Deloro Group "Global LAN Market, 1Q Growth Rate Below Expectations"

Impact of COVID-19 Restrictions and Supply Chain Collapse
Slowest Growth Rate in 2 Years

Deloro Group Forecasts 5 Years of Consecutive Growth
"Continued Investment in North America, Europe, and China"

Photo by Del Oro Group

[Asia Economy Reporter Minyoung Cha] The global Radio Access Network (RAN) market recorded its lowest revenue growth rate in over two years in the first quarter of this year due to COVID-19 restrictions and supply chain disruptions. However, the market maintains a positive outlook, expecting continuous revenue growth for five consecutive years, including this year.

According to industry sources on the 22nd, global market research firm Dell'Oro Group announced in its Q1 RAN market trend report released on the 19th (local time) that total sales of 2G to 5G RAN infrastructure equipment fell short of initial expectations. This figure includes all hardware, software, and firmware equipment, marking the slowest growth pace in over two years.

Dell'Oro Group selected Ericsson, Huawei, Nokia, ZTE, and Samsung Electronics as the top five suppliers in Q1. Ericsson, Nokia, Huawei, and Samsung led outside of China, while Huawei and ZTE dominated the Chinese market. Among suppliers outside the top five, Fujitsu and NEC increased profits, contributing to the market share growth of other companies.

Despite growth rates falling below market expectations, analysts remain optimistic, stating that growth will continue on an annual basis. Stefan Pongratz, Vice President of Dell'Oro Group, emphasized, "The RAN market has underperformed expectations for two consecutive quarters, but it is in the early stages of a broad 5G cycle," adding, "It is important to remember that the fundamentals are sound."

In an interview with the IT specialized media Mobile World Live, Pongratz said, "We have not significantly revised our total volume forecast," and added, "We still expect increased investments in North America, Europe, and China to drive five consecutive years of revenue growth in the RAN market through this year."

He further noted, "Europe recorded the strongest growth, but North America performed well throughout the year," and added, "With the latest update, we have downgraded the Asia-Pacific (APAC) region excluding China, while upgrading the annual outlook for North America."