According to a recent report from the Dell'Oro Group, the era of significant growth in revenue from 5G Radio Access Network (RAN) has become a distant memory. Following a substantial growth of 40% to 50% between 2017 and 2021, global RAN revenue experienced a significant decline for the second consecutive quarter in Q3 2023, primarily due to reduced RAN investments in North America.
Stefan Pongratz, Vice President of RAN Market Research at Dell'Oro Group, stated, "In this scenario, the asynchronous 5G launches in different regions contribute to mitigating some impact in the United States, although evidently not enough. The substantial decrease in RAN/capital expenditure in the U.S. market is partially offset by growth in other regions. The development of 5G in India, along with positive trends in the Middle East and Africa, is a reason for more optimistic performance outside North America. Additionally, in most advanced 5G markets, even in the post-peak period, Mobile Broadband (MBB) investment remains relatively high compared to pre-5G levels, excluding North America."
Highlights from the Q3 2023 RAN report:
- The top RAN suppliers in Q3 2023 include Huawei, Ericsson, Nokia, ZTE, and Samsung.
- Ericsson and Nokia are increasing their revenue share in markets outside North America.
- Global RAN revenue achieved consecutive growth for the third quarter this year, excluding North America.
- This quarter's developments have not altered the trajectory of RAN. The RAN market peaked in 2021 and is expected to decline in 2023 and 2024. While the rate of decline is projected to slow in 2024, challenges persist, particularly with the negative turn in India's situation.