Going forward, NEC plans to concentrate on equipment for defense-related and other specialized applications
In sum – what to know:
NEC exits 4G/5G development – The company will stop investing in base station R&D while continuing to support existing deployments.
Competitive pressure intensifies – European and Chinese vendors dominate roughly 80% of the global RAN market, squeezing smaller players.
Strategic shift underway – NEC will pivot toward software, defense-related equipment and future technology standards.
Japanese technology company NEC is set to end the development of 4G and 5G base stations, according to a report by Nikkei, as competitive pressure from European and Chinese rivals continues to intensify.
NEC becomes the latest Japanese vendor to scale back ambitions in the radio access network (RAN) market. Last month, Nikkei reported that Kyocera had also abandoned plans to continue developing 5G base stations, citing rising costs and fierce competition. Kyocera only started developing base station equipment two years ago, and was expecting to bring these 5G base stations to market in 2027.
“In principle, we won’t invest in development in the future,” Takayuki Morita, president of NEC, said. He added that the company will shift its focus to software.
Going forward, NEC plans to concentrate on equipment for defense-related and other specialized applications, as well as technologies aligned with next-generation standards. The Japanese firm will continue to provide maintenance and support services for its installed base of 4G and 5G systems, according to the report.
NEC had previously positioned its 5G base station business as a core growth driver in its five-year plan launched in the fiscal year ending March 2022. However, investment by mobile network operators has progressed more slowly than expected, limiting market opportunities.
Globally, the RAN market remains highly concentrated, with Huawei, Ericsson and Nokia collectively accounting for around 80% of total market share.
A recent report by U.S.-based research firm Market Research Future stated that the global 5G base station market is expected to reach $60.28 billion in 2025 and expand to $352 billion by 2035, reflecting a compound annual growth rate (CAGR) of 19.3% during the 2025-2035 period.
“Despite the growth potential, the 5G base station market faces several challenges. The high initial capital expenditure associated with the installation and maintenance of 5G infrastructure remains a significant barrier, particularly for developing regions. The availability of suitable spectrum and regulatory approvals can delay network deployment, affecting market expansion,” the research firm said.
