The cloud RAN market is evaluated at US$605.835 million for the year 2019 and is projected to grow at a CAGR of 15.39% to reach the market size of US$1,650.182 million by the year 2026.
The Cloud Radio Access Network (C-RAN) is a cloud-based architecture for cellular networks. It's usually a radio access network that supports 2G, 3G, and 4G wireless communication protocols, as well as additional upcoming wireless communication standards. It provides high dependability, low latency, great bandwidth, and cheap cost to the customer. The C-RAN technology is widely used in optical and IT communication systems, as well as wireless technology and other fields. The four "C's" in the C-RAN system's key qualities, "Clean, Centralized Processing, Collaborative Radio, and a real-time Cloud Radio Access Network," inspired the name.
Over the forecast years, the Cloud Radio Access Network (C-Ran) Market is anticipated to be driven by the rapid increase in capital investment and reductions in operational expense. Additionally, as wireless and communications technology advances, 4G and 5G accessibility increases, implying a good outlook for industry development. Furthermore, the rising need for energy-efficient and cost-effective power supplies, as well as increased network congestion due to the widespread use of smart devices and restricted spectrum availability, are expected to drive market demand throughout the predicted period. High implementation costs, security concerns, and government restrictions are all likely to serve as commercial constraints.
The development of 5G technology to drive the market growth.
As the demand for capacity grows due to increased internet data traffic, 5G promises to triple the speed of data transfer over 4G/LTE. The improvement of mobile broadband services is the primary use case driving the development of 5G. Through virtualized containers, the network capabilities of wireless base stations may be more readily opened with C-RAN. The capability opening function of the C-RAN will continue to grow from basic APIs to sophisticated, scenario-based, and Internetized APIs. Mobile data transport systems are assessed based on features such as agility, time to market, cost-effectiveness, operational & architectural simplicity, expandability, and adaptability. Power consumption and physical size are also significant issues in the creation of new network design, electricity, and space as are pricey and limited resources at base station sites.
Inclining use in high-traffic locations to augment the market size.
Increased use of C-RAN technology in high-traffic locations such as stadiums, auditoriums, and city squares to increase network efficiency will drive the global C-RAN market forward during the projected period. C-RAN technology is in high demand for a variety of reasons, including lower power costs, variable traffic, increased capacity, and improved spectral efficiency.
Increased adoption of support services to aid market expansion.
Support services are critical to the efficient operation of software and solutions that are installed centrally or in the cloud. Functional, technical, and database support are examples of services that organizations provide to end consumers during installation and maintenance. These services also help clients manage security, risk, and compliance more effectively. Vendors provide a variety of support packages, such as basic and extended support, to cater to specific client requirements. Bug patches, updates, and upgrades on licensed software are examples of software maintenance.
Favourable large-scale structural benefits contribute to market growth.
The market is growing due to the increasing use of centralized baseband technology to improve network performance in traffic hotspots such as workplaces, stadiums, city squares, and commuter hubs with high population density per wireless network node. Furthermore, a high rate of adoption of virtual/Cloud-RAN technology for decreasing mobile network operators' capital expenditures through the use of Network Function Virtualization (NFV) is projected to boost network demand.
Government regulations regarding security requirements to restrain market development.
One of the key restraints on the market's growth is likely to be government rules requiring compliance with security requirements. The benefits of C-RAN technology, such as the capacity to pool resources, simplify network operations and administration, support various technologies, minimize energy consumption, and reuse infrastructure, will provide several possibilities for the market over the projected period.
In 2019, Asia Pacific was the most important geographic sector for C-RAN technology, with the highest market share, followed by North America. Growth is projected to be fueled by factors such as the increasing deployment of C-RAN architecture as part of a push to commercialize 5G in countries such as China, Japan, and South Korea. Furthermore, in April 2019, South Korean mobile carriers and service providers declared that the cost of developing a 5G infrastructure will be split among them. Furthermore, the South Korean government is assisting these network operators in bringing 5G technology to market sooner.
North America is the second-largest market for C-RAN deployment, as the United States is one of the key countries pursuing aggressive 5G implementation plans in the future years to improve the performance of IoT, autonomous cars, and other sophisticated technologies. To establish the framework for 5G, network operators in the region are investing heavily and undertaking trials of C-RAN architecture throughout key cities in the United States.
|Market size value in 2019||US$605.835 million|
|Market size value in 2026||US$1,650.182 million|
|Growth Rate||CAGR of 15.39% from 2019 to 2026|
|Forecast Unit (Value)||USD Million|
|Segments covered||Components, Services, And Geography|
|Regions covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies covered||Nokia Corporation, ZTE Corporation, Cisco Systems, NEC Corporation, Intel Corporation, Ericsson Inc., Huawei Technologies Co. Ltd., Ceragon Networks, Samsung, Fujitsu Ltd.|
|Customization scope||Free report customization with purchase|
Frequently Asked Questions (FAQs)
Q1. What is the size of the global cloud radio access network (C-Ran) market?
A1. Cloud Radio Access Network (C-RAN) Market was valued at US$605.835 million in the year 2019.
Q2. What will be the cloud radio access network market size by 2026?
A2. The global cloud radio access network market is projected to reach a market size of US$1,650.182 million by 2026.
Q3. What are the growth prospects for the cloud radio access network market?
A3. The cloud radio access network (C-Ran) market is projected to grow at a CAGR of 15.39% over the forecast period.
Q4. What factors are anticipated to drive the cloud radio access network market growth?
A4. The development of 5G technology to drive the cloud radio access network (C-Ran) market growth.
Q5. Which region holds the maximum market share of the cloud radio access network market?
A5. Asia Pacific holds the largest share of the cloud radio access network market owing to the increasing deployment of C-RAN architecture as part of a push to commercialize 5G in countries such as China, Japan, and South Korea.
Huawei Technologies Co. Ltd.
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