Open Radio Access Network (Open RAN) Market Size, Share, Growth Analysis, By Offering (Hardware, Software, Services), Network Deployment (Public and Private), Frequency Band (Sub-6GHz, mmWave), Deployment Phase, & Region - Global Industry Forecast to 2030
[210 Pages Report] The open RAN market is estimated to be worth USD 2.8 billion in 2024 and USD 20.9 billion by 2030, at a Compound Annual Growth Rate (CAGR) of 39.4% during the forecast period.
Open RAN coupled with the cloudification of telecom networks are developments witnessing accelerating adoption. Existing public mobile network operators and evolving private network operators are adopting open RAN and cloud standards. With digitalization, various industries are advancing toward automation and software-based cloud solutions and is expected to surge in the coming years supported by key trends, such as the adoption of 5G technology, network virtualization, vendor diversification, and rural connectivity. Open RAN shows a shift in the telecom industry, that offers flexibility, efficiency, and innovation to the operators. As the market continues to evolve, collaboration and compatibility are essential to realizing the full potential of open RAN, enabling operators to meet growing demands for connectivity while driving economic growth and societal development globally. It promotes faster innovation by enabling the seamless integration of new technologies and functionalities from various vendors, fostering a dynamic development environment crucial for keeping pace with 5G advancements and the ever-growing demands of mobile network users.
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Open RAN Market Trends
Driver: Introduction of beamforming function leading to mitigation of bitrate problem in fronthaul
To mitigate the challenge of large data volumes and bitrate in the fronthaul, the Cat-B standard introduced a beamforming function in the O-RU, which allows the selection of digital streams. The purpose of the beamforming function is to reduce the amount of data to be communicated across the fronthaul interface. Instead of sending data from all digital antenna ports across the interface, the beamforming function creates a set of most relevant beams that generates a reduced number of streams transmitted to the O-DU. This solves the bitrate problem in the fronthaul.
Restraint: High integration cost and complexity
Most operators see integration cost and complexity as the greatest risks. They believe that these factors are the greatest barriers to their 5G RAN deployment strategies. Other important barriers include immature technologies, supply chains, and performance trade-offs compared with integrated RAN solutions. Operators need to coordinate software updates from multiple sources and achieve efficient lifecycle management. Ericsson is one of the vendors who believes that Open RAN is more expensive than traditional RAN equipment.
Opportunity: Commercialization of 5G services
In October 2022, Vodafone announced plans to undergo first deployment of Open RAN technology in Germany, assisted by the leading mobile operators in Europe. These specifications have been adopted by industry-body Telecom Infra Project (TIP) as the blueprint of choice for building Open RAN at scale in Europe. The blueprint has been made available to the wider ecosystem of supply and demand players. It will help to enhance the architecture and combinations of RAN elements used for one of the largest 5G deployments in the world. In September 2022, Rakuten Mobile launched 4G and 5G commercial services based on Open RAN architecture in Japan, leveraging radios from multiple vendors.
Challenge:Carrier-grade scalability
RAN deployment and management are the costliest parts of a network. Today, new 5G RANs are being developed to support the latest features, including multiple-input, multiple-output (MIMO) antennas, large spectrum bandwidths, and multi-band carrier aggregation. This presents a challenge for the growth and maintenance of networks supporting multiple generations of connectivity and scaling them to fulfill the rising data demands.
ECOSYSTEM OF OPEN RAN MARKET
"By hardware, radio units hardware segment to hold the largest market share during the forecast period.”
Radio Units (RUs) are essential part of open RAN market. They act as bridge between the mobile device and the network. These radio units are important for deploying open RAN solutions because they provide more flexibility to operators in choosing hardware equipment from different vendors. This promotes competition and innovation in the market and leads to efficient mobile networks for users. Many companies manufacture and provide RUs in open RAN market such as Samsung, Nokia, Ericsson, NEC, Huawei, and ZTE.
“mmWave frequency band is expected to have the fastest growth rate during the forecast period.”
mmWave technology is expected to have higher growth within the Open RAN market owing to high data rates offered by Open RAN. This makes it ideal for applications like video streaming and virtual reality. The opportunity for commercial use of mmWave spectrum is increasing due to its increasing availability by regulatory bodies. It assists in critical applications like autonomous vehicles and remote surgery due to its low-latency communication capabilities. Additionally, mmWave's suitability for small cell deployments in populated areas enhances network capacity. Undergoing enhancements like beamforming and massive MIMO improve reliability and efficiency, meeting the growing demand for high-speed connectivity across industries.
“Asia Pacific to have the higher growth rate during the forecast period.”
The increasing focus on creating strong telecom infrastructure, rising investments in establishing 5G network and the growing demand for high-speed, low-latency connectivity are contributing to the acceptance of open RAN solutions. The solutions offer scalability and cost-efficiency compared to traditional network infrastructure and growing collaborations among telecom operators, technology vendors, and government agencies are contributing to adopting Open RAN networks in the Asia Pacific.
Market Players:
The major players in the open RAN market are Ericsson (Sweden), Nokia (Finland), Samsung (South Korea), NEC Corporation (Japan),Mavenir (US), Huawei Technologies (China), HPE (US), Broadcom (US), Fujitsu (Japan), Viavi Solutions (US), Juniper Networks (US), Amdocs (US), Wind River Systems (US), Rakuten (Japan), Comba Telecom (China), Intel (US), Radisys (US), Keysight Technologies (US), Maxlinear (US), Airspan Networks (US), Picocom (England), Sivers Semiconductors (Sweden), Celona (US), Globalstar (US), Deepsig (US), Cohere Technologies (US), Verana Networks (US), Digis Squared (UK), Parallel Wireless (US), Baicells Technologies (China), Gigatera (US). These players have adopted various growth strategies, such as partnerships, agreements and collaborations, new product launches and enhancements, and acquisitions to expand their passenger information system market footprint.
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Report Metrics |
Details |
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Market size available for years |
2024-2030 |
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Base year considered |
2023 |
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Forecast period |
2024–2030 |
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Forecast units |
Value (USD) Billion |
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Segments Covered |
By offering (hardware, software, service), network deployment (public networks, private networks), frequency band (Sub-6GHz, mmWave, other frequency bands), and deployment phase (brownfield, greenfield) |
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Region covered |
North America, Europe, Asia Pacific, Middle East & Africa, and Latin America. |
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Companies covered |
Ericsson (Sweden), Nokia (Finland), Samsung (South Korea), NEC Corporation (Japan), Mavenir (US), Huawei Technologies (China), HPE (US), Broadcom (US), Fujitsu (Japan), Viavi Solutions (US), Juniper Networks (US), Amdocs (US), Wind River Systems (US), Rakuten (Japan), Comba Telecom (China), Intel (US), Radisys (US), Keysight Technologies (US), MaxLinear (US), Airspan Networks (US), Picocom (England), Sivers Semiconductors (Sweden), Celona (US), Globalstar (US), DeepSig (US), Cohere Technologies (US), Verana Networks (US), Digis Squared (UK), Parallel Wireless (US), Baicells Technologies (China), Gigatera (US) |
This research report categorizes the open RAN market to forecast revenues and analyze trends in each of the following submarkets:
Based on offering:
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Hardware
- Radio Units
- Centralized Units/Distributed Units
- Other hardware (antennas, commercial-of-the-shelf (COTS) hardware, etc.)
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Software
- RAN Intelligent Controller
- Network Orchestration & Management Software
- Other Software (Testing & Validation Software, Life Cycle Management Software, Security & Analytics Software)
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Service
- Network Planning & Optimization
- Deployment & integration
- Support & maintenance
Based on network deployment:
- Public Networks
- Private Networks
Based on Frequency Band
- Sub-6GHz
- mmWave
- Other Frequency Bands (TV white space [TVWS], CBRS [Citizens Broadband Radio Service], etc)
Based on Deployment Phase
- Brownfield
- Greenfield
By Region:
- North America
- Europe
- Asia Pacific
- Middle East & Africa
- Latin America
Recent Developments
- In February 2024, Vodafone announced the commercial deployment of Open RAN technology in 20 cities across Romania by partnering with Samsung on its latest open RAN project.
- In January 2024, Parallel Wireless partnered with SOLiD. This partnership will allow service providers to reduce their solution footprint and operating costs by lowering complexity, price, required real estate, and power consumption by 80%.
- In September 2023, Ericsson announced that it will introduce support for open front haul across its Cloud RAN and radio portfolios starting in 2024.
Frequently Asked Questions (FAQ):
What is the definition of open RAN market?
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.
What is the market size of open RAN market?
The open RAN market is estimated at USD 2.8 billion in 2024 to USD 20.9 billion by 2030, at a Compound Annual Growth Rate (CAGR) of 39.4% from 2024 to 2030.
What are the major drivers in the open RAN market?
The major drivers in the open RAN market are demand for enhanced network flexibility and accelerated innovation, significant reduction in TCO, and implementation of beamforming technology to resolve bitrate problem in fronthaul networks.
Who are the key players operating in the open RAN market?
The key market players profiled in the open RAN market are Ericsson (Sweden), Nokia (Finland), Samsung (South Korea), NEC Corporation (Japan), Mavenir (US), Huawei Technologies (China), HPE (US), Broadcom (US), Fujitsu (Japan), Viavi Solutions (US), Juniper Networks (US), Amdocs (US), Wind River Systems (US), Rakuten (Japan), Comba Telecom (China), Intel (US), Radisys (US), Keysight Technologies (US), MaxLinear (US), Airspan Networks (US), Picocom (England), Sivers Semiconductors (Sweden), Celona (US), Globalstar (US), DeepSig (US), Cohere Technologies (US), Verana Networks (US), Digis Squared (UK), Parallel Wireless (US), Baicells Technologies (China), Gigatera (US).
What are the key technology trends prevailing in the open RAN market?
The key technology trends in open RAN include Virtualization and Software Defined Networking (SDN), Cloud-Native Architectures, Open Interfaces and Standards, Artificial Intelligence (AI) and Machine Learning (ML), Massive MIMO and Beamforming, Network Slicing, and Edge Computing. .
