Open RAN Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 2.89 Billion |
| Market Size (2029) | USD 14.24 Billion |
| CAGR (2024 - 2029) | 37.56 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Open RAN Market Analysis
The Open RAN Market size is estimated at USD 2.89 billion in 2024, and is expected to reach USD 14.24 billion by 2029, at a CAGR of 37.56% during the forecast period (2024-2029).
The concept of an Open RAN, revolves around interoperability and standardization of RAN components, embracing a unified interconnection standard for white-box hardware and open-source software from various suppliers. Open RAN architecture combines a modular software stack for base stations with off-the-shelf hardware, enabling smooth operation of baseband and radio unit components from various providers.
- With the implementation and adoption of Open RAN technologies, telecommunications carriers can expect reductions in capital expenditure costs, operational costs, supply chain risks, and operational risks.
- The constant advancements in 5G technology also play one of the a key role in driving the Open RAN market. 5G networks require increased capacity, low latency, and enhanced network performance, which align well with the abilities offered by O-RAN architecture. O-RAN enables the deployment of 5G networks with its centralized processing and progressive radio resource management, allowing operators to unlock the complete potential of 5G technology and provide a superior user experience.
- According to GSMA Intelligence Mobile Economy Report 2023, 5G will strengthen future mobile innovation and services, building on continuous deployments and adoption. 5G adoption will reach 17% in 2023, reaching 54% by 2030. The technology will add almost USD1 trillion to the global economy in 2030, spreading benefits across all industries. Such a huge rise in 5G adoption would drive the market studied. Furthermore, according to Ericsson, 5G subscriptions are expected to increase through out region 2023, rising from over 0.55 billion to over 1.67 billion.
- Additionally, industry players want to speed up innovation in open RAN technology, For instance July 2024, EchoStar Corporation introduced the opening of the ORCID, a cutting-edge facility for O-RAN integration and deployment. The center, backed by a USD 50 million grant from the NTIA's Innovation Fund, allows vendors to test and validate O-RAN solutions on EchoStar's commercial-grade cloud-native network.
- New security risks are emerging in the market with the introduction of new technology, sparking concerns about security. Enhanced security measures are required for Open RAN networks in order to safeguard customer data.
Open RAN Market Trends
5G Holds Major Share
- Open-RAN enables operators to deploy 5G networks more cost-effectively by reducing hardware and operational costs. As demand for high-speed mobile connectivity continues to rise, more especially with the proliferation of IoT devices and emerging technologies such as autonomous vehicles and augmented reality, the market for 5G Open-RAN is expected to grow significantly in the coming years.
- Open RAN sets clear targets for 5G RAN efficiency, intelligence, and versatility. Deploying Open RAN at the edge of the network allows for the utilization of 5G applications like autonomous transportation, which necessitate low latency and high reliability, as well as effectively supporting network slicing use cases. Open RAN also allows for secure and efficient firmware upgrades to be conducted wirelessly.
- The Europe countries has a substantial share globally and 5G technology is widely adopted, acorss the region. According to European 5G Observatory, As of September 2023, Cyprus, Malta, and the Netherlands were the only three European Union (EU) countries that had full 5G population coverage, , while the average coverage was 81 percent across all 27 member states. The EU has implemented various measures in order to accelerate the deployments of 5G infrastructure in the region, with the goal of reaching full population coverage by 2030, which would led to gowth market.
- For Instance April 2024 - As part of its ongoing strategy to support the development and adoption of Open radio access network (RAN) technology on a worldwide basis, Vodafone has announced that it has completed an end-to-end Open RAN trial on the live 5G standalone network of its Italian division, The trial used Nokia’s AirScale Massive MIMO radios and Nokia’s baseband software running on Dell PowerEdge XR8000 servers and Red Hat OpenShift, a hybrid cloud application platform powered by Kubernetes, connected to Nokia’s standalone dedicated 5G core.
- Moreover, the Open RAN 5G solution separates the hardware and software, giving the mobile network operator the flexibility to select individual components from various vendors. The Open RAN 5G solution includes a virtual Centralized Unit (vCU) for gNB, a virtual Distributed Unit (vDU) for gNB, O-RAN compliant Radio Units (O-RU) from 3rd party, and antennas. The foundation of the 5G solution lies in a CNF structure.
North America Witness Major Growth
- The demand for OpenRAN is growing in the United States primarily due to the rapid deployment of 5G networks. OpenRAN offers a scalable and flexible architecture to meet the varied needs of next-generation wireless networks, as 5G promises faster speeds and improved connectivity. According to Ericsson, the number of 5G subscribers in North America was around 260 million in 2023.
- Moreover, the region is witnessing significant investments acorss telecommunication infrastructure, creating significant growth opportunities for O-RAN adopting. The convergence of these factors has propelled development in the market, acorss North America to the forefront of Open RAN fostering, expansion.
- For instance, in March 2024 – Verizon, utilizing virtualized and open RAN (Radio Access Network) technologies, has now installed more than 130,000 O-RAN capable radios, which feature massive MIMO radios as part of the already disclosed 15,000 O-RAN compliant virtualized cell sites equipped with O-RAN compliant baseband units in its commercial Radio Access Network. O-RAN presents the potential for with numerous advantages that could foster fresh competition and innovation within the RAN ecosystem by creating open and interoperable interfaces among various hardware and software elements.
- Moreover, American countries are characterized by high population density and urbanization, resulting in concentrated demands for mobile connectivity. Hence, most of the telecom providers are using O-RAN solutions as they are well-suited for urban environments as they enable operators to centralize baseband processing functions, optimize network resources, and enhance coverage and capacity in densely populated areas.
- In December 2023, AT&T revealed intentions to become a major player in the US for commercial scale open radio access network (Open RAN) deployment. This collaboration between the industry and Ericsson will advance the telecommunications sector and enhance the network infrastructure provider and supplier ecosystem. AT&T and Ericsson's dedication to deploying Open RAN for several years is happening during a crucial phase in the 5G technology advancement.
Open RAN Industry Overview
The Open RAN market comprises major global players such as Ericsson, Nokia, Samsung Electronics Co. Ltd., and Huawei Technologies Co. Ltd., holding a significant market share. The market poses moderately high barriers to entry for the new players.
The intensity of competitive rivalry is high as the significant growth in strategic collaborations. The demand from the buyers has actively led the incumbents to invest in solutions and keep the contracts intact. The need to constantly develop and adapt to newer technologies is observed with growing affordability from peers. Overall, the intensity of competitive rivalry acorss market studied is high and expected to remain the same throughout the forecast period.
Constantly evolving technological advancements and long-term contracts with buyers, there is a control on the distribution channels. However, new entrants could leverage economies of scale with proper funding by innovating new solutions.
Open RAN Market Leaders
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Nokia Corporation
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Samsung Electronics Co. Ltd.
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Ericsson AB
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Huawei Technologies Co. Ltd.
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NEC Corporation
*Disclaimer: Major Players sorted in no particular order
Open RAN Market News
- May 2024: Samsung Electronics and O2 Telefónica has announced their first commercial site for virtualized RAN (vRAN) and Open RAN in Germany. This marks the first instance of Samsung's 5G vRAN solution being utilized in a commercial network in Germany. The location is currently functioning in Landsberg am Lech, Bavaria, delivering dependable and high-performance 4G and 5G services to clients. In the next few months, the firms will broaden the vRAN and Open RAN network to seven more locations in the area, intending to enhance the Open RAN presence.
- April 2024: Nokia and Vodafone announced that they have successfully completed an end-to-end Open RAN trial on Vodafone Italy’s live 5G standalone network. The trial utilized Nokia’s AirScale Massive MIMO radios and Nokia’s baseband software running on Dell PowerEdge XR8000 servers and Red Hat OpenShift, an industry leading hybrid cloud application platform powered by Kubernetes, connected to Nokia’s standalone dedicated 5G core. It also used Nokia’s intelligent MantaRay Networks Management system for a consolidated network view and improved monitoring and management.
Open RAN Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Value Chain Analysis
4.3 Industry Attractiveness - Porter's Five Force Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Buyers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitutes
4.3.5 Intensity of Competitive Rivalry
4.4 Assessment of Macroeconomic Factors on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 The growth of 5G demand network technologies all over the world
5.2 Market Restraints
5.2.1 Security Threats acorss the network
6. MARKET SEGMENTATION
6.1 By Component
6.1.1 Hardware
6.1.2 Software
6.1.3 Services
6.2 By Network
6.2.1 4G
6.2.2 5G
6.2.3 Other Network (2G/3G)
6.3 By Geography***
6.3.1 North America
6.3.1.1 United States
6.3.1.2 Canada
6.3.2 Europe
6.3.2.1 Germany
6.3.2.2 United Kingdom
6.3.2.3 France
6.3.2.4 Italy
6.3.3 Asia
6.3.3.1 China
6.3.3.2 Japan
6.3.3.3 India
6.3.3.4 South Korea
6.3.3.5 Australia and New Zealand
6.3.4 Latin America
6.3.5 Middle East and Africa
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Nokia Corporation
7.1.2 Samsung Electronics Co. Ltd.
7.1.3 Ericsson AB
7.1.4 Huawei Technologies Co. Ltd.
7.1.5 NEC Corporation
7.1.6 Mavenir Systems Inc.
7.1.7 Parallel Wireless Inc.
7.1.8 ZTE Corporation
7.1.9 Fujitsu Ltd.
7.1.10 Radisys Corporation
7.1.11 ASOCS Ltd.
7.1.12 Comba Telecom Systems Holdings Ltd.
7.1.13 Altiostar Networks Inc.
7.1.14 Airspan Networks Inc.
7.1.15 Cisco Systems Inc.
- *List Not Exhaustive
8. INVESTMENT ANAYSIS
9. FURTURE OF THE MARKET
Open RAN Industry Segmentation
The Open RAN structure permits separation of hardware and software parts of the RAN network, and utilization of open interfaces and protocols for compatibility and integration of network elements from various vendors. Open RAN principles offer a cost-effective way to construct networks that guarantee interoperability, virtualization, vendor versatility, element security, and a cloud native approach, ultimately lowering the total cost of ownership (TCO) in radio access networks (RAN).
The Open RAN market is segmented by component (hardware, software, services), By network (4G, 5G, other network (2G/3G), By geography (North America (United States, Canada), Europe (Germany, United Kingdom, France, Italy), Aisa Pacific (China, Japan, India, South Korea, Australia and New Zealand), Rest of the World). The Report Offers Market Forecasts and Size in Value (USD) for all the Above Segments
| By Component | |
| Hardware | |
| Software | |
| Services |
| By Network | |
| 4G | |
| 5G | |
| Other Network (2G/3G) |
| By Geography*** | |||||||
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| Latin America | |||||||
| Middle East and Africa |
Open RAN Market Research FAQs
How big is the Open RAN Market?
The Open RAN Market size is expected to reach USD 2.89 billion in 2024 and grow at a CAGR of 37.56% to reach USD 14.24 billion by 2029.
What is the current Open RAN Market size?
In 2024, the Open RAN Market size is expected to reach USD 2.89 billion.
Who are the key players in Open RAN Market?
Nokia Corporation, Samsung Electronics Co. Ltd., Ericsson AB, Huawei Technologies Co. Ltd. and NEC Corporation are the major companies operating in the Open RAN Market.
Which is the fastest growing region in Open RAN Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Open RAN Market?
In 2024, the North America accounts for the largest market share in Open RAN Market.
What years does this Open RAN Market cover, and what was the market size in 2023?
In 2023, the Open RAN Market size was estimated at USD 1.80 billion. The report covers the Open RAN Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Open RAN Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Open RAN Industry Report
Statistics for the 2024 Open RAN market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Open RAN analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
