Open Radio Access Network (Open RAN) Market by Component (Hardware, Software, Services), Type (Open RAN RU, Open vRAN), Frequency (Sub-6GHz, mmWave), Radio Interface, Access (Public, Private), Network and Region - Global Forecast to 2027
[254 Pages Report] The global Open RAN market size is projected to grow from USD 1.1 billion in 2022 to USD 15.6 billion by 2027, at a Compound Annual Growth Rate (CAGR) of 70.5% during the forecast period. Benefits of Open RAN such as lower equipment costs, and improved network performance and leading to more competitive market is driving the market growth.
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Driver: Open RAN to improve total cost of ownership (TCO) and return on investment (ROI)solutions
Operators believe that reduction in TCO is a significant factor in the adoption of Open RAN platforms. To accomplish an acceptable ROI, open interfaces are important. Price competition will be huge due to open platforms as they lower the barriers for new entrants into the market and enables operators to deploy network elements from a range of suppliers. Sectors such as carrier and enterprise Wi-Fi markets have been largely facilitated by open platforms. To obtain a similar change in the cellular market, the sector has been witnessing high interest and is utilizing common reference platforms for cutting down the cost of developing complex elements such as radios. It is also believed that a software-based network, having network functions running on general purpose cloud infrastructure, will be cheaper to deploy. Operators are assuming that increasing the number of suppliers involved in the development of RAN software will result in a broader skills base and will also lower cost access to developers.
Restraint: High integration cost and complexity
The integration cost and complexity serve as the greatest risk for most operators. Operators believe that these factors are the greatest barriers to their 5G RAN deployment strategies. Other important barriers include immature technologies and supply chain and performance trade-offs in comparison with integrated RAN solutions. Operators need to co-ordinate software updates from multiple sources and achieve efficient lifecycle management. Ericsson believes that Open RAN is highly expensive than traditional RAN equipment.
Opportunity: Rising Open RAN demand from mobile operators
The advent of Open RAN and virtualization has enabled operators to run software-based network functions on standard commercial-off-the-shelf (COTS) servers. These non-proprietary, open interfaces enable mobile network operators (MNOs) to use one supplier’s radios with another’s servers which was not possible previously possible. The benefits of Open RAN for MNOs include a broader, best-of-breed ecosystem of hardware and software vendors which enables flexibility and increased competition, leading to lower total costs of ownership (TCO) and innovation in the telecommunications industry. As Open RAN implementations are growing continuously, the number of RAN providers is also expanding.
Challenge: Carrier grade scalability
RAN deployment and management is the costliest part of a network. Today, new 5G RANs are being developed for supporting the latest features, including multiple-input, multiple-output (MIMO) antennas, large spectrum bandwidths, and multi-band carrier aggregation. This serves as a challenge for the growth and maintenance of networks supporting multiple generations of connectivity and scaling them to fulfill the rising data demands.
Open vRAN segment is projected to grow at the fastest rate during the forecast period.
Combined horizontal and vertical disaggregation is defined as Open vRAN, or an open and virtualized RAN. This feature will bring great benefits for CSPs as they get opportunities to a diverse, innovative selection of products as well as aiding the implementation of a more scalable, intelligent, and resilient network that can significantly increase the flexibility and efficiency of CSPs’ deployments and operations.
Brownfield segment is set to account for the largest market share during the forecast period
Brownfield refers to a high-capacity network. They are the traditional or existing networks often deployed and operated in organizations over many years. The vDUs that are accessible currently support high-capacity features of 4G/5G, such as carrier aggregation, CoMP, and interference coordination, for both greenfield and brownfield deployment. In the brown?eld strategy, most of the network’s functions of the previous architecture are preserved. In a brown?eld project, the operator needs to improve or add new features to an existing cloud network and also use some of the legacy cloud components.
North America to account for the largest market share during the forecast period
North America comprises developed countries such as US and Canada. It is expected to hold the largest global Open RAN market share. The economic system in the US is well-developed and depends heavily on its services and manufacturing industries. A strong economy will likely boost North America's Open radio access network market soon. North America is highly advanced in technology. Some technology trends impacting the macro-environment are developments in 5G, hybrid cloud, AI, machine learning, big data analytics, and cloud applications. AT&T, T-Mobile US, Verizon and UScellular are all members of the O-RAN Alliance, but T-Mobile is also part of the Open RAN Policy Coalition lobby group across North America.
