C-RAN Architecture Market size is expected to reach USD 32 billion by the end of 2035, growing at a CAGR of 14% during the forecast period, i.e., 2023-2035. In the year 2022, the industry size of C-RAN architecture was USD 14 billion. The rapid growth of mobile data traffic requires a more efficient and cost-effective network architecture to support the growing demand for high-speed mobile data services. C-RAN technology enables mobile network operators to optimize network resources and provide a better quality of service to their customers. C-RAN architecture improves spectral efficiency by using centralized processing to optimize resource allocation and reduce interference. According to a study, the C-RAN architecture can improve spectral efficiency by up to 55% compared to the traditional RAN architecture.
The deployment of 5G technology requires new network architectures that can handle high-speed data transfer and low-latency requirements. C-RAN architecture offers a more efficient and flexible solution for the 5G network and is a major driver for the growth of the market. According to a report, the number of global 5G subscriptions is estimated to reach 580 million by the end of 2021 and 3.5 billion by the end of 2026. This significant increase in 5G subscriptions is expected to drive demand for C-RAN architectures. C-RAN architecture will provide better network performance, coverage, and capacity needed to support the growing number of 5G devices.
Growth Drivers
Challenges
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Base Year |
2022 |
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Forecast Year |
2035 |
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CAGR |
~14% |
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Base Year Market Size (2022) |
~USD 14 billion |
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Forecast Year Market Size (2035) |
~USD 32 billion |
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Regional Synopsis |
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Network Type (5G, 4G, LTE)
The global C-RAN architecture market is segmented and analyzed for demand and supply by network type into 5G, 4G, and LTE. Out of these, the 5G segment is anticipated to account for the largest market share by the end of 2035. The massive increase in traffic and severe impact on the power consumption of current network architectures impose additional cost burdens on network operators. Therefore, carriers are looking for better alternative technologies and architectures to help reduce energy costs, improve coverage, agile network traffic management, and increase hourly throughput. According to a report, the number of global 5G subscriptions reached up to 580 million by the end of 2021 and is anticipated to reach 3.5 billion by the end of 2026.
Architecture (Centralized-RAN, Virtual/Cloud-RAN)
The global market is segmented and analyzed for demand and supply by architecture into Centralized-RAN and Virtual/Cloud-RAN. Out of these, the centralized-RAN segment is estimated to account for the largest market share by the end of 2035. In a centralized RAN architecture, baseband processing is centralized at a central location (data center or central hub). Remote Radio Units (RRUs) are connected to the central site through a fronthaul network that carries digitized baseband signals between the central site and the RRUs. This architecture enables more efficient resource allocation and reduces power consumption.
Our in-depth analysis of the global market includes the following segments:
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By Network Type |
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By Architecture |
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By Service |
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By End User |
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APAC Market Statistics
The market in the Asia Pacific is estimated to witness the highest growth over the forecast period. This can be attributed on the back of the rising mobile data traffic, growing investments in the telecom industry, and rapid increase in the adoption of technologies, such as IoT and advanced analytics, in the region. The internet traffic in the Asia Pacific was approximately 28 exabytes per month in 2017, which rose to about 75 exabytes per month by the end of the year 2020.
Europe Market Forecast
Moreover, the market in Europe is also expected to witness robust growth during the forecast period. This can be attributed owing to the surge in the rollout of 5G networks, the rise in developments in LTE infrastructure, and the growing usage of video and music streaming applications in the region. In addition, improved 4G coverage across the European continent is also projected to boost this region’s market growth in the coming years. The market for C-RAN architecture in Europe is driven by the increasing adoption of cloud-based deployments. Cloud RAN deployments are expected to account for 40% of all his RAN deployments in Europe by 2025, according to the report. The deployment of 5G technology is also expected to boost the growth of the C-RAN architecture market in Europe. According to reports, Europe is expected to have an estimated 214 million 5G connections by 2025, making him one of the leading regions for 5G deployment. The European regulatory environment also favors the introduction of C-RAN architectures. For instance, the European Union has launched several initiatives to accelerate the adoption of cloud computing. It is hoped that this will drive the adoption of cloud-based C-RAN architecture.
North American Market Forecast
The market in the North American region is estimated to account significant market share by the end of 2035. Market growth is driven by factors such as increasing demand for high-speed connectivity, increasing adoption of 5G technology, and the need for efficient network management. The deployment of 5G technology is expected to drive the growth of the market in North America. North America is expected to become one of the leading regions for 5G deployment, with an estimated 407 million 5G connections by 2025, according to reports. The North American regulatory environment favors the deployment of C-RAN architectures. For example, the US Federal Communications Commission (FCC) has launched several initiatives to accelerate the deployment of 5G networks. This is expected to drive the adoption of C-RAN architecture. Some of the key players operating in the North American C-RAN architecture market include Nokia, Ericsson, Huawei, ZTE, and Samsung. These companies are investing heavily in R&D to create advanced C-RAN solutions to meet the growing demand in the market. Therefore, the market for C-RAN architectures in North America is expected to grow steadily in the coming years, driven by the increasing adoption of 5G technology, favorable regulatory environment, and adoption of cloud-based deployments.
Author Credits: Abhishek Verma, Hetal Singh
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