Cloud radio access networks industry growth projections
Thursday, February 1, 2024
According to a report from Fact.MR, the cloud radio access networks industry is set to top $43B U.S by 2032, growing at a staggering 22.9% CAGR. The extensive digitization of business enterprises is leading to an increased prevalence of virtual networks with highly diversified connectivity frameworks.
The global cloud radio access network market is projected to grow at a staggering 22.9% value CAGR, reaching US$ 43.2 Billion, following an assessment period ranging from 2022-2032. As per a newly published report on this industry by Fact.MR, a valuation of US$ 5.5 Billion has been anticipated during FY 2022. Furthermore, the market is expected to yield a dollar opportunity worth US$ 37.7 Billion in the forthcoming decade.
From 2015-2021, demand for cloud radio access networks flourished at a growth rate of 37.2%, concluding at US$ 4 Billion. The extensive digitization of business enterprises is leading to an increased prevalence of virtual networks with highly diversified connectivity frameworks. To ensure continuity, reliance on centralized and cloud-based radio access networks is increasing.
Cloud radio access networks industry to top US$ 43B by 2032: Fact.MR report
In the past two years, the COVID-19 pandemic encouraged a nearly complete shift towards remote or virtual business models. This helped expose vulnerabilities and inefficiencies in legacy processes, compelling enterprises to invest in centralized connectivity systems. The centralization of information processing afforded by cloud radio access networks has enabled effective interference management at the geographical scale.
Key takeaways from the market study
- Global cloud radio access network market to expand nearly 8x from 2022-2032
- Cloud radio access network solutions are the most sought-after component, flourishing at a 20.8% CAGR
- By deployment, centralized cloud radio access networks to register a CAGR of 20.9%
- U.S to emerge as one of the most opportunistic markets, reaching US4 14.9 Billion in 2032
- UK to yield a dollar opportunity worth US$ 1.6 Billion from 2022 to 2032
- China, Japan & South Korea to flourish at CAGRs of 22.5%, 22.2% and 21.4% respectively
"As multiple industries embrace advanced connectivity technologies, including 5G network deployment, the need for effectively managing virtual traffic and delivering seamless services have prompted increased cloud radio access network deployment," comments an analyst at Fact.MR.
Prominent service providers are taking advantage of the rapidly digitizing landscape to introduce new services equipped with cutting-edge innovative technology. Some notable developments are as follows:
- Nokia Corporation collaborated with SK Telecom in January 2022, to provide the 5G 64TRX wireless-based vRAN, a highly advanced cloud-based radio access network platform, across South Korea. Both companies have completed a proof-of-concept and demonstration of the said service, enabling them to meet agile computing requirements
- In October 2020, Ericsson introduced its cloud radio access network platform which would enable communications service providers to add greater flexibility and versatility to their networks. The solution complements high-performing purpose-built baseband offerings in the Ericsson Radio System portfolio, providing service providers an optimal choice for any deployment scenario and need
These insights are based on a report on Cloud Radio Access Network Market by Fact.MR.
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