5G Radio Access Network Market Size, Share & Trends Analysis Report By Component (Hardware, Software, Services), By Architecture Type, By Deployment, By End-user, By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global 5G radio access network market size was valued at USD 12,466.4 million in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 18.4% from 2023 to 2030. The increasing demand for low latency bandwidth connection and increased focus on research and development activities by key organizations are some of the factors fueling the market growth. Moreover, the robust deployment of a 5G radio access network (RAN) with several small cells and macrocell base stations worldwide is propelling the growth of the market during the forecast period.

The trend of deploying centralized RAN and virtual RAN (VRAN) is rapidly increasing among mobile network operators (MNOs) and network service providers to reduce overall infrastructure costs and network complexities. Furthermore, the RAN enables enterprises and mobile network operators utilizing private 4G or private 5G to offer network slicing solutions assigning capacities to individual enterprises to split network usage within a public mobile network. The industry is expanding at a tremendous growth rate owing to technological innovations coupled with users’ inclination towards 5G RAN solutions.

Radio access networks comprise wireless telecommunications systems, including antennas and base stations, to provide high performing 5G network solutions. It utilizes 5G radio frequency division duplex (FDD) frequencies to connect individual devices through radio connections providing wireless connectivity.

RAN encompasses different types, viz. evolved universal terrestrial RAN (E-UTRAN), Universal Radio Access Network (UTRAN), Virtualized Radio Access Network (VRAN), and Open Radio Access Network (ORAN), among others. The RAN base stations within a public mobile network are connected to a public mobile core network through microwave or fiber cables to aggregate signals. The latest RANs offer controllers utilizing software-defined networks (SDN), allowing them to control cellular device capacity and coverage.

This high market size is attributable to the growing deployment of private 5G radio access networks and core equipment across several use cases. These use cases include smart cities, remote surgeries, enterprises, wireless cameras, industrial robotics, and autonomous vehicles. Rapidly evolving RAN technologies have enabled several key telecom operators and end-use customers to deploy the virtualized network to diminish overall operating expenses.

Also, several market players such as Qualcomm Technologies, Inc., Nokia, Verizon, and Cisco Systems, Inc., among others, are significantly focused on providing RAN solutions for private 5G networks, which help clients to transform their existing legacy network infrastructure into the next generation 5G network.

For instance, in October 2022, Qualcomm Technologies, Inc. announced a collaboration with Vodafone Group to develop and integrate next-generation 5G radio units and distributed units with massive multiple-input multiple-output capabilities. The companies are also developing 5G ORAN infrastructure solutions powered by Qualcomm QRU100 5G radio access network platform and Qualcomm X100 5G RAN accelerator card.

COVID-19 Impact Analysis

The outbreak of COVID-19 has significantly impacted the global economy and, subsequently, 5G roll-out and RAN deployments. During 2020, there was a notable decline in the imports and exports of hardware equipment from key countries such as the U.S., China, and other key European countries. Therefore, it further hindered the worldwide deployment process of the next-generation network infrastructure.

The growth of the market was also impeded due to security concerns in maintaining network data, operational continuity, and new traffic patterns. Due to strict lockdown restrictions, the investments and research & development activities by the government and prominent organizations plummeted, causing disruptions in 5G-related trials, spectrum auctions, network automation, orchestration, network function virtualization, and cloud adoption in many countries.

Furthermore, the emerging use cases for 5G enabled applications to be efficient during COVID-19. 5G enabled the smooth functioning of telehealth/medicine, work-from-home, distance learning, online retail, and e-commerce. It also enabled telephone/video consultations, remote monitoring in hospitals, real-time communication, video conferencing for the working class, virtual education, and interactive & immersive in-store experience.

Moreover, high reliability, extended coverage, ultra-low latency, efficient data transmission, and low cost associated with 5G services and solutions fueled the growth of the market. The aforementioned use cases & benefits reshaped consumer behavior trends, resuming the 5G roll-out & deployments in developed countries and accelerating the adoption of 5G in developing countries.

Component Insights

In terms of components, the market is classified into hardware, software, services, and others. The hardware segment dominated the overall market, gaining a market share of more than 62% in 2022 and witnessing a CAGR of 16.2% during the forecast period. The hardware segment is further categorized into antennas, radio units, baseband units, and others. The radio access network antenna systems are based on different frequency ranges that provide increased data-carrying capacity, better coverage, and reduced interference.

Antenna systems are designed to receive transmissions from user equipment, such as 5G-enabled smartphones and computers, and send the data to the radio unit. Different types of antennas provide multiple configurations allowing transmission and reception of data with improved network performance and lower operational costs. The antennas are further categorized into multiple input, multiple output (MIMO) antennae, beamforming antennae, and other antenna systems, such as monopole, dipole, microstrip, and patch antennas.

