Open Radio Access Network (Open RAN) Market

Global Open Radio Access Network (Open RAN) Market Size, Share & Industry Trends Analysis Report By Type (Open RAN RU and Open VRAN), By Frequency (Sub-6GHz and mmWave), By Component, By Access, By Radio Interface, By Regional Outlook and Forecast, 2022 - 2028

Report Id: KBV-13456 Publication Date: January-2023 Number of Pages: 298
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Market Report Description

The Global Open Radio Access Network (Open RAN) Market size is expected to reach $23.1 billion by 2028, rising at a market growth of 64.4% CAGR during the forecast period.

The open radio access network, often known as Open RAN, is a crucial component of a mobile network system that connects individual devices to other areas of a network through cellular radio connections. It has antennas communicating with cellphones and other suitable devices by sending and receiving signals. The signal is converted to digital form and transmitted to the network at the RAN-base station.

Open Radio Access Network (Open RAN) Market Size - Global Opportunities and Trends Analysis Report 2018-2028

From the technology point of view, Open RAN is the successor of the radio access network (RAN). Generally, RAN is offered as an integrated hardware and software application in the conventional setup. Since they often come from one provider, combining the vendors for the baseband and radio unit is challenging.

Therefore, the main objective of Open RAN is to change this by allowing operators to combine and match components. Opening the base station's interfaces takes things a step further. The Open RAN architecture enables the separation of hardware and software via open interfaces, often known as disaggregation. The usage of non-proprietary constituent parts from many suppliers by service providers is made possible by the ongoing revolution in mobile network topologies.

An Open RAN is facilitated by a series of industry-wide specifications that telecom equipment manufacturers can adhere to. As a result, programmable, disaggregated, virtualized, intelligent, and interoperable functionalities are made possible by Open RAN. To be more precise, the baseband units (BBUs) and proprietary remote radio heads (RRHs) have been divided into distributed units (DUs), radio units (RUs), and centralized units (CUs), some of which are containerized or virtualized. These new components have open, interoperable interfaces, which propel the application of Open RAN.

COVID-19 Impact Analysis

Work-from-home arrangements, online retail, distance learning, and e-commerce were all made possible by 5G. It also made it possible for real-time communication, virtual education, and video conferencing for the earning class, interactive in-store experiences, and remote monitoring in hospitals. Moreover, the industry grew as a result of the high reliability, extensive coverage, efficient data transmission, ultra-low latency, and low cost involved with 5G services and solutions. The up adoption in underdeveloped nations, all of which significantly supported the market's benefits above and use cases changed consumer behavior patterns, resuming 5G deployments in wealthy nations and speeding growth.

Market Growth Factors

Open ran to enhance solutions for return on investment (ROI) and total cost of ownership (TCO)

Many operators think the proliferation of Open RAN platforms is significantly influenced by the decline in TCO. Open interfaces are crucial for achieving a respectable ROI. Due to open platforms' lowered entry barriers for new players and the ability for operators to integrate network components from various suppliers, the price competition is less intense. Open platforms have greatly aided industries like the enterprise and carrier Wi-Fi industry. The cellular industry has been seeing a similar transformation. The industry has been witnessing considerable interest in using common reference platforms to reduce the cost of developing sophisticated pieces like radios.

Increasing demand from mobile carriers for open RAN

Operators can now execute software-based network operations on common commercial off-the-shelf (COTS) servers due to the introduction of Open RAN as well as virtualization. In addition, mobile network operators (MNOs) can now employ servers from one provider with radios from another because of non-proprietary, open interfaces. A wider, best-of-class ecosystem of software and hardware manufacturers that enables flexibility and enhanced competition, leading to innovation in the telecommunications industry, are among the advantages of Open RAN for MNOs.

Market Restraining Factor

High cost and complexity of integration

Open RAN is a recent architecture that hasn't been thoroughly tried out. As a result, there are several obstacles in the implementation of Open RAN, including latency problems, operations, and maintenance. For most operators, the biggest risk is the expense and complexity of integration. Operators consider these issues the biggest obstacles to the Open RAN implementation plans. Immature technologies, supply chain issues, and performance trade-offs compared to integrated RAN solutions are further significant roadblocks. Therefore, all these factors currently represent the biggest hurdles in expanding the open radio access network (Open RAN) market.

