Global Cloud Radio Access Network (C-RAN) Market Expected to Reach $95.8 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Global Cloud Radio Access Network (C-RAN) Market," The global cloud radio access network (c-ran) market was valued at $14.2 billion in 2021, and is estimated to reach $95.8 billion by 2031, growing at a CAGR of 21.2% from 2022 to 2031.

A RAN establishes a connection or communication between base stations and end users. In the C-RAN architecture, baseband units (BBU) are relocated from individual base stations to a centralized control and processing station, often referred to as a BBU hotel. The BBU hotel connects to the network using high-speed optical fiber and maximizes the distance between cells. This type of cloud computing environment is built on open hardware and interface cards that dynamically handle fiber links and interconnections within the station. C-RANs are significant in the future progression of wireless technology, such as 5G and the IoT.

Furthermore, rise in the need for energy-efficient and cost-effective networking solutions and the surge in the proliferation of 5G network technologies are driving the growth of the cloud radio access network market. In addition, the rapid rise in bandwidth demand is fueling the growth of the C-RAN industry. However, the necessity for a high-capacity fronthaul limits the growth of cloud radio access network market size. Conversely, growing numbers of internet users across global and a surge in the growth of network connectivity to implement IoT are anticipated to provide numerous opportunities for the expansion of the cloud radio access network industry during the forecast period.

Depending on the component, the solution segment dominated the cloud radio access network market share in 2021 and is expected to continue this trend during the forecast period, as RAN helps to establish a connection or communication between base stations and end-users, which helps in expanding the growth outlook of the solution segment. However, the services segment is expected to witness the highest growth in the upcoming years, owing to the growing focus on improving the faster densification of 4G LTE networks, requiring less engineering effort, which drives the segment growth worldwide.

Region-wise, the C-RAN market was dominated by Asia-Pacific in 2021 and is expected to retain its position during the forecast period, due to growing technological advancements in field of cellular networking and increasing R&D activities regarding C-RAN solutions in countries like India, Japan, South Korea, and more. However, Europe is expected to witness significant growth during the forecast period, due to the widespread adoption of centralized-RAN architecture by mobile operators to address the capacity and coverage challenges, which is expected to fuel the cloud radio access network market analysis in this region.

The C-RAN market was immensely impacted by the outbreak of COVID-19 as consumers are fast migrating to internet platforms. Due to the COVID-19 pandemic, intensive controls were put in place to prevent the pandemic from spreading. Individual’s habits have been changed by the COVID-19 measures and restrictions imposed such as social distancing and lockdown measures. These unexpected changes created a significant impact on cellular networks, such as increased use of online services and content streaming, which increased the burden on wireless networks. Therefore, telecom operators and mobile infrastructure service providers are seeking effective cellular networking solutions, such as C-RAN, which directly influence cloud radio access network market forecast all over the worlh.

KEY FINDINGS OF THE STUDY

• By deployment, the indoor segment accounted for the largest cloud radio access network market share in 2021.
• Region-wise, Asia-Pacific generated the highest revenue in 2021.
• On the basis of component, the solution segment generated the highest revenue in 2021.

The global cloud radio access network market analysis is dominated by key players such as Altiostar, Cisco Systems, Inc., Fujitsu Limited, Huawei Technologies Co., Ltd., Intel Corporation, NEC CORPORATION, Nokia Corporation, Qualcomm Technologies, Inc., Samsung Electronics Co. Ltd., Ericsson, and ZTE Corporation. These players have adopted various strategies to increase their market penetration and strengthen their position in the C-RAN industry.