AI RAN Expected to Make Up One-Third of RAN Market by 2029

AI RAN projected to capture one-third of the RAN market by 2029.
Focus on Distributed-RAN, single-purpose models, and 5G is key.
Operators will prioritize AI RAN for enhanced efficiency, not revenue.
That’s 95 percent of 2024 RAN revenue coming from the top 5 suppliers.
Skepticism remains about AI reversing stagnant revenue trends.

Forecast for AI RAN Dominance in Telecommunications Market

AI RAN is making waves in the telecommunications landscape, according to a fresh report released by the Dell’Oro Group. They’re a go-to name when it comes to analyzing sectors like security networks and data centers. This newly minted report reveals quite the forecast – by 2029, AI RAN is set to represent about one-third of the total RAN market. This isn’t just some wild speculation; it’s based on solid research that emphasizes current trends, notably in Distributed-RAN (D-RAN), as well as the single-purpose deployments focusing on 5G technology.

Adoption of AI RAN as a Fundamental Tool

The report, dated July 2025, sets the stage for how operators are expected to embrace AI RAN not merely as a growth driver but as a fundamental tool for their operations. It seems that while being cautious, operators will gradually weave in more layers of virtualization, intelligence, and automation into their RAN strategies. Interestingly, AI RAN projections take into account various factors, including geography, tenancy, and technology. Dell’Oro’s insights also reveal that current RAN radio and baseband suppliers are primed to take advantage of the initial AI RAN phase, especially with existing infrastructure that’s being upgraded for AI capabilities.

Efficiency Gains Over Revenue Growth

Stefan Pongratz, Vice President at Dell’Oro, notes that for the near term, stakeholders are more interested in enhancing operational efficiency than chasing new revenue streams. The consensus is leaning heavily toward the notion that AI RAN could boost user experience, improve overall performance, and reduce energy usage, thus playing a vital role in the larger picture of automation within telecommunications. Still, there’s a bit of a cloud of skepticism hanging over the potential for AI to change the revenue game. Many believe it won’t quite flip the stagnant revenue numbers seen during the earlier 4G and 5G cycles, despite its promising capabilities.

In summary, AI RAN is on track to take a significant share of the RAN market by 2029, driven by advancements in technology and the existing capabilities of telecom operators. However, the focus remains on efficiency improvements rather than new revenue growth, with a cautious but positive outlook on enhancing user experiences and automation efforts in the industry. Skepticism about revenue changes persists, but the potential of AI RAN to reshape telecommunications is clear.