Component Outlook

Based on component, the open radio access network (Open RAN) market is categorized into hardware, software, and services. The services segment procured a considerable growth rate in the open radio access network (Open RAN) market in 2021. It is projected that the introduction of 5G radio access networks by telecom operators would raise demand for consultancy, design, maintenance services, and development, influencing the segment's growth. Open RAN services facilitate the broad rollout of 5G and 4G radio cell site coverage.

Type Outlook

On the basis of type, the open radio access network (Open RAN) market is divided into open RAN RU and open VRAN. The open RAN RU segment witnessed the maximum revenue share in the open radio access network (Open RAN) market in 2021. In the open RAN, the functional division of the DU, RU, and CU concepts is increasingly becoming more important. The coordination of performance features, load management, real-time performance optimization, and adaption to varied use cases, as well as the required QoS, are all made possible by a split architecture between distributed & central.

Frequency Outlook

Based on frequency, the open radio access network (Open RAN) market is segmented into sub-6GHz and mmWave. The mmWave segment procured a considerable growth rate in the open radio access network (Open RAN) market in 2021. The range of spectrum from 30 GHz to 300 GHz is known as the millimeter wave band. This band, which is sandwiched between microwave & infrared waves, can be exploited for fast wireless communication, as demonstrated by the most recent 802.11ad Wi-Fi standard (which operates at 60 GHz). In addition, the Federal Communications Commission (FCC), a standards body, is considering it for general telecommunications.

Radio Interface Outlook

On the basis of radio interface, the open radio access network (Open RAN) market is fragmented into 2G/3G, 4G LTE, and 5G. The 2G/3G segment acquired the highest revenue share in the open radio access network (Open RAN) market in 2021. A large part of electronic systems still work on the 2G/3G interfaces and, as such, is accountable for the segment's growth. A simulated 2G BSC and 3G RNC Gateway, or any combination of these, is offered by the Open RAN aggregator. For all RAN accesses to the Core, it serves as a Gateway. Any peer or core RAN function that complies with standards can communicate with it. As a result, it aids in developing an open, multi-vendor ecosystem with interoperable parts for various RAN elements from diverse suppliers.

Access Outlook

Based on access, the open radio access network (Open RAN) market is bifurcated into public and private. The private segment garnered a remarkable growth rate in the open radio access network (Open RAN) market in 2021. Open RAN serves as a significant advantage for private networks. More and more nations are dividing the spectrum into separate bands for private networks, pushing the segment's expansion. Traditionally, the price of private, licensed wireless networks was one of the key obstacles to their wider adoption. But this can be changed by moving to Open RAN strategies, which will let enterprises contemplate expanding their use of private networks for commercial innovation.

Open Radio Access Network (Open RAN) Market Share and Industry Analysis Report 2021

Open Radio Access Network (Open RAN) Market Report Coverage
Report Attribute Details
Market size value in 2021 USD 769.2 Million
Market size forecast in 2028 USD 23.1 Billion
Base Year 2021
Historical Period 2018 to 2020
Forecast Period 2022 to 2028
Revenue Growth Rate CAGR of 64.4% from 2022 to 2028
Number of Pages 298
Number of Tables 500
Report coverage Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Companies Strategic Developments, Company Profiling
Segments covered Frequency, Type, Component, Access, Radio Interface, Region
Country scope US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria
Growth Drivers
  • Open ran to enhance solutions for return on investment (ROI) and total cost of ownership (TCO)
  • Increasing demand from mobile carriers for open RAN
Restraints
  • High cost and complexity of integration

Regional Outlook

On the basis of region, the open radio access network (Open RAN) market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The North America segment recorded the highest revenue share in the open radio access network (Open RAN) market in 2021. North America is made up of developed nations like the US and Canada. Therefore, it is anticipated to have the greatest market share for Open RAN globally. The US has a highly developed economic structure mainly dependent on its manufacturing and service sectors. Soon, the market in North America will probably grow due to a robust economy. Recent advancements in 5G, AI, machine learning, hybrid cloud, cloud applications, and big data analytics are some technological advances that impact the macroenvironment.

Free Valuable Insights: Global Open Radio Access Network (Open RAN) Market size to reach USD 23.1 Billion by 2028

The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Samsung Electronics Co., Ltd. (Samsung Group), Hewlett Packard Enterprise Company (HP Development Company L.P.), Fujitsu Limited, Nokia Corporation, NEC Corporation, Ericsson AB, Huawei Technologies Co., Ltd. (Huawei Investment & Holding Co., Ltd.), ZTE Corporation, VMware, Inc., and AT&T, Inc.

Recent Strategies Deployed in Open Radio Access Network (Open RAN) Market

» Partnerships, Collaborations and Agreements:

  • Dec-2022: Ericsson AB came into collaboration with Singtel Optus Pty Limited, an Australian telecommunications company headquartered in Macquarie Park, New South Wales, Australia. Under this collaboration, the organizations would deploy Australia’s latest energy-efficient radio access network (RAN) site at Optus’ Moorebank site in Sydney, New South Wales. Moreover, this is a crucial step for Ericsson AB toward its mission to be Net Zero across their value chain by 2040. This would further reduce emissions by 50% in their portfolio in use and supply chain by 2030.
  • Nov-2022: Samsung Electronics Co., Ltd. came into collaboration with NTT DOCOMO, Japan's leading mobile operator. Under this collaboration, Samsung Electronics Co., Ltd. would deliver a variety of 5G radios to help NTT DOCOMO’s Open Radio Access Network (Open RAN) expansion. Furthermore, Samsung Electronics Co., Ltd. would be able to provide a smooth experience to consumers and develop further business opportunities
  • Oct-2022: Ericsson AB partnered with Reliance Jio Infocomm Ltd., an Indian telecommunications company and a subsidiary of Jio Platforms, headquartered in Navi Mumbai, Maharashtra, India. Through this partnership, both organizations would roll out 5G Standalone in India. Moreover, Ericsson AB 5G Standalone connectivity would be a major booster in coping with the digital transformation objectives across enterprises, industry, and society.
  • Oct-2022: Samsung Electronics Co., Ltd. partnered with Vodafone Group plc, a British multinational telecommunications company, and Marvell, an American company, headquartered in Santa Clara, California, which develops and produces semiconductors and related technology. Under this partnership, Samsung Electronics Co., Ltd. would be able to fasten the adaptability and Performance of 5G Open Radio Access. Networks (RAN) across Europe. Moreover, Samsung Electronics Co., Ltd. considers that this collaboration with Vodafone and Marvell would enable the Open RAN environment, through which Samsung would be able to continue to guide the growth of the ecosystem.
  • Sep-2022: Fujitsu Limited came into collaboration with Dell Technologies, an American-based technology company that develops, sells, repairs, and supports computers and related products and services. Through this collaboration, Fujitsu Limited would be able to expand the growing Open RAN ecosystem while providing operators with the additional capability to select the most suitable components for their network exclusively regardless of manufacturer.
  • Aug-2022: Ericsson AB collaborated with SkyMax Network Limited, a multinational wireless communications engineering company. Under this collaboration, Ericsson AB would be SkyMax’s authorized partner for network supply, rollout, optimization, and managed services. Furthermore, Ericsson AB would be able to traverse partnership possibilities in end-to-end business and technology solutions including Core network and provisioning systems, Managed services, Business Support Systems, and Radio Access and Mobile Transport network solutions including Business Consulting Support and Cognitive Software network optimizations.
  • Jun-2022: Nokia Corporation came into partnership with DISH Network Corporation, an American television provider and the owner of the direct-broadcast satellite provider Dish. Through this partnership, organizations would unveil the world’s first telco network in the U.S. to use Nokia 5G Standalone Core on Amazon Web Services (AWS) public cloud. Moreover, Nokia Corporation is delighted for serving its leading 5G services to DISH customers in the U.S.
