Open RAN Industry Overview

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, ATT Inc., Deutsche Telekom, Orange, and NTT DOCOMO, founded the O-RAN ALLIANCE.

Gather more insights about the market drivers, restrains and growth of the Open RAN Market

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.

In addition, the implementation and maintenance costs associated with network deployment also decrease due to this flexibility. This inherently drives the competition in the market, pushing vendors to drive down prices even further. Thus, the cost-effective and flexible nature of O-RAN is expected to drive its adoption over the forecast period. In addition to reducing the overall cost, network operators can opt for components from various vendors and fine-tune their networks to deliver optimal performance. It allows operators to tailor their offerings to accommodate accelerated data speeds, increased service reliability, and thus improved customer experience.

Furthermore, the collaboration between various equipment providers and network operators allowed by O-RAN makes it easier for operators to deploy new features and services. The open standards allow for more flexibility and customization, thus fostering innovation in the market. The open RAN is still in its nascent stages of development and still requires some standardization efforts. Network standardization is important to ensure that different components from different vendors can work together seamlessly. Security concerns arise in the market as new technology introduces new security risks. Open RAN networks need to be more secure to protect customer’s data. However, as the market matures over time, these hurdles will be overcome with the evolving technology and ecosystem of the O-RAN

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Global Open RAN Market Report Segmentation

The report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest trends in each of the sub-segments from 2019 to 2030. For this study, Grand View Research has segmented the open RAN market report based on component, unit, deployment, network, frequency, and region:

Component Outlook (Revenue, USD Million, 2019 - 2030)

• Hardware
• Software
• Services
  • Consulting
  • Deployment and Implementation
  • Support and Maintenance

Unit Outlook (Revenue, USD Million, 2019 - 2030)

• Radio Unit
• Distributed Unit
• Centralized Unit

Deployment Outlook (Revenue, USD Million, 2019 - 2030)

• Private
• Hybrid Cloud
• Public Cloud

Network Outlook (Revenue, USD Million, 2019 - 2030)

• 2G/3G
• 4G
• 5G

Frequency Outlook (Revenue, USD Million, 2019 - 2030)

• Sub-6 GHz
• mmWave

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

Key Open RAN Company Insights

The market is still in its nascent stages and moderately consolidated with a few players driving the innovation and deployment. The O-RAN technology is fairly new, and the deployment of O-RAN has been recently commercialized. Key players are engaging in strategic partnerships to offer O-RAN hardware, software, and services. For instance, in February 2023, Deutsche Telekom announced its plans to partner with Fujitsu, Nokia Corp., and Mavenir, among others, for the initial commercial introduction of O-RAN in Germany from 2023 onwards. Such initiatives are harnessing the growth of the market. Moreover, the growing demand for flexibility and cost-effectivity offered by O-RAN is contributing to the market’s growth.Some of the prominent players in the global open RAN market include.

• Mavenir
• NEC Corp.
• Fujitsu Limited
• Nokia Corporation
• Samsung Electronics Co., Ltd.
• Radisys Corporation
• Parallel Wireless
• ZTE Corporation
• ATT Inc.
• Huawei Technologies Co., Ltd

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