Total RAN Market Declines at a Double-Digit Rate

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04/06/2016 Leave a comment

The total Radio Access Network (RAN) Infrastructure market declined at a double digit rate year over year in 1Q16 as revenues in all regions declined for the first time in four years.

The total market is forecasted to decline around eight percent in 2016, says Dell’Oro Group in a report.

“After a strong 4Q15, and three years of solid currency-adjusted performance, the overall RAN market started 2016 on a bleaker note – declining at a double-digit rate – driven by demand and the macro-economic climate,” said Stefan Pongratz, analyst at Dell’Oro Group. “Even though results were mostly in line with expectations, we have increased our 2016 macro and small cell shipment forecast – reflecting upbeat shipment guidance in China – while reducing our pricing assumptions. We continue to forecast the total RAN market will decline by about eight percent in 2016, unchanged from the projections outlined in conjunction with the 4Q15 report,” continued Pongratz.

The report also suggests that strong growth in small cells is not expected to offset declining macro revenues in 2016.

Huawei, Ericsson, and Nokia accounted for about 80 percent of the combined Macro plus Small Cell RAN market and about 70 percent of the Small Cell RAN market during 1Q16.

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