Regionally, the global market is segmented into five major regions comprising North America, Asia Pacific, Europe, South America, and Middle East & Africa. Among the markets in these regions, the Asia Pacific O-RAN market is expected to hold the leading market share of 38.1% and attain a revenue of USD 8,150.95 Million in 2028 by growing at a CAGR of 81.7% during the forecast period. Moreover, based on country, the market in Japan is expected to garner the largest market revenue of USD 1887.90 Million by the end of 2028. The market in North America captured the second leading stance in 2020 and is expected to garner a revenue of USD 134.38 Million in 2021, owing to the increasing virtual meetings and cloud-based services adopted by the end users. In North American region, United States is projected to generate significant growth opportunities for by holding the largest market share throughout the forecast period while Canada is projected to grow with the highest CAGR of 134.8% during the forecast period. Major American telecom companies and network operators, including AT&T, T-Mobile U.S., Verizon, and UScellular, have joined the O-RAN Alliance founded in 2018. The objective of the O-RAN Alliance is to reshape the RAN industry towards mobile networks that are more intelligent, open, virtualized, and fully interoperable. The U.S. and Canada are the primary markets for O-RAN in North America. In the U.S., the growth of O-RAN is primarily led by the boost in the adoption of IoT and IIoT coupled with increasing research and development for developing efficient O-RAN solutions. In addition to this, the United States government considers Open-RAN a viable strategy for wireless providers to avoid using telecommunications equipment from Chinese vendors, such as Huawei and ZTE.
Moreover, the government has planned to invest around $1 billion in new open radio access network technologies to spur US software companies. Initiatives such as these are anticipated to elevate the market growth during the forecast period. North America is witnessing a surge in demand for O-RAN attributed to its applications in autonomous and vehicles and advanced in-home entertainment systems. Fast and secure communication networks, including LTE and 5G, are the foundations for autonomous driving. 5G applications such as autonomous vehicles and IoT will benefit from Open-RAN deployed at the network edge, support network slicing use cases efficiently, and allow secure and efficient over-the-air firmware updates.
Asia Pacific accounts for a significant share of the Open Radio Access Network (O-RAN) market owing to booming investments in advanced entertainment systems for autonomous vehicles. In the wake of technological advancements, enterprises in this region are investing heavily in IoT and AI technologies. Furthermore, increasing number of initiatives from countries such as India, Japan, Korea, and others, is also expected to boost the market growth over the forecast period. The growth in this region can be attributed to the increasing demand for high speed and internet coupled with ongoing trends of cloud-based solutions. O-RAN, combined with cloud technologies, are being deployed in this region to facilitate more flexible network capabilities. Furthermore, the market is expected to expand owing to the growing implementation of 5G base stations, supported by increasing investments in research and development by many key players working in the telecommunications industry to develop an efficient O-RAN solution.
