The V-RAN market is expected to grow to US$4,991.077 billion in 2029 from US$824.949 billion in 2022 at a CAGR of 29.32%.
GROWTH DRIVERS
Virtualized radio access network (vRAN) is based on a future-proof approach. It satisfies the evolving network technology needs by reducing the OPEX and CAPEX operational and capital costs associated with network operations, deployment, and operation. It allows network functions from multiple vendors to run on the same hardware, thereby granting the service provider higher flexibility.
The growing transition towards high-speed scalable networks, especially in urban areas, is driving the demand for vRAN architecture. Hence, various strategic collaborations and trials are being implemented. For instance, in February 2024, Ericsson, in collaboration with e& UAE, conducted a cloud RAN trial in UAE, which relied on a 5G non-standalone solution that was deployed on massive MIMO radio. The trial aligned with the Cloud RAN MOU signed between the two companies and aimed to create USE’s interest in virtualization technologies for the 5G network.
vRAN establishes an end-to-end single uniform platform for multiple vendors that can provide them with substantial advantages across the core network, CU, DU, and edge applications such as mobile edge computing, thereby increasing the synergies and an improved return on investment for vRAN.
The key market players are investing to make their product offerings comprehensive to meet the diverse consumer range. For instance, in February 2024, Samsung Electronics formed a collaboration with Wind River and Juniper Network to develop a virtual cell site router (vCSR) that would enable operators to operate their networks on end-to-end virtualization. The solution further ensures sustainability, flexibility, and time to market for new service introduction.
Software-based virtualized cloud technology offers higher scalability and flexibility in terms of speed and network deployment, enabling operators to add new features and deploy them to a system as needed. Moreover, vRAN can adapt to network changes by enabling the admin to apply for continuous updates, thereby scaling and de-scaling the network resources as per the changing demand.
Additionally, the software upgrade has minimized the reliance on proprietary hardware, thereby providing a new approach to software and hardware integration. Likewise, cloud-native vRAN solutions simplify maintenance by enabling the monitoring of key performance indicators
Virtualized radio access network (vRAN) simplifies overall network management by integrating the uniform hardware, RAN, edge, and core network in a single platform, lowering the total operating and maintenance costs. Hence, companies are investing in enhancing their virtualized infrastructure that would segregate network operations from processing hardware thereby assisting the end-users or service providers in saving money on network maintenance.
Companies are investing in innovations, in February 2023, Fujitsu launched its new “5G vRAN” solution, which integrates the company’s virtualized CU and virtualized DU with NVIDIA’s GPU technology. The new product was developed under the “5G Open RAN Ecosystem” and would be used to process virtual base station and edge applications in an all-in-one configuration. The official availability was announced in March 2023 globally.
Furthermore, according to Samsung’s white paper, a centralized RAN deployment-based vRAN is more economical than D-RAN as it reduces the OPEX cost by 25% and overall TCO reduction by 13%. Hence, vRAN architecture displays a new approach for enhancing the C-RAN flexibility by virtualizing the baseband’s functions.
EMERGING OPPORTUNITIES IN THE GLOBAL V-RAN MARKET
Based on architecture, the V-RAN market is divided into CU, DU, and RU. DU will constitute a significant share and is anticipated to grow at a constant rate, fueled by its high applicability in lower-level interfaces where it offers faster network performance and enhanced user experience and optimizes critical tasks related to network processing.
DU PRODUCT EXAMPLE
|
COMPANY NAME |
PRODUCT |
DESCRIPTION |
|
Ericsson |
Cloud RAN |
Ericsson’s “Cloud Radio Access Network” is a cloud-native 5G solution that handles compute functionality and is ideal for communication service providers. The solution offers highly scalable software for a cloud environment and can run on any commercial off-the-shelf hardware. |
GLOBAL V-RAN MARKET GEOGRAPHICAL PRESENCE
Geographically, the V-RAN market comprises some major nations, namely the United States, China, South Korea, Japan, and Germany. These countries are witnessing a significant rise in demand for high-speed network access, which has led to the implementation of various investments and strategic maneuvers. Additionally, the market players are also showing active participation in vRAN deployment and product developments, with a couple of them listed below:
MAJOR PLAYERS IN THE MARKET
Some of the leading players in the market include Ericsson, Verizon, and Samsung. These firms have undertaken various business strategies such as product launches, investments, and partnerships to expand their product offerings. For instance,
| Report Metric | Details |
|---|---|
| Study Period | 2021 to 2031 |
| Historical Data | 2021 to 2024 |
| Base Year | 2025 |
| Forecast Period | 2026 – 2031 |
| Report Metric | Details |
| Market Size Value in 2022 | US$824.949 billion |
| Market Size Value in 2029 | US$4,991.077 billion |
| Growth Rate | CAGR of 29.32% from 2022 to 2029 |
| Study Period | 2019 to 2029 |
| Historical Data | 2019 to 2022 |
| Base Year | 2023 |
| Forecast Period | 2024 – 2029 |
| Forecast Unit (Value) | USD Billion |
| Segments Covered |
|
| Companies Covered |
|
| Regions Covered | North America, South America, Europe, Middle East and Africa, Asia Pacific |
| Customization Scope | Free report customization with purchase |
The V-RAN market is segmented and analyzed as follows: