The network ecosystem is on the verge of transforming

By Khusro Khan


Transparency Market Research

April 16, 2018


The network ecosystem is on the verge of transforming

According to a recent market report, the global Cloud Radio Access Network (C-RAN) market is expected to see substantial growth.

According to a recent market report, the global Cloud Radio Access Network (C-RAN) market is expected to see substantial growth due to the adoption of C-RAN architecture by telecom operators. The network ecosystem is on the verge of transforming thanks to increasing demand of 5G technologies and C-RAN (IoT) generating data requirements for new services and applications. In addition, reduced charges for Operational Expenditure (OPEX) and Capital Expenditure (CAPEX) along with appropriate 4G and 5G accessibilities are major drivers for the industry. 

Growing demand of smartphones, benefits offered by C-RAN, lower total-cost-of-ownership, enhanced spectral efficiency, and continuous replacement of conventional RAN architecture with C-RAN are few other factors positively influencing the market. However, the interface between the baseband unit and remote radio unit may hinder the industry growth over the forecast period. The fully centralized technique has been accepted for C-RAN, which requires massive communication overhead on the front haul link along with high cost optical fiber, creating a major hindrance for market growth. Telecom and network operators, government council, research organizations, infrastructure architects, investors, and venture capitalists are few major clients of C-RAN market. The market has been segmented by technological aspects such as centralization and virtualization. Under the component segment, the C-RAN market has been segregated into infrastructure, services, and solutions. Based on application, the market is categorized into large public venues, suburban and rural areas, targeted outdoor urban areas, and high-density urban areas. Among these, the targeted outdoor urban area segment is anticipated to grow promptly owing to the benefits including enhancement of existing infrastructure, cost reduction, and performance efficiency.

The Asia Pacific region is expected to acquire the major share of the market owing to the stringent rules and initiatives taken by the network operators and government in various countries such as South Korea, Japan, and China. These regions are expected to rollout 5G deployment generating enormous demand for C-RAN deployment over the forecast period. China has emerged as the most productive country owing to its accumulative demand for mobile communication services at reasonable costs.

In the North America region, the telecom and network companies are aggressively conducting trials for C-RAN deployment. Various installments of cells have been done to lay down the foundation to cumulate the network for upcoming 5G deployment. Also, various C-RAN services and solution providers from Europe are proposing advanced C-RAN solutions.

The key industry players include ZTE Corporation, Nokia Corporation, Fujitsu Ltd, and Huawei Technologies Co., Ltd.,. The adoption of Network Function Virtualization (NFV) is expected to provide enormous opportunity to the semiconductor vendors in the C-RAN Market. Cisco Systems Inc., Ericsson AB, Agilent Technologies, Inc., Ceragon Networks Ltd, Actix International Limited, Intel Corporation, Hitachi Data Systems Ltd., Telco Systems, Aricent Inc. are few other players in the industry.

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