The Market is Experiencing Transformational Growth due to Technology Maturation and Evolving Customer Needs
15-Nov-2024
Global
Market Research
KAE0-01-00-00-00
TE_2024_1126
The fifth generation of wireless technology (5G) has arrived and is being rolled out globally. 5G is possible because of the contributions of previous generations of wireless communications and a number of disruptive technologies, each of which must be understood at least at a high level to paint a full picture of the industry. This study centers on open and virtual radio access network (RAN); while this subject impacts all generations of cellular technologies, the primary focus will remain on 5G. A communication service provider (CSP) network requires many RANs to cover a city, state, or region compared to a relatively few core networks. Prior to the open and virtual RAN movement, 5 global suppliers (Ericsson, Huawei, Nokia, Samsung, and ZTE) accounted for more than 90% of the RAN market. Frost & Sullivan estimates that CSPs in 2021 invested nearly $60 billion in their mobile and wireless network infrastructure—on public networks of all generations. The majority of that spend was on the RAN, with a smaller spend on the transport and core networks. Historically, the network infrastructure market has grown at a low, single-digit rate. With the transition to 5G, the growth rate has been higher but is beginning to return to historical norms. Competition leads to innovation and lower prices, which is a primary driver for key members of the CSP community in the O-RAN Alliance. Lowering costs is important to CSPs because RAN expenses account for the largest percentage of their network cost. However, Frost & Sullivan thinks that additional innovation resulting from a higher level of competition will return higher dividends in the long term. Innovations have already come out of the O-RAN Alliance in their proposed architectural changes to the RAN that build upon 3GPP standards.
Author: Troy Morley
Growth Opportunities in the 5G Open and Virtual RAN Market
- Growth Opportunities in the 5G Open and Virtual RAN Market
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| Deliverable Type | Market Research |
|---|---|
| Author | Troy Morley |
| Industries | Telecom |
| No Index | No |
| Is Prebook | No |
| Keyword 1 | 5G Open Ran Market |
| Keyword 2 | Virtual Ran Trends |
| Keyword 3 | 5G Architecture Insights |
| Podcast | No |
| WIP Number | KAE0-01-00-00-00 |
5G Open and Virtual RAN Market, Global, 2024–2028
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