C-RAN market worth $14.4 billion by 2025

C-RAN market worth $14.4 billion by 2025

Market news |
By Jean-Pierre Joosting

According to the latest report from MarketsandMarkets™, the C-RAN (Cloud-RAN) market is projected to grow from USD 2.9 billion in 2020 to USD 14.4 billion by 2025, at a CAGR of 37.7% during the forecast period. The major factors driving this growth include the rapid increase in bandwidth demand, the increase in the demand for 5G network technologies, and the need for lower CAPEX and OPEX.

The services segment in the C-RAN Market is expected to witness an improved growth rate due to the increased adoption of technology by large numbers of Mobile Network Operators (MNOs) and telecom providers to minimize latency issues and support the 5G technology.

Support services ensure the smooth functioning of software and systems deployed centrally and in cloud. These services include functional, technical, and database support that companies offer to end customers during installations and maintenance. These services also assist their customers in efficiently managing security, risk, and compliance. Vendors provide various levels of support programs, such as standard and extended support, which are designed to meet particular customer needs. These include software maintenance for bug fixes, updates, and upgrades on licensed software.

C-RAN is the evolved version of Centralized-RAN, wherein BBU are virtualized. It reduces the maintenance cost of virtual BBUs as they are stored in data centers. These data centers enable efficient information exchange and can perform extensive computation that is difficult in current networks. As it is possible to virtualize after centralization is complete, C-RAN exploits a combination of both virtualization and centralization. Thus, all organizations have already completed or started to centralize when making the transition to C-RAN.

Due to the increasing demand for connectivity and growing data traffic, telecom operators are looking for ways to reduce the cost of their equipment. They have turned to C-RAN, which relocates BBUs to central locations to manage multiple RRUs. The equipment needed for deployment are owned by service providers, and baseband processing is handled by software. C-RAN optimizes the CAPEX and OPEX for network operators, it also improves network performance and reduces latency.

APAC is projected to grow at a higher rate during the forecast period. With the constant rise in mobile data traffic, APAC tends to hold significant potential in terms of C-RAN deployments as the region is witnessing major spending in this market. The transition of mindsets from traditional RAN architectures to C-RAN architectures has been leading to large-scale investments in the telecom industry, spreading the scope of Cloud RAN. In the APAC region, the real opportunity for C-RAN deployments lies particularly in regions where there are ample amounts of fiber available for transportation. This, in turn, provides tremendous opportunities for vendors as fiber availability is a critical requirement for C-RAN deployments.

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