Open RAN Market Segmentation, Parameters and Prospects by 2030
The global open RAN market size was estimated at USD 1,647.5 million in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 33.0% from 2023 to 2030. An open radio access network, or O-RAN, is a nonproprietary version of the radio access network (RAN) that allows interoperation between cellular network equipment provided by different vendors. Open RAN enables operators to choose hardware and software solutions from various vendors, which can lead to reduced equipment and operational costs. The vendor diversity, cost reduction, and flexibility offered by open RAN are anticipated to drive the market's growth over the forecast period. In February 2018, China Mobile, AT&T Inc., Deutsche Telekom, Orange, and NTT DOCOMO, founded the O-RAN ALLIANCE.
The ALLIANCE aims to reshape the RAN industry toward more open, intelligent, and virtualized fully interoperable mobile networks. O-RAN-based mobile network improves network operators' operational efficiency. In addition, the forum set O-RAN specifications that enable a more vibrant and competitive RAN supplier ecosystem with quicker innovations to improve user experience. The O-RAN ALLIANCE plays a central role in developing the Open Radio Access (O-RAN) network market. Open RAN enables operators to choose different hardware and software components from various vendors per their budgetary constraints. This freedom of choice regarding components and vendors translates into a cost-effective and flexible ecosystem compared to the traditional RAN architecture.
Gather more insights about the market drivers, restrains and growth of the Global open RAN market
Open RAN Market Segments Highlights:
- The hardware segment dominated the market in 2022 and accounted for a revenue share of more than 48.0%.
- The services segment is anticipated to register significant growth over the forecast period. The services segment is further bifurcated into consulting, deployment & implementation, and support & maintenance.
- The radio unit segment dominated the market in 2022 and accounted for a revenue share of more than 38.0%. The radio unit is an important component of the open RAN architecture.
- The distributed unit segment is anticipated to grow significantly over the forecast period. The distribution unit converts a signal from one form to another and aggregates all data to be transmitted over a communication channel.
- The hybrid cloud segment dominated the market in 2022 and accounted for a revenue share of more than 49.0%.
- The private cloud segment is anticipated to grow significantly over the forecast period. Open RAN's private cloud deployment involves utilizing dedicated cloud infrastructure for enhanced network control and security.
- The 4G segment dominated the market in 2022 and accounted for a revenue share of more than 43.0%. The market has witnessed 4G network deployments primarily due to their established infrastructure and widespread adoption across the globe.
- The 5G segment is anticipated to register the highest growth rate over the forecast period. The majority of network operators and telecom equipment providers are focusing on creating a robust 5G ecosystem.
- The sub-6 GHz segment dominated the market in 2022 and accounted for a revenue share of more than 83.0%. The sub-6 GHz frequency enables expansive coverage and better penetration through dense urban areas and rural areas where network connectivity is otherwise slow/poor.
- The growth of the mmWave segment can be attributed to its ability to bring ultra-fast speeds and high data capacity.
- North America dominated the market in 2022 and accounted for a share of more than 44.0% of the overall revenue. The segment's growth can be attributed to several factors, including the presence of prominent key players, such as AT&T, Inc., and the region's technological inclination toward early adoption of advanced solutions.
- Asia Pacific is anticipated to register significant growth over the forecast period. The region's growth can be attributed to the increasing demand for advanced telecommunication infrastructure, a growing mobile subscriber base, and favorable government regulations.
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Open RAN Market Segmentation
Grand View Research has segmented the global open RAN market based on component, unit, deployment, network, frequency, and region:
O-RAN Component Outlook (Revenue, USD Million, 2019 - 2030)
- Hardware
- Software
- Services
- Consulting
- Deployment and Implementation
- Support and Maintenance
O-RAN Unit Outlook (Revenue, USD Million, 2019 - 2030)
- Radio Unit
- Distributed Unit
- Centralized Unit
O-RAN Deployment Outlook (Revenue, USD Million, 2019 - 2030)
- Private
- Hybrid Cloud
- Public Cloud
O-RAN Network Outlook (Revenue, USD Million, 2019 - 2030)
- 2G/3G
- 4G
- 5G
O-RAN Frequency Outlook (Revenue, USD Million, 2019 - 2030)
- Sub-6 GHz
- mmWave
O-RAN Regional Outlook (Revenue, USD Million, 2019 - 2030)
- North America
- US
- Canada
- Europe
- UK
- Germany
- France
- Italy
- Asia Pacific
- India
- Japan
- Australia
- South Korea
- Malaysia
- Latin America
- Brazil
- Mexico
- Middle East & Africa
- Kingdom of Saudi Arabia (KSA)
- UAE
- South Africa
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