The radio units are placed on top of base stations, receive data transmitted from the antenna, and convert it into digital format to send to the baseband unit. The baseband unit comprises centralized and distributed units. It enables telecom operators to accelerate and streamline the multi-phase cell site deployment process during installation.

The growth of the hardware segment is primarily attributed to its ability to deliver massive machine-type communications (mMTC), ultra-reliable low-latency communications (URLLC), and enhanced mobile broadband (eMBB). Moreover, the emerging deployment of hardware equipment and growing use cases are fueling the growth of the market.

The services segment is anticipated to grow at a considerable CAGR of 22.5% throughout the forecast period. The services segment is further categorized into consulting, managed, and professional services. An increase in demand for consulting, maintenance services, design, and development due to the deployment of 5G radio access network telecom operators is anticipated to drive the growth of the market.

Architecture Type Insights

In terms of architecture type, the market is classified into CRAN, ORAN, and VRAN. The cloud radio access network (CRAN) segment dominated the overall market, gaining a market share of more than 36% in 2022 and witnessing a CAGR of 10.4% during the forecast period. Cloud radio access network (CRAN) maintains stable growth in the market owing to technological advances offered for optical, wireless, and IT communication systems. C-RAN is a cloud-based & centralized radio access network architecture. It utilizes proprietary hardware with embedded software to produce higher spectrum efficiency, flexible network, efficient network enhancements, monitoring, upgrades, testing, & maintenance, and achieve faster data speeds.

However, C-RAN can be further categorized into partially centralized, fully centralized, and hybrid centralized as per processing and managed resources. Prominent MNOs are engaged in product developments, collaborations, and acquisitions to develop cloud RAN solutions delivering agility, automation, and sustainability. For instance, in May 2022, Telefonaktiebolaget LM Ericsson announced a strategic partnership with Intel Corporation to launch a C-RAN tech hub in California. The launch of the tech hub aims to accelerate the adoption of C-RAN solutions to improve network performance, create lucrative opportunities such as enterprise applications, reduce time-to-market, and energy-efficient solutions.

The Open RAN (ORAN) is expected to grow at the highest CAGR of 28.5% during the forecast period. ORAN technology allows the creation of multi-supplier RAN solutions enabling disaggregation or separation of hardware equipment and software platforms with virtualization and an open interface. It hosts software to update and control network configurations in the cloud enabling 5G solution flexibility, new capabilities, and supply chain diversity. ORAN is crucial for enterprises employing private 5G in vendor-neutral hardware and software-defined technology for time-sensitive functions, such as load balancing and Quality of Services (QoS) management.

Moreover, the O-RAN Alliance comprises almost 200 telecom operators, research & academic institutions, and vendors in the 5G radio access network (RAN) industry. The alliance specifies next-generation radio access network principles and infrastructure toward building virtualized network elements, standardized interface, and white-box hardware fueling the segment's growth. In September 2022, NEC Corporation announced the launch of an Open RAN innovation hub in New Providence in North America. The creation of an innovation hub aims to develop products offering Open RAN solutions and build a multi-vendor ecosystem.

Deployment Insights

In terms of deployment, the market is classified into indoor and outdoor. Among these, the outdoor segment is expected to dominate in 2022, gaining a market share of more than 60%. It is expected to grow at a CAGR of 16.8% throughout the forecast period. The increasing use cases of 5G, such as smart cities, industrial robotics, autonomous vehicles, smart factories & manufacturing, are propelling the demand for outdoor 5G RAN deployment.

The outdoor segment offers extended 5G coverage range support for outdoor deployments at public places such as transport hubs, shopping centers, and stadiums is driving the growth of the market. With the rising deployment of public and private 5G, users can travel with high-speed data connectivity, which results in improved quality of calls and provides real-time traffic information to users.

The indoor segment is anticipated to grow at a considerable CAGR of 20.5% throughout the forecast period. The growth of the segment is attributed to the growing demand for seamless RAN connectivity within closed environments, such as office buildings, enterprise shop floors, meeting rooms, and auditoriums. Additionally, improving 5G technology for efficient indoor quality service, low latency, and higher data speeds are fueling the growth of the market.

Moreover, the COVID-19 pandemic positively impacted the 5G rollouts and deployment owing to the gradual shift toward online education and remote workplaces. The adoption of the private 5G network and RAN increased significantly with the increasing number of smartphones, internet subscribers, and 5G use cases. In August 2022, Cellium Technologies Ltd. announced the launch of an indoor wireless active antenna system - EdgeAir. The launch aims to provide high-performance and agnostic solutions for indoor 5G and LTE connectivity for MNOs and enterprises.

