Global Open Radio Access Network Market Report 2022: Increasing Demand from Mobile Carriers Bolsters Growth
Dublin, March 21, 2023 (GLOBE NEWSWIRE) -- The "Global Open Radio Access Network Market Size, Share & Industry Trends Analysis Report By Type, By Frequency, By Component, By Access, By Radio Interface, By Regional Outlook and Forecast, 2022-2028" report has been added to ResearchAndMarkets.com's offering.
The Global Open Radio Access Network (Open RAN) Market size is expected to reach $23.1 billion by 2028, rising at a market growth of 64.4% CAGR during the forecast period.
Market Growth Factors
Open ran to enhance solutions for return on investment (ROI) and total cost of ownership (TCO)
Many operators think the proliferation of Open RAN platforms is significantly influenced by the decline in TCO. Open interfaces are crucial for achieving a respectable ROI. Due to open platforms' lowered entry barriers for new players and the ability for operators to integrate network components from various suppliers, the price competition is less intense.
Open platforms have greatly aided industries like the enterprise and carrier Wi-Fi industry. The cellular industry has been seeing a similar transformation. The industry has been witnessing considerable interest in using common reference platforms to reduce the cost of developing sophisticated pieces like radios.
Increasing demand from mobile carriers for open RAN
Operators can now execute software-based network operations on common commercial off-the-shelf (COTS) servers due to the introduction of Open RAN as well as virtualization. In addition, mobile network operators (MNOs) can now employ servers from one provider with radios from another because of non-proprietary, open interfaces.
A wider, best-of-class ecosystem of software and hardware manufacturers that enables flexibility and enhanced competition, leading to innovation in the telecommunications industry, are among the advantages of Open RAN for MNOs.
Market Restraining Factor
High cost and complexity of integration
Open RAN is a recent architecture that hasn't been thoroughly tried out. As a result, there are several obstacles in the implementation of Open RAN, including latency problems, operations, and maintenance. For most operators, the biggest risk is the expense and complexity of integration. Operators consider these issues the biggest obstacles to the Open RAN implementation plans. Immature technologies, supply chain issues, and performance trade-offs compared to integrated RAN solutions are further significant roadblocks. Therefore, all these factors currently represent the biggest hurdles in expanding the open radio access network (Open RAN) market.
Component Outlook
Based on component, the open radio access network (Open RAN) market is categorized into hardware, software, and services. The services segment procured a considerable growth rate in the open radio access network (Open RAN) market in 2021. It is projected that the introduction of 5G radio access networks by telecom operators would raise demand for consultancy, design, maintenance services, and development, influencing the segment's growth. Open RAN services facilitate the broad rollout of 5G and 4G radio cell site coverage.
Type Outlook
On the basis of type, the open radio access network (Open RAN) market is divided into open RAN RU and open VRAN. The open RAN RU segment witnessed the maximum revenue share in the open radio access network (Open RAN) market in 2021. In the open RAN, the functional division of the DU, RU, and CU concepts is increasingly becoming more important. The coordination of performance features, load management, real-time performance optimization, and adaption to varied use cases, as well as the required QoS, are all made possible by a split architecture between distributed & central.
Frequency Outlook
Based on frequency, the open radio access network (Open RAN) market is segmented into sub-6GHz and mmWave. The mmWave segment procured a considerable growth rate in the open radio access network (Open RAN) market in 2021. The range of spectrum from 30 GHz to 300 GHz is known as the millimeter wave band. This band, which is sandwiched between microwave & infrared waves, can be exploited for fast wireless communication, as demonstrated by the most recent 802.11ad Wi-Fi standard (which operates at 60 GHz). In addition, the Federal Communications Commission (FCC), a standards body, is considering it for general telecommunications.
Radio Interface Outlook
On the basis of radio interface, the open radio access network (Open RAN) market is fragmented into 2G/3G, 4G LTE, and 5G. The 2G/3G segment acquired the highest revenue share in the open radio access network (Open RAN) market in 2021. A large part of electronic systems still work on the 2G/3G interfaces and, as such, is accountable for the segment's growth. A simulated 2G BSC and 3G RNC Gateway, or any combination of these, is offered by the Open RAN aggregator. For all RAN accesses to the Core, it serves as a Gateway. Any peer or core RAN function that complies with standards can communicate with it. As a result, it aids in developing an open, multi-vendor ecosystem with interoperable parts for various RAN elements from diverse suppliers.
Access Outlook
Based on access, the open radio access network (Open RAN) market is bifurcated into public and private. The private segment garnered a remarkable growth rate in the open radio access network (Open RAN) market in 2021. Open RAN serves as a significant advantage for private networks. More and more nations are dividing the spectrum into separate bands for private networks, pushing the segment's expansion. Traditionally, the price of private, licensed wireless networks was one of the key obstacles to their wider adoption. But this can be changed by moving to Open RAN strategies, which will let enterprises contemplate expanding their use of private networks for commercial innovation.
Regional Outlook
On the basis of region, the open radio access network (Open RAN) market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The North America segment recorded the highest revenue share in the open radio access network (Open RAN) market in 2021. North America is made up of developed nations like the US and Canada. Therefore, it is anticipated to have the greatest market share for Open RAN globally. The US has a highly developed economic structure mainly dependent on its manufacturing and service sectors. Soon, the market in North America will probably grow due to a robust economy. Recent advancements in 5G, AI, machine learning, hybrid cloud, cloud applications, and big data analytics are some technological advances that impact the macroenvironment.
Scope of the Study
Market Segments Covered in the Report:
By Type
Open RAN RU
Open VRAN
By Frequency
Sub-6GHz
mmWave
By Component
Hardware
Software
Services
By Access
Public
Private
By Radio Interface
2G, 3G
4G LTE
5G
Key Market Players
List of Companies Profiled in the Report:
Samsung Electronics Co., Ltd. (Samsung Group)
Hewlett Packard Enterprise Company (HP Development Company L.P.)
Fujitsu Limited
Nokia Corporation
NEC Corporation
Ericsson AB
Huawei Technologies Co., Ltd. (Huawei Investment & Holding Co., Ltd.)
ZTE Corporation
VMware, Inc
AT&T, Inc
Key Topics Covered:
Chapter 1. Market Scope & Methodologyh
Chapter 2. Market Overview
Chapter 3. Recent Strategies Deployed in Open Radio Access Network (Open RAN) Market
Chapter 4. Global Open Radio Access Network (Open RAN) Market by Type
Chapter 5. Global Open Radio Access Network (Open RAN) Market by Frequency
Chapter 6. Global Open Radio Access Network (Open RAN) Market by Component
Chapter 7. Global Open Radio Access Network (Open RAN) Market by Access
Chapter 8. Global Open Radio Access Network (Open RAN) Market by Radio Interface
Chapter 9. Global Open Radio Access Network (Open RAN) Market by Region
Chapter 10. Company Profiles
For more information about this report visit https://www.researchandmarkets.com/r/lu60dg
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