Chip shortage to put brakes on RAN market in 2022: Dell’Oro

• Global RAN market has been growing like wildfire
• Chip shortages only just starting to impact the sector
• 2022 is expected to deliver much lower levels of growth as chip shortage impact prevails

The global market for radio access network (RAN) equipment has so far been impacted but not “derailed” by the chip shortages that are affecting the production and supply of networking gear, according to research firm Dell’Oro. 

However, the squeeze that much of the rest of the networking industry has been feeling is now starting to tighten in the RAN market too, according to the research firm.

“The RAN market remains on track for a fourth consecutive year of robust growth, underpinned by healthy demand for connectivity”, said Stefan Pongratz, analyst with the Dell’Oro Group. “At the same time, more challenging comparisons combined with increased risks surrounding the supply chain will weigh on the market in 2022,” he added. 

Previous calculations have put the value of the market in 2020 at about $35 billion, and even with the current supply chain challenges, Pongratz still expects the RAN market to experience double-digit growth in 2021, giving it a minimum value of $38.5 billion this year. 

However, “increased risks surrounding the supply chain will weigh on the market in 2022,” he notes in this announcement, with the total 2G-5G RAN market expected to grow by just 3% next year, taking it to a minimum value of $39.7 billion. 

Despite its international travails, the massive investments in 5G in China have helped Huawei to retain the top spot in the global RAN sector rankings, according to Dell’Oro, followed by Ericsson, Nokia, ZTE (which also benefits from large domestic orders in China) and Samsung. 

- Ray Le Maistre, Editorial Director, TelecomTV