C-RAN Market Size, Share & Trends Analysis Report By Architecture Type (Centralized-RAN, Virtual/Cloud-RAN), By Component, By Network Type, By Deployment Model, By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global C-RAN market size was valued at USD 13.93 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 27.1% from 2023 to 2030. The rising adoption of smart devices and the availability of limited spectrum is anticipated to drive the demand for C-RAN (Cloud Radio Access Network) market. As C-RAN centralizes operational resources, which can be allocated on a priority basis to various processes, as per the requirements. Additionally, the rising cost of energy consumption is expected to drive the demand for C-RAN as it can help network providers cut operational costs.

Moreover, the trend of centralized resource and functionality pools is expected to drive market growth. As the baseband unit is situated at a central location and the remote radio units are exclusively deployed at the cell site which allows operators better deployment and cost benefits per cell site. Moreover, the increase in sophisticated network protocols is expected to create lucrative opportunities in the C-RAN market. For instance, C-RAN enables multi-connection support for optical fiber, millimeter wave, and cellular protocols.

The growing use of 5G connectivity has become one of the most popular trends in the global C-RAN market. The advent of 5G is expected to increase the load on the current infrastructure and network performance model. The C-RAN architecture uses a small cell model, which is an efficient mode to tackle 5G standards. Therefore, the growing 5G testing measures in countries such as China, South Korea, the U.S., and Japan are expected to further the growth of the cloud radio network access market.

Furthermore, the growth in connectivity data as a result of high 4G and 5G smartphone penetration is anticipated to push operators to use C-RAN. Similarly, there are a growing number of electronic gadgets with connected functionality due to the prominence of Internet of Things (IoT). Also, the trend of always-online and high data-consuming applications is increasing the stress on operator systems. Telecom providers thus prefer C-RAN for network quality consistency and efficiency.

On the other hand, the requirement for high bandwidth in the fronthaul link is witnessed as a major challenge that is anticipated to hinder the cloud radio access network market growth over the forecast period. The fronthaul requires 10 times more bandwidth capacity as compared to the backhaul used in LTE channels. This could be achieved with a fiber optical cable; however, its deployment cost is very high that might prove as an overhead for mobile network providers. In addition, CPRI fronthaul cannot be deployed easily like backhaul due to which the capacity requirement grows with the rise in the number of users.

Architecture Type Insights

The centralized RAN segment accounted for the largest market share of around 60% in 2022. The segment growth can be attributed to technological advancements enabled for optical, wireless, and IT communication systems. For instance, it uses the updated CPRI standard, dense wavelength division multiplexing, and mmWave to enable the relay of baseband signal over long ranges. Additionally, the segment growth is due to its application for deployment at a large scale with multi-radio protocol support.

The virtualized/cloud RAN segment is expected to record the highest CAGR of around 28% over the forecast period. The segment growth is accredited to the rise in the adoption of software-defined networking and network functions virtualization (NFV) technology by the wireless telecom industry. The virtualization of the radio access network is anticipated to facilitate the preparation of the carrier for 5G network helping to boost the bandwidth requirements. For instance, a 5G base station can virtually enhance both the capacity and efficiency of a system by drawing from a group of baseband units.

Component Insights

The infrastructure segment accounted for the largest market share of over 49% in 2022. This growth in the market share of the segment can be credited to the rapid adoption of radio technology and facilities to meet the needs of 5G network. The benefits of power cost reduction and energy efficiency by the C-RAN infrastructure component is expected to attract more end-users. Moreover, the infrastructure segment is significantly important for C-RAN to handle various protocols and establish connection with base stations and end-users.

The software segment is projected to expand at a significant CAGR of around 27% during the forecast period. The segment growth is attributed to the increasing demand for NFV solutions for radio access network visualization in deployment projects. Furthermore, the segment is also expected to grow due to the demand for custom processes for large and small carrier companies. Also, the trend of enterprises developing their exclusive software based on the ever-changing networking market is expected to drive market growth.

Network Type Insights

The LTE and 5G segment accounted for the largest market share of around 88% in 2022 and is expected to witness the fastest CAGR of 28.1% over the forecast period. The dominance of the segment can be credited to the massive growth in data traffic and significantly high power consumption by current network architecture. As LTE and 5G are high speed and low latency networks, they are more efficient for C-RAN operations. Moreover, the growing presence of 5G networks around the world is anticipated to be one of the major trends for the segment growth.

