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O-RAN Market Segmented By Hardware, Software and Services Component with 3G, 4G and 5G technology
Open RAN” is the movement in wireless telecommunications to disaggregate hardware and software and to create open interfaces between them. O-RAN opens the interface between the BBU and RRU / RRH which enables any vendor’s software to work on any open RRU / RRH. open interfaces enable the use of one supplier's radios with another's processors – which is not possible with CRAN or vRAN.
Open RAN makes the RAN open within all aspects and components, with the interfaces and operating software separating the RAN control plane from the user plane
Increasing demand for flexible network coverage among customers is prompting companies to invest in network infrastructure to provide reliable network coverage and data transformation services
Companies are looking for a solution that would increase the return on investment by investing in network infrastructure for network coverage. O-RAN is a cost-effective solution for network service providers to manage data traffic with efficient operational and capital expenditure.
O-RAN helps reduce CAPEX and OPEX of service providers and also helps enhance the quality of packet data transfer.
Service providers are adopting macro cell architecture or small cell architecture to provide network coverage to small businesses, shopping malls, public places, and offices, with low investment and maintenance cost in network infrastructure. Minimization of CAPEX and OPEX in network infrastructure for indoor and outdoor networks is expected to boost the demand for virtualized radio access networks.
In 1950’s the first terrestrial microwave telecommunication system was installed to support 2400 telephone circuits. The Improved Mobile Telephone System (IMTS) was developed with simultaneous transmit and receive.
In 1962, the first communication satellite, Telstar, launched into orbit, and in 1970, Packet switching emerged as an efficient means of data communication, with the X.25 Standard emerging late in the decade. In 1992, the one-millionth host connected to the Internet, with the size now approximately doubling every year.
In 1994, FCC licensed the Personal Communication Services (PCS) spectrum (1.7 to 2.3 GHz) for US$7.7 Bn. In late 1990’s, Virtual Private Networks (VPNs) based on the Layer 2 Tunneling Protocol (L2TP) and IPSEC security techniques became available.
The 21st century communications landscape has been characterized by virtualization and digital transformation, as well as a preference for open source technologies rather than proprietary, monolithic solutions. The need for flexible and more cost effective solutions to manage the 5G base station has driven the demand for O-RAN in 2020.
In this technological era, wireless networking is gaining major importance across all industries in order to fulfill the challenges of the future.
Faster networking data rates, lower latencies, and higher bandwidth are major requirements across industries in order to expand business operations. Private LTE and 5G networking are supporting these requirements. To establish a strong network capability, the demand for O-RAN is increasing across the globe.
The investment on 5G infrastructure is expected to have a positive impact by increasing R&D activities and product innovation. Following are the companies that are building the value chain of 5G networking and can help in pioneering the 5G market:
Increasing poor backhaul connectivity of mobile networks is expected to restraint the vRAN market. Backhaul connectivity is often utilized in telecommunication services and is used for transmitting a signal from a remote location or network to another site, usually for a central one.
In small cell networks, connectivity of mobile networks is poor, which has a negative impact on the performance of data transmission. Increasing demand for data management is seen with the use of small cells for network connectivity. Increasing data traffic through small cells is a key reason for poor data management and it also creates data security issues.
Poor backhaul connectivity and data management process is thus expected to restrain the market during the forecast period
Based on component, the O-RAN market has been segmented as
Based on technology, the O-RAN market has been segmented as
Based on the region, the O-RAN market has been segmented as
Key players such as Fujitsu Ltd., NEC Corporation, Rakuten, Inc., Samsung Electronics Co., Ltd, Qualcomm Technologies, Inc., AT&T, Inc., Cisco Systems, Inc., NewEdge Signal Solutions, Verizon, VMware, Inc., ASOCS, Deutsche Telecom AG, Nokia Corporation, Huawei Technologies Co., Ltd. and others are actively involved in offering O-RAN for different applications.
The manufacturers involved in the production of O-RANs are carrying out different expansion strategies for increasing their market share in the global proteins market. Key players are focused towards acquisition and collaboration for providing better experience to their customers.
United Kingdom: The U.K. government aim is to strengthen O-RAN technology by collaborating with Vodafone U.K, so as to deploy 2,600 O-RAN sites in Wales and England, till 2022 time frame.
Germany: Germany is leading the charge in advancing Industry 4.0 transformation in Europe. The O-RAN vendors such as Telefonica, S.A., NEC Corporation among others are taking initiative in providing 5G O-RAN solution across Germany, based on the specifications of the O-RAN Alliance.
China: OpenRAN technology is growing fast in China. Till 17 December 2020, approximately 44 Chinese companies joined to O-RAN Alliance, so as to expand OpenRAN/vRAN architecture across China. The main aim is also to have a control on technical specifications and supply chain of OpenRAN 5G products and services across China.
India: In India OpenRAN/vRAN solutions is going to be next big wave of virtualization. For instance, in April 2020 Vodafone Idea Limited (VIL), India’s leading telecom operator, has expanded Open RAN based deployments in India with OpenRAN solution providers. So, Vodafone Idea Limited (VIL), has been engaged to develop openRAN robust solution providing RAN functionality, so as to deal with the network congestion and traffic requirements of Indian networks.