Cloud Radio Access Network (C-RAN) market size, share & industry analysis, By Component (Solution, Services), By Air Interface Technology (3G & LTE, 5G NR (New Radio)), By Technology (Centralization Technology, Virtualization Technology), By Deployment (Indoor, Outdoor), By Cell Size (Small Cells, Macrocells) and regional forecast 2023-2030

In recent years, there is tremendous growth in the amount of data traffic on mobile networks. According to Cisco’s Visual Networking Index, March 2019 report, global mobile traffic is estimated to reach an annual run rate of 930 exabytes. The report also states that average traffic per user is projected to be 13.3 GB per month by 2022. Hence, to meet these growing data traffic demands network operators are adopting cloud/centralized radio access network architecture (C-RAN). C-RAN primarily delivers two significant benefits including reduced capital expenditure & operating expenses, and enhanced user experience through less interference.

C-RAN is a novel architecture that leverages virtualization technology to handle as many base stations depending on the network requirement. The centralization and sharing of bands enable more dynamic traffic handling and better utilization of resources including the deployment of base stations. Macro and small cell both can benefit from C-RAN architecture. A centralized baseband unit (BBU’s) pool enables the effective utilization of baseband units (BBU’s) and optimizes the cost of base station operations and deployments. C-RAN also reduces power consumption and facilitates increased flexibility in network adaptability and upgrades to non-uniform traffic. These aspects are likely to surge the demand for cloud radio access network (C-RAN) solutions in the coming years.

The telecommunication industry making advancements towards fifth-generation wireless technology. The advent of 5G has led to the explosion of the amount of data traffic traversing the networks. C-RAN’s capabilities to reuse infrastructure, support multiple technologies, optimize energy consumption and lower Capex/Opex are expected to augment the market growth.

Key Market Driver -

Advent of Fifth Generation Wireless Technology to Drive the Market Growth

Key Market Restraint -

Lack of Confidentiality and Security Concerns in Terms of Trusted Parties and User Privacy to Retard the Market Growth.

5G deployments has fuelled the dense deployment of small cells. The dense deployment of small cells has led to co-channel interference that deteriorates the network performance.

. Centralized baseband unit (BBU) deployment offered by C-RAN poses the capability to overcome the co-channel interference by significantly improving the performance at scale. These aspects are likely to expand the market size. However, lack of confidentiality and security concerns in terms of trusted parties and user privacy to retard the market growth.

The outbreak of the COVID-19 pandemic is likely to drive the demand for a cloud radio access network (C-RAN). The spread of novel Coronavirus has surged the usage of online channels and services. The workforce is driving the need for the video-based conference, online healthcare consultations among others have led to tremendous data traffic. This is likely to drive the demand for seamless, low-latency cloud radio access networks.     

Key Players Covered:

The major companies in the global cloud radio access network (C-RAN) market report include Nokia Corporation, ZTE Corporation, Huawei Technologies Co. Ltd.,  Telefonaktiebolaget LM Ericsson, Cisco Systems, Inc., Altiostar, NEC Corporation, Intel Corporation, HRMavenir Systems, Inc., and others.

Regional Analysis:

North America is expected to hold a major market share in the global market. The key players in the region are introducing new 5G New radio (NR) solutions in the regional market. For instance, in June 2020 Altiostar and Mavenir collaborated to deliver a comprehensive product portfolio of OpenRAN principles specifically for the United States market. Such strategic collaborations and partnerships are likely to drive the market across the region.

Asia Pacific is likely to exhibit a remarkable market growth during the forecast period. The increasing adoption of Network Functions Virtualization (NFV), Software-Defined Networking (SDN) technologies is likely to support the market growth in the region. Market key players are making significant investments across Asia Pacific. The Cloud Collaboration Hub in Singapore creates robust, seamless, and fastest user experience. These factors are likely to support the market growth in the region.

Europe is likely to be a potential market for cloud radio access network (C-RAN) services. Growing 5G deployments is likely to drive the market growth across the region. For instance, in June 2020 Ericsson partnered with O2 UK. Through this partnership, Ericsson aims to deploy its 5G radio access network (RAN) solutions across the region. The Middle East and Africa is expected to hold unprecedented market opportunities in the coming years. Whereas, Latin America is likely to showcase a moderate growth during the forecast period. The COVID-19 pandemic has hampered the economic conditions in Latin American countries such as Brazil, Mexico, and Argentina which is likely to restrict the market growth in the region for a short time period.

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Segmentation

Cloud Radio Access Network (C-RAN)  Industry Developments

• In June 2020,  Nokia Corporation announced a 5G AirScale CloudRAN solution based on vRAN 2.0. The solution allows the operators to generate revenue from fifth-generation wireless services and enables end-to-end network slicing, address IoT requirements, and bring capabilities of cloud computing to the radio access network.


• In February 2018, Intel Corporation, Nokia Corporation, and Verizon Communications Inc. collaborated on cloud radio access network architectures to provide the flexibility required for 4G, 5G, and Internet of Things (IoT) in the cloud. Through this collaboration, the companies intend to combine Verizon's vRAN 1.0 architecture, Intel’s Xeon scalable processor family, and Nokia AirScale cloud base station server.