Conventional radio access networks are designed for static configuration and are deployed statically. As a result, they are inefficient in dealing with any spatiotemporal changes in the underlying traffic demand. Cloud radio access network (C-RAN) is a unique centralized solution based on software and virtualization technology that may effectively handle the difficulties of older networks. Cloud-RAN enables high data speeds as well as great network and radio adaptability over software-defined wireless networks. As base stations are virtualized rather than physically placed in different places, such architecture has the potential to save costs. In addition, compared to traditional networks, it consumes less energy and power.
However, the advantages of a C-RAN come at a cost. C-RAN architectures necessitate fronthaul networks, which have substantially higher bandwidth requirements than standard backhaul networks. The current 4G networks use 1 GbE for backhaul. Backhaul link rates will need to be increased to 10 GbE for 5G. Fronthaul with multiple RF carriers or radios at a cell site will result in larger bandwidth requirements as carriers and carrier bandwidth increase, culminating in the transition from 10 GbE to 100 GbE fronthaul connections, which adds significant cost.
The 5G cellular network is being developed as a result of the upsurge in mobile traffic. It will manage the expected monthly global mobile data traffic, which was predicted to exceed 30.6 exabytes, by increasing the system rate approximately 1000 times higher than the current systems. The vast installation of distant antenna units will result in a significant increase in the power consumption demand due to the reduction of cell sizes necessary to meet this high bandwidth requirement. C-RAN techniques are being looked into as a 5G fronthauling option to decrease this effect, tenable sustainable expansion, and narrow the geographic dispersion of maintenance sites..
Additionally, future 5G-based RAU (Remote Acquisition Unit) power requirements can be drastically lowered, especially if analog radio over fiber mobile fronthaul is taken into account, where processing is done at the Central Office. This upcoming 5G technology opens up new application niches for power-over-fiber technology, where low-power simplified antenna units are required as part of future 5G-based RAUs, along with various energy-saving techniques to reduce the impact of the power consumption of the remote antenna units, including the capacity of shifting some RAUs into sleep mode, with overall energy savings estimates of more than 30%. These factors are estimated to boost the C-RAN market share.
The spread of COVID-19 has slowed the development of 5G infrastructure. The pandemic has caused factories to close their operations, which has hampered the production of equipment needed to develop 5G infrastructure. Because investments were made prior to the pandemic outbreak, 5G technology is expected to gain traction. In addition, the COVID-19 lockdown caused many to stay home, and working from home has become the new normal. With an increase in number of business operations moving online and a significant growth in the number of individuals working from home, indoor deployment of the C-RAN architecture is expected to gain acceptance.
The key players profiled in this report include FUJITSU, ZTE Corporation., Intel Corporation, Telefonaktiebolaget LM Ericsson, Cisco Systems, Inc., Huawei Technologies Co., Ltd., ASOCS Ltd., SAMSUNG, NEC Corporation, and Nokia.
Key Benefits For Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the cloud ran market analysis from 2021 to 2031 to identify the prevailing cloud ran market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the cloud ran market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global cloud ran market trends, key players, market segments, application areas, and market growth strategies.
Key Market Segments
By Type
- Virtualized/Cloud RAN
- Centralized-RAN
By Component
- Solutions
- Services
By Network Type
- 3G
- 4G
- 5G
By Deployment
- Outdoor
- Indoor
By Region
- North America
- U.S.
- Canada
- Mexico
- Europe
- Germany
- UK
- France
- Spain
- Italy
- Rest Of Europe
- Asia-Pacific
- China
- Japan
- India
- South Korea
- Australia
- Rest Of Asia-Pacific
- LAMEA
- Brazil
- Saudi Arabia
- UAE
- South Africa
- Rest Of Europe
Key Market Players
- Huawei Technologies Co., Ltd.
- Nokia Corporation
- ERICSSON
- SAMSUNG
- ZTE Corporation
- Altiostar
- ASOCS Ltd
- NEC Corporation.
- Fujitsu Ltd.
- Cisco Systems Inc.
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Table of Contents
Executive Summary
According to the report titled, “Cloud RAN Market," the cloud ran market was valued at $11.1 billion in 2021, and is estimated to reach $85.9 billion by 2031, growing at a CAGR of 23.4% from 2022 to 2031.The C-RAN (cloud radio access network) is an architecture for radio access networks (RANs) based on centralized cloud computing that offers real-time virtualization and collaborative radio technology support. It is a wireless communication system expansion that uses the most modern common public radio interface (CPRI) standard, coarse or dense wavelength division multiplexing technology, and millimeter wave (MM wave) transmission for long-distance transmissions. Future wireless technology advancements, such as 5G and the Internet of Things, depend on C-RANs.
