Open Radio Access Network Market Segmentation:
Component Segment Analysis
The hardware segment is projected to dominate the market with a 47.2% share by 2035. Highly common hardware components include virtualized RAN servers, BBUs (baseband units), and RRUs (remote radio units). The open RAN hardware can replace the legacy 2G/3G/4G systems with open RAN technology, which is completely virtualized. The players are significantly focused on developing flexible and consistent hardware solutions, which allow manufacturers and suppliers to mix and match the components. This promotes participation of different vendors, improves cost efficiency, and supports open RAN evolution towards a better adjustable network infrastructure. Furthermore, in May 2024, the Department of Commerce’s NTIA announced USD 420 million funding to build radio equipment required for open network adoption advancement in the U.S. Initiatives as such is also promoting the segment’s growth.
Deployment Segment Analysis
The hybrid segment is projected to gather a considerable share during the forecast period in the open radio access network (O-RAN) market, owing to the balance it offers between performance, flexibility, and control for the telecom operators. Due to the advantages of both public and private cloud, the operators can keep delay-sensitive network functions on their local systems, ensuring speed and reliability. Further, they can also use public cloud data analysis, management, and automation. This makes it easier to deploy, flexible, and cost-effective, making it a popular choice for Open RAN.
Frequency Segment Analysis
The sub 6-GHz segment is anticipated to garner a substantial share in the market by the end of 2035, as it offers a good balance between coverage, speed, and cost. This frequency range suits both cities and rural areas, supporting a wide network coverage, which is easier for operators to deploy using existing infrastructure. Telecom operators also prefer sub-6 GHz because it can be deployed using existing network infrastructure, reducing deployment time and expenses. In addition, it supports everyday stable and reliable connectivity of mobile services, making it the most widely used frequency range in Open RAN deployments.
Our in-depth analysis of the open radio access network market includes the following segments:
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