Global mobile RAN market stabilises as high-end routers rise

Research from Dell’Oro Group has revealed contrasting fortunes for key wired and wireless networking technology, finding that artificial intelligence (AI) infrastructure build has become a driving force, especially for the high-end router and aggregation switch market, and that the worldwide radio access network (RAN) market has entered a new phase of stability following a multi-year industry reset.

The analyst’s Service provider router & switch 5-year forecast report investigated markets for future, current and historical periods for high end routers and aggregation switches, including carrier ethernet platforms. Fundamentally, it projected that the market will be worth $19bn by 2030, as AI infrastructure reshapes router demand.

The analyst noted that growth in the market is shifting from telecom networks toward cloud connectivity and datacentre interconnect. Core Router demand was said to be rising in scale-across datacentre interconnect (DCI) technology, while edge routers were seen to be benefitting from AI expansion. Dell’Oro expects cloud provider spending to grow at a 16% CAGR, despite near-term pressure from slowing 5G deployments over the period.

Compared with previous market reports, the analyst said the area with largest upward revision was for core routers, driven by their use in scale-across DCI. Additionally, demand for edge routers was anticipated to surpass initial estimates, supported by AI growth.

“The market dynamics surrounding routers are changing,” stated Dell’Oro group vice-president, Jimmy Yu. “The biggest change is that router demand over the next five years will be increasingly influenced by datacentre connectivity and less by telecom infrastructure. The outlook for the high-end router market has been revised upward, fuelled by increased demand for capacity, cloud connectivity and DCI. However, challenges remain in the telecom sector as the 5G roll-out winds down.”

Other findings from the report included edge router and aggregation switch revenue for mobile backhaul expected to be relatively flat for the next four years due to the slowdown in 5G deployment. However, Dell’Oro believes that by 2030, demand will increase as communication service providers begin deploying 6G radios and upgrading their networks to deliver higher speeds and enhanced services.

Geographically, the expansion of AI infrastructure was also creating router demand across most regions, particularly in North America, which hosts the leading cloud providers and most new datacentre projects.

Meanwhile, the firm’s Mobile RAN 5-year forecast report showed signs of market recovery since a January 2026 analysis. It noted that following stabilisation in 2025, worldwide revenues delivered two consecutive quarters of year-on-year growth through the first quarter of  2026. The market saw a nearly $9bn decline in revenues between 2021 and 2024.

However, the market is predicted to grow at just 1% CAGR through 2030, while offering a range of opportunities beyond traditional 5G RAN investment. The research cited AI RAN, Cloud RAN, private wireless, Massive MIMO, small cells and early 6G deployments as key potential drivers shaping the market’s next phase of measured growth.

Additionally, RAN spending is expected to remain closely aligned with wireless capital expenditures, accounting for approximately 20 to 25% in the period to 2030. Declining 4G revenues will continue to be offset by ongoing 5G deployments and the initial wave of 6G investments.

“While our base case assumes RAN revenue will remain broadly flat over the forecast period, alternative outcomes are possible,” said Stefan Pongratz, vice-president for RAN market research at Dell’Oro Group. “The more optimistic scenario reflects a larger role for mobile networks in the AI era as traffic patterns evolve and machines comprise a greater share of overall traffic. Conversely, excess mobile capacity and muted carrier revenue growth could weigh on the market.”