Small cell radio access network (RAN) sales growth outpaced that of its larger brethren during the first quarter of the year, boosted by operators densifying their initial 5G build outs with higher-frequency spectrum assets, according to a new report from Dell’Oro Group.
The research firm noted that traditional RAN vendors Huawei, Ericsson, Nokia, ZTE, and Samsung dominated the small cell RAN market during the first quarter. Those vendors helped boost small cell RAN equipment revenues by 15% year over year compared to the same quarter in 2021, which Dell’Oro said was faster than the tepid pace posted by the overall RAN market.
Public 5G networks drove nearly all of that growth, with Dell’Oro Group explaining private 5G small cell investments were “still negligible” during the quarter and 4G LTE-based small cell revenues dropped year over year. That aligns with ongoing commentary around private 5G still being in its early stages and most operators shifting their public 5G deployment focus to 5G.
“The fact that small cell investments are still advancing at a rapid pace even as the operators are intensifying their 5G macro rollout efforts show that small cells are now an essential part of the broader RAN toolkit,” Stefan Pongratz, VP at Dell’Oro Group, wrote. “Helping to explain this output acceleration is the shift toward 5G and the shrinking gap between macro and small cell deployments, especially with upper mid-band 5G.”
While deployment challenges remain, especially in outdoor environments, Dell’Oro said it expects the global small cell RAN market to exceed $5 billion in sales this year.