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This research study involved the extensive use of secondary sources, directories, and databases, such as Dun & Bradstreet (D&B) Hoovers and Bloomberg BusinessWeek, to identify and collect information useful for a technical, market-oriented, and commercial study of the open RAN market. The primary sources have been mainly industry experts from the core and related industries and preferred suppliers, manufacturers, distributors, service providers, technology developers, alliances, and organizations related to all segments of the value chain of this market. In-depth interviews have been conducted with various primary respondents, including key industry participants, subject matter experts, C-level executives of key market players, and industry consultants to obtain and verify critical qualitative and quantitative information.
Secondary Research
The market for companies offering open RAN solutions and services to different verticals has been estimated and projected based on the secondary data made available through paid and unpaid sources, as well as by analyzing their product portfolios in the ecosystem of the open RAN market. It also involved rating company products based on their performance and quality. In the secondary research process, various sources such as 1st Global OTIC Summit 2023, Open Air Interface (OAI) workshop 2023, and Open RAN Technical Summit at SCTE Cable-Tec Expo’23 have been referred to for identifying and collecting information for this study on the open RAN market. The secondary sources included annual reports, press releases investor presentations of companies, white papers, journals, and certified publications and articles by recognized authors, directories, and databases. Secondary research has been mainly used to obtain key information about the supply chain of the market, the total pool of key players, market classification, segmentation according to industry trends to the bottommost level, regional markets, and key developments from both market- and technology-oriented perspectives that have been further validated by primary sources.
Primary Research
In the primary research process, various primary sources from both the supply and demand sides were interviewed to obtain qualitative and quantitative information on the market. The primary sources from the supply side included various industry experts, including Chief Experience Officers (CXOs); Vice Presidents (VPs); directors from business development, marketing, and product development/innovation teams; related key executives from open RAN solution vendors, SIs, professional service providers, and industry associations; and key opinion leaders. Primary interviews were conducted to gather insights, such as market statistics, revenue data collected from solutions and services, market breakups, market size estimations, market forecasts, and data triangulation. Primary research also helped understand various trends related to technologies, applications, deployments, and regions. Stakeholders from the demand side, such as Chief Information Officers (CIOs), Chief Technology Officers (CTOs), Chief Strategy Officers (CSOs), and end users using open RAN solutions, were interviewed to understand the buyer’s perspective on suppliers, products, service providers, and their current usage of open RAN solutions which would impact the overall open RAN market.
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Market Size Estimation
Multiple approaches were adopted to estimate and forecast the size of the open RAN market. The first approach involves estimating market size by summing up the revenue generated by companies through the sale of open RAN offerings.
Both top-down and bottom-up approaches were used to estimate and validate the total size of the open RAN market. These methods were extensively used to estimate the size of various segments in the market. The research methodology used to estimate the market size includes the following:
- Key players in the market have been identified through extensive secondary research.
- In terms of value, the industry’s supply chain and market size have been determined through primary and secondary research processes.
- All percentage shares, splits, and breakups have been determined using secondary sources and verified through primary sources.
Open RAN Market Size: Bottom-Up Approach
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Open RAN Market Size: Top-Down Approach
Data Triangulation
After arriving at the overall market size, the open RAN market was divided into several segments and subsegments. A data triangulation procedure was used to complete the overall market engineering process and arrive at the exact statistics for all segments and subsegments, wherever applicable. The data was triangulated by studying various factors and trends from the demand and supply sides. Along with data triangulation and market breakdown, the market size was validated by the top-down and bottom-up approaches.
Market Definition
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.
Key Stakeholders
- Government Bodies and Public Safety Agencies
- IT and Telecommunication Companies
- Network Infrastructure Developers
- Mobile Network Operators
- Software and Hardware Manufacturers
- Communication and Computing Device Manufacturers
- Emergency Public Safety Service Providers
- Chief Information/Technology Officers
- State Broadband Task Force
- Commercial Broadband Vendors
- Urban Area Security Imitative (UASI) Representative
- Regional Interoperability Committees
- Statewide Interoperability Governing Body (SIGB)
- Federal Agencies, especially Federal Emergency Responders
Report Objectives
- To determine, segment, and forecast the Open RAN market based on offering (hardware, software, and services), network deployment, deployment phase, frequency band, and region in terms of value
- To forecast the size of the market segments with respect to 5 main regions: North America, Europe, Asia Pacific, Middle East & Africa, and Latin America
- To provide detailed information about the major factors (drivers, restraints, opportunities, 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 the macro and micromarkets with respect to individual growth trends, prospects, and contributions to the total market
- To analyze the industry trends, pricing data, patents, and innovations related to the market
- To analyze the opportunities for stakeholders by identifying the high-growth segments of the market
- To profile the key players in the market and comprehensively analyze their market share/ranking and core competencies
- To track and analyze competitive developments, such as mergers & acquisitions, product launches & developments, partnerships, agreements, collaborations, business expansions, and R&D activities
Available Customizations
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Company Information
- Detailed analysis and profiling of additional market players (up to 5)
Generating Response ...
Growth opportunities and latent adjacency in Open Radio Access Network (Open RAN) Market