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Key Market Players
The Open radio access network market vendors have implemented various organic and inorganic growth strategies, such as new product launches, product upgrades, partnerships and agreements, business expansions, and mergers and acquisitions to strengthen their offerings in the market. The major vendors in the global Open RAN market are Ericsson (Sweden), Nokia (Finland), Samsung (South Korea), NEC Corporation (Japan), Hewlett Packard Enterprise (US), VMware (US), Huawei (China), AT&T (US), Fujitsu (Japan), IBM (US), Orange (France), Airspan Networks (US), Mavenir (US), CommScope (US), Viavi Solutions (US), Amdocs (US), Renesas (Japan), MTN Group (South Africa), Entel (Chile), Comba Telecom (China), KDDI (Japan), SingTel (Singapore), TIM (Italy), Telefonica (Spain), Sivers Semiconductors (Sweden), NXP Semiconductors (Netherlands), Picocom (UK), Etisalat (UAE), Mobily (Saudi Arabia), XCOM Labs (US), DeepSig (US), ZTE (China), Celona (US), LIME Microsystems (UK), Verana Networks (US), Microamp Solutions (Poland). The study includes an in-depth competitive analysis of these key players in the Open RAN market with their company profiles, recent developments, and key market strategies.
Scope of the Report
|Market size available for years||2016–2027|
|Base year considered||2021|
|Forecast units||Value (USD Million/Billion)|
|Segments covered||By component, type, frequency, radio interface, access, network and region|
|Regions covered||North America, Europe, Asia Pacific, Middle East & Africa, and Latin America|
|Companies covered||Ericsson (Sweden), Nokia (Finland), Samsung (South Korea), NEC Corporation (Japan), Hewlett Packard Enterprise (US), VMware (US), Huawei (China), AT&T (US), Fujitsu (Japan), IBM (US), Orange (France), Airspan Networks (US), Mavenir (US), CommScope (US), Viavi Solutions (US), Amdocs (US), Renesas (Japan), MTN Group (South Africa), Entel (Chile), Comba Telecom (China), KDDI (Japan), SingTel (Singapore), TIM (Italy), Telefonica (Spain), Sivers Semiconductors (Sweden), NXP Semiconductors (Netherlands), Picocom (UK), Etisalat (UAE), Mobily (Saudi Arabia), XCOM Labs (US), DeepSig (US), ZTE (China), Celona (US), LIME Microsystems (UK), Verana Networks (US), Microamp Solutions (Poland).|
This research report categorizes the Open RAN market to forecast revenues and analyze trends in each of the following subsegments:
- Deployment and Implementation
- Support and Maintenance
Open RAN RU
- Macro Cell
- Small Cell
- Centralised Unit
- Distributed Unit
By Radio Interface
- 2G, 3G
- 4G LTE
- Rest of Europe
- Australia and New Zealand
- Southeast Asia
- Rest of Asia Pacific
Middle East and Africa
- Rest of Middle East
- South Africa
- Rest of Africa
- Middle East
- Rest of Latin America
- In June 2022, Ericsson and Orange Egypt announced the completion of Orange Egypt’s mediation consolidation, upgrade, and modernization. It enabled Ericsson to filter non-relevant data and transform it according to the format required by data consumers.
- In May 2022, Huawei and Emirates entered into an agreement which includes marketing collaborations on joint projects and promotional activities, with a focus on expanding their reach in the other’s home market.
- In February 2022, Nokia and AT&T are jointly creating an RIC software platform and have run successful trials with external applications, called “xApps”, at the edge of the CSP’s live 5G mmWave network on an Open Cloud Platform. Nokia and AT&T will collaborate to improve the 5G uplink with distributed massive MIMO.
Frequently Asked Questions (FAQ):
What is Open RAN?
As defined by VIAVI Solutions, Open Radio Access Network (RAN) is a concept based on interoperability and standardization of RAN elements including a unified interconnection standard for white-box hardware and open-source software elements from different vendors. Open RAN architecture integrates a modular base station software stack on off-the-shelf hardware which allows baseband and radio unit components from different suppliers to operate seamlessly together.
According to Cisco, an Open RAN is a nonproprietary version of the RAN system that allows interoperation between cellular network equipment provided by different vendors.
Which countries are considered in Europe?
The report includes an analysis of the UK, France, Germany, Italy, Spain and Nordics in Europe.
Which are the key drivers supporting the growth of the Open RAN market?
The key driver supporting the growth of the Open RAN market includes Advantages such as solution flexibility, reduced costs and supply chain diversity, Open RAN will to improve total cost of ownership (TCO) and return on investment (ROI), reduction in time and risk of deploying new services and revenue streams.
Who are the key vendors in the Open RAN market?
The key vendors operating in the Open RAN market include Ericsson (Sweden), Nokia (Finland), Samsung (South Korea), NEC Corporation (Japan), Hewlett Packard Enterprise (US), VMware (US), Huawei (China), AT&T (US), Fujitsu (Japan), IBM (US), Orange (France), Airspan Networks (US), Mavenir (US), CommScope (US), Viavi Solutions (US), Amdocs (US), Renesas (Japan), MTN Group (South Africa), Entel (Chile), Comba Telecom (China), KDDI (Japan), SingTel (Singapore), TIM (Italy), Telefonica (Spain), Sivers Semiconductors (Sweden), NXP Semiconductors (Netherlands), Picocom (UK), Etisalat (UAE), Mobily (Saudi Arabia), XCOM Labs (US), DeepSig (US), ZTE (China), Celona (US), LIME Microsystems (UK), Verana Networks (US), Microamp Solutions (Poland).
