Open Radio Access Network (O-RAN) Market Size & Share, by Component (Hardware, Software, Services); Connectivity Technology (2G,3G,4G/LTE,5G); End-user (Residential, Commercial, Industrial) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2023-2035

  • Report ID: 2781
  • Published Date: Sep 07, 2023
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2023 - 2035.

O-RAN Market size is anticipated to touch USD 6.63 billion by the end of 2035, growing at a CAGR of 54% during the forecast period, i.e., 2023-2035. In the year 2022, the industry size of open radio access networks was over USD 1.1 billion. Growing demand to improve network coverage is majorly responsible for the growth of the Open RAN Market. To meet the increasing demand for higher-speed internet and large network coverage of various new user applications like Autonomous Driving, Augmented Reality, and Telemedicine, Network Operators are working towards improving network coverage to take advantage of this trend. Furthermore, the market is expected to be stimulated by growing demand for mobile broadband technology, high-speed transmission of data, and information processing.

Also, the increasing adoption of Software Defined Networking (SDN) and Network Function Virtualization (NFV) in network infrastructure is supporting market value. Moreover, the demand for open radio access network solutions is also increasing due to supportive government initiatives aimed at improving telecommunications infrastructure.


O-RAN Market
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Open Radio Access Network Sector: Growth Drivers and Challenges

Growth Drivers

  • Massive and urban deployment of Open More extensive deployment of hundreds of sites on brownfield networks is being carried out in the area. As a result, many operators have been steadily adding open RAN to their current 2G,3G, and 4G mobile infrastructure. As per a survey conducted there is going to be a 20% hike in the use of O-RAN by 2035.
  • The growth of demand for 5G network technologies all over the world- To increase their service capabilities, several carriers are deploying services with 430 million 5G deployments till 3rd quarter of 2022. The introduction of 5G services is anticipated to be accelerated over the next several years across a wide range of regions. It is anticipated that investments in O-RAN will be stimulated by current competition to become the leader of 5G deployment. High bandwidth and low latency are expected to be provided by 5G. In particular, the users with large capacities and connections need 5G to meet a variety of network needs.
  • Increased Number of Internet users - The increase in Internet connectivity around the world opens new opportunities for telecommunication service providers to grow their revenues. To meet the constantly rising expectations of customers, operators need to be able to satisfy them in terms of shortest latency, bandwidth, and longer peak availability. Mobile operators are investing heavily to take advantage of this new opportunity, to maintain their competitiveness in the market.

Challenges

  • Security Threats in Radio Access Network
    The wireless architecture is exposed to new attacks such as unauthorized access to sensitive data due to its open broadcasting nature. In terms of the architecture of the Open System Interconnect Network Protocol, malicious attacks can occur at various levels. The CRAN will inherit from the Cognitive Radio Network, and it shall be based on an open network. Therefore, for several security threats, it also stands out.
  • Shortage of skilled workers and absence of standard protocol.
  • Integration of complex integrated systems.

Open Radio Access Network Market: Key Insights

Base Year

2022

Forecast Year

2023-2035

CAGR

~ 54%

Base Year Market Size (2022)

~ USD 1.1 Billion

Forecast Year Market Size (2035)

~ USD 6.63 Billion

Regional Scope

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)
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Open Radio Access Network Segmentation

Component (Hardware, Software, Services)

The hardware segment is anticipated to hold 56% of the O-RAN market during the forecast period, On the other hand, the software segment is expected to grow with the highest CAGR of 89% during the forecast period.

Connectivity Technology (2G,3G,4G/LTE,5G)

The O-RAN market is segregated as follows by connectivity technology, namely 2G, 3G, 4GLTE, and 5G. The largest market share in 2035 will be held by the 5G segment at 48.6%. The need to provide a rapid and high-capacity network is an essential factor in the demand for broadband services on mobile networks. To accelerate the development of 5G networking technologies, it is expected that there will be increased demand for High-Speed Data Communication. The demand for this sector is increasing as a result of the rising Internet of Things and the growth in telecommunications.

End-user (Residential, Commercial, Industrial)

The O-RAN market is divided into residential, commercial, industrial, and others based on end users. The industrial sector is projected to grow at the highest rate over the forecast period of 2023 to 2035. Increasing demand for better M2M communication solutions combined with increasing acceptance of Internet of Things technologies in the industry has contributed to this growth. The commercial sector is expected to grow substantially during the forecast period.

Our in-depth analysis of the global market includes the following segments:

          Component

  • Hardware
  •  Software
  • Services

          Connectivity Technology

  • 2G
  • 3G
  • 4G/LTE
  • 5G

          End-user

  • Residential
  • Commercial
  •  Industrial

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Open Radio Access Network Industry - Regional Synopsis

APAC Market Forecast

Asia Pacific O-RAN market is anticipated to hold maximum market share, accounting for 37% of the market. The regional market is expected to attain a revenue of USD 8,150.95 million by 2028 growing at a CAGR of 81.7% over the forecast period. The market growth is a result of the investments made in advanced entertainment systems for autonomous vehicles. With the ongoing digitization, investments in IoT and AI technologies provide a direct boost for the market. In addition, given the growing uptake of 5G base stations supported by increased R&D investments and development from many key players working in the telecoms sector to develop an efficient ORAN solution, this market is expected to expand.

North American Market Statistics

Open RAN Market in North America is in 2nd position and gained a revenue of US 134.38 million, in 2021. Increasing Virtual meetings and cloud-based services adopted by end-users are the primary growth drivers in this region. In North America, the primary markets for ORAN are in the United States and Canada. Driving the growth of ORAN to the US is mainly due to the increasing uptake of IoT II and OT, together with growing research and development activities that will lead to more effective solutions for ORAN. Apart from this, the United States government considers open RAN a useful strategy for cell phone service providers not to use telecommunications equipment provided by Chinese manufacturers like Huawei and ZTE.

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O-RAN Market Size
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Companies Dominating the Open Radio Access Network Landscape

top-features-companies
    • Huawei Technologies Co., Ltd.
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • Metaswitch Networks Ltd 
    • VIAVI Solutions Inc.
    • Nokia
    • NTT DOCOMO
    • Casa Systems
    • Parallel Wireless
    • NTS Technology Services Pvt. Ltd
    • Comba Telecom Systems Holdings Ltd. 
    • Radisys

In-the-news

In The News

  • It is with pleasure to inform you that a new generation of agile and efficient RAN solutions will be made available under the brand "Parallel Wireless". The launch of a new era in RAN network empowerment will be marked by version 7. x PW RAN. With the transition to containerized applications and implementation over Kubernetes, Parallel Wireless’ best-in-class all-G open RAN solutions are ready to revolutionize the Cellular market.
     
  • Ericsson launched two O-RAN automation applications prioritizing energy efficiency which is a top priority for communications service providers.

Author Credits:  Abhishek Verma, Hetal Singh


  • Report ID: 2781
  • Published Date: Sep 07, 2023
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

The growth of demand for 5G network technologies all over the world and the increased Number of Internet users are the major growth factors for the market.

The market size of O-RAN is anticipated to attain a CAGR of 54% over the forecast period, i.e., 2023 – 2035.

The major players in the market are, Radisys, NTT DOCOMO, Casa Systems, Parallel Wireless, Fujitsu, VIAVI Solutions Inc., and others.

The hardware segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.

The market in the Asia Pacific region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.
Open Radio Access Network Market Report Scope
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