End-user Insights

In terms of end-user, the market is classified into telecom operators and enterprises. Among these, the telecom operators' 5G RAN market is expected to dominate in 2022, gaining a market share of more than 82.0%. It is expected to grow at a CAGR of 16.0% throughout the forecast period. With the growing telecom industry and IT infrastructure, the adoption of 5G RAN is exponentially expanding worldwide. Telecom operators such as AT&T and Verizon, to provide 5G services and RAN, are placing orders for 5G gears.

Additionally, the growing adoption of smartphones, internet subscribers, and infrastructural developments are anticipated to propel the growth of the market in the forecasted period. Moreover, the rising competition between prominent telecom operators to enable seamless data speeds, accessibility, and efficient bandwidth connectivity is encouraging the adoption of 5G services and RAN in developing countries, fueling the growth of the market.

The enterprise segment is anticipated to grow at a considerable CAGR of 26.1% during the forecast period. The enterprise segment comprises BFSI, healthcare, media & entertainment, smart city, government, retail, manufacturing, transportation & logistics, aerospace & defense. The increasing demand for 5G RAN from the aforementioned enterprise end-users is propelling the growth of the market. The utilization of 5G has enabled industry automation, online consultations, streamlined operations, and immersive experiences, among others, in multiple enterprise end-users with advanced technologies such as IoT, AR/VR, AI, big data, and machine learning.

Regional Insights

The Asia Pacific dominates the market and grow at a CAGR of 20.3% from 2023 to 2030. The growth is attributed to the presence of several manufacturers, such as Huawei Technologies Co., Ltd., and Samsung, coupled with a multitude of investments that are expected toward building automated factories in the region. Additionally, huge investments to acquire a 5G spectrum in key countries such as South Korea, China, India, Australia, and Japan are projected to contribute to regional growth.

Furthermore, a gradual increase in the number of small and medium IT companies in emerging countries, such as India and South Korea, is projected to propel the adoption of 5G services in the region. Additionally, the region's untapped potential is generating new investment opportunities for mobile network operators and communication service providers in the region.

North America gained a significant market share of around 25% in 2022. The region is equipped with a highly developed 5G infrastructure and owns an extensive research and development base, allowing the region to be the top revenue contributor in the worldwide market during the projected period. A well-established 5G infrastructure has allowed the speedier implementation of modern 5G technologies, and substantial government investments in 5G rollouts and deployments have enabled significant adoption of 5G RAN in the U.S. and Canada.

The considerable presence of small and medium players in North America, which offer 5G components and services to the giants such as Intel Corporation, Verizon, and Mavenir, has also propelled the market growth. The U.S. is expected to retain its dominance over the forecast period owing to the inclination of consumers towards 5G services and growing technological investments in the region.

Key Companies & Market Share Insights

The market is consolidated and is anticipated to witness increased competition due to several players' presence. Major players are spending heavily on research and development activities to integrate advanced technologies within 5G services and RAN has intensified the competition among these players. These companies are also collaborating with local & regional players to gain a competitive edge over their peers and capture a significant market share. Some prominent players in the 5G radio access network market include:

• Telefonaktiebolaget LM Ericsson

• Qualcomm Technologies, Inc.

• Nokia

• Intel Corporation

• Samsung

• Verizon

• Cisco Systems, Inc.

• Huawei Technologies Co., Ltd.

• VMware, Inc.

• Rakuten Symphony Singapore Pte. Ltd.

5G Radio Access Network Market Report Scope

Global 5G Radio Access Network Market Segmentation

This report forecasts revenue growths at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2019 to 2030. For this study, Grand View Research has segmented the global 5G radio access network market report based on component, architecture type, deployment, end-user, and region:

• Component Outlook (Revenue, USD Million, 2019 - 2030)

  • Hardware

    • Antennas

      • MIMO

      • Beamforming

      • Others (Monopole, Dipole, Microstrip, Patch Antennas)

    • Radio Unit

    • Baseband Units

  • Software

  • Services

    • Managed Services

    • Consulting Services

    • Professional Services

      • Planning & Design Services

      • Integration & Validation Services

      • Deployment Services

      • Optimization and Performance Improvement Services

• Architecture Type Outlook (Revenue, USD Million, 2019 - 2030)

  • CRAN

  • ORAN

  • VRAN

• Deployment Outlook (Revenue, USD Million, 2019 - 2030)

  • Indoor

  • Outdoor

• End-users Outlook (Revenue, USD Million, 2019 - 2030)

  • Telecom Operators

  • Enterprises

• Regional Outlook (Revenue, USD Million, 2019 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • U.K.

    • France

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa