O-RAN Market size was over USD 2.54 billion in 2024 and is projected to reach USD 672.85 billion by 2037, witnessing around 53.6% CAGR during the forecast period i.e., between 2025-2037. In the year 2025, the industry size of bioengineered protein drug is evaluated at USD 3.63 billion. Growing demand to improve network coverage is majorly responsible for the growth of the Open RAN Market. To meet the increasing demand for higher-speed internet and large network coverage of various new user applications like Autonomous Driving, Augmented Reality, and Telemedicine, Network Operators are working towards improving network coverage to take advantage of this trend. Furthermore, the market is expected to be stimulated by growing demand for mobile broadband technology, high-speed transmission of data, and information processing.
Also, the increasing adoption of Software Defined Networking (SDN) and Network Function Virtualization (NFV) in network infrastructure is supporting market value. Moreover, the demand for open radio access network solutions is also increasing due to supportive government initiatives aimed at improving telecommunications infrastructure.
Growth Drivers
Challenges
Base Year |
2024 |
Forecast Year |
2025-2037 |
CAGR |
53.6% |
Base Year Market Size (2024) |
USD 2.54 billion |
Forecast Year Market Size (2037) |
USD 672.85 billion |
Regional Scope |
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Component (Hardware, Software, Services)
The hardware segment is anticipated to hold 56% of the O-RAN market during the forecast period, On the other hand, the software segment is expected to grow with the highest CAGR of 89% during the forecast period.
Connectivity Technology (2G,3G,4G/LTE,5G)
The O-RAN market is segregated as follows by connectivity technology, namely 2G, 3G, 4GLTE, and 5G. The largest market share in 2036 will be held by the 5G segment at 48.6%. The need to provide a rapid and high-capacity network is an essential factor in the demand for broadband services on mobile networks. To accelerate the development of 5G networking technologies, it is expected that there will be increased demand for High-Speed Data Communication. The demand for this sector is increasing as a result of the rising Internet of Things and the growth in telecommunications.
End-user (Residential, Commercial, Industrial)
The O-RAN market is divided into residential, commercial, industrial, and others based on end users. The industrial sector is projected to grow at the highest rate over the forecast period. Increasing demand for better M2M communication solutions combined with increasing acceptance of Internet of Things technologies in the industry has contributed to this growth. The commercial sector is expected to grow substantially during the forecast period.
Our in-depth analysis of the global market includes the following segments:
Component |
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Connectivity Technology |
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End-user |
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APAC Market Forecast
Asia Pacific industry is predicted to dominate majority revenue share of 37% by 2037. The regional market is expected to attain a revenue of USD 8,150.95 million by 2028 growing at a CAGR of 81.7% over the forecast period. The market growth is a result of the investments made in advanced entertainment systems for autonomous vehicles. With the ongoing digitization, investments in IoT and AI technologies provide a direct boost for the market. In addition, given the growing uptake of 5G base stations supported by increased R&D investments and development from many key players working in the telecoms sector to develop an efficient ORAN solution, this market is expected to expand.
North American Market Statistics
Open RAN Market in North America is predicted to grow substantially till 2037. Increasing Virtual meetings and cloud-based services adopted by end-users are the primary growth drivers in this region. In North America, the primary markets for ORAN are in the United States and Canada. Driving the growth of ORAN to the US is mainly due to the increasing uptake of IoT II and OT, together with growing research and development activities that will lead to more effective solutions for ORAN. Apart from this, the United States government considers open RAN a useful strategy for cell phone service providers not to use telecommunications equipment provided by Chinese manufacturers like Huawei and ZTE.
Author Credits: Abhishek Verma
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