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Allied Market Research Forecasts Meteoric Rise: Cloud RAN Market Set to Reach $85.9 Billion by 2031 with a CAGR of 23.4%
In a recent report titled "Cloud RAN Market" published by Allied Market Research, the market size for cloud radio access network (C-RAN) was valued at $11.1 billion in 2021 and is anticipated to reach $85.9 billion by 2031, with a projected compound annual growth rate (CAGR) of 23.4% from 2022 to 2031.C-RAN is an advanced mobile network architecture designed to address challenges faced by operators, such as rising operating and capital expenses, in meeting the growing demands of end users. The primary objective of C-RAN is to centralize the transmission of in-phase and quadrature (IQ) data from multiple base stations to baseband units (BBUs) in a centralized BBU pool, providing advantages like statistical multiplexing. This technology enables cost savings in baseband resources and energy-efficient network operation. It also enhances network capacity through load balancing and collaborative signal processing from various base stations.
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Despite its benefits, the growth of the C-RAN market is hindered by strict government regulations and the necessity to adhere to security standards during the forecast period.
Impact of COVID-19 on the Global Cloud RAN Industry:
• Due to social distancing conventions and state-wide lockdowns, the COVID-19 pandemic has inevitably resulted in an increase in the usage of digital technologies. Individuals and organizations have had to adapt to new ways of living and working globally.
• During the COVID-19 epidemic, communication service providers faced four operational issues. Security of network data, ensuring the continuity of operations, adjusting to new traffic patterns, and ensuring the quality of crucial services are some of these.
• Dye to the lockdown, most people have turned to the internet and internet-based services to communicate, connect, and continue with their professional tasks from home. Utilization of internet services has increased from 40% to 100% as compared to pre-lockdown levels.
• Organizations upgrade their IT infrastructure to accommodate the increased use of video and audio-conferencing solutions. During the pandemic, due to work from home, the organizations have Increased spending on network infrastructure, bandwidth growth, and cloud-based applications. To secure the data organizations using C-RAN technology.
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The rapid progress of the mobile telecommunications sector, particularly with the advent of 5G networks, underscores the critical role played by C-RAN. Operators can achieve cost savings in both operating expenses (OPEX) and capital expenditures (CAPEX) while improving network performance and reducing the total cost of ownership (TCO) through C-RAN. This technology is particularly important in low-latency network scenarios. Other advantages include resource pooling, support for different technologies, streamlined network operations and management, infrastructure reuse, and reduced energy consumption. These key aspects are expected to drive the global Cloud RAN market's expansion over the forecast period.
The global C-RAN market is segmented based on technology, component, network type, deployment venue, and region. Technology sub-segments include virtualization technology and centralization technology. Component sub-segments comprise solutions and services, while network types include 5G, 4G, and 3G. Deployment sub-segments categorize indoor and outdoor installations. The market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Key players in the Cloud RAN industry, as profiled in the report, include FUJITSU, ZTE Corporation, Intel Corporation, Telefonaktiebolaget LM Ericsson, Cisco Systems, Inc., Huawei Technologies Co., Ltd., ASOCS Ltd., SAMSUNG, NEC Corporation, and Nokia.
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The report provides a comprehensive analysis of global C-RAN market trends by examining various aspects, such as major segments, market statistics, dynamics, regional outlooks, investment opportunities, and leading players contributing to market growth. Additionally, the report highlights the current scenario and upcoming trends and developments fostering market growth. It also addresses constraints and challenges that could impede market growth, featuring Porter's five forces analysis to elucidate factors like the competitive landscape, bargaining power of buyers and suppliers, threats of new entrants, and the emergence of substitutes in the market.
Key Findings of the Study:
• Based on type, the centralization technology sub-segment emerged as the global leader in 2021, and the virtualization technology sub-segment is anticipated to be the fastest-growing sub-segment during the forecast period.
• Based on components, the services sub-segment emerged as the global leader in 2021, and the solutions sub-segment is predicted to show the fastest growth in the upcoming years.
• Based on network type, the 4G sub-segment emerged as the global leader in 2021, and the 5G sub-segment is predicted to show the fastest growth in the upcoming years.
• Based on deployment venue, the outdoor sub-segment emerged as the global leader in 2021, and the indoor sub-segment is predicted to show the fastest growth in the upcoming years.
• Based on region, the North American market registered the highest market share in 2021 and is projected to maintain the position during the forecast period.
• The report also provides an in-depth Cloud RAN Market Analysis.
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Lastly, this report provides market intelligence most comprehensively. The report structure has been kept such that it offers maximum business value. It provides critical insights into the market dynamics and will enable strategic decision-making for the existing market players as well as those willing to enter the market.
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