Introduction to O-RAN
The O-RAN or open radio access network architecture aims to achieve openness in access networks and is based on interoperability and standardization of RAN elements. The O-RAN architecture, as shared by the O-RAN ALLIANCE, thrives to make radio accessibility more innovative and flexible. O-RAN proposes openness across 5G and all its predecessor network standards.
Market Size and Forecast
The global O-RAN market is thriving on the back of the increasing applications of cloud-based services, virtual meetings, IoT and IIoT. Additionally, increasing adoption of advanced in-home entertainment systems, streaming of 3D & ultra-HD (8K) resolution video content, and applications involving virtual & augmented reality, which is raising the need for high-speed data amongst consumers and businesses are additionally driving the growth of the global O-RAN market.
The global O-RAN market is anticipated to record a significant CAGR throughout the forecast period, i.e. 2020-2028. The market is segmented by type into AI-empowered embedded intelligence, open interoperable interfaces, white-box & virtualized hardware platforms, and open-source reference implementations, out of which, the white-box & virtualized hardware platforms segment is anticipated to hold the largest market share on account of the need amongst telecom operators to reduce the cost of 5G deployment. The white-box base station, as specified by O-RAN, is designed to be energy-efficient, provide high performance and be spectral. The increase in the production volume of the equipment that are required for operating the O-RAN architecture, will allow several small and medium organizations to participate in the manufacturing process of these equipment, and therefore contribute to lower the per unit cost of these equipment. This will further ensure lower operational costs amongst the telecom operators in deploying the O-RAN architecture. CLICK TO DOWNLOAD SAMPLE REPORT
Increasing Demand for High Speed Internet
There is an increasing demand for high speed internet amongst end users backed by numerous factors which include applications that run on the internet, advancement in technology, increasing adoption of IoT and others. The demand for internet usage has also been added with the effect of the COVID-19 pandemic, which has resulted in the transformation of working norms that require individuals to work from home over the internet. This has also been aided by the need amongst individuals to connect socially using mobile connected devices owing to the imposed lockdown across nations to avoid the spread of virus. Presently, there are around 5 billion internet users worldwide with China and India amongst the major consumers. Such factors have significantly increased the load on the existing telecom infrastructure, therefore raising the need amongst the telecom operators to deploy a new architecture. The concept of O-RAN is aimed at providing openness to telecom operators, RAN vendors and 3rd parties as it promotes the emerging technologies of AI and ML. The 5G technology, which is a successor to the 4G network standards, provides access to virtual reality. Increasing deployment of 5G base stations worldwide, backed by the rising investments by telecom operators, to aid the concept of O-RAN is further anticipated to drive the growth of the global O-RAN market during the forecast period.
High Investment Costs to Restrain Market Growth
The deployment of O-RAN network architecture is still in its developmental stage. With such huge investments put into the research and development of the concept, the probability of failure yet remains, which therefore raises the cost of investment of the telecom operators. Moreover, with such a new concept being taken into action, the whole architecture requires deployment of new equipment and replacement of the existing ones, which further adds on to the cost of operations. Such factors are anticipated to restrain the growth of the global O-RAN market.
Our in-depth analysis of the global O-RAN market includes the following segments:
The global O-RAN market is segmented by regions into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region.
The market in Asia Pacific is anticipated to hold the largest market share on account of the increasing requirement of the telecom operators in the region to switch to 5G network, backed by the rising number of internet users in the region. During the 3rd Quarter of 2020, out of the total internet users worldwide, Asia registered 51.8% of the share, as per the statistics by the Internet World Stats. The market in the region is primarily anticipated to be driven by nations such as China, Philippines, Malaysia and others.
The global O-RAN market is further classified on the basis of region as follows:
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