Dell’Oro Group reports that Private Wireless Radio Access Network (RAN) revenue growth slowed slightly in the second quarter on a year-over-year basis relative to the ~40 percent increase in 2023. Still, the tapering is in line with expectations and private wireless is performing significantly better on a relative basis than both public RAN and enterprise WLAN.  [However, it’s a much smaller market.]

“With public MBB investments slowing, the expectations with new growth opportunities such as Fixed Wireless Access and private wireless are rising,” said Stefan Pongratz, Vice President at Dell’Oro Group. “The results in the quarter and the trends over the past year validate this message that we have communicated now for some time, namely that the enterprise is a very large and mostly untapped opportunity. The market will continue to grow faster than both public RAN and enterprise WLAN, but because of the lower starting point, it will take some time before enterprise RAN revenues are large enough to stabilize public MBB swings,” continued Pongratz.

Additional highlights from the September 2024 Private Wireless Report:

• Contract activity is slowing but the quality of the contracts is improving and increasingly includes larger, multi-site, and even multi-country agreements.
• Regional activity is mostly stable. The three largest regions in 1H24 from a revenue perspective include China, North America, and EMEA.
• Vendor rankings did not change in 1H24. The evolving scope of private wireless taken together with the fact that the $20 B+ enterprise RAN opportunity remains largely untapped is spurring interest from a broad array of participants across the ecosystem. Still, the traditional RAN suppliers are currently well-positioned in this initial phase.
• Top 3 Private Wireless RAN suppliers in 1H24 are Huawei, Nokia, and Ericsson.
• Top 3 Private Wireless RAN suppliers in 1H24 excluding China are Nokia, Ericsson, and Samsung.
• Projections are mostly unchanged. Private wireless RAN revenues are projected to grow at a 21 percent CAGR over the next five years, while public RAN revenues are set to decline at a 3 percent CAGR over the same time period.

About the Report:

Dell’Oro Group’s Private Wireless Advanced Research Report includes both quarterly vendors share data and a 5-year forecast for Private Wireless RAN by RF Output Power, technology, spectrum, and region. To purchase this report, please contact us at [email protected].

About Dell’Oro Group:

Dell’Oro Group is a market research firm that specializes in strategic competitive analysis in the telecommunications, security, enterprise 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 https://www.delloro.com.

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Ericsson and Nokia – Private Wireless Network Initiatives:

• Last week, Ericsson shared details of its enterprise 5G strategy, formulated after its 2020 Cradlepoint acquisition which provides both private 5G and neutral host solutions.  “Ericsson’s strategic and comprehensive approach to evolving its private networking portfolio is addressing the growing demand for secure, high-performance connectivity in enterprises,” the vendor quoted Pablo Tomasi, Principal Analyst for Private Networks and Enterprise 5G at Omdia, as saying in its strategy announcement. “Ericsson’s ability to meet customers where they are in their 5G journey with a unified experience will be critical in helping the market scale and enabling enterprises leveraging 5G to transform in a meaningful way,” Tomasi added.
• Nokia has made myriad private networking deal announcements in the past couple of years and recently revealed the results of a market study it commissioned that paints the sector in a very positive light. Early adopters have been scaling up deployments, adding new locations for example, and the vast majority of those surveyed – 93%, to be exact – claimed to have generated a return on investment within a year; almost a quarter did so in just one month. That’s a strong message and one designed to help drive the market forwards.

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References:

Private Wireless RAN Revenues up 24 percent in 2Q 2024, According to Dell’Oro Group

https://www.telecoms.com/telecoms-infrastructure/private-ran-revenues-continue-to-grow-amid-vendor-push

Dell’Oro: RAN market still declining with Huawei, Ericsson, Nokia, ZTE and Samsung top vendors

Highlights of Dell’Oro’s 5-year RAN forecast

Dell’Oro: 2023 global telecom equipment revenues declined 5% YoY; Huawei increases its #1 position

Dell’Oro & Omdia: Global RAN market declined in 2023 and again in 2024

Dell’Oro: Private 5G ecosystem is evolving; vRAN gaining momentum; skepticism increasing

HPE Aruba Launches “Cloud Native” Private 5G Network with 4G/5G Small Cell Radios

SNS Telecom & IT: Private 5G Network market annual spending will be $3.5 Billion by 2027

Ericsson and Vodafone enable Irish rugby team to use Private 5G SA network for 2023 Rugby World Cup

Wipro and Cisco Launch Managed Private 5G Network-as-a-Service Solution