Dell’Oro Group predicted open RAN revenue would accelerate faster than it previously forecast, taking a share of between 15 per cent and 20 per cent of the global RAN market by 2027.
The research company cited stronger than expected progress during 2022, particularly in North America, for the change. It had previously tipped open RAN to take a 15 per cent share by 2026.
VP Stefan Pongratz told Mobile World Live Dish Network and Verizon contributed to the growth in North America.
The Asia Pacific and North America regions are expected to be the primary open RAN growth areas throughout the forecast period.
Dell’Oro upped its North American forecasts, but cut those for Middle East and Africa, Latin America and the Caribbean.
Beyond early adopters, Pongratz stated operators were still concerned about performance and cost parity with open versus proprietary RAN.
“Even with the higher starting point, it is more salient than ever to factor in the vastly different adoption curves across the greenfields [sic], the leading brownfields in North America and Asia Pacific and the rest of the world,” he stated.
European open RAN revenue is expected to top $1 billion by 2027 despite a slower start than other regions.
Open RAN macro elements including high-power base stations on macro sites are expected to drive the bulk of capex going forward, accounting for around 90 per cent of revenue throughout the forecast period.
While the expectations for open RAN improved, the company’s preliminary data suggested a minimal impact on overall RAN supplier dynamics.Subscribe to our daily newsletter Back