Mobile operators plans to invest over $30 bn in open RAN network by 2030
By siliconindia | Monday, November 13, 2023
mobile operators are expected to invest over $30 billion in open RAN networks globally by 2030, with a compound annual growth rate (CAGR) of 24% during the period. Open RAN refers to an open radio access network, which is made possible by a set of industry-wide standards that telecom suppliers can follow when producing related equipment. The investments in Open RAN networks have been steadily increasing in recent years, mainly driven by new network operators in the Asia-Pacific and North American regions.
After a period of rapid network expansion, new network operators are seeking to reduce their capital expenses in 2023 and 2024, and focus on ways to make money from their networks. While some top-tier operators, such as Vodafone, have recently announced plans to deploy Open RAN, most existing network operators remain cautious about investing further in 5G infrastructure, especially in Open RAN, due to the uncertain economic environment. Consequently, the Open RAN market is expected to remain stagnant during this and the next year.
investments in Open RAN are expected to increase year on year after 2025. Network operators are predicted to invest more than $30 billion cumulatively between 2022 and 2030. Although the Asia-Pacific and North American regions are expected to remain the largest markets for Open RAN during the forecast period, Europe is expected to experience the fastest growth, with a CAGR of 108 percent between 2023 and 2030. This growth will be driven in part by the need to replace legacy Chinese 3G and 4G networks, as well as the Tier-1s finally starting commercial deployments at scale. Historically, the Open RAN-compliant radio market has been dominated by Asian vendors like Samsung, NEC, and Fujitsu. However, Counterpoint Research expects this market share to be impacted in the coming years as other incumbents begin offering Open RAN-compliant solutions.
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