Industry Overview
The global cloud radio access network (C-RAN) market was valued at USD 8.8 billion in 2020, growing at a CAGR of 18.0% during the forecast period. Cloud radio access network (C-RAN) refers to the centralized/cloud radio access network and is the liaison between the core network and mobile phone users. Increasing the number of mobile phone users, adoption of cloud infrastructure across industries, competition among the mobile network providers for launching 5G networks are expected to boost the demand for low cost and vastly scalable C-RAN technology.
The major drivers in the market include accessibility to LTE and 5G networks, expense reduction measures taken by the mobile service providers in terms of capital and operational expenditure, growing technological advancements in optical communications and wireless technologies. The C-RAN technology acts as the low-cost transmission module for the data transmission between Remote Radio Head and Base Band Unit. Moreover, the introduction of real-time virtualization technology consents dynamic resource allocation and supports multi-vendor environments.
Market Segmentation
Insight by Architecture Type
On the basis of architecture type, the cloud radio access network (C-RAN) market is segmented into centralized-RAN and cloud/virtualized RAN. Owing to the technological advancements in wireless, optical, and other communication systems, centralized-RAN architecture maintains the dominant position. However, the cloud or virtualized RAN is expected to grow at a faster pace considering the increase in adoption of software-defined networking (SDN) technology and network function virtualization (NFV) technology by the telecommunication industry. Moreover, NFV technology is expected to be the prominent solution to boosting bandwidth requirements for 5G carriers. The utilization of SDN technology further boosts the signaling between cells and also optimizes the resources for the betterment of end user experience.
Insight by Component
On the basis of component, the C-RAN market is categorized into infrastructure, software, and services. Among these components, the infrastructure segment accounted for the largest share in C-RAN market in 2019, owing to the increasing adoption of radio technology and architecture to meet the 5G requirements.
Insight by Deployment Model
On the basis of deployment model, the C-RAN market is segmented into indoor and outdoor. The outdoor segment constitutes the largest market share in C-RAN market in 2020. This deployment provides improved network coverage in high-density usage areas such as stadiums, shopping malls and so on.
Industry Dynamics
Industry Trends
Strategic partnerships and utilization of C-RAN across network types are the major trends in the market. The companies operating in the global C-RAN market are focusing on partnerships with mobile network providers to gain a competitive advantage. In 2019, Cisco announced its partnership with VodafoneZiggo for the implementation of the RAN automation strategy.
Growth Drivers
The increasing investments in LTE and 5G technologies are expected to boost the cloud radio access network market. The advantages provided by the C-RAN technology include separation module for baseband and radio base stations that are further consolidated to provide Base Band Units (BBUs) which makes it more suitable for LTE and 5G technologies. Furthermore, the energy efficiency features further drives the C-RAN market.
Challenges
The differentiation in terms of regulatory frameworks across key countries acts as a challenge for the C-RAN market. Further, limited awareness within the mobile service providers complements further challenges for the C-RAN market.
Opportunities
The increased adoption of cloud technologies and telecom operators’ innovations in terms of service offerings acts as opportunities for C-RAN providers for service expansions. The C-RAN vendors are investing in process improvements to ensure improved efficiencies for the network providers.
Geographic Overview
Geographically, North America held the largest share in the global cloud radio access network (C-RAN) market in 2020, owing to the high adoption rates. Besides, the region is connected with complex networks across the industries in diverse verticals, this will further upsurge the growth of the C-RAN market in years to come.
Further, Europe and APAC hold the second and third largest share in the global C-RAN market share respectively, due to the growing mobile users, and the increasing deployment of cloud and 5G technologies across industries, this as result is also creating a positive impact on the market growth globally.
Competitive Insight
Key players in the global C-RAN market are regularly focusing on new product development, partnerships, and collaborations to sustain and attain a competitive edge in the market. Further, mergers & acquisitions are other key strategies adopted by the players in the ecosystem. For instance, in 2019, Rakuten announced a strategic partnership with Altiostar to enhance its product portfolio across LTE and 5G technologies.
Some of the key players operating in the global cloud radio access network (C-RAN) market are Nokia Corp, Cisco Systems, Inc., Samsung Electronics Co Ltd, ZTE Corp, Altiostar, Telefonaktiebolaget LM Ericsson, NEC Corporation, Huawei Technologies Co., Ltd., Fujitsu, Intel Corporation, and ASOCS Ltd.
Primary Research
VynZ Research conducts extensive primary research to understand the market dynamics, validate market data and have key opinions from the industry experts. The key profiles approached within the industry includes, CEO, CFO, CTO, President, Vice President, Product Managers, Regional Heads and Others. Also, end user surveys comprising of consumers are also conducted to understand consumer behaviour.
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Source: VynZ Research
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Source: VynZ Research
