C-RAN Market Analysis Report By Architecture Type, By Component, By Network Type, By Deployment Model And Segment Forecasts From 2020 To 2027

Industry Insights

The global C-RAN market size was worth USD 8.47 billion in 2019. The market is estimated to register 22.7% CAGR over the forecast duration, 2020 to 2027. Cloud Radio Access Network (C-RAN) is a centralized radio access network. Over the past years, there has been significant growth in the number of network-connected devices. The increased number of such devices has caused congestion in the network. Further, limited availability of spectrum has resulted in a rise in demand for efficient network architecture including C-RAN.

The advent of 5G technology is projected to make significant changes in the existing infrastructure. Since C-RAN uses a small-cell model, it can work well to address the standards of 5G. Thus, the growing number of 5G testing in countries like the U.S, South Korea, China, and Japan is anticipated to bode well for the market growth.

Increasing demand for centralized baseband technology that helps in enhancing the performance of the network in areas with high network traffic such as city-square, offices, computer hubs, and stadiums are projected to positively contribute to the growth of the market. In addition, the growing adoption of cloud-RAN to reduce the capital expenditure of network operators is estimated to drive market growth.

The network system is on the cusp of a huge transformation considering the key players making a push for the 5G technology. Limited resources coupled with increased traffic are further challenging the current radio network infrastructure. Increasing the adoption of C-RAN will not only reduce the overall return on investment but also enhances the network performance. Further, governments across the globe are taking robust steps to ensure 5G deployment, which, in turn, is estimated to bolster the growth of the market.

Architecture Type Insights

Depending on the architecture, the cloud radio access network (C-RAN) market is segregated into virtualized/Cloud RAN and centralized-RAN. Of them, centralized RAN dominated the market owing to technological advancement provided for wireless, IT communication systems, and optical systems. For example, it makes use of current CPRI standard mMwave and dense wavelength multiplexing division in order to provide baseband signals for longer distances.

On the other hand, the virtualized/Cloud-RAN category is estimated to register rapid growth over the forecast duration. Increasing adoption of NVF and SDN technologies by telecom industries is attributing to its growth. RAN virtualization is projected to set up the carrier requirement for the coming 5G technology.

Component Insights

Depending on the components, the market is bifurcated into software, services, and infrastructure. In 2019, the infrastructure segment held the largest share and accounted for USD 4.35 billion. Further, the segment is projected to maintain its dominance over the forecast duration. Increasing demand for radio technology to cater to the growing demand for 5G requirements.

On the other hand, in 2019, the software division was the second largest by share. Rising NVF solution demand for virtualization of RAN in order to optimize smaller and larger carrier functions is anticipated to drive the segment growth. Further, increasing investment in technology by various mobile operators is supplementing the growth of the market.

The service category is also likely to exhibit significant growth over the forecast duration. Increasing C-RAN deployment has resulted in a rise in demand for maintenance, design, and consulting services, thereby, propelling the growth of the market. 

Network Type Insights

By network type, the market is segmented into LTE & 5G and 3G services. Of them, the LTE & 5G category accounted for the highest share by revenue in 2019 and was worth USD 7.97 billion. Rapidly growing data traffic and power consumption have led to an increased cost burden for network operators. Thus, operators are focusing on deploying better technology, which can reduce the cost of energy and offer better coverage.

However, the growing expansion of 5G technology poses challenges to the existing operating models and technologies. 5G system has a complex interface with multiple standard upgrades. Owing to this, the current mobile network would face challenges in matching its requirement.

Deployment Model Insights

Depending on the deployment, the market is segmented into outdoor and indoor. C-RAN architecture, if deployed outdoor, helps in covering larger areas. In 2019, the outdoor deployment category accounted for USD 7.12 billion. Further, the segment is anticipated to witness notable growth over the forecast duration.

On the other hand, indoor deployment is expected to gain traction in the near future and the segment is projected to register considerable growth with a CAGR of over 29% over the forecast duration. Indoor deployment can offer enhanced network experience in places such as offices, homes, and meeting rooms. Offices, in particular, can be an ideal place for the installation of this segment.

Regional Growth

Asia Pacific dominated the C-RAN (cloud radio access network) market in 2019 by holding the largest share seconded by North America. Increasing commercialization of 5G networks in countries such as Japan, South Korea, and China is attributing to the growth of the Asia Pacific region. In 2019, South Korean mobile operators and service providers announced that they would share the cost incurred in the deployment of 5G technology. Moreover, the South Korean government is providing financial support to companies to commercialize 5G technology. 

The United States is one of the early adopters of technologies including 5G. This has led to North America acquiring a significant share in the market. The deployment of 5G technology is further supported by the increasing penetration of IoT and autonomous vehicles in the region. To commercialize the 5G technology, network providers are making a significant investment and testing C-RAN architecture. 

Impact of COVID-19

The outbreak of COVID-19 has delayed the deployment of 5G infrastructure. The pandemic has resulted in manufacturers shutting down their operations, which, in turn, has negatively affected the production of equipment required to build 5G infrastructure. However, 5G technology is anticipated to gain traction as investments were made before the pandemic outbreak. In addition, lockdown imposed due to COVID-19 has forced people to stay at their homes and work from home became new normal. With an increasing number of business processes opting to go online and a rapid rise in the number of people working from home, indoor deployment of C-RAN architecture is projected to witness increased adoption in the next few years.

C-RAN Market Share Insights

Key players operating in the market are ASOCS Ltd, FUJITSU, Cisco System, Altiostar, NEC Corporation, ZTE Corporation, and Nokia Corporation. These players are focusing on strategic initiatives such as partnerships, mergers & acquisitions, and geographical expansion to consolidate their position in the market. For example, Rakuten Inc. in 2019, announced to invest in Altiostar to expand its vRAN solutions. Similarly, Cisco Systems, in 2019, announced that it would implement a RAN automation strategy for VodafoneZiggo. In addition, ASOCS Ltd announced to introduce 5G single software stack.

Report Scope

Segments Covered in the Report

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 2016 to 2027. For the purpose of this study, Million Insights has segmented the global C-RAN market report based on architecture, component, network type, deployment, and region:

• Architecture Type Outlook (Revenue, USD Million, 2016 - 2027)
    • Centralized-RAN
    • Virtualized/Cloud-RAN

• Component Outlook (Revenue, USD Million, 2016 - 2027)
    • Infrastructure
        • Remote Radio Units
        • Baseband Units
        • Fronthaul
    • Software
    • Services
        • Consulting
        • Design and Deployment
        • Maintenance and support
        • Others

• Network Type Outlook (Revenue, USD Million, 2016 - 2027)
    • 3G
    • LTE & 5G

• Deployment Model (Revenue, USD Million, 2016 - 2027)
    • Indoor
    • Outdoor

• Regional Outlook (Revenue, USD Million, 2016 - 2027)
    • North America
        • The U.S.
        • Canada
    • Europe
        • The U.K.
        • Germany
    • The Asia Pacific
        • China
        • Japan
        • South Korea
    • Latin America
        • Brazil
        • Mexico
    • Middle East & Africa