Dell’Oro issues bullish small cell 5G RAN forecast

Dell’Oro issues bullish small cell 5G RAN forecast

Dell’Oro issues bullish small cell 5G RAN forecast.

Dell’Oro Group predicted small cell RAN revenue would surpass $5 billion in 2022 after the figure grew 15 per cent year-on-year in Q1 despite operators intensifying macro 5G network rollouts.

VP Stefan Pongratz told Mobile World Live that small cells accounted for around 10 per cent of the broader RAN market in the opening three months and predicted continued growth across the rest of 2022.

Pongratz noted a shrinking gap between macro and small cell deployments, “especially with upper mid-band 5G.”

He said 5G drove more than half of the small cell market.

Small cell LTE revenue fell in the first quarter while the company stated private 5G investments were “still negligible”.

Dell’Oro Group ranked Huawei, Ericsson, Nokia, ZTE and Samsung as the top suppliers in the first quarter.

Dell’Oro issues bullish small cell 5G RAN forecast

1Q22 data center CAPEX shows a major increase: Dell’Oro

Data center capital expenditures (CAPEX) in the first quarter of 2022 grew at a rate not seen for three years, according to Dell’Oro Group.

In its newly released Data Center IT Capex Quarterly Report, the market research firm states that new cloud deployments and higher data centre infrastructure costs provided the impetus for the quarter’s performance.

Datacenter CAPEX should continue on an upward path this year, Dell’Oro analysts predict.

“Data center Capex grew double-digits year-over-year in 1Q 2022 despite persistent supply chain constraints,” said Baron Fung, research director at Dell’Oro Group.

“However, growth was attributed to higher average data centre equipment selling prices as vendors passed supply chain costs to end-users and the adoption of new server architectures and accelerated computing.

We anticipate further upside in data centre CAPEX later this year, as the Top 4 cloud service providers expand their services and server memory prices trend higher.”

Those Top 4 service providers – Amazon, Google, Meta, and Microsoft – are expected to launch services in more than 30 new markets this year, Dell’Oro predicts.

However, a counterbalance to this positive trend is a projection that supply chain constraints will limit server unit growth to the high single-digits in 2022.

Dell’Oro’s Data Center IT Capex Quarterly Report details the data center infrastructure capital expenditures of each of the ten largest cloud service providers and the rest-of-cloud, telco, and enterprise customer segments.

Allocation of the data center infrastructure Capex for servers, storage systems, and other auxiliary data center equipment is provided.

The report also discusses market trends, drivers of the leading cloud service providers’ CAPEX growth during the quarter, and the outlook for the next year.

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