C-RAN Architecture Market Trends

Growth Drivers

• Growing Network Congestion Resulting from High Usage of Smart Devices - Using high-bandwidth applications such as video streaming, online gaming, and video conferencing also contributes to network congestion. Video streaming accounted for 60% of global mobile data traffic in 2020, according to a report. As the smart device usage increases it leads to more network congestion and internet traffic which further leads to problems such as dropped calls, low internet, buffering, and other concerns. C-RAN architecture can help to solve this issue by deploying small cells to the operators, this can be helpful in providing additional coverage and capacity in the high internet traffic areas. This can look into the problem of network congestion and can improve the network performance quickly. 
• Rising Adoption of Cloud-Based Deployments – Growing implementation of cloud-based deployment is anticipated to drive the growth of the market in the forecast period. The emergence of 5G technology is also driving the adoption of cloud-based deployments in the market.  
• Increasing Demand for High-Speed Mobile Data Services – According to a report, global mobile data traffic will grow by 49% in 2020 and is expected to grow by nearly 30% annually until 2025. This growth is primarily driven by the increased use of mobile video, social networking, and other high-bandwidth applications that require more efficient and cost-effective network architectures such as C-RAN. 
• Rising Demand for Edge Computing - Edge computing is becoming increasingly important in the telecommunications industry as it allows data to be processed and analyzed closer to the source. This reduces latency and improves network performance. C-RAN architecture is able to support edge computing, thus becoming a key driver of market growth. As per a study, edge computing helps operators monitor network performance and security in real time, enabling them to detect and respond to threats faster. 

Challenges

• High Implementation Cost - Deploying C-RAN architecture has a high initial cost as it requires significant investment in centralized processing and backhaul infrastructure. These costs can be a significant barrier to entry for small service providers and service providers operating in emerging markets. 
• Network Latency
• Growing Need for High Fronthaul Capacity