According to a recently published report from Dell’Oro Group; the trusted source for market information about the telecommunications, security, networks and data center industries; the Open RAN train continues to move forward and accelerate at a faster pace than expected. Preliminary findings suggest the regional drivers that shaped the Open RAN market in the first half of 2022 extended into the third quarter, propelling Open RAN revenues to more than double on a year-over-year basis.

“While commercial Open RAN revenues continue to surprise on the upside, the underlying message that we have communicated now for some time now has not changed and remains mixed,” said Stefan Pongratz, vice president with the Dell’Oro Group. “Early adopters are embracing the movement towards more openness but at the same time, there is more uncertainty when it comes to the early majority operator and the implications for the broader RAN supplier landscape now with non-multi vendor deployments driving a significant portion of the year-to-date Open RAN market,” continued Pongratz.

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Additional Open RAN highlights from the 3Q 2022 RAN report:

  • Top four Open RAN revenue suppliers for the 1Q22-3Q22 period include Samsung, Fujitsu, NEC and Mavenir.
  • Trials are on the rise globally, however, North America and the Asia Pacific regions are still dominating the commercial revenue mix over the 1Q22-3Q22 period, accounting for more than 95 percent of the market.  
  • More than 80 percent of the year-to-date growth is driven by the North America region, supported by large scale non-massive MIMO and massive MIMO macro deployments.

The rise of Open RAN has so far had a limited impact on the broader RAN (proprietary and Open RAN) market concentration. The data contained in the report suggest that the collective RAN share of the top 5 RAN suppliers (Huawei, Ericsson, Nokia, ZTE and Samsung) declined by less than one percentage point between 2021 and 1Q22 to 3Q22.

Short-term projections have been revised upward to reflect the higher baseline–Open RAN is now projected to account for 6 to 10 percent of the RAN market in 2023. Open RAN growth rates, however, are expected to decelerate next year, reflecting the likelihood that the sum of new brownfield deployments will be able to offset more challenging comparisons with the early adopters.

About the Report

Dell’Oro Group’s RAN Quarterly Report offers a complete overview of the RAN industry, with tables covering manufacturers’ and market revenue for multiple RAN segments including 5G NR sub-6 GHz, 5G NR mmWave, LTE, macro base stations and radios, small cells, massive MIMO, Open RAN and vRAN. The report also tracks the RAN market by region and includes a four-quarter outlook.