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Revolutionizing Connectivity: Mobile Operators to Pour $30 Billion into Open RAN Networks by 2030

  • Posted on November 13, 2023
  • Technology
  • By Arijit Dutta
  • 454 Views

Mobile operators are gearing up to invest over $30 billion in open radio access networks (RAN) by 2030, revolutionizing global connectivity. This surge, with a 24% CAGR, is driven by industry-wide standards facilitating cost-effective 4G and 5G network deployment. Major players like Vodafone are leading the charge, with Europe expected to witness the fastest growth.

Revolutionizing Connectivity: Mobile Operators to Pour $30 Billion into Open RAN Networks by 2030 Image Source -www.accelercomm.com

Mobile operators are poised to embark on a groundbreaking venture, set to inject a staggering $30 billion into open radio access (RAN) networks worldwide by 2030. This substantial investment is anticipated to shape the future of global connectivity, presenting a remarkable 24% compound annual growth rate (CAGR) over the specified period, as revealed in the latest industry report.

The concept of open RAN revolves around adhering to industry-wide standards, enabling telecom suppliers to align their equipment production seamlessly. This innovative approach is hailed for its potential to significantly reduce deployment costs, enhance operational simplicity, and expedite the rollout of new features within the framework of cloud-based infrastructure.

Open RAN's Evolution: 

The rise of open RAN networks has witnessed substantial growth, primarily propelled by greenfield network operators in the Asia-Pacific and North American regions, as indicated by Counterpoint Research. While these operators have been fervently expanding their networks in recent years, the focus is shifting towards lowering capital expenditures in 2023 and 2024, concentrating on network monetization strategies.

A turning point in the industry has been marked by the announcements of major operators such as Vodafone about their ambitious ambitions to install open RAN. However, given the unstable financial environment, brownfield network operators are exercising care, particularly when implementing 5G infrastructure through open RAN.

Future Projections: 

The market for open RAN is expected to stabilize in 2023 and 2024 and then continue to develop steadily after 2025. According to the research, network operators are expected to invest a total of more than $30 billion between 2022 and 2030. Notably, the largest markets are predicted to be North America and the Asia-Pacific area, with Europe forecast to develop at a phenomenal 108% CAGR between 2023 and 2030.

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Market Dynamics and Dominance: 

Fujitsu, NEC, and Asian vendors like Samsung have dominated the open RAN-compliant radio market. However, Counterpoint Research anticipates a shift in market share dynamics during the forecasted period (2023 to 2030) as new incumbents enter the arena, offering competitive open RAN-compliant solutions.

In essence, the $30 billion investment initiative reflects a pivotal moment in the evolution of global connectivity, with open RAN networks poised to reshape the landscape of telecommunications technology.

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Arijit Dutta

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