Huawei, Ericsson, and Nokia continued to lead the global radio access network (RAN) market, though the overall market slowed during the second quarter of this year due to broader economic concerns, according to a recent report from Dell’Oro Group.

The research firm reported that the three vendors continued to dominate the market during the quarter, with smaller rivals ZTE and Samsung rounding out the top five. Overall market share dynamics continue to be driven by geopolitical concerns.

Outside of China, Ericsson led the market with 39% of RAN-related revenues through the first half of the year, ahead of a surging Nokia and Huawei. Samsung managed to grow share both in North America and globally.

However, inside China, Huawei and ZTE accounted for more than 90% of RAN-related revenues through the first half of the year.

This geography trend has been tied to ongoing sanctions placed by western countries on components supplied to China-based vendors. Most western governments have also pressured operators to not use equipment from vendors based in China due to security concerns.

RAN Market Slow but Steady

Dell’Oro Group more broadly noted that the RAN market continued to lose steam during the second quarter, recording its first measured year-over-year contraction in more than two years. The research firm also noted this was the third consecutive quarter of RAN sales coming in below expectations.

Stefan Pongratz, VP at Dell’Oro Group, tied the slowing market to outside economic challenges and regional influences.

“The shift in the pendulum is not a surprise, but admittedly it has swung a bit faster toward the negative than initially expected,” Pongratz wrote. “Slower momentum is not a sign that the 5G deployment phase is over. The message we have communicated for some time now, namely that the 5G cycle will be longer than previous technology cycles, still holds. At the same time, market conditions in the quarter were impacted by APAC excluding China, Russia, and foreign exchange.”

Despite the continued slow down, Dell’Oro Group expects the RAN market to record a fifth consecutive year of growth.