Report: Global 5G RAN market shows strong growth

Global demand for 5G RAN is expected to grow at a healthy CAGR of 28.7% between 2022 and 2032, reaching a net asset value of US$34.2 billion in 2032, according to a new report from Future Market Insights.

5G RAN Market Cellular devices use radio waves to communicate. These devices convert the user's voice and mobile data into digitized signals that are sent in the form of radio waves. The Radio Access Network (RAN) is implemented to ensure the proper functioning of cellular devices and connect them to the network or the Internet.

RAN uses radio wave transceivers to connect devices to the cloud infrastructure. Most transceivers or base stations are connected to the mobile core network via fiber optic backhaul. RAN provides radio communication access and helps coordinate network resources across all wireless devices.

Wireless devices connect to the cellular network via Long Term Evolution (LTE) or 5G New Radio (NR) connections. Silicon chips in the core network and cellular mobile devices complement the functionality of the RAN.

Future Market Insights said that as cellular network technology reaches 5G, RAN has undergone significant changes in the past few years. Today, 5G RAN technology is able to support massive multiple input multiple output (Massive MIMO) technology, multi-band carrier aggregation, huge spectrum bandwidth, etc.

According to the report, infrastructure has been the top priority for strategic investment in various countries. The telecommunication industry is growing rapidly as governments are making huge investments in IT infrastructure. National governments and public organizations are making huge investments to improve national telecommunication infrastructure. This trend is estimated to drive the adoption of 5G RAN in each regional market.

Strategic investments in the telecommunications sector help governments harness the potential to create jobs and drive economic growth in countries. The continued advancement of 5G technology has great potential to transform the telecommunications industry vertical and enhance the user experience for end users.

Many companies in the global telecommunication industry are focusing on upgrading their existing network infrastructure to 5G network infrastructure. This will help such telecommunication service providers to provide services with high performance and high-speed connectivity.

Therefore, huge investments aimed at upgrading the country’s telecommunication infrastructure is a key factor driving the adoption of 5G RAN technology during the forecast period.

Impact of the COVID-19 Pandemic on the 5G RAN Market

The report said that the rising number of infections around the world has forced governments to announce nationwide lockdowns. These lockdowns have restricted the large-scale deployment of 5G technology around the world. It is estimated that the deployment of 5G technology in key vertical industries such as automotive, transportation, and logistics will promote the adoption of 5G RAN solutions and services.

Lockdowns legislated by governments to prevent the spread of infection have limited 5G deployment. The government and public sector, as well as the healthcare vertical, are expected to see a surge in adoption. However, overall growth rates are expected to continue as 4G LTE adoption continues.

Regional Overview

The 5G RAN market in North America and Europe leads all other regional markets globally. The strong market share can be attributed to the high presence of 5G technology solutions and service providers in the region.

Initiatives and investments deployed by government agencies are also driving the adoption of 5G technology, thereby boosting the 5G RAN market. Advances in 5G technology for automotive and smart transportation are playing a key role in driving the growth of the 5G RAN market in European economies such as Germany and the UK.

The 5G RAN market in the Southeast Asia Pacific region is expected to witness strong growth during the forecast period. The 5G RAN market in Latin America and the Middle East and Africa will witness slower growth during the forecast period as LTE Advanced technology is still spreading in these regional markets.