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Radio Access Network Market size surpassed USD 9 billion in 2018 and is poised to grow at over 5% CAGR between 2019 and 2025. The rising demand for improved cellular coverage in increased cellular and IoT devices will drive the market growth.
The growing cellular devices are generating a huge amount of data traffic that enables telecom operators to deploy advanced radio access network solutions to handle this massive data traffic. The rising adoption of Network Function Virtualization (NFV) and Software Defined Networking (SDN) in network infrastructure is also supporting the radio access network market expansion. The supportive government initiatives to improve the telecom infrastructure is also helping in the growing demand for radio access network solutions.
The commercialization of next generation 5G network is enabling telecom companies to deploy advanced network solutions that support the 5G network. The enhanced speed and bandwidth capabilities of the 5G network needs advanced networking solutions to provide highly reliable communication services. The major technology solution providers are strategically collaborating with other technology companies to develop innovative radio access network solutions to support 5G technology.
Report Attribute | Details |
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Base Year: | 2018 |
Radio Access Network Market Size in 2018: | USD 10 Billion |
Forecast Period: | 2019 to 2025 |
Forecast Period 2019 to 2025 CAGR: | 5% |
Historical Data for: | 2014 to 2018 |
No. of Pages: | 280 |
Tables, Charts & Figures: | 533 |
Segments covered: | Component, Connectivity Technology, Deployment Region, and Region |
Growth Drivers: |
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Pitfalls & Challenges: |
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The small cell sites are expected to witness 4% growth rate during the forecast period due to the rise in the number of cellular subscribers across the word. For instance, in September 2019, according to GSMA, unique mobile subscribers have crossed a 5 billion mark across the world. The increase in cellular subscribers, in turn, needs improved cellular coverage, burdening the existing telecom infrastructure. Small cells help telecom operators to extend cellular coverage to low populated areas such as airports, malls, railway station, commercial building, and small offices.
The commercialization of 5G network is projected to propel the demand for 5G radio access network solutions on account of its bandwidth and network capabilities. The growing demand for improved cellular network coverage is enabling companies to focus on the deployment of next generation 5G technology.
For instance, in April 2019, SK Telecom, a leading Korean telecommunication company launched a nationwide 5G technology. The company’s 5G network can support a transmission speed of up to 2.7 Gbps and cover data traffic concentrated areas in 85 cities, nationwide. It implements a series of techniques designed to improve a signal's ability to reach each local user device without generating unnecessary interference or consuming redundant energy resources. The companies are focusing on the development of 5G radio access network solutions through strategic partnerships with other technology companies.
The high-density urban region segment is anticipated to expand at a CAGR of 4% through 2025 owing to the increase in urban population across the world. According to the UN, 55% of the world’s population lived in urban areas in 2018. In these high-density urban areas, subscribers are densely concentrated and use data services more extensively. Mobile operators face challenges to identify and correct capacity shortfalls in these high-traffic areas. The need for the effective management of expected traffic offloads and increased network capacity in these areas are enabling telecom operators to deploy small cells.
North America radio access network market accounted for 30% revenue share in 2018 led by the increase in internet penetration in the region. For instance, according to the International Telecommunication Union (ITU), a specialized agency of the United Nations responsible for issues on ICT, 70% of the population in North America utilized the internet in 2018. The increase in internet penetration results in massive data traffic, generated from different cellular and IoT devices. Thus, the adoption of radio access network is increasing to effectively manage data traffic and enhance network speed. The government’s supportive initiatives for the commercialization of 5G network are also impelling the regional market demand.
Some of the major companies operating in the market are
The market players are collaborating with other technology companies in the ecosystem to develop innovative RAN solutions. For instance, in June 2019, NEC Corporation partnered with Rakuten Mobile to develop 3.7 GHz frequency-based massive MIMO 5G antenna radio unit that supports highly secure cloud-native 5G network. This collaboration helped the company to develop a 5G-based open vRAN architecture in Japan.
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Market, By Component
Market, By Connectivity Technology
Market, By Deployment Region
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