What are some of the technological advancements in the market?
The global Open RAN arena has witnessed several changes and advancements in recent years due to increasing technological innovation, rapid globalization, and increased investment in telecom and connectivity technology research. This is creating new opportunities in a variety of sectors, including AI, automation, semiconductors, networking, IoT, IIoT, hybrid cloud, data centers, 5G, and more. Also, Intelligent Open RAN technologies, solutions, and services are automated with AI, machine learning, and intelligent networking technologies
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This research study involved the extensive use of secondary sources, directories, and databases, such as D&B Hoovers, Bloomberg Businessweek, and Factiva, to identify and collect information useful for this technical, market-oriented, and commercial study of the Open RAN market. Primary sources were industry experts from core and related industries, preferred system developers, service providers, resellers, partners, and organizations related to the various segments of the industry’s value chain. In-depth interviews were conducted with various primary respondents, including key industry participants and subject-matter experts, to obtain and verify critical qualitative and quantitative information, as well as to assess the market’s prospects. These included key industry participants, subject-matter experts, C-level executives of key companies, and industry consultants.
In the secondary research process, various secondary sources were referred to, for identifying and collecting information for the study. The secondary sources included annual reports; press releases and investor presentations of companies; white papers, certified publications, and articles from recognized associations and government publishing sources. Several journals and various associations were also referred to, such as the Open RAN policy coalition and SDxCentral. Secondary research was used to obtain key information about industry insights, the market’s monetary chain, the overall pool of key players, market classification and segmentation according to industry trends to the bottom-most level, regional markets, and key developments from both the market- and technology-oriented perspectives.
Secondary research was used to obtain key information about the industry’s supply chain, the total pool of key players, market classification, and segmentation according to the industry trends to the bottom-most level, regional markets, and key developments from both market and technology-oriented perspectives, all of which were further validated by primary sources.
In the primary research process, various primary sources from both supply and demand sides of the Open RAN market ecosystem were interviewed to obtain qualitative and quantitative information for this study. The primary sources from the supply side included industry experts, such as Chief Executive Officers (CEOs), Vice Presidents (VPs), marketing directors, technology, and innovation directors, related key executives from various vendors providing Open RAN solutions, associated service providers, and system integrators operating in the targeted regions. All parameters that affect the market covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data
After the complete market engineering process (including calculations for market statistics, market breakdown, market size estimations, market forecast, and data triangulation), extensive primary research was conducted to gather information and verify and validate the critical numbers arrived at. Primary research was also conducted to identify and validate the segmentation types; industry trends; key players; the competitive landscape of the market; and key market dynamics, such as drivers, restraints, opportunities, challenges, industry trends, and key strategies.
In the complete market engineering process, both top-down and bottom-up approaches were extensively used and several data triangulation methods to perform the market estimation and forecast for the overall market segments and subsegments listed in this report. Extensive qualitative and quantitative analysis was performed on the complete market engineering process to list the key information/insights throughout the report.
To know about the assumptions considered for the study, download the pdf brochure
Market Size Estimation
Multiple approaches were adopted to estimate and forecast the market size of the Open radio access network market. The first approach involves the estimation of the market size by summing up revenues of the companies generated through the sale of hardware, software, and services.
Open RAN Market: Bottom-Up Approach
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The bottom-up approach was employed to arrive at the overall size of the Open RAN market from the revenue of the key players and their share in this market. The revenue of the key players was analyzed to determine the overall size of the market.
- To determine, segment, and forecast the global Open RAN market by component, type, frequency, radio interface, access, network, and region in terms of value
- To forecast the size of the market segments with respect to five main regions: North America, Europe, Asia Pacific, Latin America, and Middle East & Africa
- To provide detailed information about the major factors (drivers, opportunities, threats, and challenges) influencing the growth of the market
- To study the complete value chain and related industry segments and perform a value chain analysis of the market landscape
- To strategically analyze macro and micromarkets with respect to individual growth trends, prospects, and contributions to the total market
- To analyze industry trends, pricing data, and patents and innovations related to the market
- To analyze opportunities in the market for stakeholders by identifying the high-growth segments of the Open radio access network market
- To profile key players in the market and comprehensively analyze their market share/ranking and core competencies
- To track and analyze competitive developments, such as mergers and acquisitions, new product launches and developments, partnerships, agreements, collaborations, business expansions, and Research and Development (R&D) activities
Along with the market data, MarketsandMarkets offers customizations as per the company’s specific needs. The following customization options are available for the report:
- Further breakdown of South Korean Open RAN market
- Product Matrix, which gives a detailed comparison of the product portfolio of each company
- Detailed analysis and profiling of additional market players (up to five)