The 3G network type segment is expected to face challenges over the forecast period. The 3G network type was popular in demand before LTE and 5G networks were launched. Moreover, the segment had widespread presence in developing regions that made it favorable for use in C-RAN. However, the prominence of LTE and the growing adoption of 5G in developed regions is expected to impact 3G network type negatively.

Deployment Insights

The outdoor segment accounted for the largest market share of around 81% in 2022. The massive deployment of C-RAN architecture in the outdoor environment provides better coverage and reach in areas that include urban markets, stadiums, and other such facilities. Moreover, the trend of 5G in developing countries is expected to drive market growth as telecom operators install new mobile towers in strategic outdoor locations. In addition, outdoor deployment is in trend as it can handle peak traffic loads for long hours while maintaining infrastructural stability.

The indoor segment is expected to grow at a notable CAGR of around 31% over the forecast period. The deployment of indoor small cells that are mini base stations for C-RAN architecture are in trend as they offer better service to the end-users in high-density and high-value locations such as private places, offices, homes, among other enclosed locations. The trend of data security in indoor deployment is anticipated to positively influence the market. For instance, indoor deployments are common in embassies, government offices, and court buildings that handle and exchange sensitive data.

Regional Insights

Asia Pacific accounted for the largest market share of around 32% in 2022. Factors such as rising development of C-RAN infrastructure as a step towards deploying 5G to countries such as China, Japan, and South Korea are expected to grow the market. Favorable government initiatives and polices are also anticipated to have a positive influence on the regional market. For instance, in October 2022, the Indian government’s ‘Make in India’ policy resulted in the push for 5G in India.

North America is expected to hold the second largest market share of around 29.5% in 2022, and is estimated to maintain its position throughout the forecast period. The early adoption of 5G in U.S. is expected to be the reason for the regional market growth. The deployment of 5G technology is continuously supported by the increasing influx of technological development in the region. Moreover, many key players in the market operate in North America, helping to increase the region’s market growth.

Key Companies & Market Share Insights

The key players in the market use strategies, such as partnerships, acquisitions, ventures, innovations, R&D, and geographical expansions, to solidify their industry position. Companies are also focusing on improving their product offerings to better suit the changing needs of users to stay competitive. For instance, in March 2023, Virgin Media O2 announced that the company is going to conduct trials for Ericsson’s radio access network product as part of the broader network expansion and deployment agreement.

Furthermore, key companies are expanding their portfolio by launching new products or by significantly developing existing products in their portfolio. As technological developments in the C-RAN industry occur at a significant pace, modern products are launched with new features and tools. For instance, in February 2023, Nokia Corporation launched any RAN to help boost C-RAN collaborations for businesses. Some prominent players in the global C-RAN market include:

• Altiostar Networks

• ASOCS Ltd.

• Cisco Systems, Inc.

• Telefonaktiebolaget LM Ericsson

• Fujitsu Limited

• Huawei Technologies Co., Ltd.

• Intel Corporation

• HRMavenir Systems, Inc.

• NEC Corporation

• Samsung Electronics Co., Ltd.

• Nokia Corporation

• ZTE Corporation

C-RAN Market Report Scope 

Global C-RAN Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global C-RAN market report based on of architecture type, component, network type, deployment model, and region:

• Architecture Type Outlook (Revenue, USD Million, 2018 - 2030)

  • Centralized-RAN

  • Virtualized/Cloud-RAN

• Component Outlook (Revenue, USD Million, 2018 - 2030)

  • Infrastructure

    • Remote Radio Units

    • Baseband Units

    • Fronthaul

  • Software

  • Services

    • Consulting

    • Design and Deployment

    • Maintenance and Support

    • Others

• Network Type Outlook (Revenue, USD Million, 2018 - 2030)

  • 3G

  • LTE & 5G

• Deployment Model Outlook (Revenue, USD Million, 2018 - 2030)

  • Indoor

  • Outdoor

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • U.K.

    • Germany

    • France

    • Italy

  • Asia Pacific

    • China

    • Japan

    • India

    • South Korea

  • South America

    • Brazil

    • Argentina

  • Middle East & Africa

    • South Africa

    • Saudi Arabia