O-RAN Market Size (2024 - 2030)

The global O-RAN (Open Radio Access Network) Market is estimated to be worth USD 911.53 Million in 2023 and is projected to reach a value of USD 46,185.96 Million by 2030, growing at a CAGR of 75.2% during the forecast period 2024-2030.

An Open Radio Access Network (Open RAN) is a concept that emphasizes making RAN elements interoperable and standardized. Integrating a modular base station software stack on readily available hardware enables the seamless operation of baseband and radio unit components from distinct suppliers. Open RAN strives to achieve streamlined 5G RAN performance by accentuating efficiency, intelligence, and versatility. When deployed at the network edge, it brings advantages to 5G applications like autonomous systems and supports network slicing use cases effectively. Furthermore, Open RAN enables secure and efficient over-the-air firmware upgrades, leveraging the low-latency and high-reliability capabilities offered by edge computing, which is essential for such applications. The adoption of open standards offers benefits to equipment vendors and network operators. Vendors gain access to a broader network, while operators can choose suitable equipment and software. Competition leads to lower prices, which benefits organizations in the RAN market. Open RAN standards challenge the traditional proprietary approach, which allows integration with third-party products and reduces costs. Transitioning to Open RAN interfaces for 5G's vRAN architecture lowers deployment expenses and facilitates easy updates. The O-RAN Alliance aims to include AI and machine learning, thereby bringing automation advantages to the network. Automated deployments save time and money, as AI handles operational functions, minimizing human intervention and efficiently adapting to traffic changes.

Global O-RAN (Open Radio Access Network) Market Drivers:

The cost reductions and enhanced network resilience is fueling the growth of the Global O-RAN (Open Radio Access Network) Market.

Open RAN architecture and technology offer significant cost reductions in deploying and managing mobile networks. This is achieved by promoting competition among vendors and streamlining network management. Expensive proprietary hardware becomes unnecessary as operators can now source components from multiple vendors. This diverse ecosystem not only leads to cost savings but also boosts network resilience. By incorporating equipment from various suppliers, operators can avoid relying solely on one vendor, which helps protect their networks from potential vulnerabilities or service disruptions. Therefore, this factor propels the demand for Open RAN.

The effortless scalability and cost optimization are other factors contributing to the growth of the Global O-RAN (Open Radio Access Network) Market.

Open RAN empowers network operators to effortlessly adjust the size of their networks by separating hardware and software supply chains. Utilizing cloud and cloud-native operations, operators can deploy adaptable, modular network components that can be easily scaled individually according to requirements. This approach enables them to meet the augmenting demands of consumers without the need for substantial investments in new infrastructure. Leveraging cloud technologies offers elastic scaling, which permits network resources to be dynamically allocated or removed based on real-time demand. This efficient resource management guarantees optimal performance while also lowering operational costs. Therefore, this factor also propels the demand for Open RAN.

Global O-RAN (Open Radio Access Network) Market Challenges:

The Global O-RAN (Open Radio Access Network) Market is encountering challenges, primarily in terms of gaining acceptance from major industry players and complexity and accountability in multi-vendor RAN models. Before Open RAN can deliver its advantages, it must overcome the obstacle of gaining acceptance from prominent industry players. As of now, Rakuten's 4G LTE network in Japan is the only one utilizing Open RAN standards. Nevertheless, Dish Network, having acquired Boost Mobile, is entering the mobile network arena with plans to implement open standards in its own RAN. Moreover, while a multi-vendor RAN model may captivate select organizations, it does come with its challenges. Troubleshooting becomes more complicated when issues arise in the network because of the increased complexity. On top of that, once the problem is identified, a vendor may try to shift responsibility to another vendor due to the setup's intricate nature. Thus, these challenges inhibit the growth of the Global O-RAN (Open Radio Access Network) Market.

Global O-RAN (Open Radio Access Network) Market Opportunities:

Open RAN introduces innovative models that transform telcos with increased service innovation and flexibility. By breaking down the RAN into reconfigurable components, it enables agile and adaptable networks. O-RAN standards accessible to third-party developers foster new services and innovation on the RAN Intelligent Controller through xApps and rApps, which makes telco networks more relevant for businesses and consumers. Open RAN brings a thrilling era of innovation and control, which empowers telcos to stay ahead in the ever-changing telecommunications landscape.

COVID-19 Impact on the Global O-RAN (Open Radio Access Network) Market:

The Global O-RAN (Open Radio Access Network) Market has been considerably influenced by the COVID-19 outbreak. The pandemic impacted O-RAN equipment production and delivery, with manufacturing and shipping delays, which potentially affected network expansion. The pandemic-induced economic uncertainties caused telcos to reevaluate investment strategies, which impacted O-RAN deployment plans and adoption rates in certain regions due to budget constraints. These factors negatively impacted the market's growth.

Global O-RAN (Open Radio Access Network) Market Recent Developments:

• In September 2022, Dell Technologies and Fujitsu joined forces to facilitate communications service providers (CSPs) in accelerating the adoption and streamlining the deployment of Open RAN solutions on a global scale.

• In July 2020, Altiostar and Mavenir teamed up to provide a wide range of radios for the US market, based on Open RAN principles, which separate hardware and software elements. The collaboration supports third-party OEMs using O-RAN open interfaces, which cater to Tier-1 and rural operators' needs with diverse frequency options.

O-RAN MARKET REPORT COVERAGE:

Global O-RAN (Open Radio Access Network) Market Segmentation: By Component

• Radio Unit (RU)

• Distributed Unit (DU)

• Centralized Unit (CU)

The Radio Unit (RU) segment occupied the highest market share in the year 2022. The growth can be ascribed to the significant importance of RU in the Open RAN architecture. The RU is vital as it deals with signal processing, disaggregates networks, facilitates interoperability with third-party units, offers financial efficiency and versatility for diverse applications, and amplifies coverage and reliability in industrial environments with Wi-Fi 7's extended 6 GHz transmit range. Additionally, RU plays a critical role in fostering competition and innovation among different vendors.

Global O-RAN (Open Radio Access Network) Market Segmentation: By Type of Network Deployment

• Brownfield

• Greenfield

The Brownfield segment occupied the highest market share in the year 2022. The growth can be ascribed to the advantages that brownfield deployments offer in contrast to greenfield deployments, including cost-effectiveness, modularity and flexibility, interoperability, and network scalability. Brownfield refers to an established, high-capacity network that has been operational for a long time. The network's virtualized Distributed Units (vDUs) currently support advanced features like carrier aggregation, CoMP, and interference coordination for both new network deployments (greenfield) and upgrades to existing networks (brownfield). In a brownfield approach, most of the previous network's functions are retained, but operators may need to enhance or add new features to the existing cloud network and also use some of the older cloud components.

Global O-RAN (Open Radio Access Network) Market Segmentation: By Access

• Public

• Private

The Private Access segment occupied the highest market share in the year 2022. The growth can be ascribed to Open RAN presenting opportunities for deployment in private networks, which are wireless networks owned and operated by businesses, organizations, or government entities to meet their specific requirements. Open RAN can be customized to offer specialized features for private networks, which empowers enterprises with greater control over their wireless infrastructure. Private networks can leverage Open RAN to tailor and improve their network configurations based on specific needs, encompassing coverage, capacity, and security.

Global O-RAN (Open Radio Access Network) Market Segmentation: By Frequency

• mmWave

• Sub-6GHz

The Sub-6GHz segment occupied the highest market share in the year 2022. The growth can be ascribed to the multiple advantages of Sub-6GHz wireless technology. It offers better range and coverage in contrast to mmWave, faster speeds than 4G (though not as fast as mmWave), and effective penetration through objects, which makes it a cost-effective option for carriers. It sits between mmWave and LTE speeds and is well-suited for both urban and rural areas.

Global O-RAN (Open Radio Access Network) Market Segmentation: By Network

• 1G

• 2G/GSM

• 3G/UMTS

• 4G/LTE

• 5G/New Radio (NR)

The 5G/New Radio (NR) segment occupied the highest market share in the year 2022. The growth can be ascribed to the advantages of Open RAN for deploying 5G networks. Open RAN provides more flexibility in deploying and managing 5G networks, which permits operators to utilize virtualized components from various vendors and fosters competition and innovation. It also helps reduce costs by avoiding vendor lock-in and costly proprietary hardware/software. Open RAN's support for new entrants enables them to develop solutions that enhance network performance. Standardization efforts by organizations like the O-RAN Alliance ensure compatibility between vendor equipment, which promotes consistency across 5G networks. Furthermore, Open RAN defines synchronization architectures to meet network operation requirements efficiently.

Global O-RAN (Open Radio Access Network) Market Segmentation: By Region

• North America

• Europe

• Asia-Pacific

• South America

• Middle East & Africa

The region of North America dominated the Global O-RAN (Open Radio Access Network) Market in the year 2022. The developed economic system, heavy reliance on services and manufacturing industries, and the region's cutting-edge technology landscape, encompassing trends like 5G, hybrid cloud, AI, machine learning, big data analytics, and cloud applications, are some of the pivotal factors propelling the region's growth. Furthermore, North America is home to several prominent market players, including Altiostar Networks, Inc., Casa Systems, Inc., HRMavenir Systems, Inc., VMware, Inc., and AT&T Inc. The region of Asia-Pacific is anticipated to expand at the quickest rate over the forecast period 2023-2030 owing to the growing consumer base, the augmenting demand for enhanced network capabilities efficiently, resolute government support, and the strong presence of significant market players, including Huawei Technologies Co., Ltd., Samsung Electronics Co., Ltd., and NEC Corporation.

Global O-RAN (Open Radio Access Network) Market Key Players:

1. Altiostar Networks, Inc. (United States)

2. Ericsson AB (Sweden)

3. Casa Systems, Inc. (United States)

4. HRMavenir Systems, Inc. (United States)

5. Huawei Technologies Co., Ltd. (China)

6. Nokia Corporation (Finland)

7. Samsung Electronics Co., Ltd. (South Korea)

8. ASOCS Ltd. (Israel)

9. NEC Corporation (Japan)

10. ZTE Corporation (Japan)