  • May-2022: Samsung Electronics Co., Ltd., came into collaboration with DISH Network Corporation, an American television provider and the owner of the direct-broadcast satellite provider Dish. Through this collaboration, Samsung Electronics Co., Ltd. would be able to deploy 5G Open Radio Access Network solutions across the DISH Wireless’ SMART 5G network. Moreover, Samsung Networks Business would supply DISH Wireless with its RAN and 5G solutions and this would further enable more customers to experience the whole value of commercial 5G Open RAN.
  • Feb-2022: Nokia Corporation came into partnership with Kyndryl Inc., the world’s largest IT infrastructure services provider. Through this partnership, the organizations have declared the global network and edge computing partnership focused to enable enterprise customers to fasten their digital transformations with industrial-grade dependable, and protected LTE and 5G private wireless networking. Furthermore, Nokia Corporation would be able to transform more organizations' operations which would lead to fastening their digitalization path and reaping the benefits of Industry 4.0.
  • Feb-2022: Hewlett-Packard Enterprise came into collaboration with Qualcomm Technologies, Inc., a company that creates semiconductors, software, and services related to wireless technology. Under this collaboration, organizations would be able to provide the next generation of 5G distributed units. Furthermore, Hewlett Packard's customers would be benefited as they extend the deployment of their 5G networks by deploying Qualcomm Technologies’ innovative technology along with HPE carrier-grade infrastructure.
  • Nov-2021: Samsung Electronics Co., Ltd. collaborated with Orange S.A., a French multinational telecommunications corporation. Under this collaboration, Samsung Electronics Co., Ltd. would become the first vendors to participate in the opening of Orange’s Open RAN Integration Center in Paris, France. Moreover, Samsung Electronics Co., Ltd. would be seeking ahead, to take networks to fresh heights in the European market further allowing operators to deliver more immersive mobile services to their users.
  • Nov-2021: ZTE Corporation collaborated with Riedel Communications, a German manufacturer of communications equipment and an equipment distributor. Through this collaboration, ZTE Corporation would be able to place a custom-made Private 5G as a Service on a campus network and together explore the potential of 5G networks in the digital economy era. Moreover, placing a combination of 5G applications allows the shift from traditional manufacturing to intelligent manufacturing with increased quality, reduced costs, and efficiency.
  • Oct-2021: VMware, Inc., came into partnership with Polte Corporation, the innovator of Cloud Location over Cellular (C-LoC) technology. Through this partnership, VMware, Inc., would enable an Open Radio Access Network (Open RAN) solution. Moreover, VMware, Inc., intends to open new global asset tracking use cases, especially within 5G Industrial and Critical IoT in abundance.
  • Jun-2021: NEC Corporation collaborated with Microelectronics Technology Inc., a leading network RF solutions provider. Under this collaboration, NEC Corporation would be able to improve the Open RAN ecosystem with a combination of radio options to cater to global 4G and 5G markets. Furthermore, NEC Corporation would be able to reinforce its responsibility to rev commercial Open RAN deployments and to provide better value to its customers.
  • Mar-2021: Nokia Corporation collaborated with Google Cloud, and offered by Google, which is a suite of cloud computing services that runs on the same infrastructure that Google uses internally for its end-user products. Under this collaboration, both organizations would create the solutions and use cases to solve key 5G scenarios for businesses worldwide. Moreover, this would help Nokia Corporation to aid its customers by providing 5G services on the network edge, providing numerous options for cloud-based solutions.
  • Mar-2021: Nokia Corporation came into collaboration with Amazon Web Services (AWS), a subsidiary of Amazon that provides on-demand cloud computing platforms and APIs to individuals, companies, and governments. Through this collaboration, Nokia Corporation would be able to research and allow Open RANand Cloud RAN (vRAN) technologies to help the growth of new customer-centric 5G solutions. Moreover, this would support Nokia's customers and allow them to build effective 5G use cases.