Key factors driving the growth of the C-RAN market include the rising demand for capacity grows as internet data traffic increases, 5G promises to quadruple data transfer speed over 4G/LTE. The primary application reason driving the development of 5G is the enhancement of mobile broadband services. The network capabilities of wireless base stations may be more easily opened with C-RAN using virtualized containers. The capability opening function of the C-RAN will continue to evolve from basic APIs to sophisticated, scenario-based, and Internalized application programming interference. Mobile data transport solutions are evaluated based on characteristics such as agility, time to market, cost-effectiveness, operational and architectural simplicity, expandability, and flexibility. Power consumption and physical size are also key concerns in the development of new network designs, electricity, and space, as well as expensive and limited resources at the base.
The rollout of 5G mobile communications has significantly altered society and business. In comparison to previous cellular generations, 5G provides much higher peak data speeds that are available virtually anywhere and at any time. Despite the fact that mobile broadband services are now widely available, 5G promises the next level of human connectedness and human-to-human interaction, including widespread adoption of virtual or augmented reality, free perspective video, and telepresence. To boost 5G capabilities, three key service types have been proposed: improved mobile broadband (eMBB), massive-machine type communications (mMTC), and ultra-reliable low latency communication (uRLLC). The upgraded mobile broadband service, which employs 5G, offers faster connections, greater throughput, and more capacity than 4G LTE mobile broadband service. Cities, stadiums, and other busy areas will gain as a result. The network, on the other hand, is supposed to be used for mission-critical applications and services that require continuous and dependable data transport. Short packet data transmission is used in this case to meet the needs of trustworthy and low-latency wireless communication networks. Also, it is expected that gigantic machine-type communications would be employed to connect a range of devices, particularly the numerous connected IoT devices. These variables are expected to boost global C-RAN.
The C-RAN market is segmented into type, application, and region. On the basis of type, the market is categorized into centralized-ran and virtualized/cloud RAN. On the basis of components, it is categorized into solutions and services. On the basis of network type, it is categorized into 3G, 4G, and 5G. On the basis of deployment type, it is categorized into outdoor and indoor. Region-wise, it is analyzed across North America (the U.S., Canada, and Mexico), Europe (the UK, Germany, France, Italy, Spain, and rest of Europe), Asia-Pacific (China, India, Japan, Australia, and the rest of Asia-Pacific), and LAMEA (Brazil, Saudi Arabia, UAE, South Africa, and rest of LAMEA).
The key players profiled in the study include FUJITSU, ZTE Corporation., Intel Corporation, Telefonaktiebolaget LM Ericsson, Cisco Systems, Inc., Huawei Technologies Co., Ltd., ASOCS Ltd., SAMSUNG, NEC Corporation, and Nokia. The players in the market have been actively engaged in the adoption of various strategies such as acquisition, product launch, and expansion to remain competitive and gain an advantage over the competitors in the market. For instance, in December 2022, Telstra and Ericsson launched the first Ericsson Cloud RAN 5G data call on Telstra's commercial network. Telstra's centralized Cloud RAN architecture is made possible by the recently announced world-first commercial network deployment of Ericsson's industry-leading packet fronthaul technology based on the Ericsson Router 6673. Packet fronthaul technology connects existing site radios to the centralized Cloud RAN solution via eCPRI (enhanced CPRI).
Key Market Insights
- Based on type, the Centralized-RAN sub-segment emerged as the global leader in 2021 and Virtualized/Cloud RAN sub-segment is anticipated to be the fastest-growing sub-segment during the forecast period
- Based on components, the solutions sub-segment emerged as the global leader in 2021, and the services sub-segment is anticipated to be the fastest-growing sub-segment during the forecast period
- Based on network type, the 4G sub-segment emerged as the global leader in 2021 and 5G sub-segment is anticipated to be fastest growing sub-segment during the forecast period
- Based on deployment, the outdoor sub-segment emerged as the global leader in 2021 and the indoor sub-segment is anticipated to be fastest growing sub-segment during the forecast period.
- Based on region, the North America market registered the highest market share in 2021 and is projected to maintain the position during the forecast period.
Companies Mentioned
- Huawei Technologies Co., Ltd.
- Nokia Corporation
- ERICSSON
- SAMSUNG
- ZTE Corporation
- Altiostar
- ASOCS Ltd
- NEC Corporation.
- Fujitsu Ltd.
- Cisco Systems Inc.
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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