O-RAN Near-Real-Time RAN Intelligent Controller Market size is poised to cross USD 45 billion by the end of 2035, growing at a CAGR of 49% during the forecast period, i.e., 2023-2035. In the year 2022, the industry size of O-RAN near-real-time RAN intelligent controller was over USD 3 billion. The growth of the market can be attributed to the increasing need and demand for a much-advanced intelligent controller systems in the wake of 5G network architecture expansion. For instance, the 5G network is expected to cover nearly one-third of the total population by the end of 2035. Telecom companies are co-developing an open-source software that aligns the O-RAN Target architecture. This accelerates the deployment of open-source software for the 5G RAN, which in turn is expected to boost the growth of the market.
In addition to these, factors that are believed to fuel the market growth of O-RAN Near-Real-Time RAN Intelligent Controller include the soaring investments and collaboration between major key players to discover effective ways to manage the O-RAN architecture. For instance, in the year 2021, the O-RAN ALLIANCE announced the signing of a cooperation agreement with European Telecommunications Standards Institute (ETSI), to promote regional and international standardization of the 3GPP technologies.
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~49% |
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Base Year Market Size (2022) |
~ USD 3 Billion |
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Forecast Year Market Size (2035) |
~ USD 45 Billion |
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Regional Scope |
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Growth Drivers
Challenges
Deployment (Centralized, Distributed)
The global O-RAN Near-Real-Time RAN Intelligent Controller market is also segmented and analyzed for demand and supply by deployment into centralized and distributed. Amongst these two segments, the centralized segment is expected to garner a significant share in the year 2035. Increasing demand for 5G technology & infrastructure, adoption of smartphones and digitalization, followed by the rising spending all across the globe are factors for the growth of centralized RAN segment. An increase in number of people who use internet, support from government and amazing opportunities in the telecom industry has led to growth of centralized RAN segment in the market. According to the data reported, the worldwide spending has reached to more than 1.5 trillion in the year 2021.
Components {A1 Mediator, Demo1, E2 Manager (E2M), E2 Terminator (E2T), Logging, RIC Alarm System, RIC Message Router (RMR), RNIB, Routing Manager, xApp Framework for CXX, xApp Framework for Go, xApp Framework for Python}
The global O-RAN Near-Real-Time RAN Intelligent Controller market is segmented and analyzed for demand and supply by components into A1 mediator, Demo 1, E2 manager, E2 terminator, logging, RIC alarm system, RIC message router, RNIB, routing manager, xApp framework for CXX, xApp framework for Go, and xApp framework for Python. Out of these different types, routing manager segment is expected to hold the highest market share in the forecast period. The growth of the segment can be attributed to the increasing demand for 5G technology and its adaptation in the telecom industry. Moreover, the growing awareness of its benefits related to the distribution routing policies among other platform components. In addition, they keep the routing policies updated as soon as possible, which in turn is expected to expand the growth of the segment in the market.
Our in-depth analysis of the global market includes the following segments:
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By Components |
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By Deployment |
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North American Market Forecast
The North American O-RAN Near-Real-Time RAN Intelligent Controller market, amongst the market in all the other regions, is projected to hold the largest market share of about ~38% by the end of 2035. The growth of the market can be attributed majorly to the presence of multiple telecom operators in the region. With all three major mobile operators being a part of the O-RAN ALLIANCE, North America and especially USA, is showing increased interest in the O-RAN architecture. For instance, in the year of 2020, US Department of Defense steered away from purchasing equipment’s from Chinese vendors posing security issues. This in turn leading to the growing adoption of Open RAN network systems in the future. There are also increased financial incentives and program-based funding provided for the O-RAN Ecosystem. The increased frequency and services in the 5G technology in the region are yet another reason. For instance, there were more than 1 million 5G service subscriptions in the United States by the end of 2019 in the United States. The United States of America, Canada are the top runners when it comes to highest growth rate in North America region. With studies and reports suggesting the full launch and operations of 5G in the area, it increases the market share of O-RAN Near-Real-Time Intelligent Controller Market. These factors are anticipated to boost the market’s growth during the forecast period in the region.
APAC Market Statistics
The Asia Pacific O-RAN Near-Real-Time RAN Intelligent Controller Market, amongst the market in all the other regions, is projected to hold the second largest share of about ~27% during the forecast period. The growth of the market can be attributed majorly to the launch of 5 G operations in the region. Another factor behind this surge includes the shift from traditional RAN to Open RAN in Japan. In India, the top three operators are developing O-RAN Network technology. In 2021, Bharti Airtel hosted the O-RAN ALLIANCE Global PlugFest with other global O-RAN Community. Airtel is also the first operator in India to deploy the virtual RAN commercially. Moreover, presence of various network equipment providers in the region has led to much faster and positive adoption of 5G services in the region. The region will also be dominating player in centralized RAN market as there is a steady rise in deployment of the architecture. The steady growth of internet, industrialization, faster connectivity demand are other factors that are anticipated to boost the market’s growth in the region during the forecast period.
Europe Market Forecast
Further, the market in Europe, amongst the market in all the other regions, is projected to hold a majority of the share by the end of 2035. The growth of the market can be attributed majorly to the presence of multiple large Telecom operators in the region. Deutsche Telekom, Orange, Telefonica, TIM and Vodafone are working towards the advanced adoption of the O-RAN. Announcements are made about the funding from European governments to develop O-RAN architecture. Germany’s federal Ministry of Transport and Digital Infrastructure announced that it will providing 300 million euros for testing, developing and deployment of O-RAN technology in the country. United Kingdom on the other hand has embarked its own initiative of $350 million aimed at developing O-RAN systems. The growing government fundings, research and studies are also anticipated to boost the market’s growth in the region during the forecast period.
Nokia Corporation announced the successful trial run of RAN Intelligent Controller over the AT&T’s 5G commercial mmWave network. The limited live trial was conducted in New York City with the help of an Open cloud Platform.
Rakuten Mobile, Inc. signed a MoU with Telefonica SA, on a combined mission of working and supporting each other in developing an Open RAN architecture within the 5G networks.
Author Credits: Abhishek Verma, Hetal Singh
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