Friday, 29 November 2024

Open RAN Market Forecast: Growth Opportunities and Future Challenges

 The global open RAN market size is estimated to reach USD 20.41 billion by 2030, registering a CAGR of 25.6% from 2025 to 2030, according to a new report by Grand View Research, Inc. An open radio access network (O-RAN or Open RAN) is a concept based on the standardization and interoperability of RAN elements, including open-source software elements and a unified interconnection standard for white-box hardware from various vendors. Increasing adoption of open RAN hardware and software owing to their numerous benefits, such as improved network performance, lower equipment costs, improved security, and network flexibility, is a major factor driving the growth of the market.

 

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

 

In addition, the increasing commercialization of 5G services and demand for O-RAN from mobile operators are further driving the market’s growth. The O-RAN technology and architecture reduce mobile network deployment and maintenance costs by encouraging competition among vendors and streamlining network management. It also reduces the need for costly proprietary hardware and enables operators to source components from multiple vendors. This multi-vendor ecosystem ultimately saves costs and enhances network resiliency. Furthermore, open RAN is transforming the telecommunications industry by incorporating modern cloud and software technologies, ultimately propelling the market's growth.

 

Furthermore, the robust deployment of a 5G radio access network with several macrocells and small cell base stations and the introduction of open RAN components by several players worldwide is propelling the growth of the market. For instance, in October 2022, Vodafone Group Plc and Qualcomm Technologies, Inc. announced their partnership to develop, integrate, and test next-generation 5G radio units (RU) and distributed units (DUs) with Massive MIMO capabilities to meet the demands of the modern networks and to provide the commercial deployment of O-RAN in Europe.The growing demand for low latency and high-speed bandwidth connection and the increased focus of major organizations on research and development activities are some of the factors boosting the market growth.

 

Open RAN Market Report Highlights

• The services segment is expected to register the fastest CAGR over the forecast period due to the growing demand for specialized expertise and support in managing & deploying O-RAN infrastructure

• The radio unit (RU) segment dominated the market in 2024. In the O-RAN infrastructure, RU handles the physical radio functions and connects to the user equipment

• The public cloud segment accounted for the significant market share in 2024. High demand for cloud-native O-RAN architecture, as it provides flexibility, security, and scalability to networks,supports the segment’s growth

• In 2024, the 5G network segment held the largest revnue share in the global market. There is an increasing development of virtualized 5G RAN solutions for communication service providers (CSPs) as it offers improved flexibility and operational efficiency to fulfill the demands of their 5G customers

• The mmWave segment is expected to grow at the significant CAGR during the forecast period. The growing demand for low-latency and high-speed wireless communications is driving the adoption of mmWave frequencies in the market

• Asia Pacific is expected to grow at the significant CAGR over the forecast period, due to the vast presence of O-RAN hardware and software providers and the growing market for IT and telecommunications in countries, such as China India, and Japan.


Browse through Grand View Research's Communication Services Industry Research Reports.


• The global clinical communication and collaboration market size was estimated at USD 2.99 billion in 2024 and is projected to grow at a CAGR of 18.1% from 2025 to 2030.

• The global near field communication market size was valued at USD 30.85 billion in 2024 and is projected to grow at a CAGR of 12.3% from 2025 to 2030.

 

Segments Covered in the Report

 

Grand View Research has segmented the global open RAN market based on component, unit, deployment, network, frequency, and region:

 

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

  • Hardware

  • Software

  • Services

    • Consulting

    • Deployment and Implementation

    • Support and Maintenance

 

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

  • Radio Unit

  • Distributed Unit

  • Centralized Unit

 

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

  • Private

  • Hybrid Cloud

  • Public Cloud

 

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

  • 2G/3G

  • 4G

  • 5G

 

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

  • Sub-6 GHz

  • mmWave

 

Open RAN Regional Outlook (Revenue, USD Million, 2019 - 2030)

  • North America

    • U.S.

    • 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

 

Order a free sample PDF of the Open RAN Market Intelligence Study, published by Grand View Research.

 

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