» Product Launches and Product Expansions:

  • Sep-2022: NEC Corporation unveiled the NEC's vCU/vDU software. The NEC’s cloud-native vCU/vDU software suite is completely automated and open for consolidated operation and deployment further supporting O-RAN and 3GPP interfaces on public and private cloud infrastructure.
  • Apr-2022: Hewlett Packard Enterprise unveiled the HPE RAN Automation. HPE RAN Automation is the orchestration and service management solution that delivers multi-vendor management and automation for any Radio Access Network (RAN) and allows communications service providers to boost operational efficiency and fasten the deployment. Additionally, this would further support machine learning (AI/ML) technologies and systems and artificial intelligence to deliver zero-touch management of multi-vendor RAN infrastructure.

» Acquisitions and Mergers:

  • Jul-2022: NEC Corporation took over Aspire Technology, an Irish company that specializes in the integration of open networks. Through this acquisition, NEC Corporation would strengthen its place in the growing Open Radio Access Network (OpenRAN) sector. Moreover, NEC Corporation would organize more satisfactorily as compared to any other supplier to integrate disaggregated network components into a well-tuned ecosystem.
  • Jan-2022: NEC Corporation acquired Blue Danube Systems, Inc., a U.S.-based provider of CBRS/4G/5G RAN products and AI/ML-based software solutions. Through this acquisition, NEC Corporation would expand its customer support capability and assets in North America and further combines the breadth of its Open RAN solutions portfolio to keep the needs and demands of customers.

» Geographical Expansions:

  • Mar-2021: Ericsson AB expanded its business by establishing the Ericsson Open Lab. The new lab is a fresh space to unite and innovate with ecosystem partners and leading Ericsson Cloud RAN customers to operate virtualized 5G Radio Access Networks (RAN) technologies. Additionally, Ericsson Open Lab is available virtually to customers globally and it is co-located with the company’s Cloud RAN expertise at Ericsson’s R&D site in Ottawa.

Scope of the Study

Market Segments Covered in the Report:

By Type

  • Open RAN RU
  • Open VRAN

By Frequency

  • Sub-6GHz
  • mmWave

By Component

  • Hardware
  • Software
  • Services

By Access

  • Public
  • Private

By Radio Interface

  • 2G, 3G
  • 4G LTE
  • 5G

By Geography

  • North America
    • US
    • Canada
    • Mexico
    • Rest of North America
  • Europe
    • Germany
    • UK
    • France
    • Russia
    • Spain
    • Italy
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Singapore
    • Malaysia
    • Rest of Asia Pacific
  • LAMEA
    • Brazil
    • Argentina
    • UAE
    • Saudi Arabia
    • South Africa
    • Nigeria
    • Rest of LAMEA

Key Market Players

List of Companies Profiled in the Report:

  • Samsung Electronics Co., Ltd. (Samsung Group)
  • Hewlett Packard Enterprise Company (HP Development Company L.P.)
  • Fujitsu Limited
  • Nokia Corporation
  • NEC Corporation
  • Ericsson AB
  • Huawei Technologies Co., Ltd. (Huawei Investment & Holding Co., Ltd.)
  • ZTE Corporation
  • VMware, Inc.
  • AT&T, Inc.
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Frequently Asked Questions About This Report

The global Open Radio Access Network (Open RAN) Market size is expected to reach $23.1 billion by 2028.

Open ran to enhance solutions for return on investment (ROI) and total cost of ownership (TCO) are driving the market in coming years, however, High cost and complexity of integration restraints the growth of the market.

Samsung Electronics Co., Ltd. (Samsung Group), Hewlett Packard Enterprise Company (HP Development Company L.P.), Fujitsu Limited, Nokia Corporation, NEC Corporation, Ericsson AB, Huawei Technologies Co., Ltd. (Huawei Investment & Holding Co., Ltd.), ZTE Corporation, VMware, Inc., and AT&T, Inc.

The expected CAGR of the Open Radio Access Network (Open RAN) Market is 64.4% from 2022 to 2028.

The Sub-6GHz segment acquired maximum revenue share in the Global Open Radio Access Network (Open RAN) Market by Frequency in 2021 thereby, achieving a market value of $15.8 billion by 2028.

The North America market dominated the Global Open Radio Access Network (Open RAN) Market by Region in 2021, and would continue to be a dominant market till 2028; thereby, achieving a market value of $8 billion by 2028.

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