The O-RAN market size was around US$ 450 million in 2021. The O-RAN or Open Radio Access Network is centered on the standardization and interoperability of RAN components, including a uniform interconnection standard for white-box hardware and open-source software aspects from many suppliers. In the RAN domain, O-RAN is driving innovation and commercialization with interoperable products and systems that are easy to integrate into operator’s networks and are tested for multiple deployment scenarios.
The factors that are driving the market growth include high data consumption due to increasing internet penetration, growing demand for high-speed data, integration of cloud computing and AI, robust supply chain of trusted vendors, and increasing government initiatives for the deployment of 5G infrastructure. Through centrally controlled and automated computing operations, O-RAN can replace the labor-intensive, manual effort of maintaining, upgrading, and optimizing networks, thus driving the market growth. Telecom operators can create networks by combining hardware and software elements from several manufacturers because of O-RAN.
5G is boosting the market growth because of ultra-low latency and bandwidth speed
Under the connectivity technology segment, 5G is leading the market and generating maximum revenue. Security is even more important for future infrastructure given the variety of 5G applications and verticals. Deploying Open RAN at the network edge will help 5G applications like the IoT and autonomous vehicles, efficiently support network slicing use cases, and enable safe and effective over-the-air firmware upgrades. 5G has ultra-reliable low-latency communication (URLLC) and that makes it stand apart from other connectivity technologies.
Governments are relying on O-RAN to spur local 5G innovation and bring new vendors to their market. Moreover, the growing adoption of 5G for faster and more efficient speed is expected to boost the market growth. Companies are quickly adopting private 5G network technologies to solve critical requirements. Greater bandwidth, ultra-low latency, and faster communication speeds are expanding civilizations, revolutionizing industries, and vastly improving day-to-day experiences. Services like e-health, networked cars, traffic systems, and advanced mobile cloud gaming are available due to 5G.
The Asia Pacific is expected to offer ample growth opportunities to O-RAN providers
The Asia Pacific region is a key region in the O-RAN market with countries like India, China, and Japan leading the race. According to its “5G Beyond” strategy, Japan has announced a series of tax incentives related to R&D for local companies to leverage the buildout of open interface solutions. O-RAN will be particularly appealing to Indian operators because it would be less expensive and give them greater operational flexibility. The Indian government has urged local businesses to collaborate with regional telecommunication companies to deploy 4G networks or to upgrade their 4G networks to 5G networks using O-RAN technologies.
The UK committed funds for a “5G supply chain diversification strategy” in order to promote regional players and facilitate the development of open solutions. UK government released a list of guidelines for the creation and use of O-RAN technology. The US has also stimulated the development of O-RAN solutions and expanded the supply chain wherein it has passed a bill and invested US$ 750 million in funding in over 10 years.
EU member states and industry stakeholders have collaborated to prioritize O-RAN deployment. O-RAN is also gaining pace for fresh business proposals, which will bring up enticing new sources of income for African service providers. In the Middle East and Africa, South Africa is leading the market in the development of O-RAN due to significant mobile penetration. In Latin America, many rural areas have deployed 4G services to support O-RAN which has facilitated the regional market growth.
Market Structure and Competitive Landscape
Some of the prominent players that contribute significantly to the O-RAN market growth are Nokia Corp., Telefonaktiebolaget LM Ericsson, Qualcomm Inc., Huawei Technologies Co. Ltd., Mavenir Systems Inc., NTT DoCoMo Inc., Sterlite Technologies Limited, Radisys Corp., Parallel Wireless Inc., Casa Systems Inc., VIAVI Solutions Inc., Fujitsu Ltd., and NXP Semiconductors among others.
These players adopt various strategies in order to reinforce their market share and gain a competitive edge over other competitors in the market. Partnerships and collaborations, mergers and acquisitions, and product launches are some of the strategies followed by industry players. Some of the key developments in the global O-RAN market include,
- In April 2022, Fujitsu Network Communications announced its plan to support the Evenstar Open RAN program, Fujitsu Network Communications. The 5G huge MIMO (Multiple Input, Multiple Output) Radio Units will be provided by Fujitsu (RUs) and in order to enable O-RAN standardized interfaces, it will offer 3.5GHz RUs.
- In March 2022, Rakuten Symphony announced its collaboration with Qualcomm Inc. to develop a 5G radio unit with massive MIMO capabilities and distributed units. With high-performance O-RAN compliant infrastructure items, this will also make it possible for the implementation of 5G networks to proceed more quickly.
- In December 2021, Airtel has announced its strategic alliances with Intel, Qualcomm, and Tata Group, in order to develop a “Make in India” 5G solution based on O-RAN.
Key Market Segmentation
RationalStat has segmented the global o-ran market on the basis of component, connectivity technology, deployment location, end user, and region.
- By Component
- Radio Unit
- Base Band Unit
- Others (Small Cells etc.)
- By Connectivity Technology
- 4G LTE
- By Deployment Location
- By End Use
- Public Infrastructure
- Aerospace & Defense
- Media & Entertainment
- Others (BFSI etc.)
- By Region
- North America
- Latin America
- Rest of Latin America
- Western Europe
- Rest of Western Europe
- Eastern Europe
- Rest of Eastern Europe
- Asia Pacific
- South Korea
- ASEAN (Indonesia, Vietnam, Malaysia, etc.)
- Rest of Asia Pacific
- Middle East & Africa
- South Africa
- Rest of the Middle East & Africa
- North America
RationalStat has developed a state-of-the-art research methodology to crunch numbers and provide the best possible real-time insights to clients. We combine a varied range of industry experience, data analytics, and experts’ viewpoint to create a research methodology for market sizing and forecasting.
RationalStat combines a mix of secondary sources as well as primary research to assess the market size and develop a forecast. Key steps involved in accurately deriving the market numbers are:
- Defining the problem by understanding the type of market and data required by the client.
- Data gathering and collection through relevant paid databases, publicly available sources, company reports, annual reports, surveys, and interviews.
- Formulating a hypothesis to create market numbers, forecast, influencing factors, and their relevance.
- Evaluating and analyzing the data by referring to data sources utilized and leveraged.
- Validating, interpreting, and finalizing the data by combining the details gathered from primary and secondary sources with the help of experienced analysts.
- Annual reports, company filings, investor presentations, product catalogs and company documents
- Industry and market-related documents available in the public domain
- Paid database including Bloomberg, Factiva, S&P Capital IQ, FactSet, Refinitiv Eikon, ICIS, EUWID, Thomson Reuters, among others
- Whitepapers, research papers, and industry blogs.
Why Buy this Report?
The report is intended for O-RAN components manufacturers and suppliers, telecom companies, investment firms, government organizations, educational organizations, regulatory agencies, and market research firms, among others. The report provides an in-depth analysis of market size, consumption pattern, ongoing market trends and challenges, and future market opportunities. The report will serve as a source for a 360-degree analysis of the market thoroughly delivering insights to clients to find the right answers to their business questions.
Frequently Asked Questions (FAQs)
Global O-RAN Market is expected to grow at a CAGR of approximately 40% during the forecast period 2022-2028.
Asia Pacific holds a prominent share of the market.
The global market for O-RAN was US$ 450 Million in 2021.
The increasing internet penetration and the emergence of advanced technologies like the 5G network are the major factors driving the growth of the global O-RAN market.
Major companies operating in the Global O-RAN market are Nokia Corp., Telefonaktiebolaget LM Ericsson, Qualcomm Inc., Huawei Technologies Co. Ltd., Mavenir Systems Inc., NTT DoCoMo Inc., Sterlite Technologies Limited, Radisys Corp., Parallel Wireless Inc., Casa Systems Inc., VIAVI Solutions Inc., Fujitsu Ltd., and NXP Semiconductors among others.