Open Radio Access Network (O-RAN) Market: Current Analysis and Forecast (2024-2032)

Report Description

Open Radio Access Network (O-RAN) Market Size & Forecast

The Open Radio Access Network (O-RAN) Market was valued at approximately USD 1.9 billion in 2023 and is expected to grow at a substantial CAGR of around 65% during the forecast period (2024-2032) owing to the expansion of 5G networks.

Open Radio Access Network (O-RAN) Market Analysis

The term Open Radio Access Network (O-RAN) indicates a network design focused on enabling openness and versatility by breaking down conventional Radio Access Network parts. The O-RAN platform allows for virtualization which helps improve efficiency and lowers expenses while driving creativity in the setup of next-generation wireless networks like 5G.

To expand in the O-RAN field companies are emphasizing partnerships and collaborations with different telecom partners and cloud organizations. By investing in research and development efforts to produce interoperable technologies they enhance system automation using AI and expand their efforts with cloud and virtual infrastructures enabling quicker and more adaptable 5G deployments. On April 18, 2024, Huawei Analyst Summit, Huawei launched its game-changing RAN Intelligent Agents. The RAN Intelligent Agents introduce a set of telecom foundation model, RAN digital twins system (RDTS), and intelligent computing power to empower 5.5G with intelligence, according to Eric Zhao, Vice President and Chief Marketing Officer of Huawei Wireless Network, highlighting that the RAN Intelligent Agents will reshape the O&M process, network experience, and service model to help global operators achieve a leap in network productivity in the 5.5G era.

Open Radio Access Network (O-RAN) Market Trends

This section discusses the key market trends influencing the various segments of the Open Radio Access Network (O-RAN) market as identified by our research experts.

Increased Adoption by Telecom Operators

Telecom operators widely adopt Open Radio Access Network (O-RAN), with this trend greatly affecting different sectors of the market. The adoption of O-RAN by operators including Rakuten raises demand for network solutions that are more open and flexible. This shift is changing the hardware area by emphasizing interoperable components that let operators choose from multiple suppliers. The software segment profits from needing cloud-native platforms that support O-RAN standards whereas the service segment grows through system integration and maintenance services for multiple vendor frameworks. This development encourages the creation of new security solutions to tackle the increased threat area linked to open interfaces. Operator acceptance is driving the whole O-RAN ecosystem towards a more open and competitive market environment.

North America leads the market.

In North America’s O-RAN market’s progress and acceptance is largely attributed to considerable government aid and expenditures toward open infrastructure. By implementing projects such as the Open RAN Policy Coalition the U.S. government supports O-RAN to cut down on reliance on foreign communication tech notably from Chinese suppliers. AT&T and Verizon are leading efforts to deploy O-RAN along with Dish creating a 5G network entirely virtualized using O-RAN technology. Cisco and other leading companies in the U.S. are essential participants in building the required technologies for O-RAN applications.

On December 4, 2023, AT&T announced plans to lead the United States in commercial-scale open radio access network (Open RAN) deployment. This industry-leading move, in collaboration with Ericsson, furthers the telecommunications industry efforts and helps build a more robust ecosystem of network infrastructure providers and suppliers. AT&T’s spending could approach roughly $14 billion over the 5-year term of the contract with Ericsson.

Open Radio Access Network (O-RAN) Industry Overview

The Open Radio Access Network (O-RAN) market is competitive, with several global and international players. The key players are adopting different growth strategies to enhance their market presence, such as partnerships, agreements, collaborations, new product launches, geographical expansions, and mergers and acquisitions. Some of the major players operating in the market are Huawei Technologies Co., Ltd.; Telefonaktiebolaget LM Ericsson, Nokia; ZTE Corporation.; Samsung; NEC Corporation; Cisco Systems, Inc.; Qualcomm Technologies, Inc.; Intel Corporation; Fujitsu.

Open Radio Access Network (O-RAN) Market News

On August 30, 2024, Ericsson (NASDAQ: ERIC) and Telstra announced a groundbreaking, world-first achievement in mobile connectivity with the deployment of Ericsson’s 4th generation of Radio Access Network (RAN) purpose-built compute platform, paving the way for a consistent 5G Advanced platform for Australia.

February 26, 2024 – NEC Corporation (NEC; TSE: 6701) announced its selection by NTT DOCOMO, Inc. (DOCOMO) as a virtualized radio access network (vRAN) vendor for DOCOMO’s nationwide 5G commercial network services. Going forward, NEC plans to provide DOCOMO with vRAN for use in creating flexible and highly scalable 5G networks to be operated on the company’s commercial networks.

On September 25, 2023, Ericsson (NASDAQ: ERIC) underlined its commitment to lead the industrialization of Open RAN and bring the benefits of cloud-based open network architecture to the industry, including support for open fronthaul in its Cloud RAN and radio portfolios.

Open Radio Access Network (O-RAN) Market Report Coverage

Reasons to buy this report:

• The study includes market sizing and forecasting analysis validated by authenticated key industry experts.
• The report presents a quick review of overall industry performance at one glance.
• The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolios, expansion strategies, and recent developments.
• Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry.
• The study comprehensively covers the market across different segments.
• Deep dive regional level analysis of the industry.

Customization Options:

The global Open Radio Access Network (O-RAN) market can be customized further as per the requirement or any other market segment. Besides this, UMI understands that you may have your own business needs, hence feel free to connect with us to get a report that completely suits your requirements.

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Research Methodology

Research Methodology for the Open Radio Access Network (O-RAN) Market Analysis (2022-2032)

Analyzing the historical market, estimating the current market, and forecasting the future market of the global Open Radio Access Network (O-RAN) market were the three major steps undertaken to create and analyze the adoption of Open Radio Access Network (O-RAN) in major regions globally. Exhaustive secondary research was conducted to collect the historical market numbers and estimate the current market size. Secondly, to validate these insights, numerous findings and assumptions were taken into consideration. Moreover, exhaustive primary interviews were also conducted, with industry experts across the value chain of the global Open Radio Access Network (O-RAN) market. Post assumption and validation of market numbers through primary interviews, we employed a top-down/bottom-up approach to forecasting the complete market size. Thereafter, market breakdown and data triangulation methods were adopted to estimate and analyze the market size of segments and sub-segments of the industry. Detailed methodology is explained below:

Analysis of Historical Market Size

Step 1: In-Depth Study of Secondary Sources:

A detailed secondary study was conducted to obtain the historical market size of the Open Radio Access Network (O-RAN) market through company internal sources such as annual reports & financial statements, performance presentations, press releases, etc., and external sources including journals, news & articles, government publications, competitor publications, sector reports, third-party database, and other credible publications.

Step 2: Market Segmentation:

After obtaining the historical market size of the Open Radio Access Network (O-RAN) market, we conducted a detailed secondary analysis to gather historical market insights and share for different segments & sub-segments for major regions. Major segments are included in the report as components, connectivity technology, areas, and regions. Further country-level analyses were conducted to evaluate the overall adoption of testing models in that region.

Step 3: Factor Analysis:

After acquiring the historical market size of different segments and sub-segments, we conducted a detailed factor analysis to estimate the current market size of the Open Radio Access Network (O-RAN) market. Further, we conducted factor analysis using dependent and independent variables such as components, connectivity technology, areas, and regions of the Open Radio Access Network (O-RAN) market. A thorough analysis was conducted for demand and supply-side scenarios considering top partnerships, mergers and acquisitions, business expansion, and product launches in the Open Radio Access Network (O-RAN) market sector across the globe.

Current Market Size Estimate & Forecast

Current Market Sizing: Based on actionable insights from the above 3 steps, we arrived at the current market size, key players in the global Open Radio Access Network (O-RAN) market, and market shares of the segments. All the required percentage shares split and market breakdowns were determined using the above-mentioned secondary approach and were verified through primary interviews.

Estimation & Forecasting: For market estimation and forecast, weights were assigned to different factors including drivers & trends, restraints, and opportunities available for the stakeholders. After analyzing these factors, relevant forecasting techniques i.e., the top-down/bottom-up approach were applied to arrive at the market forecast for 2032 for different segments and sub-segments across the major markets globally. The research methodology adopted to estimate the market size encompasses:

• The industry’s market size, in terms of revenue (USD) and the adoption rate of the Open Radio Access Network (O-RAN) market across the major markets domestically
• All percentage shares, splits, and breakdowns of market segments and sub-segments
• Key players in the global Open Radio Access Network (O-RAN) market in terms of products offered. Also, the growth strategies adopted by these players to compete in the fast-growing market

Market Size and Share Validation

Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs) including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, Regional Head, Country Head, etc.) across major regions. Primary research findings were then summarized, and statistical analysis was performed to prove the stated hypothesis. Inputs from primary research were consolidated with secondary findings, hence turning information into actionable insights.

Split of Primary Participants in Different Regions

Market Engineering

The data triangulation technique was employed to complete the overall market estimation and to arrive at precise statistical numbers for each segment and sub-segment of the global Open Radio Access Network (O-RAN) market. Data was split into several segments and sub-segments after studying various parameters and trends in the components, connectivity technology, areas, and regions of the global Open Radio Access Network (O-RAN) market.

The main objective of the Global Open Radio Access Network (O-RAN) Market Study

The current & future market trends of the global Open Radio Access Network (O-RAN) market were pinpointed in the study. Investors can gain strategic insights to base their discretion for investments on the qualitative and quantitative analysis performed in the study. Current and future market trends determined the overall attractiveness of the market at a regional level, providing a platform for the industrial participant to exploit the untapped market to benefit from a first-mover advantage. Other quantitative goals of the studies include:

• Analyze the current and forecast market size of the Open Radio Access Network (O-RAN) market in terms of value (USD). Also, analyze the current and forecast market size of different segments and sub-segments.
• Segments in the study include areas of the components, connectivity technology, areas, and regions.
• Define and analyze the regulatory framework for the Open Radio Access Network (O-RAN)
• Analyze the value chain involved with the presence of various intermediaries, along with analyzing customer and competitor behaviors of the industry.
• Analyze the current and forecast market size of the Open Radio Access Network (O-RAN) market for the major region.
• Major countries of regions studied in the report include Asia Pacific, Europe, North America, and the Rest of the World
• Company profiles of the Open Radio Access Network (O-RAN) market and the growth strategies adopted by the market players to sustain the fast-growing market.
• Deep dive regional level analysis of the industry

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