Market Outlook for Disaggregated Cell Site Gateways (DCSG)
A Disaggregated Cell Site Gateways (DCSG) is a white-box cell site gateway or router based on an open and disaggregated architecture for existing 2G/3G/4G and 5G networks. It permits network operators to choose different software applications from various vendors, essentially separating the hardware from the software functionality, providing greater flexibility and choice compared to traditional, vendor-locked cell site gateways, particularly important for the evolving demands of 5G networks.
After a two-year lull, the DCSG market regained momentum in 2023, driven by contracts across North America, Asia, and Africa. Market leaders like Ciena and IP Infusion now dominate Network Operating System (NOS) software, while Taiwanese ODMs Edgecore Networks Corporation and UfiSpace lead in white box hardware. The Edgecore CSR430 supports LTE and 5G mobile xHaul networks. It incorporates advanced features like precise timing synchronization, eCPRI fronthaul capabilities, and advanced telemetry to address the scalability demands of mobile operators rolling-out 5G.
DCSGs are growing in importance along with the worldwide expansion and densification of 5G networks, which require more capacity while offering more services. This means operators need to deploy ever more sites, gateways and radios, which, in turn, provides a real incentive for operators to deploy cost-effective white-box DCSG solutions.
According to global research firm Omdia, DCSGs are expected to grow rapidly to some 25% of new CSGs in 2024. Telecom Infra Project (TIP) says over 27,000 Disaggregated Cell Site Gateways have been deployed globally.
TÉRAL RESEARCH forecasts DCSG sales to exceed $500M by 2029, fueled by 5G deployment and open RAN growth. Despite challenges in breaking into established vendor markets, the push for vendor-neutral, cost-efficient solutions keeps disaggregation high on CSPs’ agendas.
References:
https://teralresearch.com/report/december-2024-disaggregated-cell-site-gateways-dcsg-337
https://www.ceragon.com/disaggregated-cell-site-gateways
https://www.adtran.com/en/innovation/telecom-infra-project/disaggregated-cell-site-gateways