Open Radio Access Network Market Trends

Growth Drivers

• Improved network automation: It is a key benefit of O-RAN market is it allows operators to use intelligent software (like RIC and rApps) to manage and optimize the network automatically, reducing manual work. In February 2023, Juniper Networks, in partnership with Vodafone, successfully tested Open RAN applications on Juniper’s RAN Intelligent Controller (RIC) platform. The trial used live traffic on Vodafone’s network and showed that open, software-based networks can help mobile operators manage costs, improve services, enhance customer experience, and support sustainability.
• Growing demand for 5G networks: The rising 5G networks demand is strongly driving the market as telecom companies need networks that are faster, more flexible, and more affordable. O-RAN helps by allowing operators to use equipment and software from different vendors instead of relying on just one supplier. This makes building and expanding 5G networks easier and less expensive. It also helps improve network performance, supports new services, and encourages innovation. According to a press release by IBEF, in March 2025, India’s 5G subscriber base is anticipated to expand up to 2.65 times, reaching 770 million by 2028, up from 290 million in 2024. As more people and businesses use high-speed mobile data, cloud services, and smart devices, telecom companies are increasingly choosing O-RAN to meet these growing 5G needs efficiently.
• Innovation and rapid technology updates: These are important factors driving the O-RAN market because they allow telecom companies to quickly improve and upgrade their networks. O-RAN uses open and flexible systems, making it easier to add new features, update software, and adopt the latest technologies without changing the entire network. This helps operators keep up with fast-changing technology, improve network performance, and introduce new services faster. In October 2023, Vodafone announced the fast-track development of new platforms for Open RAN using the Arm architecture intended to meet the rising demand for faster, and environmentally sustainable mobile connectivity. As the telecom industry continues to evolve, open radio access network market is supported by continuous innovation while reducing costs and complexity.

Challenges

• High initial investment: Operators of the Open RAN networks require a significant amount of investment to purchase multiple equipment from different sellers, set up cloud infrastructure, and integrate new software with existing systems for installation. Unlike traditional networks where a single vendor provides end-to-end solutions, Open RAN needs additional testing, validation, and coordination to ensure all components work together smoothly. This increases the deployment time and cost. The Open RAN can reduce long-term expenses, but the initial setup cost remains a major financial challenge for telecom operators in the Open Radio Access Network (O-RAN) market.
• Skill and expertise gap: Open RAN networks are comparatively more complicated than traditional single-vendor networks. It requires engineers and technicians with specialized skills, as it is important to understand how to handle equipment from different companies, use cloud-based software, control network automation, and manage tools that improve performance. A number of operators lack skilled people, leading to slows down of setup, causing significant problems with network performance. To overcome this, companies in the market are investing in training programs or hiring experts, which adds extra time and cost.