Cloud RAN to Account for Nearly 25 Percent of the RAN Market by 2029
REDWOOD CITY, Calif. – February 11, 2025 – According to a recently published report by Dell’Oro Group, the trusted source for market information about the telecommunications, security, networks, and data center industries, Open RAN and Cloud RAN revenues are coming in down in 2024 along with the broader RAN market, but the long-term trajectory remains healthy.
“Our long-term position remains mostly unchanged,” said Stefan Pongratz, Vice President of RAN market research at the Dell’Oro Group. “Even with ongoing challenges and delays, we still anticipate that most operators will gradually incorporate more openness, virtualization, intelligence, and automation into their RAN roadmaps. At the same time, the impact will be mixed. While O-RAN fronthaul interfaces are being adopted and Open RAN is accelerating the shift towards vRAN/Cloud RAN, this vision that Open RAN will catalyze multi-vendor RAN, bring down prices, and change the vendor dynamics is fading,” continued Pongratz.
Additional highlights from the February 2025 Open RAN Report :
- Short-term projections have been revised downward due to a lower starting point and ongoing uncertainty surrounding the transition from “O-RAN ready” to Open RAN.
- The transition to Open RAN is a gradual process and the benefits and challenges of Open RAN vary across the RAN, influencing the adoption pace of O-RAN radios and vRAN baseband. The long-term trajectory is for Open RAN and Multi-vendor RAN to comprise >25 percent and <10 percent of the total 2029 RAN market, respectively.
- Purpose-built RAN to lose roughly about 20 percent in value by 2029.
- North America and Asia Pacific combined are projected to drive around 80 percent of the vRAN forecast.
The Dell’Oro Group Open RAN Advanced Research Report offers an overview of the Open RAN and Virtualized RAN potential with a 5-year forecast for various Open RAN segments including multi-vendor & single-vendor, macro and small cell, regions, and baseband/radio. The report also includes projections for virtualized RAN along with a discussion about the state of the market, forecast drivers, and the risks. To purchase this report, please contact us by email at dgsales@delloro.com.
Dell’Oro Group is a market research firm that specializes in strategic competitive analysis in the telecommunications, security, networks, and data center markets. Our firm provides in-depth quantitative data and qualitative analysis to facilitate critical, fact-based business decisions. For more information, contact Dell’Oro Group at +1.650.622.9400 or visit www.delloro.com.
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