RAN Intelligent Controller Market Size, Share & Trends Analysis Report By Component (Platforms, Services), By Function (Non-RT RIC, Near-RT RIC), By Technology (4G, 5G), By Application, By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global RAN intelligent controller market size was valued at USD 137.1 million in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 60.8% from 2023 to 2030. Increasing digitization and the growing need to manage network traffic are driving market growth. RAN intelligent controller is an end-to-end automation platform that manages network performance by optimizing algorithms and software applications. It is an element of the Open Radio Access Network (Open RAN) and enables hardware and software components interoperability. RAN intelligent controller provides benefits such as improved network performance, better network control, and reduced costs for mobile operators.

Evolving RAN intelligent controller technology adds data science to Open RAN solutions because it is an Artificial Intelligence (AI) and Machine Learning (ML)-based system. It aids mobile operators in making better-informed decisions by providing real-time analytics. Mobile operators worldwide are witnessing exponential data traffic growth due to the growing demand for video streaming and conferencing services. In February 2023, U.S.-based Mavenir announced the launch of Open-RAN Intelligent Controller (O-RIC), a next-generation Open-RAN network intelligence solution. With this launch, the company aimed to offer better network control and solve unique business problems.

RAN intelligent controllers have been adopted rapidly in the Asia Pacific, a region with a large number of smartphone users & growing technological infrastructure. The presence of prominent market players is driving market growth in Asia Pacific. The RAN intelligent controller industry is consolidated, with the presence of a few market players dominating the space. The established market players and new entrants are investing in Research & Development (R&D) to offer advanced solutions.

COVID-19 Impact

The COVID-19 pandemic led the governments to impose strict lockdown measures, leading businesses and individuals to adopt the Work-From-Home (WFH) model. Moreover, there was a rise in network traffic due to the surge in entertainment streaming and video conferencing services. According to GSMA Association (GSMA)’s May 2020 article, voice and data traffic grew by over 50% due to the COVID-19 pandemic lockdown measures. The same article said that Spain-based Telefónica S.A. reported a 48% data increase in mobile networks in Spain.

Moreover, internet-dependent services such as e-commerce saw rapid growth post-COVID-19 pandemic. The overall digitalization and adoption of technology grew during the pandemic. For instance, people adopted online payment methods to avoid contact. People also started spending more time on their smartphones, leading to increased data consumption. Use cases of the RAN intelligent controller include optimizing quality-of-Experience (QoE) and Quality-of-Service (QoS), traffic steering, and resource utilization. Hence, there was a positive impact on the market. More mobile operators would have looked for efficient network traffic management solutions to address many network data requirements and maintain network quality.

Component Insights

The platform segment dominated the overall market, gaining a revenue share of over 72.0% in 2022. It is expected to grow at a CAGR of around 59.0% throughout the forecast period. RAN intelligent controller consists of software solutions that help manage RAN to reduce costs and optimize performance. Many market players, such as Sweden-based Telefonaktiebolaget LM Ericsson, U.S.-based VMware, Inc., and Mavenir, provide RAN intelligent controller platforms. Belgium-based Accelleran NV provides dRAX RAN Intelligent Controller provides real-time analytics helping mobile network operators make informed decisions and improve network performance.

The services segment is anticipated to grow at the fastest CAGR of 60.6% throughout the forecast period. Services include integration, deployment, support, and consulting services for the RAN intelligent controller. RAN deployment can face challenges such as integrating with legacy systems, high complexity, and technological immaturity. Hence, support, integration, and deployment services can help mobile network operators deploy the platform efficiently and cost-effectively.

Function Insights

The Non-RT RIC segment held the largest revenue share of 67.5% in 2022. It is expected to grow at the fastest CAGR of over 58.0% throughout the forecast period. Functionalities of Non-RT RIC include device management, fault management, and performance management, among others. It supports the optimization of intelligent RAN by providing model management, information, and policy-based guidance to the Near-RT RIC. It can use AI, ML, and data analytics to determine actions for RAN optimization.  In February 2023, Turkey-based P.I. announced the launch of a Non-RT RIC. With this launch, the company aimed to drive open RAN adoption and improve network performance.

The Near-RT RIC segment is expected to grow at a considerable CAGR of 60.6% during the forecast period. Near-RT RIC provides programmatic control for time cycles between 10 milliseconds and one second. In February 2023, Japan-based NEC Corporation announced the completion of a successful demonstration of multi-vendor interoperability and integration of a Near-RT RIC at the Japan-held O-RAN Global PlugFest 2022. With this launch, the company aimed to meet customers’ demands for open RAN solutions.

Technology Insights

The 4G segment dominated the overall market, gaining a revenue share of 78.1% in 2022, and is expected to grow at the fastest CAGR of over 50.0% throughout the forecast period. 4G is the fourth generation of wireless cellular standards and is widely adopted worldwide. According to the GSM Association (GSMA)’s 2022 mobile economy report, in 2021, 4G accounted for 58% of the connections. Moreover, it can grow in developing regions such as Sub-Saharan Africa, and operators are looking to migrate existing 2G and 3G customers to 4G. The mobile network operators will be looking to use intelligent technologies such as RAN intelligent controllers to offer better services to 4G customers.

The 5G segment is anticipated to grow at a considerable CAGR of over 72.0% throughout the forecast period. 5G is witnessing rapid adoption owing to growing sales of 5G-enabled handsets and the expansion of network coverage. According to the GSM Association (GSMA)’s 2022 mobile economy report, in 2021, 5G accounted for 8% of the connections. Moreover, government initiatives are likely to boost the growth of this segment. For instance, in October 2022, the Indian government announced the launch of 5G services in India. Hence, mobile operators will likely use RAN intelligent controllers in 5G networks to improve QoS.

Application Insights

The rApps segment dominated the overall RAN intelligent controller industry, gaining a revenue share of 69.6% in 2022, and is expected to witness a CAGR of around 60.0% during the forecast period. rApp is an application that is designed to run on the Non-RT RIC, not requiring response times of less than one second.

According to Sweden-based Telefonaktiebolaget LM Ericsson, the four main rApp categories are Network evolution rApps, network deployment rApps, network optimization rApps, and network healing rApps, enabled by Artificial Intelligence (AI) and automation. Applications that do not need changes every 100 milliseconds would be an example of rApp. For instance, transmit power optimization is a rApp example, which would require change usually in the order of hours.

The xApps segment is anticipated to witness a CAGR of 58.8% throughout the forecast period. xApps are applications designed to run on the Near-RT RIC, requiring execution within a second. The services or functions of xApps include security, mobility management, and radio resource management. Optimizing network handovers is an example of xApps, as the algorithm would need to run in the order of tens or hundreds of milliseconds to ensure user network connectivity. Moreover, xApps can be used for implementing QoS functions such as congestion or traffic control.

Regional Insights

Asia Pacific led the overall market in 2022, with a revenue share of 38.9%. It is expected to grow at the fastest CAGR of over 64.0% throughout the forecast period. Asia Pacific has prominent market players such as China-based Huawei Technologies Co., Ltd., ZTE Corporation, and South Korea-based SAMSUNG. Moreover, improving smartphone penetration and 5G infrastructure will likely aid market growth in the region.

According to GSM Association, as of May 2022, 14 Asia Pacific countries have launched commercial services, and ten more are expected to launch by the end of 2025. In March 2022, the Australian government announced the launch of the second round of the Australian 5G Innovation Initiative, a financial grant scheme of USD 16.5 million. The government aimed to aid businesses in testing projects and implementing 5G technology.

North America is expected to grow notably with a CAGR of 57.5%. North America has a developed technology infrastructure and has high internet and smartphone penetration. Moreover, government initiatives in the region are likely to aid the growth of the 5G and RAN intelligent controller market.

For instance, in April 2021, the government of Canada announced an investment of USD 11.2 million in Redline Communications (Aviat Networks, Inc.), a Canada-based wireless technology company later acquired by U.S.-based Aviat Networks, Inc. The government aimed to develop wireless technology for industries such as oil & gas, utilities, and mining.

Key Companies & Market Share Insights

The RAN intelligent controller industry is consolidated and is likely to witness moderate competition in the market. Major players are investing in Research & Development (R&D) to drive innovation. The players are introducing new features to improve customer experience. In March 2021, Finland-based Nokia announced the launch of a Service Enablement Platform (SEP). It was the first commercial solution delivering Artificial Intelligence (AI), Machine Learning (ML), and radio network programmability. With this launch, the company aimed to provide innovative use cases and unique value. Some prominent players in the global RAN intelligent controller market include:

• Telefonaktiebolaget LM Ericsson

• Nokia

• Huawei Technologies Co., Ltd.

• ZTE Corporation

• SAMSUNG

• Cisco Systems, Inc.

• Juniper Networks, Inc.

• Mavenir

• Quectel Wireless Solutions Co., Ltd.

• VMware, Inc.

RAN Intelligent Controller Market Report Scope

Global RAN Intelligent Controller Market Report Segmentation

This report forecasts revenue growths at global, regional, as well as at country levels and offers qualitative and quantitative analyses of the latest industry trends for each of the segments and sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global RAN intelligent controller market report based on component, function, technology, application, and region:

• Component Outlook (Revenue, USD Million, 2017 - 2030)

  • Platforms

  • Services

• Function Outlook (Revenue, USD Million, 2017 - 2030)

  • Non-RT RIC (Non-Real-Time-RAN Intelligent Controller)

  • Near-RT RIC (Near-Real-Time-RAN Intelligent Controller)

• Technology Outlook (Revenue, USD Million, 2017 - 2030)

  • 4G

  • 5G

• Application Outlook (Revenue, USD Million, 2017 - 2030)

  • rApps

  • xApps

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

  • Asia Pacific

    • India

    • China

    • Japan

    • South Korea

    • Australia

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa

    • Kingdom of Saudi Arabia (KSA)

    • U.A.E.

    • South Africa