Open Radio Access Network (Open RAN) Market Size, Share, Analysis, Trends, Growth, 2032

Open Radio Access Network (Open RAN) Industry Prospective:

The global open radio access network (Open RAN) market size was evaluated at $1,670 million in 2023 and is slated to hit $2,002 million by the end of 2032 with a CAGR of nearly 16% between 2024 and 2032.

Request Free Sample   

Open Radio Access Network (Open RAN) Market: Overview

Open radio access network (Open RNA) is an approach to designing mobile networks that emphasizes interoperability and flexibility. It is built on standard interfaces and open-source principles. For the record, it is used in the installation of radio access network infrastructure in the telecom sector. Moreover, it is an interoperable and competitive ecosystem. The key features of Open RAN include virtualization, disaggregation, and intelligence.

Key Insights

• As per the analysis shared by our research analyst, the global open radio access network (Open RAN) market is projected to expand annually at the annual growth rate of around 16% over the forecast timespan (2024-2032)
• In terms of revenue, the global open radio access network (Open RAN) market size was evaluated at nearly $1,670 million in 2023 and is expected to reach $2,002 million by 2032.
• The global open radio access network (Open RAN) market is anticipated to grow rapidly over the forecast timespan owing to improved efficiency, a surge in flexibility, and innovations, which are a few of the beneficial features of open RAN.
• In terms of deployment, the hybrid cloud segment is slated to register the highest CAGR over the forecast period.
• Based on network, the 4G segment is predicted to contribute majorly towards the global industry elevation in the upcoming years.
• On the basis of component, the hardware segment is slated to register the fastest annual growth rate over the forecast timeline.
• In terms of frequency, the sub-6 GHz segment is slated to register the humungous growth in the forecast timespan.
• Region-wise, the Asia-Pacific open radio access network (Open RAN) industry is projected to register the fastest CAGR during the projected timeframe.

Request Free Sample

Open Radio Access Network (Open RAN) Market: Growth Factors

A surge in the installation of 5G networking systems to help the global market hit new heights of growth in the coming years

Improved efficiency, a surge in flexibility, and innovations are a few of the beneficial features of open RAN that will uplift the growth of the global open radio access network (Open RAN) market. Additionally, the focus of firms on reducing costs for mobile operators and the use of AI tools by open RAN will proliferate the size of the market globally. An increase in the deployment of 5G networks and the modernization of mobile network systems are likely to prop up the expansion of the market globally. Government support and changes in government policies have facilitated the use of Open RAN in recent years. Launching the smart city concept and the demand for mobile data have further cumulated the growth of the global market. Ability of Open RAN in providing network slicing has helped mobile service providers in offering personalized as well as customized network solutions to the end-users, thereby escalating the elevation of the market space globally.

Open Radio Access Network (Open RAN) Market: Restraints

Risks of Open RAN to vigilance & security violations can hinder the global industry surge by 2032

Seamless interoperability functionalities between a slew of components have proved to be complex and cumbersome for testing purposes, thereby obstructing the expansion of the global open radio access network (Open RAN) industry. Furthermore, Open RAN is susceptible to security breaches, thereby reducing its demand across various business verticals.

Open Radio Access Network (Open RAN) Market: Opportunities

Need for lower operational costs and funding to open a spate of new avenues for global market progression over forecast period

Fewer requirements of capital spending and low operating costs for mobile service providers have resulted in large-scale penetration of Open RAN across the globe, thereby creating new growth dimensions for the open radio access network (Open RAN) market across the globe. Reportedly, Open RAN includes advanced security features, offering protection against cyber-threats along with assuring data confidentiality. Synchronization of edge computing with open RAN will help the latter explore new avenues for low-latency applications, thereby spurring the expansion of the market globally.

Open Radio Access Network (Open RAN) Market: Challenges

Necessity of allocating massive funds to open RAN development programs can create obstacles in the growth path of the global industry

Upgrading from conventional RAN infrastructure to open RAN can incur huge costs, posing a big challenge to the growth of the global open radio access network (Open RAN) industry. Growing need for investing in training & development projects is anticipated to embellish the expansion of the industry globally.

Open Radio Access Network (Open RAN) Market: Segmentation

The global open radio access network (Open RAN) market is divided into deployment, network, component, frequency, and region.                                          

In terms of deployment, the open radio access network market across the globe is bifurcated into public cloud, hybrid cloud, and private cloud segments. Additionally, the hybrid cloud segment, which gained nearly 40% of the global market share in 2023, is expected to record the highest gains during the coming years due to the ability of hybrid cloud deployment of open RAN in enhancing the performance of open RAN along with reducing costs of deploying it.  

Based on the network, the global open radio access network industry is divided into 5G and 4G segments. Furthermore, the 4G segment, which accrued about half of the global industry proceeds in 2023, is predicted to account notably for the global industry expansion in the coming couple of years. This can be a result of the rapid maturation of 4G networks along with the wide use of 4G & setting up of strong & cost-effective infrastructure for 4G network deployment in emerging countries.

In terms of component, the open radio access network market across the globe is sectored into hardware, software, and services segments. In addition to this, the hardware segment, which gained nearly 33% of the global market earnings in 2023, is likely to record the fastest growth rate during the coming eight years due to large-scale demand and use of hardware components such as virtualized RAN servers, baseband units, and remote radio units.

On the basis of frequency, the global open radio access network industry is segmented into mmWave and sub-6 GHz segments. Moreover, the sub-6 GHz segment, which led the segmental space in 2023, will record exemplary growth in the upcoming years due to the growing use of sub-6 GHz in expanding network coverage and penetrating the rural economies globally.

Open Radio Access Network (Open RAN) Market: Report Scope

Open Radio Access Network (Open RAN) Market: Regional Insights

North America is forecast to maintain leadership status in the global market in the coming years

North America, which led the global open radio access network (Open RAN) market share in 2023, is expected to establish a unique position in the worldwide market in the next few years. In addition to this, the regional market expansion in the next eight years can be attributed to the large-scale presence of key players in countries such as Canada and the U.S. Furthermore, a surge in the funding of telecommunications network expansion will propel the regional market expansion in the ensuing years.

The Asia-Pacific open radio access network (Open RAN) industry is slated to record the highest gains annually in the coming seven years. The expansion of the industry in the APAC region can be due to the escalating expansion of telecom networks along with supportive government policies in countries such as South Korea, Taiwan, China, and India.

Key Developments

• In February 2024, Vodafone Idea launched a pilot deployment of commercial Open RAN systems by joining hands with Mavenir, a key service provider of open RAN systems.
• In July 2024, EchoStar introduced an open RAN testing & assessment laboratory in Wyoming in the U.S. For the record, the new lab can validate open RAN solutions using the open RAN network of EchoStar.
• In November 2023, Ericsson introduced new RAN centers for installing open RAN for expanding its RAN computing portfolio.

Open Radio Access Network (Open RAN) Market: Competitive Space

The global open radio access network (Open RAN) market profiles key players such as:

• Radisys Corp.
• Mavenir
• AT&T Inc.
• NEC Corp.
• Fujitsu Ltd.
• Nokia Corp.
• ZTE Corp.
• Samsung Electronics Co. Ltd.
• Parallel Wireless
• Huawei Technologies Co. Ltd.

The global open radio access network (Open RAN) market is segmented as follows:

By Deployment

• Public Cloud
• Hybrid Cloud
• Private Cloud

By Network

• 5G
• 4G

By Component

• Services
• Hardware
• Software

By Frequency

• mmWave
• Sub-6 GHz

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa