O-RAN Market Size, Share, Opportunities, And Trends By Technology (Massive MIMO, Non-Massive MIMO), By Spectrum Band (Sub-6 GHz, MmWave), By Architecture (CU, DU, RU, Others), And By Geography - Forecasts From 2024 To 2029

The O-RAN market is expected to grow at 33.75% (CAGR), thereby growing from US$1.347 billion in 2022 to US$10.312 billion in 2029.

GROWTH DRIVERS

• Lower Costs and easy installation is expected to accelerate O-RAN demand for 5G technology

Deployment of 5G technology has unfolded new paths for expanding network capacity and customer experience at a reasonable cost, and this can be achieved through an Open Radio Access Network (O-RAN) as it enables the diversification and expansion of the vendor ecosystem. Hene O-RAN allows operators to select cost-effective components and upgrades without causing vendor lock-ins. According to the “Open RAN Will Change The Future Of Telecom Industry” research report, O-RAN reduces the overall capital and operational costs by establishing a multifaceted network of vendors.

Growing 5G Deployment

Open RAN enhances 5G deployments by establishing a direct link between the main network and the user’s devices, thereby providing subscriber information and location. Hence, various partnerships, demonstrations & trials, and investments are being implemented to complement the 5G deployment. For instance,

• In February 2022, Juniper Networks formed a collaboration with Parallel Universe and Vodafone both of which are pioneers in O-RAN solutions. The collaboration aimed to conduct a multi-vendor RAN Intelligent Controller trial thereby addressing business challenges faced by mobile operators around viable revenue generation, personalized user experience, and reduction in OPEX and CAPEX for 5G & 4G services. The trial emphasized developing open and agile mobile data delivery in any software-driven O-RAN environment.

EMERGING OPPORTUNITIES IN THE GLOBAL O-RAN MARKET

• MASSIVE MIMO

Based on technology, the O-RAN market is divided into massive MIMO and Non-Massive MIMO, where the massive MIMO is expected to hold a considerable market share. This is due to the favorable investment and initiatives undertaken to bolster 5G network coverage. Massive MIMO ability offers improved throughput by serving multiple users at the same time frequency; thereby, it constitutes an integral part of the modern 5G network.

 DU

Based on architecture, the O-RAN market is analyzed into CU, DU, RU, and others. DU is estimated to hold a considerable market share and will poise for remarkable growth as the technology during baseband deployment supports lower stack such as medium access control (MAC), physical layer, and radio link control (RLC). The architecture is designed to meet the growing demand for improved mobile broadband services.

DU PRODUCT EXAMPLE

GLOBAL O-RAN MARKET GEOGRAPHICAL PRESENCE

The global O-RAN market consists of some major countries undertaking measures to secure their 5G network. Some major countries include the USA, Japan, South Korea, China, and Germany. The following are the key developments:

• In February 2023, Deutsche Telecom chose Mavenir, Fujitsu, and Nokia as partners for the commercial deployment of an O-RAN network that will support 4G and 5G services. O-RAN deployment forms an integral part of Deutsche’s strategy to facilitate customer-focused innovation and greater vendor diversity. Additionally, Mavenir was also the chosen partner in DT’s initial multi-vendor deployment in Europe starting in 2023.
• In July 2022, Nokia extended its partnership with the National Spectrum Consortium and Hill Air Force Base on the Dynamic Spectrum Sharing (DSS) to ensure that incumbent radar and 5G networks operate in the same spectrum. As per the partnership, Nokia would provide its O-RAN solution and Service Enablement Platform for phase 1 of the testing. The company has also developed a 5G test-bed solution that assists in ensuring the co-existence of DoD radar detection with a commercial 5G network.

MAJOR PLAYERS IN THE MARKET

Some of the leading players in the market include Fujitsu, NEC, Nokia, Samsung Qualcomm Technologies, and Ericsson. These firms have undertaken various business strategies such as product launches, investments, and partnerships to expand their product offerings. For instance,

• In February 2022, NEC Corporation launched 18 new radio units, which expanded the company’s open RAN RUs portfolio and would assist it in meeting the private and public demand for O-RAN. The new configurations included 4T4R, 8T8R, 32T32R, and 64T64R to NEC’s massive MIMO portfolio. Hence, this NEC technological breakthrough would bolster the global acceleration of 5G deployment.
• In February 2022, Qualcomm Technologies formed a collaboration with Fujitsu to commercialize next-generation 5G mmWave DUs and RUs and further drive the transition towards modern 5 G mobile infrastructure. The collaboration was done under NTT Docomo’s “5G OREC Initiative,” which aimed to streamline modern network deployment and reduce the total cost by offering virtualized, O-RAN complaint, and cloud-native 5G solutions.

O-RAN Market Scope:

The O-RAN market is segmented and analyzed as follows:

• By Technology
  • Massive MIMO
  • Non-Massive MIMO
• By Spectrum Band
  • Sub-6-Ghz
  • mmWave
• By Architecture
  • CU
  • DU
  • RU
  • Others
• By Geography
  • Americas
    • United States
    • Others
  • Europe, Middle East, and Africa
    • Germany
    • UK
    • Others
  • Asia Pacific
    • China
    • Japan
    • South Korea
    • Others