new technology, which remains relatively untested and some officials believe would need a decade to get off the ground, would be able to become a billion-dollar market comprising a sizable portion of the overall RAN segment in just half a decade,” said Stefan Pongratz, Vice President and analyst with the Dell’Oro Group. “At the same time, the momentum is improving, and we have adjusted the outlook upward to reflect a confluence of factors including promising results from initial commercial deployments, growing support from the incumbent RAN suppliers, and increased geopolitical uncertainty acting as a catalyst for operators to rethink their supplier strategies,” continued Pongratz.

The report projects cumulative Virtualized RAN revenues – here defined as the proportion of RAN baseband/compute capex that will utilize general-purpose processors for CU and/or DU – to approach $3 B to 5 B over the next five years. It also finds that cumulative Open RAN radio shipments – including macro and small cells – are projected to surpass 1 M over the forecast period.

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